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20171003 Regular City Council Meeting - Packet California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the Office of the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary, and on the City's website at www.cityofvemon.org. Americans with Disabilities Act ("ADA"): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon Regular City Council Meeting Of V Tuesday, October 3, 2017, 9:00 a.m. v~� F°"" off City Hall, Council Chamber 4305 Santa Fe Avenue Vernon, California Melissa Ybarra,Mayor s�1"tix 1?49 A Yvette Woodruff-Perez,Mayor Pro-Tem William J. Davis, Council Member Luz Martinez, Council Member Leticia Lopez, Council Member CALL TO ORDER& FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. PUBLIC HEARING Public Works Department 1. ORDINANCE NO. 1247 - An Ordinance of the City Council of the City of Vernon Amending Chapters 24, Building and Construction, and 26, Zoning, of the Vernon Municipal Code, modifying the 2016 California Green Building Standards Code and Permitting By Right Incidental Uses and modifying the Parking and Loading Requirements For Such Uses In The Industrial "I" Zone; and repealing all ordinances or parts of ordinances in conflict herewith (First Reading) Regular City Council Meeting Agenda October 3, 2017 Recommendation: A. Find that approval of the proposed Ordinance is exempt from California Environmental Quality Act(CEQA) as it is not considered a"project"under CEQA which is defined as an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, Cal. Pub. Res. Code Section 21065. Under the proposed ordinance, no such activity is being undertaken. Even if the ordinance were to be considered a "project" under CEQA Guidelines Section 15061(b)(3) which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment,the activity is not subject to CEQA. Here, the ordinance involves the adoption of amendments to revise state-mandated construction codes merely to improve the safety of buildings and will not have any effect on the environment; and B. Open a Public Hearing and receive any comments from the public regarding the proposed amendments, and thereafter close the Public Hearing; and C. Approve the first reading, and adopt at a subsequent meeting, an Ordinance amending Chapter 24 of the Vernon Municipal Code regarding the 2016 Green Building Standards Code and Chapter 26 regarding Incidental Uses. CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City—Received and Filed 2. None Minutes—To be Received and Filed 3. Minutes of the Special City Council Meeting held August 30, 2017 4. Minutes of the Regular City Council Meeting held September 5, 2017 5. Minutes of the Regular City Council Meeting held September 19, 2017 Warrant Registers 6. Ratification of the following City Warrant Register to record the following voided checks: A. City Warrant Register No. 1477 to record voided Check No. 355329 in the amount of$208.00. 7. Ratification of the following Light& Power Warrant Registers to record the following voided checks Page 2 of 9 Regular City Council Meeting Agenda October 3, 2017 A. Light &Power Warrant Register No. 444 to record voided Check No. 512881 in the amount of $150.00. 8. Approval of City Warrant Register No. 1480, totaling $1,067,160.74, which covers the period of September 12 through September 25, 2017, and consists of the following: A. Ratification of wire transfers totaling $338,386.75; and B. Ratification of the issuance of early checks totaling $682,420.87; and C. Authorization to issue pending checks totaling $46,353.12. 9. Approval of Light & Power Warrant Register No. 445, totaling $6,153,713.10, which covers the period of September 12 through September 25, 2017, and consists of the following: A. Ratification of wire transfers totaling $6,043,609.09; and B. Ratification of the issuance of early checks totaling $31,427.44; and C. Authorization to issue pending checks totaling $78,676.57. 10. Approval of Gas Warrant Register No. 233, totaling $1,859,075.26, which covers the period of September 12 through September 25, 2017, and consists of the following: A. Ratification of wire transfers totaling $1,857,103.91; and B. Ratification of the issuance of early checks totaling $1,971.35. City Clerk Department 11. Re-installation of California Historical Landmark No. 167—La Mesa Battlefield Site Recommendation: A. Find that the proposed action is exempt from California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15031, because the installation of a small concrete pedestal and memorial plaque involves minor exterior construction with negligible or no expansion of use; and B. Approve an advanced deposit with the Native Sons of the Golden West to manufacture the California Historical Landmark No. 167 memorial plaque and assist with preparation of a dedication ceremony, for an amount not to exceed $3,000; and C. Authorize Public Works to install the memorial plaque, to be located in the City Hall courtyard at 4305 S. Santa Fe Avenue, Vernon CA, 90058. Page 3 of 9 Regular City Council Meeting Agenda October 3, 2017 Fire Department 12. Activity Report for the period of August 16 through August 31, 2017 13. Activity Report for the period of September 1 through September 15, 2017 Human Resources Department 14. Adoption of Revised City of Vernon Personnel Policies and Procedures —Respiratory Protection Program,VI-1 Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is an administrative activity that will not result in direct physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Adopt the attached Revised Personnel Policy and Procedure — Respiratory Protection Program, VI-I; and C. Authorize the City Administrator to revise and update Appendix A—Job Classifications Covered by a Mandatory Respiratory Program, as needed to reflect changes and/or updates in job classifications and work functions requiring use of respirators; and D. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policy to all employees. Police Department 15. Activity Log and Statistical Summary of Arrests and Activities for the period of September 1, through September 15, 2017 to be received and filed Public Works Department 16. Acceptance of Electrical Easement at 4490 Avers Ave. (APN 6304-001-025) Recommendation: A. Find that the acceptance of the Electrical Easement proposed in this staff report is not a "project" as that term is defined under the California Environmental Quality Act(CEQA)Guidelines Section 15378, and even if it were a project, it would be categorically exempt in accordance with CEQA Guidelines Sections 15301 (maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use) and 15061(b)(3) (general rule that CEQA only applies to projects that may have a significant effect on the environment); and Page 4 of 9 Regular City Council Meeting Agenda October 3, 2017 B. Accept the Electrical Easement, in substantially the same form as attached to this staff report, and authorize the Mayor to execute the Certificate of Acceptance. 17. Acceptance of Utility Easement from Alameda Corridor Transportation Authority ("ACTA"), Assessor's Parcel Numbers 6302-009-042 & 045 Recommendation: A. Find that the acceptance of the Easement proposed in this staff report is not a"project"as that term is defined under the California Environmental Quality Act(CEQA)Guidelines Section 15378, and even if it were a project, it would be categorically exempt in accordance with CEQA Guidelines Sections 15301 (maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use) and 15061(b)(3) (general rule that CEQA only applies to projects that may have a significant effect on the environment); and B. Accept the Easement, in substantially the same form as attached to this staff report, and authorize the Mayor to execute the Certificate of Acceptance. NEW BUSINESS City Administration Department 18. A Resolution of the City Council of the City of Vernon approving the ground lease re-assignment and sublease at 2970 E.50th Street and authorizing the execution of related ground lessor estoppel, consent and ground lease amendment Recommendation: A. Find that approval of the resolution proposed in this staff report is exempt from the California Environmental Quality Act("CEQA"),because it is an administrative action that will not result in direct or indirect physical changes in the environment,and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Adopt a resolution approving the ground lease re-assignment and sublease at 2970 E. 501h Street and authorizing the execution of related Ground Lessor Estoppel, Consent and Ground Lease Amendment. Fire Department 19. Request to Repeal and Approve a Revised Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon in Connection with the Fiscal Year 2014 Urban Areas Security Initiative Grant Program Recommendation: Page 5 of 9 Regular City Council Meeting Agenda October 3, 2017 A. Find that approval of the amendment proposed is exempt from California Environmental Quality Act ("CEQA") review, because it is a government fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Repeal the Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon in connection with the Fiscal Year 2014 Urban Areas Security Initiative("2014 UASI") grant program,that was approved by City Council on September 20, 2016; and C. Approve a revised Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon, in substantially the same form as submitted herewith, and authorize the Mayor to execute documents necessary to obtain additional grant funds and extend the performance period. Public Utilities Department 20. Authorize the Issuance of a Purchase Contract with OneSource Distributors for Two Metal- Enclosed Switchgears Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA")review,because accepting and awarding a bid is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. As to the replacement of electrical distribution transformers, the proposed action is exempt from CEQA review, in accordance with CEQA Guidelines § 15302, because the proposed project consists of the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced; and B. Approve and authorize the issuance of a purchase contract with OneSource Distributors, for an amount not to exceed $227,160.25, including taxes and fees, for two (2) metal-enclosed switchgears. 21. Approval of Fourth Amendment to the Power Purchase Tolling Agreement with Bicent California Malburg LLC Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing maintenance activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and Page 6 of 9 Regular City Council Meeting Agenda October 3, 2017 B. Approve the Fourth Amendment to the Power Purchase Tolling Agreement with Bicent California Malburg LLC, in substantially the same form as submitted herewith, for the purpose of lowering the Malburg Generating Station (MGS) minimum dispatch level from the existing 80 megawatts (MW) level to 70MW; and C. Authorize the General Manager of Public Utilities to execute the Fourth Amendment to the Power Purchase Tolling Agreement(PPTA)with Bicent California Malburg LLC. 22. Award of a Services Agreement to JRM for Unarmed Security Guard Services Recommendation: A. Find that the approval of the proposed action is exempt from California Environmental Quality Act("CEQA")review,because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve the Services Agreement with JRM for unarmed security guard services, in substantially the same form as submitted herewith, for a total amount not-to-exceed$1,267,968 over the three- year term of the agreement; and C. Authorize the City Administrator to execute the proposed Services Agreement with JRM with an effective date of October 30, 2017; and D. Authorize the City Administrator to issue change orders,if necessary, for an amount not-to-exceed $90,000 over the three-year term of the agreement. 23. Award of a Services Agreement to NewGen Strategies and Solutions,LLC for Cost of Service and Rate Design Study Recommendation: A. Find that awarding the bid as outlined in the staff report is exempt from California Environmental Quality Act("CEQA")review,because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. And even if such activity were deemed a"project,"it would be exempt from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve a Services Agreement with NewGen Strategies and Solutions,LLC for services regarding the Cost of Service and Rate Design study for the Public Utilities Department, for a compensation amount not-to-exceed$69,815 over the one-year term of the agreement; and C. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith, with NewGen Strategies and Solutions, LLC; and Page 7 of 9 Regular City Council Meeting Agenda October 3, 2017 D. Authorize the City Administrator to issue change orders, if necessary, that may increase compensation for NewGen Strategies and Solutions, LLC in an amount not-to-exceed $15,000 over the one-year term of the agreement. 24. Award of a Services Agreement with Black & Veatch Management Consulting, LLC for the Development of an Integrated Resource Plan Recommendation: A. Find that awarding the bid as outlined in the staff report is exempt from California Environmental Quality Act("CEQA")review,because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. And even if such activity were deemed a"project," it would be exempt from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve a services agreement with Black & Veatch Management Consulting, LLC ("Black and Veatch") for services regarding the development of an Integrated Resource Plan for the Public Utilities Department, for a compensation amount not-to-exceed $175,000 over the one-year term of the agreement; and C. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith, with Black&Veatch; and D. Authorize the City Administrator to issue change orders, if necessary, that may increase compensation for Black & Veatch in an amount not-to-exceed $30,000 over the one-year term of the agreement. 25. Approval of Water Rights License and Agreement for Liberty Utilities Recommendation: A. Find that approval of the proposed action is exempt under the California Environmental Quality Act ("CEQA"), because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve a Water Rights License and Agreement with Liberty Utilities, in substantially the same form as submitted herewith,to lease 1,000 acre feet from the City of Vernon's Allocated Pumping Rights in the Central Basin for a lease unit price per acre foot is $150.00 for a revenue total of $150,000 to be placed into the Public Utilities Water Fund Revenue Account; and C. Authorize General Manager of Public Utilities to execute the Water Rights License and Agreement with Liberty Utilities. Page 8 of 9 Regular City Council Meeting Agenda October 3, 2017 ORAL REPORTS 26. City Administrator Reports brief reports on activities and other brief announcements. 27. City Council Reports brief AB1234 reports, or report on: activities, announcements, or directives to staff. CLOSED SESSION 28. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code Section 54956.8 Property: 2800-2900 E. 50th Street, Vernon, California Agency negotiator: Carlos Fandino, City Administrator Negotiating parties: Crown Poly and/or Assignee Under negotiation: Price and Terms of Payment 29. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code Section 54956.9(d)(1) Jerrick Torres and Lyndon Ong Yiu vs. City of Vernon, et al. Los Angeles Superior Court Case No. BC620265 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall,located at 4305 Santa Fe Avenue, Vernon, California, and on the City's website,not less than 72 hours prior to the meeting set forth on this agenda. Dated this 281h day of September 2017. By: Maria E. Ayala City Clerk Page 9 of 9 RECEIVED RECEIVED SEP 2 8 2017 SEP 21 2017 mar CITY CLERK'S OFFICE STAFF REPORT ,T, QMINISSRATION PUBLIC WORKS DEPARTMENT C1XZ??-4 DATE: October 3,2017 TO: Honorable Mayor and City Council FROM: Daniel Wall, Director of Public Works Department Originator: Kevin Wilson, Interim Public Works Director RE: An Ordinance of the City Council Proposing Minor Amendments to Chapters 24 and 26 of the Vernon Municipal Code Recommendation A. Find that approval of the proposed Ordinance is exempt from California Environmental Quality Act (CEQA) as it is not considered a "project" under CEQA which is defined as an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, Cal. Pub. Res. Code Section 21065. Under the proposed ordinance,no such activity is being undertaken. Even if the ordinance were to be considered a "project" under CEQA Guidelines Section 15061(b)(3) which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here,the ordinance involves the adoption of amendments to revise state- mandated construction codes merely to improve the safety of buildings and will not have any effect on the environment; and B. Open a Public Hearing and receive any comments from the public regarding the proposed amendments, and thereafter close the Public Hearing; and C. Approve the first reading, and adopt at a subsequent meeting, an Ordinance amending Chapter 24 of the Vernon Municipal Code regarding the 2016 Green Building Standards Code and Chapter 26 regarding Incidental Uses. Bacl round The State of California Building Standards Commission has contacted City staff regarding City Ordinance No. 1237,approved by City Council on December 6,2016,which adopted amendments to the 2016 California Building Code. All amendments are required to be submitted to the Building Page 1 of 3 Standards Commission for acceptance and filing. The State has questioned the City's adoption of the 2016 Green Building Standards Code and has refused to file the City's amendments until such time as the City correctly adopts this Code. In accordance with State law,a City with the exception of administrative provisions is only permitted to amend a State Building Standard based on climatic, topographical or geological conditions. In this instance, the City adopted several amendments to the 2016 California Green Building Standards Code based on administrative reasons. The State is not accepting this rationale. The State has advised that the City should either rescind the amendments or amend the adopted ordinance to reflect that the amendments are necessary due to climatic,topographical or geological conditions within the City. City staff has reviewed the amendments that the City made to the Green Building Standards Code. Other than the modifications to the fee schedule, staff has determined that all other amendments are not necessary. These amendments included the addition of one definition,minor grammatical changes to clarify code language and modifications to voluntary requirements which the City is not enforcing. The subject amendments were recommended by the International Code Council, Los Angeles Basin Chapters, Green and Sustainability Committee as part of the Los Angeles Region Uniform Code Program. The City adopted these amendments in an effort to have a uniform code throughout the Los Angeles region. It is therefore recommended that the City adopt an ordinance deleting City Code Sections 24.107 (b)-(p), only maintaining Section 24.107(a) which adopts the City's fee schedule versus the fee schedule specified in the Green Standards Code. The proposed amendment is shown in Exhibit "A„ Zoning Code The City adopted its current Zoning Ordinance on January 16, 2008 establishing Chapter 26 of the Vernon Municipal Code. Since that time other minor amendments have been made to the City's Zoning regulations. In order to streamline the City's development review process City staff is recommending that an additional change be made to the Zoning Ordinance concerning Incidental Uses. The term Incidental Uses is defined to mean, a use that is in connection with a Person's Permitted Use, such as office, design area, or showroom space, that occupies more than twenty Percent (20%),but less than fifty percent(50%)of the gross Floor Area. Incidental Use does not include a Retail Use, but may include mail order or internet sales in connection with a Permitted Use. Currently an Incidental Use requires a Minor Conditional Use Permit. The purpose of a Conditional Use Permit ("CUP") is to allow the proper integration of uses into the community which may be suitable in specific locations or designed and constructed in a particular manner or under certain conditions. Typically,uses in the City of Vernon that are subject to a CUP could cause a nuisance to a neighboring property or the community as a whole, unless conditions are placed on the use to protect neighboring properties. In this instance, the only nuisance that could be caused by an Incidental Use is an increase in street parking demand caused by an increase in employees or visitors. However,this could be rectified by incorporating parking and loading regulations for an Incidental Use. Currently,parking issues would be resolved through Page 2 of 3 the CUP process. The current parking and loading regulations specifically allow the parking requirements to be increased as part of the CUP process. A Conditional Use Permit takes considerable staff time to process the application. Normally it can take three to six months to process a CUP. Therefore, a business proposing a small addition to an existing office area that causes the office to exceed the twenty percent threshold could take several months to approve. In order to streamline the process while continuing to provide protection to neighboring property owners it is recommended that the City develop a mandatory parking requirement for incidental uses and no longer require a CUP. Staff is recommending that the parking requirements for an Incidental Use be one space per 250 square feet of gross floor area utilized for an Incidental Use. This is the same ratio that is required for a Commercial Use,which includes a standalone office building. It is therefore recommended that the City adopt an ordinance amending Chapter 26 of the Vernon Municipal Code to no longer require a CUP for an Incidental Use and to establishing parking standards for an Incidental Use. The proposed amendments are shown in Exhibit"B". Fiscal Impact There is no fiscal impact to the City by adopting the proposed Ordinance. Attachment 1. Public Hearing Notice 2. Proposed Ordinance Page 3 of 3 y ..; 4305 Santa Fe Avenue { Vernon, CA 90058 City Of Vernon - _ti (323) 583-8811 NOTICE OF PUBLIC HEARING REGARDING THE PROPOSED ORDINANCE TO AIVOMND CHAPTERS 24 AND 26 OF THE VERNON MUNICIPAL CODE The City of Vernon will conduct a Public Hearing,which you may attend. PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue Vernon,CA 90058 DATE&TM E: Tuesday,October 3,2017 at 9:00 am. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: Consider the adoption of an Ordinance to amend the Vernon Municipal Code Chapter 24,Building and Construction regarding the 2016 Qreen Building Standards Code and Chapter 26, regarding Incidental Uses and repealing all prior ordinances and park of ordinances in conflict therewith. DOCUMENTS Notice is hereby given that a hard caps'of the proposed ord inance will be available for public review during normal business hours in the City Clerk- Department, located at 4305 Santa Fe Avenue,Vernon,California, bem-i- to the haws of7:00 a.m.and FOR REVIEW: 5:30 p.m. Monday through Thursday. Please send your comments or questions to: Daniel Wall,Director of Public Works City of Vernon 4305 Santa Fe Avenue,Vernon,CA 90058 (323)583-8811 Ext.305 Email:dwall.ribci.vernon.ca.us PROPOSED CEQA FINDING: Staff will recommend that the City Council find that this action is not subject to the California Environmental Quality Act(CEQA)as this ordinance is not considered a "project"under CEQA which is defused as a whole of an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonable foreseeable indirect physical change in the environment,Cal.Pub.Res.Code Section 21065.Under the proposed ordinance,no such activity is being undertaken. Even if the ordinance were to be considered a "project"under CEQA,which is not the case,the ordinance would be covered by the general rule set forth in CEQA Guidelines Section 15061(bx3)which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment.Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment,the activity is not subject to CEQA. Here,the ordinance involves the adoption of amendments to revise state-mandated construction codes merely to improve the safety of buildings and no longer require a minor conditional use permit for an Incidental Use and will not have any effect on the environment. If you challenge the adoption of an Ordinance to amend Chapter 24,Building and Construction and Chapter 26, Incidental Uses of the Vernon Municipal Code and repealing all prior ordinances and part of ordinances in conflict therewith or any provision thereof in court,you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at,or prior to,the meeting. Americans with Disabilities Act(ADA): In compliance with ADA, if you need special assistance to participate in the meeting,please contact the Office of the City Clerk at(323)583-8811 eat. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: — Maria E.Ayala,City Clerk ORDINANCE NO . 1247 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON AMENDING CHAPTERS 24, BUILDING AND CONSTRUCTION, AND 26, ZONING, OF THE VERNON MUNICIPAL CODE, MODIFYING THE 2016 CALIFORNIA GREEN BUILDING STANDARDS CODE AND PERMITTING BY RIGHT INCIDENTAL USES AND MODIFYING THE PARKING AND LOADING REQUIREMENTS FOR SUCH USES IN THE INDUSTRIAL %I" ZONE; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on December 6, 2016, the City Council of the City of Vernon adopted Ordinance No. 1237, adopting the 2016 California Building Code with amendments; and WHEREAS, the State of California Building Standards Commission has advised the City that it must modify its findings for the adoption of the 2016 California Green Building Standards Code; and WHEREAS, on January 16, 2008, the City Council of the City of Vernon adopted Ordinance No. 1227, adopting amendments to the comprehensive zoning ordinance of the City of Vernon; establishing zoning districts in the City and regulating and restricting the use, size, and the location of buildings and improvements on land; the use of land and open space; adopting a map showing said zoning districts, defining the terms used in the ordinance; providing for its adjustment, amendment and enforcement (the %zoning Ordinance") ; and WHEREAS, by memorandum dated October, 3 , 2017, the Director of Public Works has recommended that the amendments to the 2016 California Green Building Standards should be modified and that the City of Vernon Zoning Ordinance be amended to (i) redefine Incidental Uses, (ii) allow Incidental Uses in the industrial "I" zone as a matter of right; and (iii) establish parking requirements for Incidental Uses; and WHEREAS, a duly-noticed public hearing has been held to consider the proposed ordinance changes, and public testimony has been received and considered; and WHEREAS, Chapter 4 . 1 (f) and (h) of the Charter of the City of Vernon provides that an ordinance shall amend a code or repeal any ordinance or code previously adopted. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that all of the foregoing recitals are true and correct. SECTION 2 : Article XIV of Chapter 24 of the Vernon Municipal Code is hereby amended as set forth in Exhibit A, which is attached hereto and incorporated herein by reference. SECTION 3 : Chapter 26 of the Vernon Municipal Code is hereby amended as set forth in Exhibit B, which is attached hereto and incorporated herein by reference. SECTION 4 : Any ordinance, part of an ordinance, or code section in conflict with this Ordinance is hereby repealed. SECTION 5 : Severability. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or - 2 - effectiveness of the remaining portions of this Ordinance or any part thereof . The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 6 : Book of Ordinances . The City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. - 3 - SECTION 7 : Effective Date. This Ordinance shall go into effect and be in full force and effect at 12 : 01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this day of 2017 . Name : Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney - 4 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, , City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1247 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, October 3 , 2017, and thereafter adopted at a meeting of said City Council held on Tuesday, 2017, by the following vote: AYES: Councilmembers: NOES: Councilmembers : ABSENT: Councilmembers: And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of , 2017, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 5 EXHIBIT A Exhibit "A" Sec. 24.107. Green Building Standards Code amendments, additions, and deletions. The 2016 Edition of the California Green Building Standards Code is hereby amended as follows: (a) Section 10 1.12 is hereby added to the 2016 California Green Building Standards Code to read as follows: Section 101.12 Green building standards permit fee. Green Building Standards permit fees shall be set forth in a fee schedule adopted by resolution of the City Council. A reinspection fee may be assessed for each inspection or reinspection when such portion of the work for which an inspection is called is not complete or when corrections called for are not made. Reinspection fees may be assessed when the inspection record card is not posted or otherwise available at the work site, the approved plans are not readily available to the inspector, for failure to provide access on the date and time for which the inspection is requested, or for deviating from the plans requiring the approval of the building official. In instances where reinspection fees have been assessed,the city may deny additional inspection of the work until the required fees are paid. ' i hefeby amended to mad as felleyea-L —. W + 1 41!he desip And es } y ,I lrJ the :k+16 is •real Vl lJle CVLIAIti'.arru -he Fnand shall be p ed `--4.IhjH the rke p rrrr.4ted 1f 19YJL } ("e7 -em-M!OH ti r1114 2 a.cthp.7.946 Edition Af she hereby amended to read as fellevv&: r } rr n#Lon• ISa e.JL.eR on or- .•. `_8i#8 of L1Ya'4htfJfirii3 riM 31L112 d b .ir .7.L'IIJL VL I./4J\ Notes, ..,,....ry :An .;: and fo1lr Fr r .a T:.,.. ri..,.,r,.- l rtif`lain .ts JtisasaL fvpww.ed fr. +r. goyu s.ft. i.All.•atyl e+v...*# - saczJ.xxnxJ u! '1 Fe r,#'I S+' ..:Il.tF digenc..k l.a Lfi r.3r tiiiti� .I+ r:+�L the C a!i 1:..-.-..n a„ 41R1J1iJl **Ilii 4i1� k�l#1 Frolr arru %i4h FAle nik iegulati fit i_.r.+:r... 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HOTELS,AND MOTELS ROOF CLIMATE A�TTATTA�TUM 2 VDAD AC=�D �� 7�� 7�a REFLECTANCE SLOPE ZONE i 2-12 � 4.63 0,75 �3 >2.12 YV BUILDINGS,TIER 2 MCH RISE RESIDENTIAL HOTELS, AND MOTE" rr p4 T-14E ROOF SLOPE ZONE EMITT A ATf`D REFLECTANCE REFLECT 4 NOR INDEX a-W -7 V:�Vop 0-85 8� z2— � ttri 8$ z2� 1101 e Hfine4s. hereby amended to read as fellewsr� used dlFeugheaF �~IIILiIi YiG+4R5+�4++ • r+i 4. f:ti Seetia .i i 405 1 ..f the 2016 Edition of the Caltfn.-,-.:n C-ren.i hereby amended to Fead as fellowsit hereby amended to read as f 11,.ws- L':.19:Y .-..n+.s.-,ado r4\�rtYil�antYir+. .. 4 :,a l� ..l.l�. �.4ar .. A b .-Y.1. ..1., {{ w veil Fapmd"V FeHe*'abl si:t"� ,.....�. , ,}f' t.;,_........., ased f :.f 7 5 p .,k 0f'Ylw Irsl aj_1,..1,._Y L.. .] ►.... ta..l eosi of ma�.ti..:,.1., en h �jp� ,vi:�u vix�.itrsiruaw+t +�v.�. �.,�., Y'Jeet. 1 irY al tie isxx?ii ug3.iii�j' hloa... lain .«rr...+ .. `+1..: ..+::. i to Yttili•xn hixil.l:.... +er: 1 rl duet:s �+1+:+�� a t ..11.: — ii�u��I�wo aai�w+ 1;,:i%,...,.,..�. ...�,�., +�� r�t„�...,f beFeby amended to read as fellewsz A4.407.1 ilsnn , is hereby amended to Fead as follows+ feadi 3 .. ' a fWo pea-king rY For- build Ii igJ wi 4h \+ at v ILtY' TABLE A G 1AC A 2 near-by 2 PER(12" V 15" V 72") S14GAZEWCHANGING FACILITIES TL'RT A ATT r>✓rrrrr'rr REQUIRED PERSONAL EFFECTS LOCKERS OCCUPANTS 0_� 1 wtisex sl„ti o W so 1 unisex she shower- Wl der� r eb eon n.. �-lnn e1 s pe en e �w is Loral... . ended to read as f ll,.,, s * Ynccanp�1 I ..:..- W.irh the ar.. fel.,.l r.I. :, _ ih_ _ 2'�'�:3'VIT.QSTT�tiV�' � � � SJ IL 41II V1}LIi 14R� uYi+�kiii�}� employ t,►r..tn+renr tt4 ram.#el a :r+ park-in g ll}y by 20% by - 1Jy LJ I4iJ 41 Ni}d 4+1I 44 iiati. F++ lFn 1.1 arYr`Y:OR Frl 6 ey3t ti Or. V rt.hYfaffin ':. - r, _ _ _ __-__' �- .a-arar�irL i�aiiaa�4 vi.,.,,:�",;..�..� .,1 ��r::.. . —Ne i , (p) See.i w AS 406 r 1 :.f the 2016 F di$ir.n 1- ;k �' 6'F Green Builds+, Staa.,....y.-.... Code i �LiJ 11VII1J 4i VLY41a Jf �+��. �-+ A5.406. +r eseilr.1 Che of. n# n •(',-. and to r ibe rl, l+ti!. ci .� } Y. _ - ary�r*�LI I �JI µLv Na4l �u+�'! EXHIBIT B Exhibit "B" Sec. 26.2.6. Definitions (H-I). Hazardous Waste Facility shall mean any facility or location which has a primary function to store or process, treat, transfer, dispose of, or recycle all substances defined as hazardous waste, acutely hazardous waste, extremely hazardous waste, or biohazardous waste as defined by the State of California in Health and Safety Code Sections 25110.02, 25115, 25117, and 117635 or in any amendments to or recodifications of such statutes. The definition shall not include the storage, use, generation, recycling, or disposal of hazardous materials as a secondary effect, product, or input of a Permitted Use on the same Lot as the Permitted Use. Hotel shall mean any building containing two (2) or more individual rooms or suites of rooms intended or designed to be used, or which are used, rented, or hired out to be occupied for sleeping or housing purposes by guests. Hotels include motels, boarding houses, rest homes, sanitariums, dormitories, and any other structure or Building other than a Residence or Emergency Shelter used for the housing or sleeping of humans. Incidental Use shall mean a use that is in connection with a Person's Permitted Use, as further described in Section 26.4.1-2(i)4(a}, "Incidental Use," such as office space, design area or showroom space, that occupies more than twenty percent(20%) but less than fifty percent (50%) of the gross Floor Area occupied by the Person's Permitted Use. Incidental Use shall not include a Retail Use, but may include mail-order or internet sales in connection with a Permitted Use. Industrial Gas Manufacturing shall mean the separation of the constituents of air into liquid or gaseous form for storage, transport, or cylinder filling, and the distribution and sale of those products, as well as other related welding gases. Industry or Industrial Use shall mean the manufacture or production of any saleable article, substance, or commodity, so long as the process adds substantial value to the article, substance, or commodity, and shall not include tasks primarily consisting of collecting, sorting, shipping, distributing, or inspecting goods from or in a warehouse or terminal. Industrial Use includes uses ancillary to the manufacturing or production process, such as storage, use, generation, and disposal of hazardous materials (as defined in federal and state laws and regulations) incidental to a manufacturing or production process; recycling incidental to a manufacturing or production process; and use of space for Ancillary Use. Sec. 26.4.1-2. Uses Permitted of Right. The following uses of Buildings and land are permitted of right in the I Zone. (a) Industrial Use. (b) Data Centers. (c) Cold Storage Warehouses. (d) Industrial Gas Manufacturing. (e) Telecommunications Antenna and Cell Towers. (f) Warehouse Use (other than Cold Storage Warehouses). (g) Wholesale Use. (h) Ancillary Use. Each occupant or user on the Property and each tenant in a multi-tenant Building shall be permitted to dedicate a portion of that Person's space to an Ancillary Use in connection with that Person's Permitted Use, if the following criteria are satisfied: (1) The Permitted Use for such Person is that Person's majority use. (2) The Ancillary Use is located upon the same Lot as that Person's Permitted Use. (3) The Ancillary Use is used solely and exclusively by the Person for that Person's Permitted Use. (4) Ancillary Use includes offices and showrooms ancillary to the Permitted Use, but does not include the right to sell at retail (Ancillary Retail Use), but does include the right to sublease to a separate tenant office space only within an existing office area. Ancillary Use does not include Outdoor Storage and Activities. (5) The cumulative total area dedicated to all Ancillary Uses (including any Ancillary Retail Use permitted with a Minor Conditional Use Permit) shall not exceed twenty percent (20%) of the gross floor area occupied by a Permitted Use. (i) Incidental Use. Each occupant or user on the ProNrty and each tenant in a multi-tenant Building shall be permitted to dedicate a portion of that Person's space to an Incidental Use in connection with that Persona's Permitted Use if d 410.90F ..n.a:*;^.° ` e J2} ffi:1 the following criteria are satisfied: The Permitted Use for such Person is that Person's majority use. 2 The Incidental Use is located u2qn the same Lot as that Person's Permitted Use, 3 Incidental Use includes offices desigg areas and showrooms related to the Permitted Use but does not include the rigbt to sell at retail. Incidental Use does not include Outdoor Storage and Activities. 4 The cumulative total area dedicated to all Incidental and Ancillary Uses (including Ancil[@a Retail Uses shall not exceed fi fty Nrcent f 50% of the gross floor area occu ied b a Permitted Use. h _Any activity or use undertaken by the City. Sec. 26.4.1-4. Uses That May Be Permitted by Minor Conditional Use Permit. The uses set forth in this Section 26.4.1-4, may be permitted in the I Zone with a Minor Conditional Use Permit. (a) i He i denial Use, fiaek seeiapant or- user-on the Pt-epenj-and each tenm! i n-&-as+ki-te l 1 4 e T erff.:ae Use f.Yr,;ue . -Pe-Son :+. that P Fn c,vsTc_......::.�: _ I �i.1L.i1 1J that ! 4.•.*�++. •+ .++�*'• '.++".' Ijqe 1 De fmit4e.7 Use. (ab) Ancillary Retail Use. Each occupant or user on the Property and each tenant in a multi- tenant Building shall be permitted to dedicate a portion of that Person's space to an Ancillary Retail Use in connection with that Person's Permitted Use, if the following criteria are satisfied: (1) The Permitted Use for such Person is that Person's majority use. (2) The Ancillary Retail Use is located upon the same Lot as that Person's Permitted Use and sufficient parking is provided. (3) The Ancillary Retail Use is used solely and exclusively by the Person for that Person's Permitted Use and the sell at retail is only for products manufactured onsite or products imported and stored in bulk as part of the Person's Permitted Use. (4) Ancillary Retail Use includes the right to sell at retail any day week but does not include Outdoor Storage and Activities including the outdoor display of merchandise. (5) The cumulative total area dedicated to all Ancillary Uses(including any Ancillary Retail Use) shall not exceed twenty percent(20%) of the gross floor area occupied by a Permitted Use. Table 26.5.1-6(b) Minimum Number of Required Automobile Parking SpacesM Use Type Required Spaces Industrial Use, Industrial Gas Manufacturing, and Recycling Facility One (1) space per I,000 square feet of gross Floor Area (Including Floor Area Used for Ancill Uses Commercial Uses One (1) space per 250 square feet of gross Floor Area Incidental Uses One (1) space per 250 square-feet of Floor Area of Incidental Use Data Centers One (1) space per 1,250 square feet of gross Floor Area Emergency Shelter One (1) space for each five (5)beds plus two (2) additional spaces. Health Clubs(gyms) One (1) space per 200 square feet of gross Floor Area One (1) space for each three(3) fixed seats, or where no Religious Uses fixed seats are provided, one(1) space for every 35 gross square feet of gross Floor Area Residential Uses Parking Determined Pursuant to Development Agreement, but no less than one (1) space for each unit. Restaurant(Take out) Eight(8) spaces per 1,000 square feet of gross Floor Area Restaurant(Sit down) One (1) space per 100 square feet of gross Floor Area Retail (less than 25,000 square feet) and One (1) space per 250 square feet of gross Floor Area multiple tenant Retail Retail (25,000 square feet or greater) - One (1) space per 250 square feet for the first 25,000 Single tenant only square feet of gross Floor Area and then one (1) space per each additional 500 square feet of gross Floor Area Studios (dance, etc.) One (1) space per 200 square feet of gross Floor Area Trade Schools One (1) space per 50 square feet of gross Floor Area Truck Terminals and Freight Terminals Parking shall be provided as determined by a parking study prepared for the specific use. Warehouse Use, General One (1) space per 1,000 square feet of gross Floor Area One (1) space per 1,000 square feet of gross Floor Area for Warehouse Use, Cold Storage the first 50,000 square feet, and one(1) space per 5,000 square feet of gross Floor Area above 50,000 square feet Note (1)Throueh the Conditional Use Permit and Minor Conditional Use Permit processes, the Ci ina-, require additional kin for a s ific use or Mlication. Table 26.5.1-6(c) Minimum Required Truck Loading Spaces Use Type Required Spaces Industrial Use, Warehouse Use, Industrial Gas Manufacturin inel Floor Area used for Anci I1 and One (I) space per 10,000 square feet of gross Floor Area Incidental Uses) Cold Storage Warehouses One (1) space per 7,500 square feet of gross Floor Area Data Centers One (1) space per 50,000 square feet of gross Floor Area Loading shall be provided as determined by Commercial Use and Retail Use a parking study prepared for the specific use. Table 26.5.1-6(d) Minimum Required Truck Parking Spaces Use Type Required Spaces Industrial Use, Cold Storage Warehouses, One (1) space per 25,000 square feet of gross Floor Warehouse Use, Industrial Gas Manufacturing Area for the first 100,000 square feet and one (I) (including, Floor Area used for Ancillary and space per 100,000 square feet of gross Floor Area Incidental Uses) above 100,000 square feet MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, AUGUST 30, 2017, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Ybarra, Davis, and Lopez MEMBERS ABSENT: Woodruff-Perez and Martinez The meeting was called to order at 9:03 a.m. by Mayor Ybarra; Mayor Ybarra also led the flag salute. CHANGES TO THE AGENDA Deputy City Clerk Matthew Ceballos announced that there were no changes to the agenda. PUBLIC COMMENT Mayor Ybarra announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. No public comment was provided. CLOSED SESSION At 9:04 a.m., the City Council entered into closed session to discuss the following agendized items: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code Section 54956.9 (d)(1) Bruce V. Malkenhorst, Sr. v. Ca1PERS, City of Vernon Los Angeles Superior Court, Case No. BS 159589 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code Section 54956.8 Property: 2800-2900 E. 50th Street, Vernon, California Agency negotiator: Carlos Fandino, City Administrator Negotiating parties: Crown Poly and/or Assignee Under negotiation: Price and Terms of Payment At 9:23 a.m. the City Council exited closed session. Senior Deputy City Attorney Zaynah Moussa announced that two items were discussed and no reportable action was taken. With no further business, at 9:24 a.m., Mayor Ybarra adjourned the meeting. Melissa Ybarra Mayor ATTEST: Maria E. Ayala City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, SEPTEMBER 5, 2017, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Ybarra, Woodruff-Perez, Davis, Martinez, and Lopez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor Ybarra; Police Chief Anthony Miranda led the flag salute. CHANGES TO THE AGENDA City Clerk Maria Ayala announced there were no changes to the agenda. PUBLIC COMMENT Mayor Ybarra announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. No public comment was provided. CONSENT CALENDAR It was moved by Davis and seconded by Lopez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Ybarra: Yes Woodruff-Perez: Yes Davis: Yes Martinez: Yes Lopez: Yes Claims Against the City— Received and Filed 1. Claim for Damages from Maria Cruz received August 10, 2017 Minutes—To be Received and Filed 2. Minutes of the Regular City Council Meeting held July 18, 2017 3. Minutes of the Regular City Council Meeting held August 01, 2017 4. Minutes of the Regular City Council Meeting held August 15, 2017 Warrant Registers 5. Ratification of the following City Warrant Register to record the following voided checks: A. City Warrant Register No. 1465 to record voided Check No. 353474 in the amount of$15.17. 6. Approval of City Warrant Register No. 1478, totaling $5,018,679.59, which covers the period of August 8 through August 28, 2017, and consists of the following: A. Ratification of wire transfers totaling $4,412,640.77; and B. Ratification of the issuance of early checks totaling $495,964.09; and Regular City Council Meeting Minutes September 5, 2017 C. Authorization to issue pending checks totaling $110,074.73. 7. Approval of Light&Power Warrant Register No.443,totaling$8,087,894.06,which covers the period of August 8 through August 28,2017,and consists of the following: A. Ratification of wire transfers totaling $8,021,630.94; and B. Ratification of the issuance of early checks totaling $66,263.12. 8. Approval of Gas Warrant Register No.231,totaling$1,805,093.24,which covers the period of August 8 through August 28, 2017, and consists of the following: A. Ratification of wire transfers totaling $1,694,851.58; and B. Ratification of the issuance of early checks totaling $110,241.66. 9. Approval of RDA Obligation Retirement Fund Warrant Register No. 38, totaling $840.00,which covers the period of August 8 through August 28, 2017, and consists of the following: A. Ratification of the issuance of early checks totaling $840.00. City Clerk Department 10. Resolution No. 2017-45 - A Resolution of the City Council of the City of Vernon updating City staff members' appointments to the Gateway Region Integrated Water Management Joint Power Authority also known as Gateway Water Management Authority Policy Board Recommendation: A. Find that approval of the proposed Resolution updating the City Staff Members' appointments does not constitute a"project"pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act ("CEQA"), because it constitutes an administrative activity; and even if the adoption of the proposed resolution did constitute a project, it would be exempt from CEQA in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Appoint key staff as either delegate(s) and/or alternate(s)to the following board of the agency as follows: 1. Gateway Region Integrated Water Management Joint Power Authority (also known as Gateway Water Management Authority Policy Board). Appoint Director of Public Works Daniel Wall as the delegate; and appoint as alternates, Storm Water and Special Projects Analyst Claudia Arellano and Interim Water Specialist Fred Cardenas Fire Department 11. Activity Report for the period of July 16 through July 31, 2017 12. Activity Report for the period of August 1 through August 15, 2017 Human Resources Department 13. Adoption of New Administrative Manual Policy 1.5—Employee Fitness Center Use Policy Recommendation: Page 2 of 6 Regular City Council Meeting Minutes September 5, 2017 A. Find that approval of the proposed action is exempt from California Environmental Quality Act("CEQA")review, because it is an administrative activity that will not result in direct physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Adopt the attached new Administrative Manual Policy 1.5 — Employee Fitness Center Use and incorporate said policy into the Citywide Administrative Manual; and C. Authorize the City Administrator to execute and distribute the Fitness Center Use Policy to all City employees. Police Department 14. Activity Log and Statistical Summary of Arrests and Activities for the period of August 1, though August 15, 2017 to be received and filed Public Works Department 15. Resolution No. 2017-46 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of a Measure R Funding Agreement Highway Program Amended and Restated Funding Agreement for the Interstate 710 South Early Action Projects by and between the City of Vernon and the Los Angeles County Metropolitan Transportation Authority Recommendation: A. Find that the approval of the proposed resolution for the Amended and Restated Measure R Funding Agreement for the Interstate 710 South Early Action Projects (hereinafter referred to as the "Amended and Restated Measure R Funding Agreement") for Staff Support for the Review of the Draft I-710 South Environmental Impact Report/Environmental Impact Study(EIR/EIS) (hereinafter referred to as the "Project") is exempt from the California Environmental Quality Act(CEQA)review,in accordance with CEQA Guidelines Section 15262,because the project only involves feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded; and B. Adopt a resolution approving and authorizing the execution of the Amended and Restated Measure R Funding Agreement between the Los Angeles County Metropolitan Transportation Authority ("Metro') and the City of Vernon for the Interstate 710 South Early Action Projects. ORDINANCES 16. Ordinance No. 1244 -An Ordinance of the City Council of the City of Vernon Abolishing the Industrial Development Authority and Repealing Sections 27.20 through 27.23 of Article III of Chapter 27 of the Vernon Municipal Code and Repealing all Ordinances or Parts of Ordinances in Conflict Therewith (Second Reading and Adoption) Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve the second reading and adopt an Ordinance repealing Sections 27.20 to 27.23 of Article III of Chapter 27 of the Vernon Municipal Code, abolishing the Industrial Development Authority. Page 3 of 6 Regular City Council Meeting Minutes September 5, 2017 It was moved by Martinez and seconded by Davis to approve the second reading and adopt Ordinance No. 1244. Motion carried, 4-0-1. Ybarra: Yes Woodruff-Perez: Abstain Davis: Yes Martinez: Yes Lopez: Yes 17. Ordinance No. 1245 -An Ordinance of the City Council of the City of Vernon Abolishing the Public Benefits Resource Committee and Repealing Section 2.3 of Article I of Chapter 2 of the Vernon Municipal Code and Repealing all Ordinances or Parts of Ordinances in Conflict Therewith (Second Reading and Adoption) Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve the second reading and adopt an Ordinance repealing Section 2.3 of Article I of Chapter 2 of the Vernon Municipal Code,abolishing the Public Benefits Resource Committee. It was moved by Davis and seconded by Martinez to approve the second reading and adopt Ordinance No. 1245. Motion carried, 4-0-1. Ybarra: Yes Woodruff-Perez: Abstain Davis: Yes Martinez: Yes Lopez: Yes 18. Ordinance No. 1246 - An Ordinance of the City Council of the City of Vernon, California, Adding Article XVII, Section 24.112 to Chapter 24 of the Vernon Municipal Code to Establish an Expedited Permitting Process for Electric Vehicle Charging Stations (Second Reading and Adoption) Recommendation: A. Find that the approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because such action constitutes an administrative activity and it will not result in a direct or indirect physical changes to the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve the second reading and adopt an Ordinance amending Chapter 24 of the City of Vernon Municipal Code by setting forth an expedited, streamlined permitting process for electric vehicle charging stations as required by Government Code Section 65850.7 It was moved by Martinez and seconded by Lopez to approve the second reading and adopt Ordinance 1246. Motion carried, 4-0-1. Ybarra: Yes Woodruff-Perez: Abstain Davis: Yes Martinez: Yes Page 4 of 6 Regular City Council Meeting Minutes September 5, 2017 Lopez: Yes NEW BUSINESS Public Utilities Department 19. Approval of Amendment No. 2 to the Electric System Service and Maintenance Agreement between the City of Vernon and Petrelli Electric,Inc. Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve Amendment No. 2 to the Electric System Service and Maintenance Agreement ("Agreement") for Electric System Maintenance with Petrelli Electric, Inc., whereby Exhibit D - Labor Rates of the Agreement would be revised. The total anticipated annual increase will be approximately$270,000; and C. Authorize the City Administrator to execute the proposed Amendment No. 2 between the City of Vernon and Petrelli Electric, Inc. General Manager of Public Utilities Kelly Nguyen reported on the proposed. It was moved by Davis and seconded by Lopez to approve Amendment No. 2 to the Electric System Service and Maintenance Agreement ("Agreement") for Electric System Maintenance with Petrelli Electric. Motion carried, 5-0. Ybarra: Yes Woodruff-Perez: Yes Davis: Yes Martinez: Yes Lopez: Yes 20. Resolution No. 2017-47-A Resolution of the City Council of the City of Vernon establishing Energy Procurement Targets of Zero Megawatt Hours Recommendation: A. Find that the proposed action is categorically exempt from California Environmental Quality Act ("CEQA") review, in accordance with CEQA Guidelines § 15307,because the project is being carried out by a regulatory agency as authorized by state law or local ordinance to assure the maintenance,restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment; and B. Adopt the attached Resolution Establishing Energy Procurement Targets of Zero Megawatt Hours on the grounds that procurement of energy storage systems is not cost-effective. General Manager Nguyen reported on the proposed. It was moved by Davis and seconded by Martinez to adopt Resolution No. 2017-47. Motion carried, 5-0. Ybarra: Yes Woodruff-Perez: Yes Davis: Yes Martinez: Yes Page 5 of 6 Regular City Council Meeting Minutes September 5, 2017 Lopez: Yes ORAL REPORTS 21. City Administrator Reports—brief reports on activities and other brief announcements. City Administrator Carlos Fandino reported on the following: ongoing Farmer John protests; Police response to incidents throughout the City including a weekend DUI Checkpoint. Police Chief Miranda provided details about the DUI Checkpoint results. City Administrator Fandino continued to report on the following: Public Works Department will host a booth at the Huntington Park Sabor de Mexico Lindo event on October 6-8; Vernon Networking Committee's upcoming monthly meeting on September 21"; local Boy Scouts Troop 419's Annual Pancake Breakfast event on September 23rd; Fire Chief English selected as the Treasurer for the Los Angeles Area Fire Chiefs Association;and Fire Department response to incidents throughout the City. Fire Chief Bruce English provided more detail about the fire incidents the Department responded to. Mayor Pro-Tern Woodruff-Perez inquired about how the Vernon Fire Department responds to call for fires outside of the City. Chief English responded by stating the Fire Department is part of a California Mutual Aid Agreement and in so being, any services rendered would be reimbursable. City Administrator Fandino continued with the brief reports on the following: Gaviiia Open House event; and the California League of Cities Annual Conference is next week from September 12- 15. City Council Reports—brief AB 1234 reports,or report on: activities,announcements,or directives to staff. Mayor Pro-Tem Woodruff-Perez inquired about what department was in charge of the City Facebook page admin, City Administrator Fandino responded that his department staff has been managing the page. CLOSED SESSION At 9:19 a.m., the City Council entered into closed session to discuss the following agendized items: 22. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (2) Government Code Section 54956.9(d)(1) 1. Jerrick Torres and Lyndon Ong Yiu vs. City of Vernon, et al. Los Angeles Superior Court Case No. BC620265 2. Los Angeles Unified School District v. County of Los Angeles, et al. Los Angeles Superior Court, Case No. BS 108180 and Related Cases (BS 13798; BS127286; BS130308) At 9:31 a.m. the City Council exited closed session. Senior Deputy City Attorney Brian Byun announced that two items were discussed and reportable action was taken on Item 22.2. City Council voted unanimously to approve the settlement agreements relevant to the City of Vernon. With no further business, at 9:31 a.m., Mayor Ybarra adjourned the meeting. Melissa Ybarra Mayor ATTEST: Maria E. Ayala City Clerk Page 6 of 6 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, SEPTEMBER 19, 2017, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Ybarra, Davis, Martinez, and Lopez MEMBERS ABSENT: Woodruff-Perez The meeting was called to order at 9:00 a.m. by Mayor Ybarra; Police Chief Anthony Miranda led the flag salute. CHANGES TO THE AGENDA City Clerk Maria Ayala announced there were no changes to the agenda. PUBLIC COMMENT Mayor Ybarra announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. No public comment was provided. PRESENTATIONS 1. A Proclamation of the Mayor and the City Council of the City of Vernon commending Darren J. Simpkins for his many years of service to the City of Vernon City Clerk Maria Ayala read the proclamation. Fire Chief Bruce English said a few words commending Darren J. Simpkins on his service to the City. 2. Service Pin Awards for August 2017 Presented by: Michael Earl, Director of Human Resources NAME DEPARTMENT TITLE YEARS John A. Cusolito Fire Fire Captain 30 William C. Niesley Fire Fire Captain 30 Stephen G. Agon Fire Fire Captain 30 Roberto C. Sousa Police Police Captain 20 Human Resources Director Michael Earl presented the service pin awards to Roberto Sousa and John Cusolito, who were in attendance. 3. Lower Los Angeles River Revitalization Plan Presented by: Mark Stanley, Representative for the Rivers and Mountains Conservancy Agency Due to the non-appearance of the Representative for the Rivers and Mountains Conservancy Agency, the City Council came to a consensus to Table Item No. 3 to the next meeting. Regular City Council Meeting Minutes September 19, 2017 CONSENT CALENDAR It was moved by Davis and seconded by Lopez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes Claims Against the City—Received and Filed 4. None Warrant Registers 5. Ratification of the following City Warrant Register to record the following voided checks: A. City Warrant Register No. 1468 to record voided Check No. 354072 in the amount of$100.00; and B. City Warrant Register No. 1469 to record voided Check No. 354121 in the amount of$100.00. 6. Approval of City Payroll Warrant Register No. 735, totaling $4,738,807.43, which covers the period of August 1 through August 31,2017 and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $3,735,642.38; and B. Checks and electronic fund transfers (EFT) totaling $1,003,165.05. 7. Approval of City Warrant Register No. 1479, totaling $1,211,260.36, which covers the period of August 29 through September 11, 2017, and consists of the following: A. Ratification of wire transfers totaling $1,009,801.73; and B. Ratification of the issuance of early checks totaling $168,635.37; and C. Authorization to issue pending checks totaling $32,823.26. 8. Approval of Light&Power Warrant Register No.444,totaling$3,955,202.57,which covers the period of August 29 through September 11, 2017, and consists of the following: A. Ratification of wire transfers totaling $3,823,432.61; and B. Ratification of the issuance of early checks totaling $87,135.85; and C. Authorization to issue pending checks totaling $44,634.11. 9. Approval of Gas Warrant Register No. 232, totaling $25,409.90, which covers the period of August 29 through September 11, 2017, and consists of the following: A. Ratification of the issuance of early checks totaling $25,409.90. City Administration Department 10. Approval to Renew Maintenance Agreement with Tyler Technologies,Inc. Page 2 of 7 Regular City Council Meeting Minutes September 19, 2017 Recommendation: A. Find that approval of the proposed action is exempt under the California Environmental Quality Act ("CEQA") review, because it is continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project"as defined by CEQA Guidelines section 15378; and B. Approve the renewal of the Maintenance Agreement with Tyler Technologies, Inc. in an amount not to exceed $79,344.46 for a period of one year commencing on January 1, 2018. The renewal is exempt from competitive bidding and competitive selection pursuant to Section 2.17.12(A)(2) of the Vernon Municipal Code as maintenance services are for a proprietary software and are available from only one vendor. Health and Environmental Control Department 11. August 2017 Monthly Report Police Department 12. Activity Log and Statistical Summary of Arrests and Activities for the period of August 16, through August 31, 2017 to be received and filed 13. Drug Enforcement Administration Agreement Recommendation: A. Find that granting authority to execute the referenced agreement is exempt from California Environmental Quality Act("CEQA")review,because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project"as defined by CEQA Guidelines section 15378; and B. Authorize the Police Chief to execute an agreement with the Drug Enforcement Administration (DEA), in substantially the same form as submitted herewith, for continued participation in the Southwest Border Initiative (SWBI)taskforce. 14. Office of Traffic Safety Grant Agreement Recommendation: A. Find that granting authority to execute and submit the above-referenced agreement and related documents is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Authorize the City Administrator to execute an agreement between the City of Vernon and the Office of Traffic Safety,in substantially the same form as submitted herewith, for participation in the Selective Traffic Enforcement Program(STEP). Public Works Department 15. Building Department Report for the Month of August 2017 16. Approval of Amendment No. 3 to Contract CS-0448 with Haul-Away Rubbish Service Company,Inc. for Refuse Collection,Recycling and Disposal Services Recommendation: Page 3 of 7 Regular City Council Meeting Minutes September 19, 2017 A. Find that approval of the proposed amendment to the Agreement with Haul-Away Rubbish Service Company, Inc. is exempt from California Environmental Quality Act (CEQA) review, because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore is not a "project' as defined by CEQA Guidelines, Section 15378; and B. Authorize the City Administrator to execute Amendment No. 3 to Contract CS- 0448, in substantially the same form as submitted herewith, for the purpose of providing a brief extension to the Agreement with Haul-Away Rubbish Service Company, Inc. dated October 1,2014,with no increase to the not-to-exceed cost of $123,800.00. NEW BUSINESS City Administration Department 17. Award of Managed Print Services Agreement to MRC Xerox Recommendation: A. Find that approval of the services agreement proposed in this staff report is exempt from the California Environmental Quality Act ("CEQA"), because it is an administrative activity that will not result in direct or indirect physical changes in the environment and,therefore, does not constitute a"project"as defined by CEQA Guidelines section 15378; and B. Approve a Services Agreement with MRC Xerox, in substantially the same form as submitted herewith, for a three-year term in an amount not-to-exceed $104,040.00 per year for managed print services; and C. Authorize the City Administrator to execute a Services Agreement with MRC Xerox with an effective date of September 19, 2017; and D. Authorize the City Administrator to issue change orders for an amount not-to- exceed $50,000.00 over the three-year term of the agreement. City Administrator Fandino reported on the proposed. It was moved by Martinez and seconded by Davis to approve a Services Agreement with MRC Xerox, in substantially the same form as submitted herewith, for a three-year term in an amount not-to-exceed $104,040.00 per year for managed print services, and authorize the City Administrator to execute a Services Agreement with MRC Xerox, and authorize the City Administrator to issue change orders for an amount not-to-exceed $50,000.00 over the three-year term of the agreement. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes City Attorney Department 18. Resolution No. 2017-48 - A Resolution of the City Council of the City of Vernon approving the general form of a Three Party City-Developer-Consultant Professional Services Agreement pursuant to Article IV of Chapter 2, Section 2.17.34 of the Vernon Municipal Code Recommendation: Page 4 of 7 Regular City Council Meeting Minutes September 19, 2017 A. Find that approval of the forms of contract and of related documents in this staff report is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Adopt the attached Resolution approving the general form of a Three Party City- Developer-Consultant Professional Services Agreement pursuant to Article IV of Chapter 2, Section 2.17.34 of the Vernon Municipal Code. Senior Deputy Attorney Brian Byun reported on the proposed. It was moved by Martinez and seconded by Lopez to approve Resolution No. 2017-48. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes Public Works Department 19. Purchase of Two Ford Series Utility Vehicles (One 2017 Ford F-550 Cab Model and One 2017 Ford F-250 Model) Recommendation: A. Find that the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because purchasing vehicles is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378.And even if such an action were a"project,"it would be exempt from CEQA review in accordance with CEQA Guidelines Section 15061(b)(3),the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve the purchase of two Ford F Series utility vehicles (one 2017 Ford F-550 Cab Model with dump bed and one 2017 Ford F-250 with a utility body) for a total cost of$113,245.90. Public Works Director Daniel Wall reported on the proposed. It was moved by Davis and seconded by Martinez to approve the purchase of two Ford F Series utility vehicles (one 2017 Ford F-550 Cab Model with dump bed and one 2017 Ford F-250 with a utility body) for a total cost of$113,245.90. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes 20. Resolution No. 2017-49 -A Resolution of the City Council of the City of Vernon opposing the California High-Speed Rail Authority's currently proposed alignment for the High-Speed Rail Project Recommendation: Page 5 of 7 Regular City Council Meeting Minutes September 19, 2017 A. Find that approval of the attached resolution in this staff report is exempt from California Environmental Quality Act ("CEQA") review, because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Adopt the attached Resolution declaring the City's opposition to the California High-Speed Rail Authority's currently proposed alignment for the High-Speed Rail Project. Presently, the alignment for the High-Speed Rail will negatively impact Vernon's economy, as it will lead to the acquisition of properties within Vernon city limits that are zoned for industrial land use. Public Works Director Wall reported on the proposed. Public Comment Marisa Olguin, Chamber of Commerce, spoke in opposition to the High Speed Rail project as the plan is being presented in its current form,in Vernon and said the Chamber of Commerce is aligned with the City in its opposition as expressed in the proposed resolution. It was moved by Lopez and seconded by Martinez to approve Resolution No. 2017-49. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes Public Utilities Department 21. Award of Service Agreements to AM Ortega Construction, Inc. and Michels Corporation for Natural Gas Construction and Repair Services Recommendation: A. Find that awarding the service agreements as outlined in the staff report is exempt from California Environmental Quality Act("CEQA")review,because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. And even if such activity were deemed a "project,"it would be categorically exempt from CEQA review in accordance with CEQA Guidelines section 15301 (repair, maintenance or minor alteration of existing public facilities and mechanical equipment) and 15302 (replacement or reconstruction of existing structures and facilities), as well as section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve a Service Agreement with A.M.Ortega Construction,Inc. ("AM Ortega"), as the primary provider for services regarding natural gas construction and repair support services,for a total compensation amount not-to-exceed$300,000 per year, and a grand total amount not-to-exceed $900,000 over the three-year term of the agreement; and i. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith, with AM Ortega to be effective October 1, 2017; and ii. Authorize the City Administrator to issue change orders that may increase compensation for AM Ortega in an amount not-to-exceed $30,000 per year; and Page 6 of 7 Regular City Council Meeting Minutes September 19, 2017 C. Approve a Service Agreement with Michels Corporation ("Michels") as the secondary provider for services regarding natural gas construction and repair support services,for a total compensation amount not-to-exceed$300,000 per year, and a grand total amount not-to-exceed $900,000 over the three-year term of the agreement; and i. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith,with Michels to be effective October 1, 2017; and ii. Authorize the City Administrator to issue change orders that may increase compensation for Michels in an amount not-to-exceed $30,000 per year. General Manager Kelly Nguyen reported on the proposed. It was moved by Davis and seconded by Martinez to approve two Service Agreements (1) with A.M. Ortega Construction, Inc. ("AM Ortega") as the primary provider for services regarding natural gas construction and repair support services,for a total compensation amount not-to-exceed $300,000 per year, and a grand total amount not-to-exceed $900,000 over the three-year term of the agreement and (2) with Michels Corporation ("Michels") as the secondary provider for services regarding natural gas construction and repair support services, for a total compensation amount not-to-exceed $300,000 per year, and a grand total amount not-to-exceed $900,000 over the three-year term of the agreement. Motion carried, 4-0. Ybarra: Yes Woodruff-Perez: Absent Davis: Yes Martinez: Yes Lopez: Yes ORAL REPORTS 22. City Administrator Reports—brief reports on activities and other brief announcements. City Administrator Carlos Fandino reported on the following: the SCPPA tour of the power plant; various outages throughout the City;the September 21 st Vernon Networking Committee's monthly breakfast hosted by the Fire Department; the current FY 2017 independent audit taking place; the windfarm land appraisals;a"class action"against Barclays Bank;the September 12-15th California League of Cities Annual Conference;the Municipal Derivatives settlement;Vernon CommUNITY Fund Grant Committee visit to the Boys & Girls Clubs; and the upcoming Green Vernon Commission meeting. City Council Reports brief AB 1234 reports,or report on: activities,announcements, or directives to staff. No reports were provided. With no further business, at 9:31 a.m., Mayor Ybarra adjourned the meeting. Melissa Ybarra Mayor ATTEST: Maria E. Ayala City Clerk Page 7 of 7 v RECEIVED f RECEIVED SEP 2 6 2017 ' SEP 2 6 2017 CITY CLERK'S OFFICE CITY NDMIrNIST RAT IV-1 STAFF REPORT FINAN EITREA URY DEPARTMENT DATE: September 26, 2017 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director RE: Ratification of the City Warrant Registers for City Council Agenda of October 03, 2017 It is recommended that the ratification of the following warrant registers to record the following voided checks be considered at the City Council meeting of October 03, 2017. 1. City Warrant Register No. 1477 to record voided Check No. 355329 in the amount of $208.00 issued 07/25/17 to Miranda, Anthony. CfTY OF VERNON ACCOUNTS PAYABLE CHECK No- 355329 wvocFw4mmpt 4�T! �A k 6Ef �ti qe[tQsMT +LULFffi - 071017 07/10/2017 EXPENSE ALLOWANCE 0.00 208.00 No moftb -J ok A oN 208.00 PLEASE DETACH BEFORE DEPOSMNG ,amt JAW.TON Ot NO FLOOR !}::p 4305 Santa Fe Ave UNU40Mo us+ta lfemm.CA90058 (323)M-5811 SATE R CHECK AhMUT 006124 07125017 355329 208.Q0 RAY Two Hundred Eight Dollars and No Cents 4 TO THE MIRANDA,ANTHONY ORDER 640 HUNTERS TRAIL GLENDORA, CA 91740 OF 8 SECURM MAruats ICLUDW DETA&S oN BACX am0355329i' e: 3 2 20 70 38 1t: 80 36 2 78 31' * Y RECEIVE f4 RECC E® D SEP 2 S 2017 SEP 2 6 2017 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION FINANCE/TREASURY DEPARTMENT �- - -17 DATE: September 26, 2017 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director' RE: Ratification of the Light and Power Warrant Registers for City Council Agenda of October 03, 2017 It is recommended that the ratification of the following warrant registers to record the following voided checks be considered at the City Council meeting of October 03, 2017. 1. Light and Power Warrant Register No. 444 to record voided Check No. 512881 in the amount of $150.00 issued 09/19/17 to Castillo, Irene. CITY OF VERNON.LIGHT&POSHER ACCOUNTS PAYABLE CHECK NO. 512881 083017 08/30/2017 VISION BENEFITS 1 A.CASTILLO 0. 160.00 . * 444 � ► 40 PfovI r L�I+�*�- s1�1� 1�•,�• b.�h its � },� �ry•�a-ex. I oal 150M PLEASE DETACH BEFORE DEPOSFFING ' t w 4345 San Fe AYE zap.u,.,nr{. CAPily }'. • r tn*n, CAL 9d058 (323)5834811 VENOMN __' , DATE. 000922 0911 M017 51288E �. . PAY One Hundred Fifty Dollars and No Cents TO THE CASTILLO, IRENE r OAR P.O. BOX 6243 OF WHITTIER, CA 90609 fl) SECURrtY FEATURES WCLUDED DETAILS ON SJrC* 11905 L 21313 Lm" 1: 3 2 20 70 38 &1: 13036 2 7 9 1118 RECEIVED RECEIVED 4 D s� z s ion f 2i ni 17 * r►•ors*�• SE � 2V CITY A0iG'i'l {,I city CLERK'S OFFICE STAFF REPORT FINAN CEITREASURY DEPARTMENT DATE: September 26, 2017 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director 1h RE: City Warrant Register for City Council Agenda of October 3, 2017 It is recommended that the attached City Warrant Register No. 1480 be approved at the City Council meeting of October 3, 2017. City Warrant Register No. 1480 totals $1,067,160.74, and covers claims and demands presented during the period of September 12 through September 25, 2017, drawn, or to be drawn, from East West Bank. The following list details the components of City Warrant Register No. 1480: 1. Ratification of wire transfers totaling $338,386.75; 2. Ratification of the issuance of early checks totaling $682,420.87; and 3. Authorization to issue pending checks totaling $46,353.12. r. CITY OF VERNON WARRANT REGISTER NO. 1480 * OCTOBER 3, 2017 0 �f krct 4M I hereby certify that claims and/or demands included in above listed warrant This is to certify that the claims or demands covered by the above listed register have been audited for accuracy and availability of funds for warrants have been audited by the City Council of the City of Vernon and payments and that said claims and/or demands are accurate and that the that all of said warrants are approved for payments except Warrant funds are available for payments thereof. Numbers: William Fox Finance Director Date: Printed:9126/2017 7:19:03AM Page 2 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 WIRES ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT BENEFIT ASSOCIATION VERNON 011.210250 1,926.14 Police Association Member Dues: Ben200831 1685 POL Payment 09/14/2017 1,926.14 IBEW LOCAL 47 011.210250 3,413.20 IBEW Dues: Payment Ben200833 1686 09/14/2017 3,413.20 VERNON F I REMENS ASSOC IATION 011.210250 3,122.00 Fire House Fund: Payment Ben200837 1687 09/14/2017 3,122.00 ICMA RETIREMENT TRUST 457 011.210220 43,910.53 Deferred Compensation: Payment Ben200827 1688 09/14/2017 43,910.53 CITY OF VERNON, FSA ACCOUNT 011.100013 606.92 FSA-Dependent: Payment Ben200829 1689 011,100013 354.37 FSA- Medical: Payment Ben200829 1689 09/14/2017 961.29 CALPERS 011.210240 248,270.87 PERS Contributions: Payment Ben200823 1690 011.210240 242.73 PERS Survivor's Benefit: Payment Ben200823 1690 011.210240 409.07 PERS Buy-back: Payment Ben200823 1690 011.199999 34,630.44 PERS Contributions: Special PR Retro Ben200823 1690 011.199999 -26.89 PERS Contribution Adj: Casas PEPRA Ben200823 1690 Adj 011.199999 -1,089.32 PERS Contribution: Special Retro Pay Ben200823 1690 011.1015.530034 -0.22 PERS Contribution: Rounding Adjustment Ben200823 1690 09/18/2017 282,436.68 STATE DISBURSEMENT UNIT 011.210260 2,616.91 Child Support: Payment Ben200835 1691 Printed:9/26/2017 7:19:03AM Page 3 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 WIRES ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/18/2017 2.61691 TOTAL WIRES $ 338,386.75 Printed 9/26/2017 7:19 03AM Page 4 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3,2017 EARLY CHECKS ACCOUNT HATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT PATRICK CAM 011.1031.596500 260.00 DUI Seminar 080117 355710 011.1031,596700 548.00 DUI Seminar 080117 355710 09/12/2017 808.00 EUGENIO CERDA 011.1031.596500 26.98 Arrest&Control/Tactical 081517 355711 011.1031.596700 9.20 Arrest&Control/Tactical 081517 355711 09/12/2017 36.18 JERRY CHAVEZ JR 011.1031.596500 26.98 Arrest&Control/Tactical 081517 355712 011.1031.596700 9.20 Arrest&Control/Tactical 081517 355712 09/12/2017 36.18 EDWARD HERNANDEZ 011.1031.596500 10.70 Detective School 082217 355713 09/12/2017 10.70 RAFAEL LANDA 011.1031.596500 10.70 Detective School 082217 355714 09/12/2017 10.70 JASON LUCAS 011.1031.596500 260.00 DUI Seminar 080117 355715 011.1031.596700 548.00 DUI Seminar 080117 355715 09/12/2017 808.00 INC MOTOROLA SOLUTIONS 011.4031.860000 720.00 G347AG- ENH: Smartzone Upgrade— 13147815 011.0012109 355716 011.4031.860000 5,958.40 Q880AA- ENH: Radio Software Refresh 13147815 011.0012109 355716 011.4031.860000 584.36 Sales Tax 8.75 13147815 355716 09/12/2017 7,262.76 TODD NEWTON 011.1031.596500 26.98 Arrest&Control/Tactical 081517 355717 Printed:9/26/2017 7:19:03AM Page 5 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT TODD NEWTON 011.1031.596700 9.20 Arrest&Control 1 Tactical 081517 355717 09/12/2017 36.18 GROSS 8 LEONI LLP NIELSEN, 011,1002.596200 1,234.50 Professional Services 07/17 80117 355718 ME 09/12/2017 1,234.50 FERNANDO VALENZUELA 011.1031.596500 26.98 Arrest&Control I Tactical 081517 355719 011.1031.596700 9.20 Arrest&Control I Tactical 081517 355719 09/12/2017 36.18 ALADDIN LOCK&KEY SERVICE 011.1049.590000 512.03 Install Electric Strike in PD 26940 355720 09/14/2017 512.03 ALTA PLANNING DESIGN 011.1043.696200 54.24 Professional Services 201535713 355721 011.3043.596200 410.51 Professional Services 201535713 355721 011.1043.596200 26.43 Professional Services 07117 201535714 355721 011.3043.596200 200.03 Professional Services 07/17 201535714 355721 011,1043.596200 19.75 Professional Services 08/17 201535715 355721 011,3043.596200 149.49 Professional Services 08/17 201535715 355721 09/14/2017 860.45 ALZHEIMER'S GREATER LA 011.1021.797000 39,996.00 CommUNITY Fund Grant 091217 355722 09/1412017 39,996.00 AMERICAN METAL CRAFT 011.2033.850000 20,900.00 Ventilation Roof Training Prop 825 355723 09/14/2017 20,900.00 Printed:9126/2017 7:19 03AM Page 6 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT WEST SAN GABRIEL VALLEY 011.1021.797000 50,000.00 CommUNITY Fund Grant 091217 355724 BOYS& 09/14/2017 50,000.00 CALIFORNIA FRAME&AXLE 011.1046.520000 1,155.10 Front End Repairs- 45521 011.0012488 355725 011.1046.520000 105.00 Front End Repairs- 45643 011.0012488 355725 011.1046.520000 45.00 Front End Repairs- 45743 011.0012488 355725 011.1046.520000 222.22 Front End Repairs-- 45771 011.0012488 355725 011.1046.520000 13.75 Front End Repairs- 45779 011.0012488 355725 011.1046.520000 45.00 Front End Repairs- 45782 011.0012488 355725 09/14/2017 1,566.07 CENTRAL FORD 011.1046.520000 216.51 Auto Parts- 302432 011.0012490 355726 011.1046.520000 241.43 Auto Parts- 302916 011.0012490 355726 011.1046.520000 121.69 Auto Parts- 303173 011.0012490 355726 011.1046.520000 144.60 Auto Parts- 303339 011.0012490 355726 09/14/2017 724.23 COMMUNITY PARTNERS 011.1021.797000 25,000.00 CommUNITY Fund Grant 091217 355727 09/14/2017 25,000.00 INC COMPLETE THERMAL 011.1049.590000 264.00 Professional Services 31810 355726 SERVICES 09/14/2017 264.00 JEREMY CROSS 011.1031.596700 89.00 Public Safety Honor Guard School 080117 355729 09/14/2017 89.00 Printed:9/2612017 7:19:03AM Pape 7 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT DIGITAL EMS SOLUTIONS INC. 011.1033.590110 2,701.10 Electronic Patient Care Reporting 125 355730 09/14/2017 2,701.10 LLC EAN SERVICES 020.1084.596500 116.56 Car Rental Services 14565379 355731 09/14/2017 116.56 INC EPIC LAND SOLUTIONS 011.1004.595200 22,912.50 Professional Services 8170681 355732 09/14/2017 22,912.50 INC FLEMING ENVIRONMENTAL 011.1049.590000 475.00 Operator Site Inspections 07117 12835 355733 011.1049.590000 2,650.00 Monitoring&Certification System Test 12836 355733 011.1049.590000 226.75 Replace Hose 12853 355733 09/14/2017 3,351.75 FRANCHISE TAX BOARD 011.210260 200.00 Garnishment: Payment Ben200819 355734 09/14/2017 200.00 GARVEY EQUIPMENT COMPANY 011.1046.520000 175.61 Parts&Services 104398 011.0012491 355735 011.1046.520000 949.38 Parts&Services- 104993 011.0012491 355735 09/14/2017 1,124.99 JCS CONSTRUCTION& 011.1049.900000 9,000.00 12 New Lockers 1201 355736 RENOVATION 011.1049.900000 2,000.00 Stainless Counter 1205 355736 011.1049.900000 5,000.00 Showers Renovation 1206 355736 09/14/2017 16,000.00 INC JOBS AVAILABLE 011.1026.550000 975.00 Job Ads- 1719045 355737 Printed:9126/2017 7:19:03AM Page 8 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/14/2017 975.00 LA COUNTY SHERIFF'S DEPT. 011.210260 610.00 Garnishment: Payment Ben200817 355738 09/14/2017 510.00 LN CURTIS&SONS 011.1033.850000 17,955.00 Part Number:VER917145 Sperian- INV109933 011.0012356 355739 011.1033.850000 1,571.06 Sales Tax 8.75 INV109933 355739 09/14/2017 19,526.06 MERRIMAC ENERGY GROUP 011.120030 4,479.48 Diesel Fuel 2172607 011.0012582 355740 011.120030 7.37 AB32 Fee 2172607 011.0012582 355740 011.120030 4.87 Federal Oil Spill Tax 2172607 011.0012582 355740 011.120030 364.00 State Diesel Excise Tax 2172607 011.0012582 355740 011.120030 2.28 Lust Fee 2172607 011.0012582 355740 011.120030 494.34 Clear Diesel Sales Tax 2172607 355740 011.120030 6,901.95 Unleaded Fuel 2172609 011.0012582 355740 011.120030 12.41 CA Enviro/Fed Oil Spill Tax 2172609 011.0012582 355740 011.120030 5.29 CA Childhood Lead Fee 2172609 011.0012582 355740 011.120030 9.80 AB32 Fee 2172609 011.0012582 355740 011.120030 1,046.93 State Gasoline Excise Tax 2172609 011.0012582 355740 011.120030 3.53 Lust Fee 2172609 011.0012582 355740 011 A20030 339.11 Sales Tax 4.25% 2172609 355740 09/14/2017 13,671.36 MSW CONSULTANTS 011.1061.595200 39,341.10 Consulting Services 08117 113 355741 Printed:9/26/2017 7:19:03AM Page 9 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/14/2017 39,341.10 NAPA AUTO PARTS 011.1046.520000 2,050.83 Auto Parts 8,Accessories- 083117_MULTIPLE 011.0012506 355742 09/14/2017 2,050.83 GROSS 8 LEONI LLP NIELSEN, 011.1002.596200 1,653.50 Professional Services 06/17 70117 355743 ME 09/14/2017 1,653.50 OFFICE DEPOT 011.1031.520000 415.39 Office Supplies- 951786223001 011.0012607 355744 011.1031.520000 38.42 Sales Tax 951786223001 355744 011.1031.520000 32.04 Office Supplies- 951786310001 011.0012607 355744 011.1031.520000 2.96 Sales Tax 951786310001 355744 011.1031.520000 9.34 Office Supplies-- 951786311001 011.0012607 355744 011.1031,520000 0.86 Sales Tax 951786311001 355744 011.1031.520000 7.99 Office Supplies- 951786312001 011.0012607 355744 011.1031.520000 0.74 Sales Tax 951786312001 355744 011.1043.520000 9.39 Office Supplies- 952641375001 011.0012608 355744 011.1043.520000 0.87 Sales Tax 952641375001 355744 011.1043.520000 13.49 Office Supplies- 952641396001 011.0012608 355744 011.1040.520000 20.37 Office Supplies- 952641396001 011.0012608 355744 011.1041.520000 55.55 Office Supplies- 952641396001 011.0012608 355744 011.1043.520000 1.25 Sales Tax 952641396001 355744 011,1040.520000 1.68 Sales Tax 952641396001 355744 011.1041.520000 5.14 Sales Tax 952641396001 355744 020.1084.520000 51.12 Office Depot- 954081277001 011.0012605 355744 Printed:9/26/2017 7:19:03AM Page 10 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O_# ISSUED NUMBER AMOUNT OFFICE DEPOT 020.1084.520000 4.73 Sales Tax 954081277001 355744 011.1060.520000 78.99 Office Supplies- 954110034001 011.0012604 355744 011.1060.520000 7.31 Sales Tax 954110034001 355744 011.1060.520000 37.24 Office Supplies- 954110087001 011.0012604 355744 011.1060.520000 3.44 Sales Tax 954110087001 355744 011.1060.520000 90.07 Office Supplies- 954110088001 011.0012604 355744 011.1060.520000 8.33 Sales Tax 954110088001 355744 011.1041.520000 10.19 Office Supplies- 954537915001 011.0012608 355744 011.1041.520000 0.94 Sales Tax 954537915001 355744 09/14/2017 908.04 OPPORTUNITY FUND NORTHERN 011.1021.797000 50,000.00 CommUNITY Fund Grant 091217 355745 CA 09/14/2017 50,000.00 PLUMBING& INDUSTRIAL SUPPLY 011.1049.520000 12.55 Plumbing&Building Hardware- S1190735001 011.0012502 355746 011.1049.520000 29.83 Plumbing&Building Hardware- S119OB05001 011.0012502 355746 011.1049.900000 27.32 Plumbing&Building Hardware- S1190816001 011.0012502 355746 011.1049.520000 148.94 Plumbing&Building Hardware- S1190859001 011.0012502 355746 011.1049.520000 15.40 Plumbing&Building Hardware- S1190970001 011.0012502 355746 011.1049,900000 20.76 Plumbing& Building Hardware-- S1191011001 011.0012502 355746 011.1049.520000 79.68 Plumbing& Building Hardware- S1191894001 011.0012502 355746 09/14/2017 334.38 JOSE RAMOS 011.1031.596500 228.98 Public Safety Honor Guard School 080117 355747 011.1031.596700 89.00 Public Safety Honor Guard School 080117 355747 Printed.9/2612017 7:19:03AM Page 11 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/14/2017 317.98 RUSH TRUCK CENTER OF 011.1043.840000 83,304.55 2017 Ford F-450 12094611 355748 W HITTIER 09/14/2017 83,304.55 LTD SHAGHAL 011.199999 3,144.75 LI Refund Cst#022317 Ref000200766 355749 09/14/2017 3,144.75 SIMPLEXGRINNELL, LP 011.1049.520000 582.00 City Hall Clocks 83453256 355750 09/14/2017 582.00 SO CAL EDISON 011.1043.560000 32.41 Period:08/17 083017 355751 09/14/2017 32.41 SO CAL EDISON 011.1048.560000 14.35 Period: 08/17 090117 355752 011.1048.560000 15.51 Period: 08/17 090117(2) 355752 09/14/2017 29.86 SO CAL LAND MAINTENANCE, INC 011.1049.590000 318.00 Maintenance Services 5999 355753 09/1412017 318.00 INC SO CAL OVERHEAD DOOR 011.1049.590000 385.00 Repairs&Maintenance 49455 355754 CO. 011.1049.590000 2,142.58 Repairs&Maintenance 50147 355754 09/14/2017 2,527.58 LLC VELASCO ENVIRONMENTAL 011.1048.900000 2,148.00 Asbestos&Lead Surveys 81817 355755 SERV Pnnted:9/2612017 7:19:03AM Page 12 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS _ ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/14/2017 2,148.00 LLC WEBCO LB 011.1043.590000 9,145.00 Street Sweeping Services 08117 LB3332 355756 09/14/2017 9,145.00 OSCAR ZOZAYA 011.1031.596700 89.00 Public Safety Honor Guard School 080117 355757 09/14/2017 89.00 BACKFLOW APPARATUS&VALVE 020.1084.590000 525.00 Repair Backflow Devices 810872 355758 CO 09/19/2017 525.00 CDW GOVERNMENT, INC. 011.9019.520010 173.70 3M Privacy Filter display privacy JQS8504 011.0012573 355759 011.9019.520010 173.70 3M Privacy Filter for 23"Widescreen JQS8504 011.0012573 355759 011.9019.520010 285.20 Plantronics CS 540-headset-with JQS8504 011.0012573 355759 011.9019.520010 410.77 HP Color LaserJet Pro MFP M477fdw-- JQS8504 011.0012573 355759 011.9019.520010 1,640.69 HP Color LaserJet Enterprise M653dn- JOS8504 011.0012573 355759 011.9019.520010 42.45 Sales Tax JQS8504 355759 011.9019.520010 16.07 Sales Tax JQS8504 355759 011.9019.520010 189.76 Sales Tax JOS8504 355759 011.9019.520010 729.44 StarTech.com 101100 Mbps SM Fiber JRB4566 011.0012573 355759 Media 011.9019.520010 285.50 HP media tray 1 feeder-550 sheets JRB4566 011.0012573 355759 011.9019.520010 67.47 Sales Tax JRB4566 355759 011.9019.520010 26.41 Sales Tax JRB4566 355759 011.9019.520010 46.54 RCA ANT1450BF-antenna 3813128-- JRC2268 011.0012573 355759 011.9019.520010 4.30 Sales Tax JRC2268 355759 Printed:912W2017 7;19:03AM Page 13 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3,2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/19/2017 4,092.00 CENTRAL BASIN WATER 020.1084.596200 7,465.71 Title 22 Monitoring 6170006 355760 ASSOCATION 09/19/2017 7,465.71 JEREMY CROSS 011.1031.596500 22.98 Driving Training Simulator 081517 355761 09/19/2017 22.98 ENTERPRISE FM TRUST 011.4031.840000 941.55 Monthly Lease Charges FBN3319641 355762 09/19/2017 941.55 FEDEX 011.1026.520000 51.53 Period:08/17 690240673 355763 09/19/2017 51.53 INC GENERAL PUMP COMPANY 020.1084.590000 4,200.00 Pump Repairs 25884 355764 09/19/2017 4,200.00 EDWARD HERNANDEZ 011.1031.596500 22.98 Driving Training Simulator 081517 355765 09/19/2017 22.98 OF COMMERCE HUNTINGTON 011.1043.596200 500.00 Booth Rental/Sabor De Mexico Lindo 091317 355766 PARK CH 09/19/2017 500.00 RAFAEL LANDA 011.1031.596500 22.98 Driving Training Simulator 081717(2) 355767 09/19/2017 12.F LEAGUE OF CALIFORNIA CITIES 011.1026.550000 250.00 Job Ad 1 Deputy City Administrator 57092 355768 09/19/2017 250.00 Printed:9/2612017 7:19:03AM Page 14 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT INC OGS TECHNOLOGIES 011.1031.540000 131.98 Washer Button 212451 355769 09/19/2017 131.98 DANIEL ONOPA 011.1031.596500 22.98 Driving Training Simulator 081517 355770 09/1912017 22.98 PACIFIC PRODUCTS&SERVICES, 011.120010 210.00 Freight Charges 22381 355771 L 09/19/2017 210.00 SHI INTERNATIONAL CORP 011.9019.590110 6,714.90 Spam Filtering, Reporting, Content B06931156 011.0012583 355772 09/19/2017 6,714.90 SO CAL EDISON 011.1042.560000 222.89 Period:08117 090717 355773 09/19/2017 222.89 TRI-CITY MUTUAL WATER 011.1033.560000 315.00 Period: 08117 090117 355774 COMPANY 09/19/2017 315.00 WESTERN ALLIED CORPORATION 011.1049.590000 3,224.00 Air Conditioner Maintenance 21152 355775 011.1049.590000 685.03 Air Conditioner Maintenance 620771 355775 011.1049.590000 1,171.12 Air Conditioner Maintenance 620803 355775 011.1049.590000 464.60 Air Conditioner Maintenance 620867 355775 09/19/2017 5,544.75 WILLIAMS DATA MANAGEMENT 011.1003.596200 346.50 Storage Services 404288 355776 09/19/2017 346.50 Printed:912612017 7:19:03AM Page 15 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT INC ACCELA 011.9019.860000 6,250.00 SV100SMGGENFF01- INVACC33175 011.0012355 355777 09/21/2017 6,250.00 BATTERY SYSTEMS INC 011.1046.520000 196.56 Vehicle Batteries- 4084465 011.0012487 355778 011.1046.520000 480.24 Vehicle Batteries- 4089050 011.0012487 355778 011.1046.520000 245.06 Vehicle Batteries- 4096039 011.0012487 355778 011.1046.520000 548.80 Vehicle Batteries- 4119438 011.0012487 355778 011.1046.520000 245.06 Vehicle Batteries- 4121287 011.0012487 355778 011.1046.520000 87.31 Vehicle Batteries- 4122950 011.0012487 355778 011.1046.520000 245.06 Vehicle Batteries-- 4122953 011.0012487 355778 011.1046.520000 245.06 Vehicle Batteries- 4124384 011.0012487 355778 09/21/2017 2,293.15 CAMINO REAL CHEVROLET 011.1046.520000 210.26 Auto Parts- 88192 011.0012489 355779 011.1046.520000 206.77 Auto Parts- 88443 011.0012489 355779 011.1046.520000 69.26 Auto Parts- 89065 011.0012489 355779 011.1046,520000 229.51 Auto Parts- 89230 011.0012489 355779 011.1046.520000 185.39 Auto Parts- 89307 011.0012489 355779 011.1046.520000 906.35 Auto Parts- 89318 011.0012489 355779 011.1046.520000 -30.00 Care Return- CM87990 011.0012489 355779 09/21/2017 1,777.54 CLEAR INVESTIGATIVE 011.1048.431000 80.00 Background Check 94177 355780 ADVANTAGE 09/21/2017 80.00 Primed:9/26/2017 7:19:03AM Pape 16 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT MICHAEL DOCHERTY 011.1031.520000 61.35 Reimb. Smith&Wesson Firearm 091917 355781 Simulator 09121/2017 61.35 INC EASTERN GROUP 011.1004.550000 225.00 Publication Services 44979 355782 PUBLICATIONS 09/21/2017 225.00 INC EMERSON'S LOCKSMITH CO. 011.120010 1,926.00 1655-600 Yale Water Padlocks,Verticle 237047 011.0012566 355783 011.120010 20.00 Each Lock to be Engraved:COV-W 237047 011.0012566 355783 011.120010 20.00 Freight 237047 011.0012566 355783 011.120010 178.16 Sales Tax 237047 355783 09/21/2017 2,144.16 INC GENERAL PUMP COMPANY 020.1084.900000 145,700.00 Liner Installation 8 Rehabilitation 25870 355784 09/21/2 017 145,700.00 GRAINGER CO 011.1049.520000 651.44 Building Hardware- 9516040574 011.0012498 355785 09/21/2017 651.44 BRANDON GRAY 011.1031.596500 208.00 Discipline& Internal Investigation 091317 355766 09/21/2017 208.00 HOME DEPOT CREDIT SERVICES 011.1043.520000 151.86 Tools and Plumbing Hardware- 082417_MULTIPL 011.0012508 355787 E 011.1048.520000 320.88 Tools and Plumbing Hardware- 082417_MULTIPL 011.0012508 355787 E 011.1049.520000 200.36 Tools and Plumbing Hardware- 082417 MULTIPL 011.0012508 355787 E Printed 9/26/2017 7:19:03AM Page 17 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS _ ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT HOME DEPOT CREDIT SERVICES 011.1049.900000 633.85 Tools and Plumbing Hardware- 082417_MULTIPL 011.0012508 355787 E 09/21/2017 1,306.95 LA POOL GUYS 011.1049.590000 194.00 Pool Maintenance 42080 355788 09/21/2017 194.00 LB JOHNSON HARDWARE CO#1 011.1046-520000 149.45 Plumbing&Building Hardware-- 691193 011.0012500 355789 011.1046.520000 13.83 Plumbing&Building Hardware- 691194 011.0012500 355789 011.1049.520000 5.35 Plumbing&Building Hardware- 691362 011.0012500 355789 011.1046.520000 25.03 Plumbing&Building Hardware- 691482 011.0012500 355789 011.1046.520000 22.20 Plumbing& Building Hardware- 691520 011.0012500 355789 011.1043.520000 3.91 Plumbing& Building Hardware- 691756 011.0012500 355789 09/21/2017 219.77 A P.C. LEVITON LAW GROUP 011.1048.596200 350.00 Professional Services 08117 6376 355790 09/2112017 350.00 INC LONG BEACH BMW 011.1031-570000 263.77 Motorcycle Maintenance-- 29533 011,0012558 355791 MOTORCYCLES 09121/2017 263.77 LOPEZ&LOPEZ TIRE SERVICE 011.1046.520000 592.58 Tires,Accessories& Repairs- 17453 011.0012507 355792 011.1046.520000 437.15 Tires,Accessories& Repairs-- 17490 011.0012507 355792 011,1046.520000 30.00 Tires,Accessories&Repairs-- 17504 011.0012507 355792 011.1046.520000 15.00 Tires,Accessories&Repairs- 17596 011.0012507 355792 011.1046.520000 45.00 Tires,Accessories&Repairs- 17630 011.0012507 355792 Printed 9/2612017 7 19:03AM Page 18 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT LOPEZ 8 LOPEZ TIRE SERVICE 011.1046.520000 51.89 Tires,Accessories&Repairs- 17643 011.0012507 355792 011.1046.520000 162.51 Tres,Accessories&Repairs- 17711 011.0012507 355792 09121/2017 1,334.13 MAYWOOD CAR WASH 011.1060.570000 28.50 Car Wash Services- 935 011.0012570 355793 011.1041,570000 9.50 Car Wash Services- 936 011.0012521 355793 011.1043.570000 19.00 Car Wash Services- 936 011.0012521 355793 011.1046.570000 9.50 Car Wash Services- 936 011.0012521 355793 020.1084.570000 19.00 Car Wash Services- 936 011.0012521 355793 011.1031.570000 221.00 Car Wash Services- 937 011.0012557 355793 09/21/2017 306.50 MCCALL'S METER SALES& 020.1084.520000 412.00 ITEM: FC101-02-R- 29697 011.0012597 355794 SERVICE 020.1084.520000 38.11 Sales Tax 29697 355794 09/21/2017 450.11 INC MOTOROLA SOLUTIONS 011.1036.850000 280.80 Part#:PMNN4424AR- 13176678 011.0012595 355795 011.1036.850000 18,277.74 Part#:H84SDD9PW5AN- 13176678 011.0012595 355795 011.1036.850000 5,913.00 Part M OA00580AF- 13176678 011.0012595 355795 011.1036.850000 14,059.80 Part:#QA04096AA- 13176678 011.0012595 355795 011.1036.850000 3,510.00 Part#:0887AW- 13176678 011.0012595 355795 011.1036.850000 1,188.00 Part#:WPLN4212B- 13176678 011.0012595 355795 011.1036.850000 240.00 Part#:NNTN8860A- 13176678 011.0012595 355795 011.1036.850000 3,696.23 Sales Tax 13176678 355795 Printed:9126/2017 7:19:03AM Page 19 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/21/2017 47,165.57 GROSS &LEONI LLP NIELSEN, 011.1002.596200 983.25 Professional Services 05117 60117 355796 ME 09/21/2017 983.25 OFFICE DEPOT 011.1004.520000 51.15 Office Supplies- 956293913001 011.0012641 355797 011.1004.520000 4.73 Sales Tax 956293913001 355797 011.1004.520000 287.99 Office Supplies-- 957457000001 011.0012641 355797 011.1004.520000 26.64 Sales Tax 957457000001 355797 011.1004.520000 12.20 Office Supplies- 957457305001 011.0012641 355797 011.1004.520000 1.13 Sales Tax 957457305001 355797 09/21/2017 383.84 NICHOLAS PEREZ 011.1031.596500 208.00 Discipline& Internal Investigation 091317 355798 09/21/2017 208.00 PROFORMA EXPRESS GRAPHICS 011.1015.520000 96.89 A/P Stock Checks- 9015601927 011.0012581 355799 01i.1015.520000 8.96 Sales Tax 9015601927 355799 09/21/2017 105.85 STACY MEDICAL CENTER 011.1031.594200 600.00 Pre-Booking Exams FY 14-15 521110362 355800 011.1031.594200 690.00 Pre-Booking Exams&Custody Blood 521121527 355800 Draw 011.1031.594200 745.00 Pre-Booking Exams&Custody Blood 521121725 355800 Draw 09/21/2017 2,035.00 Printed:9126/2017 7:19:03AM Page 20 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT STATE STREET LAUNDRY 011.1031.520000 13.50 Car Wash Services- 11053 011.0012560 355801 011,1031.520000 26.10 Laundry Services- 11054 011.0012560 355801 011.1031.520000 8.10 Laundry Services- 11055 011.0012560 355801 011.1031.520000 16.20 Laundry Services- 11056 011.0012560 355801 09/21/2017 63.90 INC THE LIGHTHOUSE 011.1046.520000 14.61 Auto Parts& Electrical Supplies- 357127 011.0012493 355802 011.1046.520000 13.98 Auto Parts& Electrical Supplies-- 357710 011.0012493 355802 011.1046.520000 112.78 Auto Parts& Electrical Supplies- 360621 011.0012493 355802 011.1046.520000 156.28 Auto Parts& Electrical Supplies- 362761 011.0012493 355802 011.1046.520000 97.51 Auto Parts& Electrical Supplies- 363495 011.0012493 355802 011.1046.520000 10.18 Auto Parts& Electrical Supplies- 363774 011.0012493 355802 09/21/2017 405.34 UNDERGROUND SERVICE ALERT 020.1084.596200 148.50 New Ticket Charges 820170778 355803 09/21/2017 148.50 LLP VASQUEZ&COMPANY 011.1004.595200 5,000.00 Professional Services 2170728IN 355804 09/21/2017 5,000.00 RICHARD VELASQUEZ 011.1031.596500 22.98 LEDS I FOS 091117 355805 09/21/2017 22.98 VERNON SANITARY SUPPLY CO 011.120010 51.30 0320-200 Carlisle Flo Pac Truck Wash 18242500 011.0012596 355806 011.120010 49.86 0500-150 #8J8,8 oz. foam cups, 1000 18242500 011.0012596 355806 011.120010 574.30 0500-155 PBS516-W, 16 oz. Paper, Hot 18242500 011.0012596 355806 Printed:9/26/2017 7:19:03AM Page 21 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3,2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.OA ISSUED NUMBER AMOUNT VERNON SANITARY SUPPLY CO 011.120010 222.44 0500-156 Cup Buddy Kraft for 10-24 18242500 011.0012596 355806 011.120010 28.65 0500-157 Dart Lid,White,Sip-Thru, 10 18242500 011.0012596 355806 011.120010 37.58 0578-200 45114 Joy Liquid Dish Soap,8 18242500 011.0012596 355806 011.120010 697.32 0578-400 13878 TIDE Liquid Laundry 18242500 011.0012596 355806 011.120010 189.80 0578-580 04930 Palmolive Liquid Dish& 18242500 011.0012596 355806 011.120010 171.24 Sales Tax 18242500 355806 09/21/2017 2,022.49 WILLIAMS DATA MANAGEMENT 011.1003.596200 1,229.09 Storage Services 405405 355807 09121/2017 1,229.09 TOTAL EARLY CHECKS $ 682,420.87 Prinled:9126/2017 7:19:03AM Page 22 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT INC A THRONE CO 011.1043.520000 118.80 Portable Reslrooms 509089 355808 118.80 INC ANGEL CITY DATA 011.1036.590000 600.00 System Design&Development 15436 355809 600.00 ANN KIM 011.1031.502030 425.00 Vision Benefits I S.Winegar 091317 355810 011.1031.502030 425.00 Vision Benefits 1 J.Winegar 091317(2) 355810 850.00 BELINDAARELLANO 011.1031.502030 250.00 Vision Benefits I D. Mejia 091317 355811 250.00 BEARCOM 011.1036-596200 523.32 SC Service Agreement 4620573 355812 011.1036.590000 196.22 SC Service Agreement 4620573 355812 011.1036.596200 374.15 SC Service Agreement 4620576 355612 011.1036.590000 140.29 SC Service Agreement 4620576 355812 011.1036-596200 378.20 SC Service Agreement 4620577 355812 011.1036.590000 141.80 SC Service Agreement 4620577 355812 011.1036.596200 109.30 SC Service Agreement 4620580 355812 011.1036.590000 40.98 SC Service Agreement 4620580 355812 1,904.26 VEHICLES BLACK&WHITE 011.1031,570000 292.95 Install Lights 2102 355813 EMERGEN 011.1031.570000 140.00 Install New Cable&Camera 2103 355813 432.95 Printed:9/26/2017 7:19 03AM Page 23 or 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT LLC CASE ANYWHERE 011.1024.596200 125.00 System Access&Document Service Fee 111676 355814 125.00 RENAN CASTRO 011.1047.502030 268.98 Vision Benefits/B. Castro 091917 355815 268.98 ERIK CHENG 011.1060.596500 31.59 Well Disinfection Workshop 081517 355816 31.59 CITY OF HUNTINGTON PARK 011.1031.594200 4,391.75 Prisoner Booking Log 07/17 18738 355817 4,391.75 COASTLINE SUPPLIES 020.1084.520000 1,250.00 Eagle 4 Gas Monitor,GX 2012,- 49208 011.0012649 355818 020.1084.520000 110.00 GX 2012 Carrying Case,- 49208 011.0012649 355818 020.1084.520000 100.00 Freight 49208 011.0012649 355818 020.1084.520000 125.80 Sales Tax 49208 355818 1,585.80 WHATLEY, PC COLANTUONO, 011.1003.596300 155.00 Re: Election Advice 33721 355819 HIGHSM 155.00 COMMLINE, INC. 011.1036.560000 1,894.60 Install 2 Motorola XTL 5000 59741IN 355820 1,894.60 DEWEY PEST CONTROL 011.1049.590000 42.00 Period: 09/17 11179163 355821 011.1049.590000 67.00 Period: 09/17 11200378 355821 011.1049.590000 62.00 Period: 09/17 11205018 355821 Printed 9/2612017 7:19:03AM Page 24 o130 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.D.# NUMBER AMOUNT DEWEY PEST CONTROL 011.1048.596200 100.00 Period: 09117 11220439 355821 011.1048.596200 210.00 Period: 09/17 11220440 355821 011,1048.596200 60.00 Period:09/17 11220636 355821 011.1048.596200 60.00 Period:09/17 11220637 355821 011,1048.596200 95.00 Period:09/17 11239484 355821 696.0❑ INC DION&SONS 011.1046.520000 528.80 5W30 synthetic blend performance plus 684743 011.0012618 355822 011.1046.520000 409.98 15W40 synthetic blend performance plus 684743 011.0012618 355822 011.1046.520000 18.24 California oil recycling fee 684743 011.0012618 355822 011.1046.520000 6.08 California motor oil assessment fee 684743 011.0012618 355822 011.1046.520000 7.50 Diesel fuel charge 684743 011.0012618 355822 011.1046.520000 5.95 Environmental compliance fee 684743 011.0012618 355822 011.1046.520000 1.25 Lab tax 684743 011.0012618 355822 011.1046.520000 90.45 Sales Tax 684743 355822 1,068.25 DR DAVID N STEIN 011,1043.502030 139.00 Vision Benefits 1 J. Zermeno 091217 355823 011.1041.502030 364.00 Vision Benefits 1 A. Canales 091217(2) 355823 503.00 EMERGENCY VEHICLE GROUP, 011.1046.520000 222.00 091-20WP-120 kussmaul auto eject with 22438 011.0012538 355824 INC 011.1046.590000 25.00 Freight 22438 011.0012538 355824 011.1046.520000 17.21 Sales Tax 7.75% 22438 355824 Printed:9/2612017 7:19:03AM Page 25 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT 264.21 FERGUSON ENTERPRISES INC 011.120010 1,070.23 3088-608 8"M.J.X M.J. D.I. RW OL 607327 011.0012648 355825 #1083 011.120010 1,668.69 3088-650 10" M.J. X M.J. D.I. RW OL 607327 011.0012648 355825 011.120010 1,668.69 3088-980 10" M.J. X Flg. D.I. RW OL 607327 011.0012648 355825 011.120010 407.70 Sales Tax 607327 355825 4.815.31 FLORENCE FILTER 011.120010 251.28 1631-914 14"X 30"X 1"MERV10 Pleat, 5412 011.0012647 355826 CORPORATION 011.120010 36.00 1631-940 16"X 20"X 1"MERV10 Pleat„ 5412 011.0012647 355626 011.120010 46.20 1631-960 20"X 24"X 1"MERV10 Pleat, 5412 011.0012647 355826 011.120010 142.56 1631-973 20"X 30"X 2"MERV10 Pleat, 5412 011.0012647 355826 011.120010 129.60 1631-980 24"X 24"X 1"MErV10 Pleat, 5412 011.0012647 355826 011.120010 75.81 Freight 5412 011.0012647 355826 011.120010 56.02 Sales Tax 5412 355826 737.47 FRANCISCO M.JR GAVINA 011.1048.596200 100.00 Vernon Housing Commission 090617 355827 100.00 INC GE MOBILE WATER 011.1033.590000 113.62 Water Purification Service/Maintenance 98928751 355828 011.1033.590000 98.96 Water Purification Service/Maintenance 98932055 355828 212.58 SUNEET GUPTA 020.1084.502030 300.00 Vision Benefits 1 D. Gomez 091217 355829 Printed:9126/2017 7:19:03AM Page 2e or 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT 300.00 INC IGOE R COMPANY 011.1026.594200 200.00 Administrative Fees 164905 355830 200.00 LINDA JOHNSON 011.1061.596500 40.89 Informal Rulemaking Stakeholder 090517 355831 Workshop 40.89 KJ SERVICES 011.1060.595200 280.00 Recycling Program Activities 08117 1065 355832 011.1061.595200 600.00 Oil Payment Program Activities 08117 1066 355832 880.00 DAVID LEDUFF 011.1061,596500 54.24 CalRecycle SB 1383 Rulemaking 090517 355833 Workshop 060.6060.596500 34.35 So Cal CUPA Meeting 091217 355833 88.59 LIZ NGUYEN,O.D. 011.1031.502030 140.00 Vision Benefits 1 A. Encinas 091217 355834 140.00 LOSANGELES FREIGHTLINER 011.1046.520000 273.86 a6737200054 weatherstrip WP1342848 011.0012616 355835 011.1046.520000 25.33 Sales Tax WP1342848 355835 299.19 INC MELVYN GREEN & 011.1041.595200 4,166.24 Plan Check Services 07117 14002 355836 ASSOCIATES 4,166.24 Printed 9/26/2017 7:19 03AM Page 27 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT INC PACIFIC COMMERCIAL TRUCK 060.6033.570000 2,420.00 New Tommy Gate Liftgate, Model: 23004 011.0012592 355837 B 060.6033.570000 500.00 Installation of the above describe 23004 011.0012592 355837 060.6033.570000 223.85 Sales Tax 23004 355837 3,143.85 PLUMBING &INDUSTRIAL SUPPLY 011.1049.520000 2,882.00 AS CE-120-AS 18KW 480V Electric S1191974001 011.0012656 355838 Water 011.1049.520000 266.59 Sales Tax S1191974001 355838 3,148.59 ADRIANA RAMOS 011.1033.502030 349.00 Vision Benefits 1 S. Ramos 091217 355839 349.00 INC RICHARD P GUESS MD 011.1033.596200 750.00 Medical Director Fees- 090417 355840 750.00 RVD EMISSIONS 011.1046.590000 570.00 Labor only to perform annual opacity 1221a 011.0012617 355841 570.00 SNAP-ON INDUSTRIAL 011.1046.520000 1,102.35 TPMS3 tire sensor system tool 15DARV33447272 011.0012613 355842 011.1046.520000 101.97 Sales Tax 150ARV33447272 355842 011.1046.520000 2,500.21 EEHD184040 prolink ultra starter 150ARV33450268 011.0012615 355842 011.1046.520000 231.27 Sales Tax 150ARV33450268 355842 011.1046.520000 4,496.25 EEMS341T121N modis edge 17.2 150ARV33452932 011.0012614 355842 scanner 011.1046.520000 60.00 Freight 150ARV33452932 011.0012614 355842 011.1046,520000 421.45 Sales Tax 150ARV33452932 355842 Printed:9126/2017 7:19:03AM Page 28 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.p.# NUMBER AMOUNT 8,913.50 TETRA TECH, INC. 011.1060.595200 1,666.42 Professional Services 51217345 355843 1,666.42 UPS 011.1033.520000 13.91 Period:08/17 933312367 355844 011.1041.520000 37.39 Period:08/17 933312367 355844 51.30 VINH TRAN DANG, O.D. 011.1031.502030 140.00 Vision Benefits 1 J. Encinas 091217 355845 140.00 WHITTIER POLICE DEPARTMENT 011.1031.570000 500.00 Mutual Aid Vehicle Maintenance MAV001(2) 355846 500.00 TOTAL PRINTED CHECKS $ 46,353.12 Printed:9126/2017 7:19:03AM Page 29 of 30 CITY OF VERNON WARRANT REGISTER NO. 1480 OCTOBER 3, 2017 RECAP BY FUND EARLY PRINTED FUND WIRE TOTAL CHECK TOTAL CHECK TOTAL TOTAL 011 -GENERAL s 338,386.75 S 523,740.14 $ 41,289.12 $ 903,416.01 020-WATER 0.00 158,680.73 1,885.80 160,566.53 060- HAZARDOUS WASTE 0.00 0.00 3,178.20 3,178.20 GRAND TOTAL * 338,386.75 5 682,420.87 $ 46,353.12 $ 1,067,160.74 TOTAL CHECKS TO BE PRINTED 39 Prinlea:912G12017 M R:0315M Page 30 of 30 RECEBVED RECEIVED SEP 2 6 2017 SEP 2 6 2017 STAFF REPORT CITY ADMINISTRATION CITY CLERK'S OFFICE FINANCE/TREASURY DEPARTMENT DATE: September 26, 2017 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director RE: Light & Power Warrant Register for City Council Agenda of October 3, 2017 It is recommended that the attached Light & Power Warrant Register No. 445 be approved at the City Council meeting of October 3, 2017. Light & Power Warrant Register No. 445 totals $6,153,713.10, and covers claims and demands presented during the period of September 12 through September 25, 2017, drawn, or to be drawn, from East West Bank. The following list details the components of Light & Power Warrant Register No. 445: 1. Ratification of wire transfers totaling $6,043,609.09; 2. Ratification of the issuance of early checks totaling $31,427.44; and 3. Authorization to issue pending checks totaling $78,676.57. +.Js%, * LIGHT S POWER WARRANT REGISTER NO. 445 t OCTOBER 3, 2017 rv�tr %* I hereby certify that claims and/or demands included in above listed warrant This is to certify that the claims or demands covered by the above listed register have been audited for accuracy and availability of funds for warrants have been audited by the City Council of the City of Vernon and payments and that said claims and/or demands are accurate and that the that all of said warrants are approved for payments except Warrant funds are available for payments thereof. Numbers: William Fox Finance Director Date: Printed.9/26/2017 7:22 53AM Page 2 of 9 LIGHT & POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 WIRES ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT CALIFORNIA ISO 055.9200.500150 -8,414.44 Recalculation Charges 08117 201709123136198 6490 606 055.9200,500170 -181.72 Recalculation Charges 08117 201709123136198 6490 606 055.9200,500190 -442.56 Recalculation Charges 08117 201709123136198 6490 606 055.9200.500210 -27.72 Recalculation Charges 08117 201709123136198 6490 606 055.9200.500150 4,110.09 Recalculation Charges 11116 201709123136198 6490 606 055.9200.500170 319.25 Recalculation Charges 11116 201709123136198 6490 606 055.9200.500180 9,304.48 Recalculation Charges 11116 201709123136198 6490 606 055.9200.500190 1,885.74 Recalculation Charges 11116 201709123136198 6490 606 055,9200.500150 684,692.64 Initial Charges 09/17 201709123136198 6490 606 055.9200.500190 17,599.73 Initial Charges 09117 201709123136198 6490 606 055.9200.500210 21,677.57 Initial Charges 09117 201709123136198 6490 606 055.9200.500170 -10,077.67 Initial Charges 09/17 201709123136198 6490 606 09/18/2017 720,445.39 LLC BICENT(CALIFORNIA) 055.9200.500150 -15,178.73 Energy Price Difference CFD8201701 6491 HOOVER 055.9200.500180 238,457.54 Capacity Price Difference CFD8201701 6491 055.9200.500180 41,929.12 Actual Monthly Uprating Credit CFD8201701 6491 Printed:9/26/2017 7:22:53AM Page 3 of 9 LIGHT& POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 WIRES ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT LLC BICENT(CALIFORNIA) 055.9200.500150 -7,331.40 CES Costs CFD8201701 6491 HOOVER 09/19/2017 257,876.53 LLC BICENT(CALIFORNIA) 055.9200.500150 364,589.88 Monthly Energy Related Payment 8201701 6492 MALBUR 055.9200.500180 3,450,848.40 Monthly Capacity Payment 8201701 6492 055.9200.500150 50,219.00 Section 18.3 Fee Reimbursement 8201701 6492 09/19/2017 3,865,657.28 INC PETRELLI ELECTRIC 055.200400 1,139,593.68 Electric Service Maintenance 170175 6493 09/20/2017 1,139,593.68 LLC BIOFUEL GENERATION 055.9200.500162 7,414.75 Biomethane 08/17 RPS82017 6494 SERVICE 09/25/2017 7,414.75 SO CAL PUBLIC POWER 055.9200.500154 40,569.34 Astoria 2 Solar Project ATSP0917 6495 AUTHORITY 09/21/2017 40,569.34 US DEPARTMENT OF ENERGY 055.9200.500150 32,729.67 Energy Purchase 08117 GG1766AO817 6496 055.9200,500180 21,251.57 Energy Purchase 08117 GG1766AO817 6496 055.151000 -41,929.12 Energy Purchase 08117 GG1766AO817 6496 09/21/2017 12,052.12 TOTAL WIRES $ 6,043,609.09 Printed:9/2612017 7:22:53AM Page 4 of 9 LIGHT & POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT HOME DEPOT CREDIT SERVICES 055.8400.590000 212.91 Hardware Supplies- 2260895 055.0002553 512886 055.8400.590000 101.44 Hardware Supplies- 3260994 055.0002553 512886 055.8400.590000 10.83 Hardware Supplies- 4260766 055.0002553 512886 055.8400.590000 95.78 Hardware Supplies- 4260984 055.0002553 512886 055.8400.590000 23.67 Hardware Supplies- 7260857 055.0002553 512886 09/14/2017 444.63 PIC ENVIRONMENTAL SERVICE 055,9100.900000 2,400.00 Consulting Services 15504 512887 CORP 09/14/2017 2,400.00 SO CAL EDISON 055.8100.560010 46.04 Period: 08/17 083017(2) 512888 09/14/2017 46.04 INC A THRONE CO 055.8100.596200 298.44 Portable Restrooms 508753 512889 09/19/2017 298.44 INC HAUL AWAY RUBBISH 055.8400.596200 157.00 Hauling Services 78XO3356 512890 SERVICE 055.8400.596200 61.00 Hauling Services 78X03357 512890 09/19/2017 218.00 SANTA FE BUILDING 055.8400.596200 464.00 Janitorial Service 08/17 16277 512891 MAINTENANCE 055.9000.596200 1,611.00 Janitorial Service 08/17 16277 512891 09/19/2017 2,075.00 SO CAL EDISON 055.9200.560010 729.44 Period:08/17 090217 512892 Printed:g126/2017 7:22:53AM Page 5 of 9 LIGHT & POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/19/2017 729.44 SECURITY ABSOLUTE 055.8100.596200 23,462.16 Security Guard Services 2017029354 512893 I NTERNATI ONA 09121/2017 23.462.16 AT&T 055.9000.560010 231.04 Pedod: 07/17 10071872 512894 09/21/2017 231.04 CRAIG WELDING SUPPLY CO 065.8400.590000 26.48 Refill Cylinders- 620957 055.0002538 512895 09/21/2017 26.48 DEREK RICE, O.D. 055.9000.502030 150.00 Vision Benefits/A. Castillo 083017 512896 09/21/2017 150.00 DEWEY PEST CONTROL 055.8400.590000 122.00 Period: 08117 11131121 512897 055.8400.590000 122.00 Period:09/17 11202540 512897 09/21/2017 244.00 LOS ANGELES ELEVATOR 055.8400.596200 90.00 Elevator Maintenance 05117 10189 512898 SERVICES 055.8400.596200 90.00 Elevator Maintenance 03/17 10253 512898 055.8400.596200 90.00 Elevator Maintenance 04/17 10254 512898 09/21/2017 270.00 SO CAL JOINT POLE COMMITTEE 055.9100.596200 693.61 Operating Expenses 08/17 19571 512899 09/21/2017 693.61 UNDERGROUND SERVICE ALERT 055.8300.596200 138.60 New Ticket Charges 820170778(2) 512900 Printed:912612017 7.22:53AM Page 6 of 9 LIGHT& POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT 09/21/2017 138.60 TOTAL EARLY CHECKS $ 31,427.44 Primed 9/26/2017 7:22:53AM Page 7 of 9 LIGHT & POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 PRINTED CHECKS ACCOUNT CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# NUMBER AMOUNT AMERICAN PUBLIC POWER 055.9000.596700 109.00 Green Tariffs for Growth 090517 512901 ASSOC. 109,00 CG POWER SYSTEMS USA, INC. 055.9100.900000 19,022.00 7200-1500KVA-2771480- 2316361 055.0002531 512902 055.9100.900000 23,754.00 7200-2000KVA-2771480- 2316361 055.0002531 512902 055,9100.900000 31,077.00 16340-2500KVA-2771480- 2316361 055.0002531 512902 73,853.00 UPS 055.8000.590000 39.22 Period: 06/17 933312367(2) 512903 39.22 WESCO RECEIVABLES CORP. 055.8000.900000 4,279.50 ABB-7524A58G05"CLC,-- 327130 055.0002569 512904 055.8000.900000 395.85 Sales Tax 327130 512904 4,675.35 TOTAL PRINTED CHECKS $ 78,676.57 Printed:9/26/2017 7:22:53AM Page 8 of 9 LIGHT & POWER WARRANT REGISTER NO. 445 OCTOBER 3, 2017 RECAP BY FUND EARLY PRINTED FUND WIRE TOTAL CHECK TOTAL CHECK TOTAL TOTAL 055-LIGHT&POWER $ 6,043,609.09 $ 31,427.44 $ 78.676.57 6,153,713.10 GRAND TOTAL $ 6,043,609.09 $ 31,427.44 $ 78,676.57 # 6,153,713.10 TOTAL CHECKS TO BE PRINTED 4 Printed:9126/2017 7:22:53AM Page 9 of 9 RECEIVED RECEIVED R y MCI sEP2s eon SEP 2 6 2011 "'"'� CITY ADMINISTRATION CITY CLERWS OFFICE STAFF REPORT FINANCE/TREASURY DEPARTMENT -� DATE: September 26, 2017 TO: Honorable Mayor and City Council FROM: William Fox, Finance Directoror� RE: Gas Warrant Register for City Council Agenda of October 3, 2017 It is recommended that the attached Gas Warrant Register No. 233 be approved at the City Council meeting of October 3, 2017. Gas Warrant Register No. 233 totals $1,859,075.26, and covers claims and demands presented during the period of September 12 through September 25, 2017, drawn, or to be drawn, from East West Bank. The following list details the components of Gas Warrant Register No. 233: 1. Ratification of wire transfers totaling $1,857,103.91; 2. Ratification of the issuance of early checks totaling $1,971.35; and CITY OF VERNON GAS DEPARTMENT y WARRANT REGISTER NO. 233 3r` OCTOBER 3, 2017 I hereby certify that claims and/or demands included in above listed warrant This is to certify that the claims or demands covered by the above listed register have been audited for accuracy and availability of funds for warrants have been audited by the City Council of the City of Vernon and payments and that said claims and/or demands are accurate and that the that all of said warrants are approved for payments except Warrant funds are available for payments thereof. Numbers: William Fox Finance Director Date: Primed 9/26/2017 7:26 04AM Page 2 of 6 CITY OF VERNON GAS DEPARTMENT WARRANT REGISTER NO. 233 OCTOBER 3, 2017 WIRES ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT INC CITIGROUP ENERGY 056,5600.500167 39,897.00 Pre-Paid COV Retail 6338335 625 056.5600.500168 -14,647.50 Pre-Paid SMUD 6338335 625 09/25/2017 25,249.50 CONOCO PHILLIPS COMPANY 056.5600.500160 492,845.25 Natural Gas 08/17 89873 626 09/25/2017 492.845.25 LLC EDF TRADING NORTH 056.5600.500160 374,092.50 Natural Gas 08/17 211619 627 AMERICA 09/25/2017 374,092.50 LLC FREEPOINT COMMODITIES 056.5600.500160 91,143.75 Natural Gas 08/17 574713 628 09/25/2017 91,143.75 LLC MACQUARIE ENERGY 056.5600.500160 482,980.09 Natural Gas 08/17 GAS100080116 629 09/2512017 482,980.09 NOBLE AMERICAS GAS 8 POWER 056.5600.500160 69,600.00 Natural Gas 08117 6CZD 630 09/25/2017 69,600.00 INC OCCIDENTAL ENERGY 056.5600.500160 43,387.50 Natural Gas 08/17 4118802 631 MARKETIN 09/25/2017 43,387.50 LLC PACIFIC SUMMIT ENERGY 056.5600.500160 96,137.50 Natural Gas 0B/17 217884 632 09/25/2017 96,137.50 LP SEQUENT ENERGY 056.5600.500160 88,350.00 Natural Gas 08/17 302513712 633 MANAGEMENT Printed:9/26/2017 7:26:04AM Page 3 of 6 CITY OF VERNON GAS DEPARTMENT WARRANT REGISTER NO. 233 OCTOBER 3, 2017 I vms ACCOUNT DATE WIRE VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.Q_# ISSUED NUMBER AMOUNT 09/25/2017 88,350.00 THE GAS COMPANY 056.5600.550022 93,317.82 Period: 07/17 081817 634 09/12/2017 93,317.82 TOTAL WIRES 5 1.857.103.91 Printed:9/26/2017 7:26.04AM Page 4 of 6 CITY OF VERNON GAS DEPARTMENT WARRANT REGISTER NO. 233 OCTOBER 3, 2017 EARLY CHECKS ACCOUNT DATE CHECK VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION INVOICE P.O.# ISSUED NUMBER AMOUNT LLC EAN SERVICES 056.5600.596500 73.98 Car Rental Services 14565379(2) 1630 09/14/2017 73.98 HOME DEPOT CREDIT SERVICES 056.5600.520000 223.98 Hardware Supplies- 2971914 056.0000457 1631 09/14/2017 223.98 UNITED STEEL FENCE COMPANY 056.5600.590000 898.00 Gate Repairs 18031 1632 09/14/2017 898.00 AT&T 056.5600.560010 590.65 Period:07/17 10071875 1633 066.5600.560010 19.80 Period:07/17 10071974 1633 09/21/2017 610.45 THE GAS COMPANY 056.5600.560000 19.64 Period: 08117 091117 1634 09121/2017 19.64 UNDERGROUND SERVICE ALERT 056.5600.596200 145.30 New Ticket Charges 820170778(3) 1635 09/21/2017 145.30 TOTAL EARLY CHECKS $ 1,971.35 Printed:9/2612017 7:26:04AM Page 5 of 6 CITY OF VERNON GAS DEPARTMENT WARRANT REGISTER NO. 233 OCTOBER 3, 2017 RECAP BY FUND EARLY PRINTED FUND WIRE TOTAL CHECK TOTAL CHECK TOTAL TOTAL 056-NATURAL GAS $ 1,857,103.91 $ 1,971,35 5 :100 s 1,859,075.26 GRAND TOTAL $ 1,857,103.91 $ 1,971.35 $ 0.00 $ 1,859,075.26 TOTAL CHECKS TO BE PRINTED 0 Primed 9126/2017 T.26 04AM Page 6 of 6 Jt+ Q' RECEIVED � .y � . �� RECEIVED SEP282017 SEP 2 7 2017 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION CITY CLERK DEPARTMENT DATE: October 31,2017 TO: Honorable Members of the Vernon City Council FROM: Maria E. Ayala, City Cleric Originator: Matthew Ceballos, Deputy City Clerk RE: Re-installation of California Historical Landmark No. 167 — La Mesa Battlefield Site Recommendation A. Find that the proposed action is exempt from California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15031, because the installation of a small concrete pedestal and memorial plaque involves minor exterior construction with negligible or no expansion of use; and B. Approve an advanced deposit with the Native Sons of the Golden West to manufacture the California Historical Landmark No. 167 memorial plaque and assist with preparation of a dedication ceremony, for an amount not to exceed $3,000. C. Authorize Public Works to install the memorial plaque, to be located in the City Hall courtyard at 4305 S. Santa Fe Avenue, Vernon CA, 90058. Background On December 6, 2016 the Vernon Historic Preservation Society recommended that the City place a historical plaque at Vernon City Hall to replace California Historical Landmark No. 167 which designates the La Mesa Battlefield as a California Historical Site. The original plaque, located at Downey and Exchange, went missing in 2012. The plaque will commemorate the La Mesa Battlefield and the historical significance of the Mexican-American War. During the United States occupation of California in the Mexican- American War, La Mesa served as a campsite for the Californio forces under General Castro in the summer of 1846. The last military encounter on the California front was fought here on January 9, 1847, also known as the Battle of Los Angeles. Page 1 of 2 The City proposes that the historical plaque be flush mounted on a small concrete pedestal upon approval of the California State Office of Historic Preservation. The City will contribute to the cost of procuring the historical plaque and pedestal. The plaque will include the City of Vernon as a sponsor. A public ceremony and dedication is tentatively scheduled for the winter of 2018. Fiscal Impact The fiscal impact will not exceed$3000.00. Although this item was not included in the budget for this fiscal year, there are sufficient funds available in the City Clerk's budget to cover this expenditure. Attachment(s) 1. Draft Plaque Language 2. Sample Plaque Images Page 2 of 2 NO. 167 LA MESA BATTLEFIELD DURING THE UNITED STATES OCCUPATION OF CALIFORNIA IN THE MEXICAN- AMERICAN WAR, LA MESA SERVED AS A CAMPSITE FOR THE CALIFORNIO FORCES UNDER GENERAL CASTRO IN THE SUMMER OF 1846. THE LAST MILITARY ENCOUNTER ON THE CALIFORNIA FRONT WAS FOUGHT HERE ON JANUARY 9, 1847. ALSO KNOWN AS THE BATTLE OF LOS ANGELES. PLAQUE RE-PLACED BY THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION, CITY OF VERNON, HISTORICAL PRESERVATION FOUNDATION OF THE NATIVE SONS OF THE GOLDEN WEST, NATIVE SONS OF THE GOLDEN WEST RIO HONDO PARLOR NO.294, AND UNIVERSITY PARLOR NO. 272 ON JANUARY 10, 2018. ' iLU 7 CD • LU a • uicn cn • i cio - Fa • • • • • • • • - ■ • CD cc CD • a ■ • CD • ui • • ■■ � - • • i r■ LU of ■ ■ ' ■ of ■ • • - ■ ■ • • • 0 • LLI ' .■ ■ a J FIF _ U w � 0 J_ � Q d J r w N 0 Q w LL a � z m u z o v a a o w 'r 00 00 J d' � �� /% ■ � � / JL � • �� f jr . . � • � . . � � 4 � - ,■ ■ '! � � � � �� | . . � 2. � } ■ /� � �� » . , ( � • � � � � ¥��\ -,MEW ' Ir - � , f ■ . , - J � - . �t . v 0 � - $ I 41 �._ . . . •�� . e p - » \ IL s• I#y �, 1, +''. * 4 yr .e `, -t It JL ,k. •} nF it rl Is r , F r `F 46 1 i' • rL LU LL CA 4 it } JL - kzIV 414 41 ., F of 'UtI7 RECEIVED RECEWED ty tt SEP 2 6 2017 c 5EP 2 8 2017 = CITY ADMINISTRATION � ' ; CITY CLERK'S OFFICE FIRE DEPARTMENT 4305 Santa.Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 Fax(323) 826-1407 September 25, 2017 Honorable Mayor and City Council City of Vernon Honorable Members: Attached is a copy of the Vernon Fire Department Activity Report which covers the period of August 16, 2017 through August 31, 2017. Respectfully Submitted, l�- 1 Bruce K. English Fire Chief BKE:ar Fireletnow x,cfusivefy Industriaf VERNON FIRE DEPARTMENT COMPANY ACTIVITIES August 16, 2017 to August 31, 2017 This Period Last Year This This Year Last Year To Date Period To Date ACTIVITY TYPE FIRE PREVENTION: Regular Inspections (#): 69 967 28 861 Re-Inspections(#): 14 159 0 144 Spec. Haz. Inspections {#): 2 21 2 84 Total Inspections: 85 1147 30 1089 Total Man Hours: 98 1383 51 1630 TRAINING (HOURS): Firefighting 125 1520 99 1729 Hazardous Materials 38 562 34 626 Safety 148 2061 123 2092 Apparatus Operations 154 2087 134 2119 Equipment Operations 150 2057 132 2119 CPR 1 52 31 70 First Aid 54 419 57 532 Total Hours: 670 8758 610 9287 PRE-INCIDENT (HOURS): Planning 94 1339 103 1399 District Familiarization 109 1457 93 1406 Total Hours: 203 2796 196 2805 PERIODIC TEST(HOURS): Hose Testing 0 3 0 6 Pump Testing 4 7 0 6 Total Hours: 4 10 0 12 Page l PUBLIC SERVICE PROGRAMS (HOURS) School Programs 2 25 0 31 Fire Brigades 0 4 0 0 Emergency Preparedness 16 205 5 215 Total Hours: 18 234 5 246 ROUTINE MAINTENANCE (HOURS): Station 155 2220 124 1977 Apparatus 145 2034 166 2067 Equipment 151 2091 130 2086 Total Hours: 451 6345 420 6130 Grand Total Hours: 1444 19526 1282 20110 Fireactivity Page 2 F� r RECEIVED RECEIVED SEP SEP 2 20 2 8 2017, r, CITY ADMINISTRATION CITY CLERIC'S OFFICE lit FIRE DEPARTMENT 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 Fax (323)826-1407 September 25, 2017 Honorable Mayor and City Council City of Vernon Honorable Members: Attached is a copy of the Vernon Fire Department Activity Report which covers the period of September 1, 2017 through September 15, 2017. Respectfully Submitted, Bruce K. English Fire Chief BKE:ar Fireletnow DCcfusivefy Industria( VERNON FIRE DEPARTMENT COMPANY ACTIVITIES September 1, 2017 to September 15, 2017 This Period Last Year This This Year Last Year To Date Period To Date ACTIVITY TYPE FIRE PREVENTION: Regular Inspections (#): 93 1060 88 949 Re-Inspections (#): 21 180 18 162 Spec. Haz. Inspections (#}: 1 22 3 87 Total Inspections: 115 1262 109 1198 Total Man Hours: 154 1537 145 1775 TRAINING(HOURS): Firefighting 114 1634 94 1823 Hazardous Materials 42 604 27 653 Safety 133 2194 115 2207 Apparatus Operations 125 2212 115 2234 Equipment Operations 131 2188 118 2237 CPR 20 72 2 72 First Aid 41 460 24 556 Total Hours: 606 9364 495 9782 PRE-INCIDENT (HOURS- Planning 99 1438 77 1476 District Familiarization 91 1548 83 1489 Total Hours: 190 2986 160 2965 PERIODIC TEST (HOURS): Hose Testing 0 3 0 6 Pump Testing 4 11 0 6 Total Hours: 4 14 1) 12 Page 1 PUBLIC SERVICE PROGRAMS HOURS School Programs 2 27 0 31 Fire Brigades 0 4 0 0 Emergency Preparedness 19 224 8 223 Total Hours: 21 255 8 254 ROUTINE MAINTENANCE (HOURS): Station 130 2350 117 2094 Apparatus 136 2170 117 2184 Equipment 147 2238 117 2203 Total Hours: 413 6758 351 6481 Grand Total Hours: 1388 20914 1159 21269 Tireactivity Page 2 RECEIVED ' 3 SEP 2 8 2017 RECEIVED.-* r•�CITY CLERIC'S OFFICE SEP 2 8 2011 STAFF REPORT CITY ADMINISTRATION HUMAN RESOURCES DEPARTMENT C� DATE: October 3, 2017 TO: Honorable Mayor and City Council FROM: Michael A. Earl, Director of Human Resources RE: Adoption of Revised City of Vernon Personnel Policies and Procedures — Respiratory Protection Program, VI-1 Recommendation A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is an administrative activity that will not result in direct physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. B. Adopt the attached Revised Personnel Policy and Procedure — Respiratory Protection Program, VI-I; and C. Authorize the City Administrator to revise and update Appendix A — Job Classifications Covered by a Mandatory Respiratory Program, as needed to reflect changes and/or updates in job classifications and work functions requiring use of respirators; and D. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policy to all employees. Backe-round The Human Resources Department is responsible for maintaining and managing the City's Personnel Policies and Procedures Manual. In August 2015, the City adopted a voluntary respiratory protection policy for non-safety City employees (attached for reference). Following a review of the City's safety programs by a safety consultant in November 2015 and through discussions with the operating departments, employees and bargaining units, it was determined that a voluntary respirator policy might not be adequate as some employees may have occasion to work in areas where a respirator could be required. In developing this policy, Human Resources staff worked closely with the Director of Health and Environmental Control as well as staff from Public Works and Public Utilities. Staff also Page I of 2 provided multiple opportunities to the affected employee bargaining units to review, comment, and discuss the proposed policy. The language in the policy is intended to closely follow CalOSHA regulations to ensure it is comprehensive and compliant with those regulations. The proposed policy covers all non-safety City employees. Separate policies apply to sworn safety personnel, particularly in the Fire Department through the hazardous materials functions, as these employees have the responsibility and specialized training to respond to the most hazardous environments requiring the highest level of respiratory protection. In summary, the policy incorporates the required elements of a respiratory protection program including: 1. Where respiratory protection is required 2. Respirator Selection 3. Medical evaluations of employees required to use respirators 4. Fit testing procedures 5. Use, maintenance, and care of respirators 6. Training and Information 7. Voluntary Use of Respirators 8. Program Evaluation 9. Recordkeeping The policy also includes a provision that allows for the establishment of department specific procedures to be established for employees so that there is clear guidance in how to implement and carry out the provisions of the policy and to ensure employee safety. In addition to City Council adoption of the policy, staff is requesting that the City Council authorize the City Administrator to amend the list of classifications of employees who may, at times, be required to wear respirators in Appendix A of the policy. This list of classifications may change periodically as job classifications are added or deleted, as work processes, procedures, and functions change over time, and as additional potential respiratory exposures may be identified. Staff is currently working with safety consultant to conduct further respiratory assessments in the Public Works and Public Utilities departments. Fiscal Imnaet Any fiscal impact resulting from the adoption and implementation of this policy may be as a result of additional employee training, medical evaluations, and fit testing required under the policy. It is anticipated that adequate funds are included in the 2017/2018 fiscal year budget to cover any additional expenditures in these areas. Attachments) 1. Proposed Respiratory Protection Program Policy, VI-I 2. Current Voluntary Respiratory Safety Equipment Policy, VI-I Page 2 of 2 City of Vernon, California Human Resources Policies and Procedures Director of Human Resources City Administrator Number: Effective Date: SUBJECT: RESPIRATORY PROTECTION PROGRAM PURPOSE: The purpose of the Respiratory Protection Program is to protect City employees from occupational exposure to harmful dust, fogs, fumes, mists, gases, smokes, sprays, or vapors occurring in the workplace or remote sites. This respiratory protection program establishes the authority, responsibility, and procedures required to develop and maintain an effective respiratory protection program. This program applies to all affected non-sworn, non-safety City employees whose job classification may require wearing of a respirator during normal operations, and those who voluntarily chose to wear a respirator. This program includes the following elements: 1. Where respiratory protection is required 2. Respirator Selection 3. Medical evaluations of employees required to use respirators 4. Fit testing procedures 5. Use, maintenance, and care of respirators 6. Training and Information 7. Voluntary Use of Respirators 8. Program Evaluation 9. Recordkeeping Requiring the use of a respirator for City employees should be the last resort. Engineering controls such as enclosure or confinement of the operation, general and local ventilation, and substitution of less toxic materials, should always be considered before requiring the use of a respirator. Respirators are provided by the City to ensure employees breathe safely in identified potentially hazardous work environments. POLICY: This policy addresses the use of respirators in areas that have been identified as hazardous or that may be reasonably assumed to contain hazardous contaminants. City employees will not always be required to wear personal respiratory protection on the job, but may at times work in areas where conditions have been monitored or tested and identified as having air contaminants requiring the use of respirators, or where one can reasonably assume that air contaminants may be present or possible during the scheduled work. The issuance of personal respiratory protective equipment will be based on the type of respiratory hazard and level of exposure to that hazard in the work environment. This assessment of the environment is designed to assure proper selection, fit, and protection factors are considered when matching the appropriate protective equipment to the hazards of the work environment. The job classifications listed in Appendix A have been identified as those in which employees may be exposed to hazardous environments or where the environment may reasonably be assumed to contain hazardous contaminants. Employees who occupy positions in the classifications listed in Appendix A shall be issued a National Institute for Occupational Safety and Health (NIOSH) approved respirator and shall be required to wear their respirator in areas where hazardous contaminants exist. Only properly trained sworn police and fire safety personnel are authorized to work with self-contained breathing apparatus or supplied air respirators and are the only City personnel authorized to work in areas requiring the use of such respirators. If there is reason to believe a condition may exist where there is a potential hazard impairing the ability to breathe safely while carrying out assigned duties, the employee shall immediately evacuate to a safe area, and contact the City Fire Department. The City shall supply respirators for employees who want to voluntarily wear a respirator to increase their comfort level when working in areas where use of a respirator is not required. At no time shall a worker who has been approved for the voluntary use of respirator enter an area where respirators are required, unless they are specially trained for the environment. Prior to approval of voluntary use of a respirator, the City shall determine that the respirator use will not in itself create a hazard and shall provide the employee with the information contained in Appendix D of this policy, "Information for Employees Using Respirators When Not Required Under the Standard". Employees whose only use of respirators involve the voluntary use of filtering facepiece-type respirators (dust masks) in areas where respiratory protection is not required, are not subject to this policy. The City shall provide respirators, training, and medical evaluations at no cost to the employees. Due to the varied duties and functions of City employee across departments, additional department specific procedures may be developed to address respiratory protection and other safety requirements to ensure the safety of City employees. REFERENCES • California Code of Regulations, Title 8, Subchapter 7, Group 16, Article 107, Section 5144 "Respiratory Protection" RESPONSIBILITIES Program Administrator Duties The City has designated the Director of Health and Environmental Control and the Director of Human Resources as having shared responsibility for administration and oversight of the City's Respiratory Protection Program. Duties of the program administrators include coordinating: • Working with City supervisors to identify job classifications, work areas, processes or tasks that may require City workers to wear respirators • Selection of respiratory protection options • Monitoring respirator use to ensure that respirators are used in accordance with their certifications • Arranging for and/or conducting training • Ensuring proper storage and maintenance of respiratory protection equipment • Conducting or arranging for fit testing • Evaluating the program • Updating the written program as needed Additional Duties Designated to the Human Resources Department, • Administering the medical surveillance program • Maintaining records required by the program • Coordination of fit testing and medical evaluations required by the program Supervisors Duties City supervisors are responsible to work with the City's Program Administrators to identify job classifications, worksitestworkplaces, processes or tasks, under their responsibility, that may require City workers to wear respirators. City supervisors shall ensure the Respiratory Protection Program is implemented in their particular areas as required in this policy. In addition to being knowledgeable about the program requirements for their own protection, supervisors must also ensure that the program is understood and followed by the affected employees under their supervision. Duties of the supervisor include: • Ensuring that affected employees under their supervision (including new hires) have received appropriate training, fit testing, and medical evaluation • Ensuring the availability of appropriate respirators and accessories • Being aware of tasks requiring the use of respiratory protection, both on City property and non-City worksiteslworkplaces • Enforcing the proper use of respiratory protection when necessary • Ensuring that respirators are properly cleaned, maintained, and stored according to the respiratory protection plan • Ensuring that respirators fit well and do not cause discomfort • Continually monitoring work areas and operations to identify respiratory hazards • Coordinating with the program administrator on how to address respiratory hazards or other concerns regarding the program Employees Duties Each City employee whose job classification requires the use of a respirator shall be responsible to wear their assigned respirator when and where required, and in the manner in which they were trained. Employees must also: • Care for and maintain their respirators as instructed and as outlined in this policy, and store them in a clean sanitary location • Inform their supervisor if the respirator no longer fits well, and request a new one that fits properly • Inform their supervisor or the Program Administrator of any respiratory hazards that they feel may not be adequately addressed in the workplace and of any other concerns that they have regarding the program PROGRAM ELEMENTS 1. Where Respiratory Protection is Reguired The Program Administrators will ensure a hazard evaluation is conducted for each designated area, operation process, or work area where airborne contaminants may be present in routine operations. The hazard evaluation shall include: • A reasonable estimate of the employee exposures to respiratory hazard(s) • Identification of the hazardous substances used in the workplace, the contaminant's chemical state and physical form • Review of work processes to determine where potential exposures to these hazardous substances may occur, and • Exposure monitoring to quantify potential hazardous exposures. 4 The results of the hazard evaluation are located in the Human Resources Department for employee review during normal working hours. The Program Administrators shall conduct an annual review of the Respiratory Protection Program and shall revise and update hazard assessments as needed (i.e., any time a designated area or work process changes potentially affecting exposures). Employees who occupy positions in the classifications listed in Appendix A may be exposed to hazardous environments or may work in areas where the environment may reasonably be assumed to contain hazardous contaminants as determined through hazard assessments. Worksite specific procedures shall be established, maintained, and followed that specify when and where the use of respirators is required. For those work environments/worksites in which the City is restricted from conducting a hazard assessment and/or where it may be determined to be unreasonable to conduct an assessment, the procedures outlined in Appendix B shall be followed to determine when the use of a respirator may be required and the appropriate type of respirator to ensure employee safety. 2. Respirator Selection Respirators are selected depending on the identified hazards employees will, or may be exposed to while entering or working in a designated area. Only National Institute for Occupational Safety and Health (NIOSH) certified respirators, provided by the City, shall be used and their use shall be in compliance with the conditions of their certification. The City shall select and provide specific respirators based on assessments of the hazardous substances within the workplace or work process, the respiratory hazard(s) to which the worker is exposed, and factors that affect respirator performance and reliability. All City respirators shall be used in full compliance with the manufacturer's specifications and the conditions the respirator has been certificated to provide protection. The City shall identify and evaluate the respiratory hazard(s) in the works ite/work place. The evaluation shall include a reasonable estimate of employee exposures to respiratory hazard(s) and an identification of the contaminant's chemical state and physical form. The City shall provide an adequate number of respirators, and different models and sizes, allowing each affected employee to use an acceptable respirator. 3. Medical Evaluations of Employees Re uired to Use Respirators Affected City employees who wear respirators must be medically evaluated before being allowed to wear a respirator on the job. City employees shall not wear respirators until a physician has determined that they are medically able to do so. A medical evaluation will be required annually, as long as the employee occupies a classification in which they may potentially be required to use a respirator. The City shall identify a physician or other licensed health care professional (PLHCP) to perform medical evaluations using a medical questionnaire or an initial medical examination that obtains the same information. Medical evaluation procedures are as follows: • The Human Resources Department shall provide a medical questionnaire (attached hereto as Appendix C) to all employees requiring medical evaluations. • Employees who are unable to read the questionnaire will be sent directly to a health care professional for assistance and medical evaluation. • All affected employees will also be given a stamped and addressed envelope for mailing the questionnaire to the PLHCP. • Employees will be permitted to fill out the questionnaire on City time, or they may turn in the questionnaire at time of appointment. • Follow-up medical exams will be provided to City employees as required by the CaIOSHA standard, and/or as deemed necessary by the PLHCP. • All City employees will be allowed the opportunity to speak with the PLHCP about their medical evaluation if they so request. The City Program Administrators shall provide the PLHCP with a copy of the City's program and a copy of CaIOSHA's respiratory protection standard. For each affected City employee requiring an evaluation, the PLHCP will be provided with information regarding the employee's work area or job title, proposed respirator type and weight, length of time required to wear the respirator, expected physical work load (light, moderate, or heavy), potential temperature and humidity extremes, and any additional protective clothing required. In determining an employee's ability to use a respirator, the City shall obtain a written recommendation regarding the employee's ability to wear the respirator from the PLHCP. The written recommendation shall include only the following information: Any limitations on respirator use related to a medical condition of the employee, or relating to the workplace conditions in which the respirator will be used, including whether or not the employee is medically able to use the respirator; the need, if any, for follow-up medical appointments; and a statement that the PLHCP has provided the employee with a copy of the PLHCP's written recommendation After each affected City employee has received clearance to wear a respirator, additional medical evaluations will be provided under any of the following circumstances: • The employee reports signs and/or symptoms related to their ability to use a respirator, such as shortness of breath, dizziness, chest pains, or wheezing • The PLHCP or supervisor informs the Program Administrators that the employee needs to be reevaluated • Information from this program, including observations made during fit testing and program evaluation, indicates a need for reevaluation, or • A change occurs in workplace conditions that may result in an increased physiological burden on the employee. NOTE: All examinations and questionnaires are to remain confidential between the employee and the physician. 4. Fit Testing Procedures The City Program Administrators shall ensure fit-tests are administered using a CalOSHA-accepted qualitative fit test (QLFT) or quantitative fit test (QNFT) protocol. All affected City employees shall be fit tested with the same make, model, style, and size of respirator that they will be using and if employees are fit tested at the medical facility, the City will require that they take their respirator to their appointment. Fit-testing is required in the following instances: • Before wearing any respirator with a tight-fitting facepiece and at least annually thereafter • Whenever a different respirator facepiece (size, style, model, or make) is used • Whenever visual observations of changes in the employee's physical condition that could affect respirator fit. Such conditions include, but are not limited to, facial scarring, dental changes, cosmetic surgery, or an obvious change in body weight; and • Upon employee notification that the fit of the respirator is unacceptable. The employee shall be given a reasonable opportunity to select a different respirator facepiece and to be retested. The fit-testing shall be administered using OSHA standards and protocols as referenced in the CalOSHA regulations. 5. Use, Maintenance, and Care of Respirators Affected City employees shall use their assigned respirator(s) under conditions specified by this program, and in accordance with the training they receive on the use of each particular model. In addition, the respirator shall not be used in a manner for which it is not certified by NIOSH or its manufacturer. Employees who have facial hair or any condition that comes between the sealing surface of the facepiece and the face or that interferes with valve function are not permitted to wear tight-fitting respirators. City employees using tight-fitting respirators shall conduct user seal checks before wearing their respirator. City employees shall use either the positive or negative pressure check (depending on which test works best for them). The City shall monitor work area conditions and degree of employee exposure, and as changes occur that may affect respirator effectiveness, the City shall reevaluate the continued effectiveness of the respirator. All affected City employees shall leave the worksitelworkplace, and move to a safe location, if they need to: • Wash their face and respirators to prevent eye or skin irritation associated with respirator use, • Clean their respirator, • Change filters or cartridges, • Replace parts, or • If they detect vapor or gas breakthrough, changes in breathing resistance, or leakage of the facepiece. City employees should notify their supervisor if they are having problems with their respirator after moving to a safe location. Broken or damaged respirators shall be repaired or replaced before allowing an employee to return to a work area requiring respirator use. Non-safety employees shall not work in areas with atmospheres considered to be immediately dangerous to life or health (IDLH) that pose an immediate threat to life or would cause irreversible adverse health effects, or would impair an individual's ability to escape from a dangerous atmosphere. The City shall provide each affected employee with a respirator that is clean, sanitary, and in good working order. The City shall ensure respirators are cleaned and disinfected monthly, or as often as necessary to be maintained in a sanitary condition. Respirators are cleaned and disinfected using the procedures specified in the manufacturer's recommendations. Respirators must be properly stored and protected from environmental conditions that may cause deterioration. Affected City employees shall store and protect City issued respirators from damage, contamination, dust, sunlight, extreme temperatures, excessive moisture, and damaging chemicals. They shall be packed and stored in City issued storage bags when not in use, and in accordance with applicable manufacturer's instructions. All respirators will be inspected after each use and at least monthly. If any defect is noted, the affected employee shall take the respirator to his/her supervisor who shall then notify a Program Administrator. Damaged respirators will be either repaired or replaced. Respirators shall be inspected as follows: All respirators used in routine situations shall be inspected before each use and during cleaning, All respirators shall be inspected at least monthly and in accordance with manufacturer's recommendations, and shall be checked for proper function before and after each use; and Respirator inspections shall include the following: A check of respirator function, tightness of connections, and the condition of the various parts including, but not limited to, the facepiece, head straps, valves, connecting tube, and cartridges, canisters or filters; and check of elastomeric parts for pliability and signs of deterioration. The following checklist will be used when inspecting respirators: Facepiece: • cracks, tears, or holes • facemask distortion • cracked or loose lenses/faceshield Headstraps: • breaks or tears • broken buckles Valves: • residue or dirt • cracks or tears in valve material Filters/Cartridges: • approval designation • gaskets • cracks or dents in housing • proper cartridge for hazard Use, Care, and maintenance of emergency self-contained breathing apparatus shall be governed under a separate policy applicable to sworn safety personnel. The City shall ensure that all filters, cartridges, and canisters used in the workplace are labeled and color coded with the NIOSH approval label and that the label is not removed and remains legible. 6. Training and Information The City Program Administrators are responsible for providing respirator training to affected City employees and supervisors on the contents of the Respiratory Protection Program, their responsibilities under the program, and on CalOSHA's Respiratory Protection Standards. Affected employees shall be trained prior to using a respirator in the workplace. Supervisors will also be trained prior to using a respirator in the workplace or prior to supervision of employees that must wear respirators. The training will cover the following topics: The City of Vernon Respiratory Protection Program; The CalOSHA Respiratory Protection Standard; Why respirators are necessary and how improper fit, usage, or maintenance can compromise the protective effect of the respirator; Limitations and capabilities of respirators; Effective use of respirators in emergency situations including situations in which the respirator malfunctions; How to inspect, put on, and remove, use, and check seals of the respirator; and, How to recognize medical signs and symptoms that may limit or prevent the effective use of respirators. Affected City employees will be retrained annually or as needed (e.g., if they need to use a different respirator). Employees must show proficiency in the topics covered in 10 the training using a hands-on exercise and a written test. Respirator training will be coordinated by the Program Administrators or their designee and will include documentation regarding the type, model, and size of respirator for which each employee has been trained and fit tested. 7. Voluntary Use of Respirators City employees who wish to wear a respirator for voluntary use shall submit a request to the Department Director, with a copy sent to the Human Resources Director and the Director of Health and Environmental Control. The City will provide respirators to City employees for voluntary usage when requested and approved by the Department Director and the City's Program Administrators. Employees choosing to wear respirators must comply with the procedures for medical evaluation, respirator use, and cleaning, maintenance and storage. Employees who voluntarily use respirators shall be provided a copy of the information contained in Appendix A of this policy. 8. Proaram Evaluation The Program Administrator will conduct periodic evaluations of the workplace to ensure that the provisions of this program are being effectively implemented. Identified problems will be noted and addressed by the Program Administrators. These findings will be reported to the City Administrator and the report will list plans to correct deficiencies in the respirator program and target dates for the implementations of those corrections. Factors to be assessed in the evaluation include, but are not limited to respirator fit, appropriate respirator selection, proper use of respirators, and respirator maintenance. 9. Recordkeeping A written copy of this program and the CalOSHA standard is posted on the City of Vernon website and is available to all employees in printed format upon request during normal work hours. Also maintained in the Program Administrators' office are copies of training and fit test records. These records will be updated as new employees are trained, as existing employees receive refresher training, and as new fit tests are conducted. Copies of the medical evaluation determinations shall be kept in Human Resources for all employees covered under the respirator program. The completed medical questionnaire and the physician's documented findings are confidential and will remain at the City's designated medical facility. The City will only retain the physician's written recommendation regarding each employee's ability to wear a respirator. I The City shall maintain a record of the fit tests administered to affected City employees including: • The name or identification of the employee tested; • Type of fit test performed; • Specific make, model, style, and size of respirator tested; • Date of test; and • The pass/fail results 12 Appendix A City of Vernon Job Classification Covered by a Mandatory Respiratory Protection Program The following City of Vernon non-sworn, non-public safety job classifications have been identified as those in which employees may be exposed to hazardous environments or where the environment may reasonably be assumed to contain hazardous contaminants. Health and Environmental Control Department Environmental Specialist Senior Environmental Specialist Deputy Director of Health and Environmental Control Public Works Department TBD Public Utilities TBD 13 Appendix B For those work environments/worksites in which the City is restricted from conducting a hazard assessment and/or where it may be determined to be unreasonable to conduct an assessment, the following procedures shall be followed to determine when the use of a respirator may be required and the appropriate type of respirator to ensure employee safety. These procedures will typically apply to City employees conducting inspections and other functions at locations within the City of Vernon that are not owned and/or operated by the City. 1. Hazard Assessment. The employee shall review the City's files and records for information regarding any identified or potential hazards located at the site/facility. If the worksite at which the City employee is to be working has a written certification that a hazard assessment has been performed pursuant to 8 CCR § 3380 or 29 CFR § 1910.132(d), the City employee shall request a copy. If the hazard assessment itself is not in writing, the employee shall ask the person at the worksite who signed the certification to describe all potential workplace hazards and then the City employee shall select appropriate protective equipment. If there is no hazard assessment, the employee shall request information regarding the type of personal protective equipment required for employees working at the site and may also identify potential hazards from sources such as the OSHA 300 Log of injuries and illnesses and shall select personal protective equipment accordingly. 2. Respiratory Protection. City employees must wear respirators when and where required, and must care for and maintain respirators in accordance with City policy, applicable State and Federal regulations and consistent with the training provided. City employees should conduct a pre-inspection evaluation for potential exposure to chemicals. Prior to entering any hazardous areas, the employee should identify those work areas, processes, or tasks that require respiratory protection. The hazard assessment requirements in 8 CCR § 3380 and 29 CFR § 1910.132(d) do not apply to respirators; see 8 CCR § 5144 and this Respiratory Protection Program. Employees should review all pertinent information contained in the worksite files and appropriate reference sources to become knowledgeable about the industrial processes and potential respiratory hazards that may be encountered. The employee shall conduct an opening conference with the appropriate worksite representative during which a list of hazardous substances should be obtained or identified, along with any air monitoring results. Employees should determine if they have the appropriate respirator to protect against chemicals present at the worksite. 14 Employees must notify their supervisor or the respiratory protection program administrator: • If a respirator no longer fits well (employees should request a replacement that fits properly); • If employees encounter any respiratory hazards during inspections or on-site visits that they believe have not been previously or adequately addressed during the site visit; or • If there are any other concerns regarding the program. 3. Safety and Health Rules and Practices. City of Vernon employees shall comply with all safety and health rules and practices at the worksite and wear or use the safety clothing or protective equipment required by CaIOSHA standards or by the worksite for the protection of employees. 4. Restrictions. City employees will not enter any area where special entrance restrictions apply until the required precautions have been taken. It shall be the employee's responsibility to determine that an inspection may be conducted without exposing him/herself to hazardous situations and to procure whatever materials and equipment are needed for the safe conduct of the inspection. Appendix C _ Stacy Medical Center _ 4580 Pacific Blvd„Vernon,CA 90058; Ph 323-584-0779; Fax 323-581-8229 Appendix C to Sec. 1910.134 OSHA Respirator Medical Evaluation Questionnaire (Mandatory) To the employer. Answers to questions in Section 1,and to question 9 in Section 2 of Part A.do not require a medical examination. To the employee: Can you read? Li Yes _No Your employer must allow you to answer this questionnaire during normal working hours,or at a time and place that is convenient to you. To maintain your confidentiality,your employer or supervisor must not look at or review your answers,and your employer must tell you how to deliver or send this questionnaire to the health care professional who will review it. Part A. Section 1. (Mandatory)The following information must be provided by every employee who has been selected to use any type of respirator(please print). 1. Today's date: 2.Your name: 3. Your age(to nearest year): _ 4. Sex(circle one). Male/Female 5. Your height: feet inches 6. Your weight: pounds 7. Your job title: 8. A phone number where you can be reached by the health care professional who reviews this questionnaire(include the Area Code): 9. The best time to phone you at this number. 10.Has your employer told you how to contact the health care professional who will review this questionnaire?: EYes :]No 11.Check the type of respirator you will use(you can check more than one category) a. N,R or P.disposable respirator (filter-mask,non-cartridge type only). b. tither type(for example,half-or full-facepiece type,powered4r purifier,supplied-air, self-contained breathing apparatus). 12. Have you ever wont a respirator? CYes ']No if yes,what type?: Stacy Medical Center/Page I of 6 16 Name: Date Part A. Section 2. (Mandatory)Questions 1 through 4 below most be answered by every employee who has been selected to use any type of respirator. 1. Do you currently smoke tobacco.or have you smoked in the last month?GYes CNo 2_ Have you ever had any of the following conditions? a. Seizures(its): -Yes GNo b. Diabetes(sugar disease): Yes 7_�No c. Allergic reactions that interfere with your breathing: ❑Yes ❑No d. Claustrophobia(fear of closed-in places): GYes ❑No e. Trouble smelling odors: E Yes ❑No 3. Have you ever had any of the following pulmonary or lung problems? a. Asbestosis ❑Yes ❑No b. Asthma G Yes ❑No c. Chronic bronchitis GYes CNo d. Emphysema GYes CNo e. Pneumonia -,Yes CNo f. Tuberculosis ❑Yes CNo g. Silicosis ❑Yes ❑No h. Pneumothorax(collapsed lung) C Yes ❑No i. Lung cancer GYes C"No j. Broken ribs lYes GNo k. Any chest injuries or surgeries ❑Yes ❑No 1. Any other lung problem that you've been told about ❑Yes GNo 4. Do you currently have any of the following symptoms of pulmonary or lung illness? a. Shortness of breath GYes CNo b. Shortness of breath when walking fast on level ground or walking up a slight hill or incline ❑Yes CNo c. Shortness of breath when walking with other people at an ordinary pace on level ground Yes -No d. Have to stop for breath when walking at your own pace on level ground l_1Yes CNo e. Shortness of breath when washing or dressing yourself ❑Yes CNo f. Shortness of breath that interferes with your job :]Yes G No g. Coughing that produces phlegm(thick sputum) =Yes ::No h. Coughing that wakes you early in the morning Yes CNo i. Coughing that occurs mostly when you are lying down ❑Yes ❑No j. Coughing up blood in the last month ❑Yes r-No k. Wheezing ❑Yes =No I. Wheezing that interferes with your job --]Yes ::No m. Chest pain when you breathe deeply OYes ::No n. Any other symptoms that you think may be related to lung problems ❑Yes CNo :Name: Date Stacy Medical Center/Page 2 of 6 17 5. Have you ever had any of the following cardiovascular or heart problems? a. Heart attack LAYes [;No b. Stroke CYes C,No c. Chest pain Eyes ENO d. Heart failure ❑Yes ❑No e. Swelling in your legs or feet(not caused by walking) Dyes ONO f. Heart arrhythmia(heart beating irregularly) ❑!Yes ':No g. High blood pressure CYes C.No h. Any other diagnosed cardiovascular or heart problem ❑Yes ❑No 6. Have you ever had any of the following symptoms of cardiovascular or heart problems? a. Frequent pain or tightness in your chest 1=Yes GNo b. Pain or tightness in your chest during physical activity E Yes CNo c. Pain or tightness in your chest that interferes with your job CYes CNo d. In the past two years have you noticed your heart skipping or missing a beat CYes ❑No e. Heartburn or indigestion that is not related to eating CYes CNo f. Any other symptoms that you think may be related to heart or circulation problems C Yes O No 7. Do you currently take medication for any of the following problems? a. Breathing or ung problems ❑Yes CNo b. Heart trouble L:Yes CNo e. High or low blood pressure n Yes ;CNo d. Seizures(fits) ❑Yes ❑No 8. If you've used a respirator,have you ever had any of the following problems? (if you've never used a respirator,check the following spay and go to question 9). ❑Yes "No a. Eye irritation CYes ❑No b. Skin allergies or rashes ❑Yes No c. Anxiety CYes ❑No d. General weakness or fatigue OYes ❑No e. Any other problem that interferes with your use of a respirator C Yes CNo 9. Would you like to talk to the health care professional who wil I review this questionnaire about your answers to this questionnaire? CYes ❑No Questions 10 to 15 below must be answered by every employee who has been selected to use either a full-facepiece respirator or a self-contained breathing apparatus(SCBA). For employees who have been selected to use other types of respirators,answering these questions is voluntary. 10.Have you ever lost vision in either eye(temporarily or permanently)? ❑Yes []No 11. Do you currently have any of the following vision problems? a. Wear contact lenses ❑Yes [-)No b. wear glasses !-]Yes ❑No c. Colorblind CYes ❑No d. Any other eye or vision problem ❑Yes ❑No Name: Date Stacy Medical Center 1 Page 3 of 6 18 12. Have you ever had an injury to your ears,including a ruptured ear drum? 0Yes =No 13. Do you currently have any of the following hearing problems? a. Difficulty hearing CiYes ENO b. Wear a hearing aid ❑Yes No c. Any other hearing or car problem ❑Yes No 14. Have you ever had a back injury? ❑Yes CNo IS. Do you currently have any of the following musculoskeletal problems? a. Weakness in any of your arras,hands,legs,or feet --Yes No b. Back pain ---Yes -No c. Difficulty fully moving your arms and legs ❑-Yes GNo d. Pain or stiffness when you lean forward or Backward at the waist ❑Yes ONO e. Difficulty fully moving your head side to side GYes ❑No f. Difficulty fully moving your head up or down ❑Yes ❑No g. Difficulty bending at your knees QYes LINO IL Difficulty squatting to the ground EYes [!No i. Climbing a flight of starts or a ladder carrying more than 25 lbs. Yes E]No j. Any other muscle or skeletal problem that interferes with using a respirator Yes G,No Part IL Any of the following questions,and other questions not Bated,may be added to the questionnaire at the discretion of the health are professional who will review the questionnaire. 1. In your present job are you working at high altitudes(over 5,000 feet)or in a place that has lower than normal amounts of oxygen? Yes CNo If"yes,"do you have feelings of dizziness,shortness of breath,pounding in your chest,or other symptoms when you're working under these conditions? —�Yes F No 2. At work or at home,have you ever been exposed to hazardous solvents,hazardous airborne chemicals(e.g.gases,fumes,or dust),or have you come into skin contact with hazardous chemicals? G Yes is No If"yes,"name the chemicals if you know them: 3. Have you ever worked with any of the materials,or under any of the conditions,listed below? a. Asbestos LIYes ENO b. Silica(e.g.in sandblasting) i3Yes ENO c. Tungsten 1 cobalt(e.g. grinding or welding this material) ;!Yes =No d. Beryllium ❑Yes —"No e. Aluminum ❑Yes `—No f. Coal(for example,mining) DYes ENO S. Iron ;7Yes ENO h. Dusty environments :IYes ENO L Any other hazardous exposures C Yes CNo If`Yes,"describe these exposures: Stacy Medical Center/Page 4 of 6 19 -Name: Date 4. List any second jobs or side businesses you have. a. b.— .. 5. List your previous occupations: 6. List your current and previous hobbies: 7. Have you been in the military services? --Yes -No If`yes,"were you exposed to biological or chemical agents(either in training or combat)? --Yes FNo 8. Have you ever worked on a HAZMAT team? ❑Yes ❑No 9. Other than the medications for breathing and lung problems,heart trouble,blood pressure,and scizures mentioned earlier in this questionnaire,are you taking any other medications for any reasons(including over-the-counter medications) --Yes GNo If"yes,"name the medications if you know them, 10. Will you be using any of the following items with your respirator(s)? a_ HEPA fihers CYes []No b. Canisters(for example,gas masks) ❑Yes ❑No c. Cartridges C Yes !No 11. How often are you expected to use the respirator(s)(check all those that apply) a. Fscape only(no rescue) EYes DNo b. Emergency rescue only ❑Yes ❑No c. Less than 5 hours per week DYes ❑No d. Less than 2 hours per day F-Yes []No e. 2 to 4 hours per day Yes ❑No f. More than 4 hours per day --Yes ❑No 12. During the period you are using the respirator(s),is your work effort . . a. Light(less than 200 kcal per hour): Examples of a light work effort are sitting while writing,typing,drafting,or performing light assembly work;or standing while operating a drill press(1-3 lbs.)or controlling machines. If`fires,"how long does this period last during the average shift: hrs mina b. Moderate(200 to 350 kcal per hour): Examples of moderate work effort are sitting while nailing or filing;driving a truck or bus in urban traffic;standing while drilling,nailing,performing assembly work,or tnr'nsfer ing a moderate load(about 35 lbs.)at trunk level;walking on a level surface about 2 mph or down a 5- degree grade about 3 mph;or pushing a wheelbarrow with a heavy load(about 100 lbs)on a level surface. If`yes,"how long does this period last during the average shift: hrs mins Stacy Medical Center 1 Page 5 of b 20 Nam: Date b. Heavy(above 350 kcal per hour); Examples of heavy work are lifting a heavy load(about 50 lbs.)from the floor to your waist or shoulder,working on a loading dock;shoveling;standing while bricidaying or chipping castings; walking up an Wegree grade about 2 mph;climbing stairs with a heavy load(about 50 lbs.). If"yes,"how long does this period last during the average shift: hrs mins 13. Will you be wearing protective clothing and/or equipment(other than the respirator)when you're using your respirator`?: ❑Yes CNo If"yes,"describe this protective clothing and/or equipment: 14. Will you be worldng under hot conditions(temperatures exceeding 77°F)?: OYes ❑No 15. Will you be working under humid conditions?: 0 Yes ❑No 16. Describe the work you'll be doing while you're using your respirator(s): 17. Describe any special or hazardous conditions you might encounter when you're using your mspirator(s)(for example,confined spaces,life-threatening gases): 18. Provide the following information,if you know it,for each toxic substance that you'll be exposed to when you're using your respirator(s): Name of the first toxic substancc: Estimated maximum exposure level per shift:- Duration of exposure per shift: Name of the second toxic substance: Estimated maximum exposure level per shift; Duration ofeaposum per shift: The name of any other toxic substances that you'll be exposed to while using your respirator. 19. Describe any special responsibilities you'll have while using your respirator(s)that may affect the safety and well-being of others(for example,rescue,security): Stacy Medical Center!Page b of 6 21 Appendix D Information for Employees Using- Respirators when Not Required Respirators are an effective method of protection against designated hazards when properly selected and worn. A respirator can be worn by City employees for an additional level of comfort after they have been approved and properly trained. However, if a respirator is used improperly or not kept clean, the respirator itself can become a hazard to the worker. Voluntarily use of a respirator by City employees is only allowed when hazardous substances do not exceed the limits set by CaIOSHA standards. You should do the following: 1. Read and heed all instructions provided by the manufacturer on use, maintenance, cleaning, and care, and warnings regarding the respirators limitations. 2. Choose respirators certified for use to protect against the contaminant of concern. NIOSH, the National Institute for Occupational Safety and Health of the U.S. Department of Health and Human Services, certifies respirators. A label or statement of certification should appear on the respirator or respirator packaging. It will tell you what the respirator is designed for and how much it will protect you. 3. Do not wear your respirator into atmospheres containing contaminants for which your respirator is not designed to protect against. For example, a respirator designed to filter dust particles will not protect you against gases, vapors, or very small solid particles of fumes or smoke. 4. Keep track of your respirator so that you do not mistakenly use someone else's respirator. This policy does not apply to those employees whose only use of respirators involves the voluntary use of filtering facepiece-type respirators (dust masks). 22 City of Vernon, California Human Resources Policies and Procedures �Lr 19, Director of Human Resoule City Administrator Number: VI-1 Effective fate;August 4. 2015 SUBJECT: VOLUNTARY RESPIRATORY SAFETY EQUIPMENT — NON-SAFETY PERSONNEL PURPOSE: To ensure the safe and proper use and maintenance of respirators that are not required under the hazardous exposure limits set by OSHA standards and the training of employees who voluntarily request them. To ensure that the appropriate certified respirator is selected for use to protect against the contaminant of concern. This policy does not apply to the use of filtering face piece-type respirators (dust masks). POLICY: With the exception of Police and Fire safety personnel, no employee shall be required to perform or enter areas where (1) engineering control measures are not functional, (2) the employee is required to wear a respirator in order to perform such work, or (3) the atmosphere is otherwise highly hazardous or immediately dangerous to life or health. The City ensures the safety and well-being of its employees and has determined that at this time there is no worts performed that would require the use of a respirator to perform the essential functions of City job tasks (excluding Safety) in accordance with California Code of Regulations (CCR), Title B, Section 5144. Employees shall refrain from entering any work area or shall immediately evacuate to a safe area and call the Fire Department when engineering controls are not sufficient to reduce respiratory hazards, or atmospheres exceed or fall below exposure limits established by OSHA. Employees shall not enter a work site or perform work until the hazardous situation has been mitigated and safe entry has been established by the Fire Department Hazmat Specialist Team or appropriate designated agency. However, the City shall consider the purchase and supply of air respirators for employees who want to voluntarily wear a respirator to increase their comfort level when working in a non- hazardous or dusty situation even though the amount of hazardous substance or atmospheric levels that said employees may be exposed to in the course of their duties do not fall outside the limits set by OSHA standards. In these voluntary requests, the department head in consultation with the Human Resources Department shall consider the request and, where appropriate, provide the employee(s) with a respirator to add an additional level of comfort and protection. Number: VI-1 Effective Date: Air t; 201 A. Respirator Selection Each department shall determine which respirator is most appropriate for the contaminant's physical form and chemical state and the conditions under which the respirator will be used. All respirators will be selected on the basis of how it will increase the employee's level of comfort when working in a non-hazardous situation_ Only MSHA/NIOSH/NLPA Certified respirators will be selected and used. Respirators must not, to any hazardous degree, impair an employee's vision or hearing or interfere with communication, which can often be critical in performing a job safely. B. Medical Evaluations Prior to the use of a respirator, the Human Resources Department shall be responsible for scheduling and coordinating respirator users to be medically evaluated by the City's designated licensed health care professional (LHCP). The medical evaluation shall tie at no cost to the employee. Additional medical evaluations may be required when: 1. An employee reports medical signs or symptoms related to his or her ability to use a respirator. 2. The LHCP, department head or supervisor recommends re-evaluation. 3 Information from the respirator program, including observations made during fit testing and program evaluation, indicates a need. 4. Change occurs in workplace conditions that may substantially increase the physiological burden on an employee C. Fit Testing Each employee shall be provided a fit test administered by an OSHA-accepted Qualitative fit test (QLFT) or a Quantitative fit test (QNFT) protocol, as contained in CCR, Tide 8, Section 5144, Appendix A, Fit Testing Procedures (mandatory). The primary purpose of a fit test is to identify the specific make, model. style and size of the respirator that is best: suited for each employee. The fit test provides an opportunity to check for problems with respirator use and reinforces respirator training by giving employees an opportunity to review the proper methods for putting on and wearing the respirator. Fit testing is required before the initial use of a respirator, whenever an employee uses a different respirator face piece, and at least once annually. An additional fit test is required whenever the employee reports changes or the employer or LCHP observes changes in the employee's physical condition that could affect respirator fit (i.e., facial scarring, dental changes, cosmetic surgery, or an obvious change in body weight). 2 Number_• V1--I Effective Date: August 4. 2015 Employees who voluntarily request the use of a respirator will receive no additional benefit from the City. Those employees who choose not to use a voluntary respirator will not be adversely impacted by the City. Under the voluntary program, there is no interest by the City whether an employee chooses to use or not use a voluntary respirator. D. Use of Respirators Once the respirator has been properly selected and fit tested, it is necessary to ensure that the respirator is used properly in the workplace. Employees and supervisors should be aware of the following situations that can compromise the effectiveness of respirators and jeopardize employees' protection. 1. The person wearing the respirator fails to properly perform seal checks. 2. The person wearing the respirator is also using personal protective equipment or other equipment that interferes with the face-to-face piece seal. 3. The respirator is not properly repaired, and its defective parts are not replaced. 4. Modifications are made to the respirator, or non-approved replacement parts are used. Employees who have facial hair or any condition that interferes with the face-to face piece seal or valve function may not use tight-fitting respirators. E. Maintenance and Care of Res iratom Each department shall designate a staff responsible for the maintenance and care of the department's voluntary respirators. The designated staff shall ensure each respirator user is provided with a respirator that is clean, sanitary_ and in good working order_ To ensure that the respirator remains servioeable and delivers effective protection. each department shall have a Respiratory Protection Safety Equipment Maintenance Program in place before respirators are used in the workplace. All maintenance programs are required to include information about; 1. Cleaning and disinfecting procedures 2. Proper storage 3 Inspections for defects before each use and during cleaning of a respirator 4. Repair methods. Cleaning and disinfecting respirators shall be in accordance with the following intervals: 1. Exclusive use respirators—as often as necessary to maintain a sanitary condition. 2. Shared respirators—before being worn by different persons. 3 Number: YI-1 Effective Date. Anwr 4. 2015 3. Emergency-use respirators—after each use. 4. Respirators used in fit testing and training —after each use. Training Respirator users shall be instructed and trained in the proper use and limitations of respirators. Each user shall be trained and must demonstrate an effective knowledge in the following areas: 1. How improper fit, use, or maintenance can compromise the protective effectiveness of the respirator. 2. The capabilities and the limitations of the respirator. 3. How to inspect, put on, remove, and use the respirator and how to check the seals. 4. Procedures for maintaining and storing a respirator. 5. Recognition of the medical signs and the symptoms that may limit or prevent an employee's effective use of a respirator. 6. General requirements of the respirator regulation. An employee must be trained before he or she can use a respirator unless proof of acceptable training within the past twelve (12) months can be provided. Retraining is required at least annually and when workplace conditions change. when new types of respirators are used, or when inadequacies in the employee's knowledge or use of respirators indicate a need for more training. PROCEDURE: Responsibility Action Employee 1. Refrain from entering any hazardous work area or immediately evacuate to a safe area and calf the Fire Department when engineering controls are not sufficient or atmospheres fall or exceed exposure limits established by OSHA. 2. Request a voluntary respirator when there is a concern of comfort. Department Head 3. In consultation with the Human Resources Department, considers employee's(s') request and if approved, coordinates 4 Number: VI-I Effective Date: AaggtA. 2015 medical evaluation with Human Resources Department. Human Resources Department 4_ Provides necessary examination questionnaire and medical forms to employee and schedules medical evaluation with the City's designated licensed health care professional, Department Head or designee 5_ Coordinates a fit test administered pursuant to an OSHA-accepted Qualitative fittest (QLFT) or a Quantitative fit test (QNFT) protocol 6 Develops a Respiratory Protection Safety Equipment Maintenance Program and designates staff responsible for the maintenance, care, logging and tracking of each respective department's respirators. Department Designee 7. Ensure that each respirator user is provided with a respirator that is clean, sanitary, and in good working order. 8. Ensure that the respirator remains serviceable and delivers effective protection. 9 Ensure that each respirator user receives a copy of the department's Respiratory Protection Safety Equipment Maintenance Program and sign for its receipt. Employee 10. Reads and follows all instructions provided under the Department's Respiratory Protection Safety Equipment Maintenance Program on use, maintenance, cleaning and care, and warnings regarding the respirators' limitations. 11 Keeps track of respirator so that he/she does not mistakenly use someone else's respirator. 12 Participates in annual fit testing and training. 5 RECEIVED RECEIVED SEP 19 ZW7of SEP 18 209 C131f CLERKS OFFICE A�W - CITY ADMINISTRATION y y� POLICE DEPARTMENT Anthony Miranda, Chief of Police 4305 Santa Fe Avenue,Vernon, California 90058 Telephone(323)587-5171 Fax(323)826-1481 September 18, 2017 Honorable City Council City of Vernon Vernon, California Honorable Members: Attached are copies of the Vernon Police Department Activity Log and Statistical Summary of Arrest and Activities which cover the period from 12:01 a.m., September 1, 2017 up to and including midnight of September 15, 2017. Respectfully submitted, VERNON POLICE DF..FARTMENT ANTHONY MIRANDA CHIEF OF POLICE AM/gg EXcfusivefy Industr&f VERNON POLICE DEPARTMENT Department Activity Report First Date: 09101/2017 Jurisdiction: VERNON Last Date: 09/15/2017 Department complaint All Units Primary Unit Type Description VPD 10-6 OFFICER IS 10-6 C7.961,962.10-10.WASH.EQUIPh 154 140 10-96H PICK UP THE JAIL PAPER WORK FROM HP JAIL 2 2 10-96M 10-96 MARY(MAIL DETAIL) 7 5 140 SUPPLEMENTAL REPORT 3 1 20001 INJURY HIT AND RUN 4 1 20002 NON-INJURY HIT AND RUN 2 1 20002R NON-INJURY HIT AND RUN REPORT 13 7 211 R ROBBERY REPORT 1 1 211 S SILENT ROBBERY ALARM 7 2 242 BATTERY 3 1 273.5 DOMESTIC VIOLENCE 3 1 314 INDECENT EXPOSURE 3 1 415 DISTURBING THE PEACE 31 10 415R DISTURBING THE PEACE REPORT 2 1 417 BRANDISHING A WEAPON 3 1 422R TERRORIST THREATS REPORT 1 1 459 BURGLARY 3 1 459A AUDIBLE BURGLARY ALARM 126 67 459R BURGLARY REPORT 6 3 459S SILENT BURGLARY ALARM 4 1 459VR BURGLARY TO A VEHICLE REPORT 1 1 484 PETTY THEFT 20 8 484R PETTY THEFT REPORT 6 5 487R GRAND THEFT REPORT 2 2 586 PARKING PROBLEM 38 36 594 VANDALISM 2 1 594R VANDALISM REPORT 3 2 602 TRESPASS 19 7 602R TRESPASS REPORT 2 1 901 UNKNOWN INJURY TRAFFIC COLLISION 2 1 901T INJURY TRAFFIC COLLISION 7 2 902T NON-INJURY TRAFFIC COLLISION 62 33 902TR NON-INJURY TRAFFIC COLLISION REPORT 3 2 909C TRAFFIC CONTROL 1 1 909E TRAFFIC ENFORCEMENT 3 1 909T TRAFFIC HAZARD 3 2 911 911 MISUSE!HANGUP 5 3 911A CONTACT THE REPORTING PARTY 14 8 917A ABANDONED VEHICLE 2 2 920PR LOST PROPERTY REPORT 6 3 925 SUSPICIOUS CIRCUMSTANCES 36 17 927 UNKNOWN TROUBLE 8 2 A459R ATTEMPT BURGLARY REPORT 1 1 A459V ATTEMPT AUTO BURGLARY 5 2 ASTVFD ASSIST VERNON FIRE DEPARTMENT 23 11 BOSIG BROKEN SIGNAL OR LIGHT 6 5 BOVEH BROKEN DOWN VEHICLE 24 is CITCK CITATION CHECK 2 2 0911812017 08:36:24 page { of t VERNON POLICE DEPARTMENT Department Activity Report First Date: 09/01/2017 Jurisdiction: VERNON Last Date: 0911 5/201 7 Department Complaint All Units Primary Unit Type Description VPD CIVIL CIVIL MATTER 5 2 COP COP DETAIL 3 3 DEMOSTRA DEMONSTRATION 3 2 DIET DETECTIVE INVESTIGATION 24 16 DETAIL DETAIL 7 5 DPTAST DEPARTMENTAL ASSIST 4 2 FILING OFFICER IS 10-6 REPORT WRITING 46 45 FOUND FOUND PROPERTY REPORT 1 1 FU FOLLOW UP 13 9 GTA GRAND THEFT AUTO 3 1 GTAR GRAND THEFT AUTO REPORT 10 9 HBC HAILED BY A CITIZEN 13 9 ILLDPG RPT ILLEGAL DUMPING REPORT 4 3 JAILPANIC TEST THE JAIL PANIC ALARM BUTTON 1 1 LOCATE LOCATED VERNON STOLEN VEHICLE 2 2 MUTUAL AID MUTUAL AID 1 l NSF INSUFFICIENT FUNDS REPORT(476 PC) 1 1 PANIC ALARM PANIC ALARM/DURESS ALARM 8 2 PAPD PUBLIC ASSIST-POLICE 9 6 PATCK PATROL CHECK 97 84 PEDCK PEDESTRIAN CHECK 48 25 PRSTRAN PRISONER TRANSPORTED 6 5 REC RECOVERED STOLEN VEHICLE 5 4 RECDALARM TEST THE RECORDS ALARM 1 1 RECKLESS DF RECKLESS DRIVING(23103) 1 1 REPO REPOSSESSION 4 4 ROADRAGE ROAD RAGE 2 1 RR RAIL ROAD PROBLEM 6 2 SHOTS SHOTS 4 1 SPEEDTRAILE TO BE USED WHEN THE TRAILERS ARE DEPLOYS 2 1 SUICIDE SUICIDE ATTEMPT 4 l TRAFFIC STOI TRAFFIC STOP 305 256 TRAINING TRAINING TEST CALL 1 1 VCK VEHICLE CHECK 117 100 VEH RELEASE VEHICLE RELEASE 5 4 WARRANT WARRANT ARREST 5 3 WELCK WELFARE CHECK 10 5 Department: 1465 1046 Overall: 1465 1046 09/18/2017 08:36:24 Page 2 of ' VERNON POLICE DEPARTMENT Police Activity Report Period Ending: 09/15/17 TRAFFIC COLLISIONS NO. PROPERTY RECOVERED TOTAL 19 VEHICLES: S96,500.00 NON-INJURY 17 INJURY 2 Pedestrian 0 Fatalities 0 City Property Damage 5 Hit & Run(Misdemeanor) 7 Hit& Run(Felony) 1 Persons Injured 4 VEHICLES STORED PROPERTY RECOVERED FOR Unlicensed Driver 7 OTHER DEPARTMENTS Abandoned/Stored Vehicle 7 VEHICLES. $1,000.00 Traffic Hazard 0 CITATIONS Citations Iss (Prisoner Release) 18 Citations Iss (Moving) 166 Citations Iss (Parking) 99 Citations Iss (Total) 265 Hazardous 140 Non-Hazardous 26 Other Violations CASES CLEARED BY ARREST AR17-383 CR17-1573 11364(A) HS AR17-386 CR17-1582 602(0) PC AR17-388 CR17-1585 11377(A) HS AR17-391 CR17-1590 602(0) PC AR 17-393 CR 17-1607 148 PC AR17-394 CR17-1613 11364(A) HS AR17-396 CR17-1615 69 PC AR17-397 CR17-1618 11364(A) HS AR17-398 CR17-1619 11364(A) HS AR17-400 CR17-1261 530.5(A) PC AR17405 CR17-1649 11364(A) HS VERNON POLICE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING 9115 2017 ADULT FELONY ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL ASSAULT ON A PEACE OFFICER 1 1 BURGLARY CHILD NEGLECT GROSS VEHICLE MANSLAUGHTER HIT& RUN WARRANT(VERNON CASE) 1 1 WARRANT (OUTSIDE AGENCY) TOTAL FELONY ARRESTS 2 0 2 ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL RESISTING 1 1 DRIVING UNDER THE INFLUENCE 4 4 ID THEFT 1 1 POSSESS CONTROLLED SUBSTANCE 1 1 POSSESS CONTROLLED PARAPHERNALIA 6 6 SPEED CONTEST TRESPASSING 2 2 WARRANT(VERNON CASE) 5 5 WARRANT(OUTSIDE AGENCY) 1 1 TOTAL MISD. ARRESTS 21 0 21 JUVENILES DETAINED --- FELONY AND MISDEMEANOR MALE FEMALE TOTAL BURGLARY RECEIVING STOLEN PROPERTY ROBBERY VEHICLE THEFT WARRANTS (BENCH) TOTAL JUVENILES DIET. 0 0 0 TOTAL FELONY ARRESTS (ADULT)TO DATE: 85 TOTAL MISDEMEANOR ARRESTS (ADULT)TO DATE: 315 TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR)TO DATE: 5 TOTAL ARRESTS AND DETAINED JUVENILES (FELONY AND MISDEMEANOR)TO DATE: 405 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09101/2017 Jurisdiction: VERNON Last Date: 09101/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Tinte Dep Deer Unit DhPatch Enroute On,Scepte Depart Arrive Rentot-c rip"11) 20170918317 VS 09/01/2017 02:55:32 RMS Jurls 1015 TRAFFIC STOP S ALAMEDA H 27TH.VERNON VPD Department OCA 201Num3 Number CA0197300 RPT VPD MADRIGAL.MARI/ '38E 02-55:32 06:42:01 VPD CAM,PATRICK 18W 02 56:05 02:57:17 03-44:50 VPD HERNANDEZ.MIG 20E 04:35.51 04:44:28 05:25:18 20170918319 RPT 09/01/2017 03 38:01 MELICO INC 484 3031 E VERNON AV.VERNON Department OCA Number RMS Juris VPD CR20171574 CA0197300 VPD OURIQUE,CARLO '25W 03:39:33 03:45:12 04:09:37 VPD HERNANDEZ.MIG 20E 03:42:16 03:43:42 03:57:35 20170918325 RPT 09/01/2017 06:38:14 z s place Department OCA Number RMS Juris 459R 3805 S SOTO,VERNON VPD CR20171575 CA0197300 VPD HERNANDEZ,MIG '20E 06'39:55 06,4019 VPD OURIQUE.CARLO 25W 06:40:17 06:42:49 07:30:43 VPD VILLEGAS.RICHA 26W 07:19:14 0&53:46 20170918330 RPT 08:29 20 IRIS ILLDPG R Department OCA Number RMS Juris ILLDPG RPT 3317E 50TH,VERNON VPD CR20171576 CA0197300 VPD DOCHERTY.MICH '91 E 08 31:06 08:31:38 0846.40 09:08 36 20170918355 RPT 09/01/2017 14 29:44 MCDONALDS Department OCA Number RMS Juris 484R 3737 S SOTO.VERNON VPD CR20171577 CA0197300 VPD VILLEGAS.RICHA '26W 14:31:15 14:31:48 15:0150 14:33:59 15.31:32 VPD VALENZUELA.FEI 31 14:33:45 14:33:57 14-40 35 15:07:27 20170918366 09/02/2017 06:49:46 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09101/2017 Jurisdiction: VERNON Last Date: 0910112017 Cal!Number Disp Ten Received Caller Code Complaint Address Unit Time Deli Officer [brit Diwatcli Enrnute OnScene Devan Arrive Remove Camp 20170918366 RPT OMV2017 17:4419 WILMAR 2t1R 2101 51ST,VERNON Departmem OCA Number RMSJurls VPD CR20171578 CA0197300 VPD VILLEGAS.RICHA '26W 17:45:19 t 7.4G 4F6 18:19:48 20170919395 RPT 09+012017 20-39:46 VI TRAFNC STOP S SANTA FE AV 1/48TH.VERNON Departmem OCA Number RMS Jurls VPD CR20171579 CA0197300 CITE 1015 VPD OURIQUE,CARLO '32W 20 39:46 22:08:34 VPD CAM.PATRICK 31 W 20-42:19 20 4411 21-26-57 09/02/2017 06:49:46 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09/02/2017 Jurisdiction: VERNON Last Date: 09102/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170918415 VI 09/02/2017 01:11:28 TRAFFIC STOP E VERNON AV 11 ALAMEDA,VERNON Departmem OCA Number RMS Jurls CITE VPD CR20171580 CA0197300 RPT 1015 VPD OURIQUE,CARLO '32W 0111:28 01:55:30 02:43:31 VPD CAM.PATRICK 31W 01:13:12 01:14:47 02:01:07 20170918423 VI 09/02/2017 02:12:22 BART RPT 925 S BOYLE AV 1!SLAUSON AV,VERNON DeDartmem OCA Number RMS Juris VPD CR20171581 CA0197300 VPD HERNANDEZ,MIG '20E 0215:39 02.17A1 02:20:33 03.0108 VPD MADRIGAL,MARIf 38E 0215:42 02.17:38 02:20:36 03-08:21 VPD ZOZAYA OSCAR K91 02:30:41 03:08:22 20170918462 1015 09102I2017 10 52:16 AMPM RPT 484 3278 E SLAUSON AV,VERNON Depar[mem VPD R2 CR2 Number RMS Jur0 0171582 CAD197300 VPD VASQUEZ,LUIS '31E 10:52:58 10:53:16 10:58:33 11A8:48 VPD ENCINAS,ANTHOI 32W 10:56-51 10-58:54 11-54:11 VPD DOCHERTY,MICH 91 10:53:01 11-01:36 11:29:26 20170918506 RPT 09/02/2017 23:36:36 20002R S SOTO!!BANDINI BL,VERNON Departmem OCA Number RMS Juris VPD CR20171583 CA0197300 VPD PEREZ,NICK 'S4 23:36:36 01:12:50 VPD HERNANDEZ,MIG 25E 23.37.20 23.40:22 01:20:30 20170918508 RPT 09/02/2017 23:44:19 PEDCK S SOTO!!LEONIS BL.VERNON VPD CAM,PATRICK `31W 23:44:19 01:20:21 09/03/2017 06:28:17 Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09/03/2017 Jurisdiction: VERNON Last Date: 09/03/2017 Call Number Disp Ten Received Caller Code Complaint Address _ Unit Time Dep Officer Unit Dispmrech Enroute OnS'cene Depart Ar~rrive Remove Camp 20170918511 1015 09r0312017 01:25-Q2 SHOTS 3030 S ATLANTIC BL.VERNON Deparimean OCA Number RAfs Juris RPT VPD CR20171584 CA0197300 VPD ZOZAYA.OSCAR 'K91 01:26:34 01,26,49 0130,34 02:08,40 VPD HERNANDEZ,MIG 25E 01:37:17 04:32:57 VPD CAM,PATRICK 31W D1:27:11 01:37:18 02:05:59 VPD PEREZ,NICK S4 01:30:37 02:08 42 20170918539 1015 09/43/2017 09:51:42 RPT PEDCK 6200 MALBURG WY,VERNON L?eParFme+��VPD R2 CR2 Number RMS Jur0 0171585 CA0197300 VPD OURIQUE,CARLO '38E 09 51-51 10-40:14 VPD ONOPA,DANIEL 31 W 09:58:36 10 01 28 10 13-00 20rt70918579 Apr 09l0312017 23:37:27 ls VREC REC LOMA VISTA AV 11 SOTH,VERNON Deparemeu� CR2 Number RMS Jur VPD R20171586 CA0197300 VS VPD VELASQUEZ,RICF ?wV 23:37:27 00:04:53 00:36:44 0910412017 04:47:3t Page ? of 9 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09/0412017 Jurisdiction: VERNON Last Date: 09/04/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dev Ofliver Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170918612 l {T RPT M0412017 07:43:30 1015 PATCK 3188 E SLAUSON AV,VERNON VPD OURIQUE,CARLO '20E 07A3:30 08:50:26 VPD HERNANDEZ.MIG 18E 0746.39 07:51:20 09 25:35 VPD ONOPA,DANIEL 25W 07 48-08 07:54:18 08:16:38 VPD MADRIGAL,MARIf 26W 07 48 20 07:51:47 08:16:32 20170918639 RPT 09f0417017 1 1 37 01 BNSF Uenurfn,ent OCA Number R,"S Jurts RR S SANTA FE AV 1/PACIFIC BL,VERNON VPD CR20171587 CA01W300 VPD OURIQUE.CARLO -20E 1139:57 1218-17 VPD ONOPA,DANIEL 25W 11:43:05 13:59:02 VPD MADRIGAL,MARV 26W 11:51:46 14:03:23 VPD CROSS,JEREMY S6 11:41:14 12:18:19 14:03:23 09/05/2017 00:11:16 Page 1 of ? VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09105/2017 Jurisdiction: VERNON Last Date: 09/06/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroule OnScene Depart Arrive Remove Comp 20170918676 RPT 09/05/2017 05:11:19 ARAMBURO PRODUCE Deparlmem OCA Number RMS Juris GTAR 1961 E VERNON AV.VERNON VPD CR20171588 CA0197300 VPD HERRERA,GUSTf '32E 05.27:49 05-34 22 06:30:34 VPD REYNA.JOSE S 26W 05 38:47 05:42:53 20170918677 RPT 09/05/2017 05.42-50 902T 4305 S SANTA FE AV.VERNON Departmem OCA Number RMS Juris VPD CR20171589 CA0197300 VPD REYNA.JOSE S '26W 05.42:54 06:30:06 VPD VELASQUEZ,RICF 25 05A104 05A3:08 05A6:57 20170918699 1015 09/05/2017 08.4122 RPT WARRANT 4305 S SANTA FE AV,VERNON VPD HERRERA,GUSW '32E 08:41:25 08:48:35 VPD HERNANDEZ.EDV 5D32 08A&57 09:08:52 VPD LANDA.RAFAEL 5D34 08:59A1 09:08:52 20170918703 RPT 09/05/2017 08-43:46 A4 MOSHAY 1015 602 6200 MALBURG WY,VERNON VPD R2 Departmem CR2 Number RMS Jur0 0171590 CA0197300 VPD HERNANDEZ,MIG '18E 08:49.04 08:49:39 08:56:16 10 00 55 VPD OURIQUE.CARLO 20E 08:49:58 08:56:19 10:03:15 VPD ONOPA,DANIEL 25W 08:53:17 08:56:38 09:30A3 VPD GAYTAN,LORENZ 32W 09:01:27 09 30:45 VPD NEWTON,TODD M1 08:49:06 08:49.41 08:56:35 09:18:50 20170918714 RPT 09/05/2017 10:10:33 JAMES OLSON Departmem OCA Number RMS Juris 902T S ATLANTIC 8L 11 DISTRICT BL,VERNON VPD CR20171591 CA0197300 VPD OURIQUE,CARLO '20E 10:11:24 10:11:58 10:52:03 20170918725 0910612017 00:32:57 Page 1 of 2 TERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 0910612017 Jurisdiction: VERNON Last Date: 09106/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Uhrit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170918725 RPT 09/05/2017 11,47:39 902T AYERS AV it 26TH,VERNON Department OCA Number RMS Juris VIED CR20171592 CA0197300 VPD HERNANDEZ,MIG '18E 11 49 25 11.50:43 VPD OURIQUE.CARLO 20E 11:49.34 11:53:03 12 28 43 VPD NEWTONJODD M1 11:50:40 11:56:18 12 28 43 20170918726 VS 09105I2017 11.57.27 VCK S SOTO It BANDINI BL,VERNON VPD R2 Departmem CR2 Number RMS Jur0 0171593 CA0197300 VPD GODOY,RAYMON "tF'9 11:57:27 12:29 36 ,r 0910612017 00:32:57 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09/06/2017 Jurisdiction: VERNON Last Date: 09/06/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170918771 RPT 09/06/2017 03:14:37 WORLD MERCHANDISE Departmem OCA Number RMS Juris REPO REPO 4626 PACIFIC BL,VERNON VPD CR20171594 CA0197300 VPD RECORDS BURET 'RECD 03:17-26 03:24:22 20170918802 CITE 09106l2017 10:41:41 VI TRAFFIC STOP S DISTRICT BL H ATLANTIC BL,VERNON VPD R2 Departmem CR2 Number RMS Juris 0171595 CA0197300 VPD VASQUEZ,LUIS '38E 10:41-41 12-31:17 VPD MADRIGAL.MARIE 25W 11:21:43 11:28:07 12:31-17 20170918814 VREC 09/06/2017 11:57-40 REC E 50TH I!BOYLE AV.VERNON Departmem OCA Number RMS Juris VPD CR20171596 CA0197300 VPD GAYTAN,LORENZ `26E 11:5T40 12:36:16 VPD GODOY.RAYMON 2P8 12:00:29 12:36:11 12.36-17 20170918833 CITE 09l06/2017 15:16:51 VI TRAFFIC STOP LEONIS BL II SOTO.VERNON Denaremem VPD R2 CR2 Number RMS Juris 0171597 CA0197300 VPD CHAVEZ.JERRY,J 'S2 15:16:51 16-06:51 VPD QUINONES,ANA 17W 15:17:31 16:06:51 20170918847 RPT 09/0612017 20:06.47 BERTHAN AGUILAR 20002R DOWNEY RD 11 EXCHANGE AV,VERNON Department VPD R2 CR2 Number RMS Juris 0171598 CA0197300 VPD DOCHERTY,MICH 91 E 20:17:08 20:24-34 VPD CERDA.EUGENIO 26E 20:34:26 20:38:52 21:37-05 0910712017 00:19:03 Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Dale: 0910712017 Jurisdiction: VERNON Last Date: 09/0712017 Call Number Disp Ten Received Caller Code Complaint Address Unit T4me Den DTlirer f ,pie J)i.VI,r,tc•l, Efirrfute OnSeene Depart Arrive Remove C.`orrrn 20170918858 RPT 09/0712017 0215:20 LASO ASST DPTAST ATLANTIC►1 DISTRICT,VERNON Departmem OCA Number RMSJurls VPD CR20171600 CA0197300 VPD CERDA,EUGENIO '26E 02:27:05 02:2T42 VPD CERDA,PAUL,JR 20W 02:27-40 02:56:15 04-20:35 20170918879 RPT 09/07/2017 08:12:29 VINCE RODRIGUEZ Departmem OCA Number RMS Jurls 20002R PENNINGTON WAY 1!26TH ST,VERNON CITY VPD CR20171601 CA0197300 VPD CR20171602 CA0197300 VPD MADRIGAL,MARIF '25E 08:16:23 08:24-08 09:0&38 VPD QUINONES.ANA 17E 08:16:36 08.25-11 09:12:20 VPD GAYTAN.LORENZ 37E 08-57-38 09:12:20 20170918905 RPT 09/07/2017 12:11:03 J AND J SNACK FOODS GTAR 5353 DOWNEY RD,VERNON Departmem OCA Number RMS Juris VPD CR20171603 CA0197300 VPD ENCINAS.ANTHOI '26W 12:15:52 12:16:44 13-13:23 20170918908 RPT 09/07/2017 12-27:48 VI TRAFFIC STOP E 38TH 11 IRVING,VERNON Departmem OCA Number RMS Jurk VPD CR20171604 CA0197300 PAWC VPD VASQUEZ,LUIS '38W 12:27:48 13:13:56 VPD GODOY,RAYMON 2P8 12:45:01 13-13:56 VPD GA'(TAN,LORENZ 37E 12:36:20 12 37:11 VPD NEWTONJODD M1 12:37:07 12:39:23 13-13:56 20170918918 SUP 0910712U17 14:15:27 140 4305 S SANTA FE AV.VERNON VPD DOCHERTY,MICH 191W 14:18:46 14:18:42 15-05:56 VPD QUINONES,ANA 17E 14:25:27 14:25:46 VPD MADRIGAL,MARIf 25E 14:25:43 14:29:52 14-48:54 20170918919 0911312017 00:10:07 Page i of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 0910712017 Jurisdiction: VERNON Last Date: 09107/2017 Call Number Disp Ten Received Caller Code Complaint Address -ullit Time Derr Officer flair Dispatch Enroute OnScene Depart Arrive Remove Comp 20170918919 VREC 0910712017 14;34.58 WEST COAST RAGS REC 4768 S ALAMEDA.VERNON VPD ENCINAS.ANTHOI •26W 14A101 14:45:34 1516:48 20170918941 RPT 09f071201 T 18.05 22 MANL)F I 902TR BANDINI BL 11 SOTO,VERNON Department OCA Number RMS Jurls VPD CR20171605 CA0197300 VPD DOCHERTY.MICH !jI'A' 1807-29 1810-19 18:15:46 19;05;17 20170918947 RPT 0910712017 21-61-24 FRANCISCO GAMEZ STUDIO GTAR 4440 E DISTRICT BL,VERNON Departmem OCA Number RMS Juris VPD CR20171606 CA0197300 VPD VALENZUELA,FEI "25E 21:52 36 21:52:53 21:59:10 22:29:01 0911312017 00:10:07 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Dale: 09/0812017 Jurisdiction: VERNON Last Dale: 09/0812017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroule OnSeene Depart Arrive Remove Comp 20170918959 VREC 09108/2017 04:54:35 BELL PD LOCATE 3500 RANDOLPH PL,VERNON VPD RECORDS BURET 'RECD 05 42:29 05-42:42 20170918976 RPT 09/08/2017 11!19:04 CIRCLE K 1015 242 2529 S SANTA FE AV,VERNON Department OCA Number RMS Jurls VPD CR20171607 CA0197300 VPD VILLEGAS,RICHA '26W 11:20:46 11:21:28 13:1825 VPD VASQUEZ.LUIS 25E 1121:22 13:18:25 VPD QUINONESANA 38W 11:20:50 1127:06 11:50:23 20170918989 VOID 09/08/2017 15:11:55 UNICOLD CORD is RPT GTAR 4339 FRUITLAND AV,VERNON Departmem CR2 Number RMS Jur VPD R20171608 CA01973000 VPD ENCINAS,ANTHOI '31E 15:14:39 15:18:50 16:01:56 20170918990 RPT 09108/2017 15:23:53 MAAS HANSEN STEEL Department OCA Number RMS Juris 459VR 2435E 37TH,VERNON VPD CR20171609 CA0197300 VPD VASQUEZ,LUIS '25E 15:36:54 16:12:05 20170918999 RPT 09108/2017 18:33:27 1 WOOD DESIGN is VOID GTAR 4425 E 49TH,VERNON Depttrtmem CR2 Number RMS Jur VPD R20171610 CA01973000 VPD CR20171611 CA0197300 VPD VASQUEZ.LUIS "25E 18:37:53 18:43A7 19.42A2 09/09/2017 05:31:26 Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 09/0912017 Jurisdiction: VERNON Last Date: 09/0912017 Call Number Disp Ten Received Caller Code Complaint Address Und Timm Pep Officer Unit Dis'putch Fnrwsre DnSeene Deparr Arrive Remove C'onip 20170919024 VREC 09/09/2017 00:16.43 DOWNEY PD VOID LOCATE 300 STONEWOOD ST.DOWNEY VPD MARTINEZ,GABR '5D31 01:04.54 01:05:15 20170919048 RPT 09/09/2017 11:00:44 TANYA Departmem OCA Number RMS Jurls GTAR S SANTA FE AV 11 37TH,VERNON VPD CR20171612 CA0197300 VPD HERNANDEZ,MIG '38W 11:01:11 11:02:13 12:16:32 20170919052 RPT 09/09/2017 12:21:03 AMPM Department OCA Number RMS Jurls 1015 484 3278 E SLAUSON AV.VERNON VPD CR20171613 CA0197300 VPD OURIQUE,CARLO '25W 12 22 58 12:29:35 12:58:22 VPD VASQUEZ.LUIS 26E 12:25.19 12:27.46 12:52:52 VPD HERNANDEZ.MIG 38W 12:23:01 12:23 02 12:29:37 12:44:00 VPD CHAVEZ,JERRY,J S2 12:29:29 12:29:31 20170919064 1015 0910912017 16:59:32 RPT TRAFFIC STOP E VERNON AV 1/SANTA FIECR2 AV.VERNON Department Number RMS Jurls VPD R20171614 CA0197300 VI VPD OURIQUE.CARLO 125W 16:59:32 18:49:09 VPD HERNANDEZ,MIG 38W 17:00:28 17:13 38 1807,31 20170919065 VREC 09/09/2017 17:14:56 LAPD-OFFICER NELSON REC 1578 E 21ST,LOS ANGELES VPD VELASQUEZ.RIC1 '31W 17:1&07 17:38:47 18:15:43 0911012017 06:41:3E Page 7 or f VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Dale: 09/1012017 Jurisdiction: VERNON Last Date: 09/10/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep officer Unit Dispatch Effroule 011scelre Depart Arrive Remove Camp 20170919110 1015 09r10017 0 8 CK 5990 MALBURG WY,VERNON Department OCA Number RMS Juds RPT PED VFD CR20171615 CA0197300 VPD HERNANDEZ.MIG 3({F 08:58,59 12:26:57 VPD OURIQUE.CARLO 25W 10 01:14 08:59:03 10 07 51 VPD HERRERA,GUSTf 32 08:59:05 1001 18 VPD ESTRADA,IGNACI S5 09:02:52 10 07 49 20170919138 RPT 09/10/2017 20:28:22 PASSER BY Department OCA Number RMS Jaris VI 2�kU l S SOTO 11 VERNON AV.VERNON VPD CR20171616 CA01973M VPD SWINFORD.PHILL 20 30:01 20:38:45 21-24 42 VPD 26E 20:31:16 20:3626 21.16 45 VPD ENCINAS.ANTHOI 32E 20:34:24 20:36:20 211014 VPD VASQUEZ,LUIS 38W 20:30:08 20:30A2 21:36:46 2f1 L70919150 RPT Q9l1612017 23-39-35 FARMER JOHN DEMOSTRA 3049 E VERNON AV.VERNON Deprrrinrem OCA Number RMS Juris VPD CR20171617 CA0197300 VPD ENCINAS.ANTH& :uJ 23.3ri 57 03:04:24 0911112017 04:54:3S Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09/11/2017 Jurisdiction: VERNON Last Date: 09/11/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep []/licer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170919154 RPT 09/11/2017 00:32:02 AMPM 1015 484 3278 E SLAUSON AV.VERNON Department OCA Number RMS Jurls VPD CR20171618 CA0197300 VPD REYNA,JOSE S '26E 00:32:19 00:37-D4 01.37:13 VPD SWINFORD,PHILL 31W 00:32:30 00.37-44 01:10:01 20170919159 1015 09l11l2017 05:09:15 S Juris RPT PEDCK 5990 MALBURG WY,VERNON Department CR2 Number RM197300 VPD CR2D171619 CA0197300 VPD OURIOUE.CARLO '25 05:09.15 05:51:59 VPD REYNA,JOSE S 26E 05:09:19 05.51:59 20170919172 RPT 09/11/2017 08:01:45 MICHAEL SHIFFLETT 902T 4306 E 26TH,VERNON Department Number RMS Jur0 CR2 VPD CR20171620 CA0197300 VPD MADRIGAL,MARV '38E 08:03:12 08:03:26 08:10:27 08 45:03 20170919182 1015 09/11/2017 09:08:57 RPT DET 6542 MILES.HUNTINGTON PARK VPD LANDA.RAFAEL '5D34 09:08:57 09:32:52 VPD MARTINEZ,GABR 5D31 09:16:45 09:32:52 20170919189 RPT 09/11/2017 10:26:04 ABLE MCCALLISTER DESIGN Department OCA Number RMS Jurk 484R 6063 MALBURG WY,VERNON VPD CR20171621 CA0197300 VPD ONOPA,DANIEL *31E 10:29:52 10.44:55 11:20:35 20170919222 RPT 09/11/2017 17:03:53 UNITED FOOD GROUP Department OCA Number RMS Jurls 920PR 3425 E VERNON AV,VERNON VPD CR20171622 CA0197300 VPD RECORDS BURS/ 'RECD 17:04:01 18:19:17 VPD ONOPA,DANIEL 31 E 17:50:08 17:50:11 20170919225 09/12/2017 00:09:37 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 0911112017 Jurisdiction: VERNON Lasf Date: 09/11/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Rep officer €nif Dimatch Enroute OnScene Depart Arrive Remove Camp 20170919225 RPT 09/11/2017 18:13:04 REPO 2001 E 38TH,VERNON Departmem OCA Number RMSJuris REPO VPp CR20171623 CA0197300 VPD RECORDS SURE! 'RECD 18:19:22 18:29:32 09/12/2017 00:09:37 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 09112/2017 Jurisdiction: VERNON Last Date: 0911212017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170919252 ^ RPT 09/12/2017 07:50:38 CHRISTIAN ALEXANDER DELEON DIAZ 902T SIERRA PINE AV 11 BANDINI BL,VERNON Departmem OCA Number RMS Juris VPD CR20171624 CA0197300 VPD OURIQUE,CARLO `25E 07:52:07 08:16:37 VPD HERNANDEZ,MIG 18 07:5118 08:16:37 20170919267 RPT 09/12/2017 09:55:50 SANDRA Department OCA Number RMS Juris 20002R S SANTA FE AV ll 53D,VERNON CITY VPD CR20171625 CA0197300 VPD ONOPA,DANIEL '26W 09:56:33 M04:43 11:13:10 VPD MADRIGAL,MARV 3BW 10:03:23 10:14:52 20170919281 RPT 09/12/2017 12:05:39 1015 DET 4305 S SANTA FE AV,VERNON VPD RAMOS,JOSE '51335 12:05:39 13:51:07 VPD HERNANDEZ,EDV 5d32 13:41:35 13:51:07 VPD LANDA,RAFAEL 504 13:35:24 13:41:43 20170919289 RPT 09/12/2017 12:47:50 UPS 920PR 3333 DOWNEY RD,VERNON Department OCA Number RMS Juris VPD CR20171626 CA0197300 VPD OURIQUE,CARLO '25E 12:49-04 12:49:24 12:54:53 13:21:34 VPD GODOY,RAYMON 2P8 13:M24 13:21:34 VPD GAYTAN,LORENZ 31E 13:02:48 13:21:34 20170919292 CITE 09/12/2017 13:26:23 Departmem OCA Number RMS Juris TRAFFIC STOP S BOYLE AV/I FRUITLAND AV,VERNON VI VPD CR20171627 CA0197300 VPD MADRIGAL,MARIf '38W 13.26:23 14-22:37 VPD OURIQUE,CARLO 25E 13:32-30 13:36:45 14:10:41 VPD ONOPA,DANIEL 26W 13:36A6 13:41:30 13:54:30 20170919297 0911312017 00:07.47 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 09112/2017 Jurisdiction: VERNON Last Date: 09112/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Deep Officer unit Dispatch Enroute OnSeene Depart Arrive Remove Comp 20170919297 REPO 09,1212017 14-10:56 UNKNOWN REPO 4019 E 26TH.VERNON Department OCA Number RMSJuris VPD CR20171628 CA0197300 VPD RECORDS BURE/ *RECD 14 1 1 41 14:58 57 20170919326 RPT 09AN2017 21;29;01 SOOFf.R A460V 2828 S ALAMEDA,VERNON Department OCA Number RMS Juris VPD CR20171629 CA0197300 VPD CERDA,EUGENIO *26W 21:29:58 21:30:16 21:33:07 22 20:28 VPD SWINFORD,PHILL 31 21:32:07 21:33:30 22.05:53 09/13/2017 00:07.47 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Dale: 09/13/2017 Jurisdiction: VERNON Last Date: 09/13/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20170919337 RPT 09/13/2017 00:01:36 UPS FOUND 3333 DOWNEY RD,VERNON Departmem OCA Number RMS Juris VPD CR20171630 CA0197300 VPD SWINFORD,PHILL `31 00:04:23 00:04:48 00:17:11 00:38:44 20170919357 RPT 2017 09:2D:42 CHP 902T Department OCA Number RMS Juris 902T E 26TH N INDIANA,VERNON VPD CR20171631 CA0197300 VPD MADRIGAL.MARI/ '38W 09:31:23 10:03:11 VPD VASQUEZ,LUIS 25E 09:31:31 09:32:04 10:03:11 20170919363 RPT 09/13/2017 11:16:02 1015 DET 4305 S SANTA FIE AV.VERNON VPD RAMOSAOSE '5D35 11:16:02 14:46:37 VPD MARTINEZ,GABRI 5D31 11:35:58 14:46:36 20170919371 VS 09/13/2017 12:11:10 CCONTINENTAL FLEET 917A 2021 E 25TH,VERNON Departmem OCA Number RMS Juris VPD CR20171632 CA0197300 VPD GODOY.RAYMON '2P8 12:18:44 12:27:44 13:01:16 20170919380 RPT 09/13/2017 15:59:26 MARK Department OCA Number RMS Juris 902T 4440E 26TH,VERNON VPD CR20171633 CA0197300 VP,) VASOUEZ.LUIS '25E 16:00:37 16:05:20 17:02.34 20170919381 RPT 09/13/2017 16:00:50 NANCY LOPEZ 487R 4305 S SANTA FE AV,VERNON Department OCA Number RMS Juris VPD CR20171634 CA0197300 VPD MADRIGAL,MARIf '38W 16.02A2 16:08.15 18:26:43 20170919387 0911412017 00:55:2C Page 1 of ,� VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 0911312017 Jurisdiction: VERNON Last Date: 0911312017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Vnit Di patch Enroute OnScene Depart Arrive Remove Comp 20170919387 RPT 09/13/2017 18:46:31 SWEETNER PRODUCTS 902T 2332 E 38TH,VERNON Departmeni OCA Number RMSJuFb VI VPD CR20171635 M197= 1015 VPD CERDA,PAUL,JR "17W 18:48:59 1849.00 18 56 41 20:14:22 VPD HERRERA,GUSTF 25 19 00 25 21 33A4 VPD CERDA,EUGENIO 26E 1859.58 21:04:10 0911412017 00:55:2L Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Dare: 09114/2017 Jurisdiction: VERNON Last Date: 09114/2017 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Dispatch Etrroute OnScene Depart Arrive flernove 001110 20170919403 RPT 09/14/2017 05:45:19 SOOFER 484R 2828 S ALAMEDA.VERNON Departmem OCA Number RMS Juris VPD CR20171637 CA0197300 VPD CERDA,PAUL,JR '17W 05A6:41 05:47:36 05:49:40 0617:28 20170919412 RPT 09/14/2017 07:45:13 NATURES PRODUCE 422R 3305 BANDINI BL VERNON Department OCA Number RMS Juris VPD CR20171638 CA0197300 VPD ENCINAS,ANTHOI *31E 07:48A6 07:48:57 07:58:24 08A0:11 20170919423 RPT 09/14/2017 08.41:13 ICA NSF 2646 DOWNEY RD,VERNON Departmem OCA Number RMS Juris VPD CR20171639 CA0197300 VPD DOCHERTY,MICH '91W 08:45:45 08A5:47 08:49-29 09:52:28 20170919426 RPT 09/14/2017 09:06:53 HEDLEY AND BENNET 459R 3864 S SANTA FE AV,VERNON Deparfinem OCA Number RMS Juris VPD CR20171640 CA0197300 VPD VASQUEZ,LUIS *26 09:08:54 09:09:02 09-16:02 12:18:08 VPD NEWTON,TODD M1 10.26:57 10:36:13 20170919449 RPT 09/14/2017 12:30:17 CA TEXT 459R 1945 E 55TH,VERNON Department OCA Number RMS Juris VPD CR20171641 CA0197300 VPD NEWTON,TODD "M1 12:37:04 12 37:05 12:40:25 13:26:09 20170919464 RPT 09/14/2017 15-47:24 JUDY MORENO 901T S DISTRICT BL H ATLANTIC BL,VERNON Departmem OCA Number RMS Juris VPD CR20171643 CA0197300 VPD NEWTON,TODD 'M1 15:50:03 16:27.21 VPD VASQUEZ,LUIS 26 16-08:41 16:27:21 VPD ENCINAS,ANTHOI 31E 15:54:52 16:03:57 16:07:19 09/15/2017 05:32:11 Page i of t VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Dale: 09/1512017 Jurisdiction: VERNON Last Dale: 09/15/2017 Call Number Disp Ten Received Caller Code Complaint Address Unil Time Den Officer Unll Disparch Enroule Onseene Depart .1 rrive• Remore cons r 20170919483 RPT 09/15/2017 00:31:12 902T SIERRA PINE AV 11 BANDINI BL,VERNON Departmem OCA Number RMS Juris VPD CR20171644 CA0197300 VPD CERDA.EUGENIO `26 00:33-09 00:36:17 01:06:19 VPD CERDA,PAUL,JR 17E 00:35:02 00 39:24 02:29-45 VPD 1 Z8 0018:35 01:59:03 VPD VALENZUELA,FEI 25VV 00:34:14 00:36:12 02:29:45 20170919488 RPT 09/15/2017 01:55:32 CHP MUNOZ#21443 1015 WARRANT 6542 MILES, HUNTINGTON PARK VPD '1 Z8 01:59.04 02:19:33 20170919510 RPT 09/15/2017 09:43:36 WORLD VARIETY GTAR 5325 S SOTO,VERNON Department OCA Number RMS Juris VPD CR20171645 CA0197300 VPD VILLEGAS,RICHA `31E 10-00-59 10.01:00 10:12:05 10:57:39 20170919518 RPT 09/15/2017 11:50:58 RAUL SAMANIEGO 902T S BONNIE BEACH PL I!BANDINI BL,VERNON Department OCA Number RMS Juris VPD CR20171646 CA0197300 VPD VILLEGAS,RICHA '31E 11:53:45 11.54.08 VPD ENCINAS,ANTHOI 20E 11:58:56 12:09:11 12:58:42 VPD DOCHERTY,MICH 91W 11:54:19 11:54:20 12:06:08 12:58:42 20170919520 1015 09/15/2017 12:24:14 RPT WARRANT 4305 S SANTA FE AV,VERNON VPD HERNANDEZ,EDV '5D32 12:25:23 13:35:35 20170919528 RPT 09/15/2017 13:46:14 OCEAN GREEN SEAFOOD 487R 4988 CORONA AV,VERNON Department OCA Number RMS Juris VPD CR20171647 CA0197300 VPD DOCHERTY,MICH *91 W 13:46-55 13:46:55 13 52:21 13:52:36 15:33 16 0911612017 06:02:26 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Dale: 09/15/2017 Jurisdiction: VERNON Last Date: 09115/2017 Cal!Number Disp Ten Received Caller T Code Complaint Address Unit Time Den Officer Unit Dispatch_ Enroute OnScene Depart Arrive Remove Comp 201709119540 RPT 09115fi2017 16:43:57 LA SCHOOL POLICE 902T E SLAUSON AV 11 ALCOA AV,VERNON Departmem OCA Number RMS Juris VPD CR20171648 CA0197300 VPD VILLEGAS,RICHA *31 E 16 46 41 16-53 30 17.44:05 VPD VASQUEZ,LUIS 18W 16,5713 17 44:05 20170919547 RPT 09f1512017 19-58 11 1015 TRAFFIC STOP PACIFIC 1155 TH.VERNON Department OCA Number RMS Juris VPD CR201716549 CA0197300 VPD CAM,PATRICK '25W 19 58.11 21:04:48 VPD CERDA,PAUL,JR 17E 20 W) AS 20:12:04 20 38 03 VPD VALENZUELA,FEI 26 20:06.11 20 38 36 09/16/2017 06:02:26 Page 2 of 2 RECEIVED RECEIVED - SEP 26 2017 SEP 2 V 2017 rt CITY ADMINISTRATION CITY CLERK'S OFFICE STAFF REPORT CfW PUBLIC WORKS DEPARTMENT C o nw nR DATE: October 3,2017 TO: Honorable Mayor and City Council FROM: Daniel Wall, Director of Public Works Mpartmenta Originator: Lissette Melendez,Associate Engineer Ok RE: Acceptance of Electrical Easement at 4490 Ayers Ave.(APN 6304-001-025) Recommendation A. Find that the acceptance of the Electrical Easement proposed in this staff report is not a "project" as that term is defined under the California Environmental Quality Act (CEQA) Guidelines Section 15378,and even if it were a project, it would be categorically exempt in accordance with CEQA Guidelines Sections 15301 (maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use) and 15061(b)(3) (general rule that CEQA only applies to projects that may have a significant effect on the environment); and B. Accept the Electrical Easement, in substantially the same form as attached to this staff report, and authorize the Mayor to execute the Certificate of Acceptance. Backeround The property located at 4490 Ayers Avenue is being developed and an easement is needed for the installation and maintenance of City owned electrical conduit and equipment serving the property. The Public Works Department has received a fully executed Electrical Easement by 4490 Ayers Avenue, LLC, a California limited liability company for the property at the above-mentioned location, Assessor's Parcel No. 6304-001-025. The easement has been reviewed and approved by the Vernon Public Utilities Department and has been approved as to form by the City Attorney's Office. Fiscal Impact Acceptance of the proposed Electrical Easement has no fiscal impact. Attachment(s) 1. Easement Deed 2. Certificate of Acceptance Page i of 1 RECORDING REQUESTED BY and WHEN RECORDED MAIL TO: City of Vernon 4305 Santa Fe Avenue Vernon,CA 90058 Attn: City Clerk MAIL TAX STATEMENTS TO: Exempt Vh THIS LINE RESERYM FOR RZMRDER'S USE EASEMENT DEED (ELECTRICAL) APN: 6304-001-025 DOCUMENTARY TRANSFER TAX IS NONE—NOT REQUIRED SEC. 11922 REVENUE TAXATION CODE. FOR VALUABLE CONSIDERATION,RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, 4490 AYERS AVENUE,LLC,a California limited liability company (the"Grantor") HEREBY GRANT(S)TO: City of Vernon,a municipal corporation (the"Grantee") An easement for every purpose beneficial to the Vernon Public Utilities Department,a Municipal Corporation, including,but not limited to, the right to construct, lay,install, use, maintain,alter, add to, repair, replace, inspect and remove underground and overhead electric and other public utilities, consisting of pole,guys and anchors, crossarms,wires,cables,conduits, manholes, vaults,pull boxes, markers and other fixtures and appliances with the right of ingress and egress in, on,over, under, across and through that certain real property in the City of Vernon,County of Los Angeles, State of California,as described in Exhibit"A"attached hereto and incorporated herein by this reference,and as more particularly shown on the map attached hereto as Exhibit "B"and incorporated herein by this reference. This easement is on a portion of the property owned by the Grantor. The Grantee,and its employees shall have free access to said facilities and every part thereof, at all times, for the purpose of exercising the rights herein granted. Date: June 22 ,2017 4490 AYERS AVENUE, LLC,a California limited liability company "Grantor" Kenneth W. Jackson, Manager ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or _validity of that document. _ State of California County of ORANGE_ On AUGUST 24, 2017 _before me, D.A. MARTINEZ, NOTARY PUBLIC (insert name and title of the officer) personally appeared KENNETH W. JACKSON------------------------------------------ who proved to me on the basis of satisfactory evidence to be the person(A whose name(9} is/ai* subscribed to the within instrument and acknowledged to me that hetsh -executed the same in his/b authorized capacity(jlt), and that by his/hs44heir signature(s f on the instrument the person(g, or the entity upon behalf of which the person(o acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct f) k MARTINEZ Cornftstion•2076678 WITNESS my hand and official seal. Notary Public-California Orange county CaTm *w 21 2Ut6� Signature (Seal) EXHIBIT "A" ELECTRICAL EASEMENT LEGAL DESCRIPTION TWO STRIPS OF LAND. BEING THOSE PORTIONS OF LOTS 90 AND 111 OF THE RANCHO LAGUNA, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED AS EXHIBIT "A" IN LOS ANGELES SUPERIOR COURT CASE NO. B-25296, A CERTIFIED COPY OF WHICH IS RECORDED IN BOOK 6387 PAGE 1 ET SEQ. OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: STRIP 1 A STRIP OF LAND. 5.00 FEET IN WIDTH, THE CENTERLINE DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE SOUTHEASTERLY LINE OF AYERS AVENUE AND SOUTHWESTERLY LINE OF AYERS AVENUE (FORMERLY CANNING STREET), BOTH 60.00 FEET WIDE AS SHOWN ON A MAP RECORDED IN BOOK 84 PAGE 60 OF RECORD OF SURVEYS: THENCE ALONG SAID SOUTHWESTERLY LINE NORTH 67' 58' 150 WEST 3.07 FEET TO THE POINT OF BEGINNING FOR THIS DESCRIPTION; THENCE LEAVING SAID SOUTHWESTERLY LINE, SOUTH 22' 01' W WEST 9.29 FEET TO POINT W. STRIP 2 A STRIP OF LAND. 21.00 FEET IN WIDTH, THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT POINT "A THENCE SOUTH 22' 01' 45" WEST 16.00 FEET. Al ESi A BY. - MARI1ES A. DIZOW NO. 9246 PLS NO. 9246 ' SMOARD ENGINEERING COMPANY 1415 E. COLORADO STREETq 1~ GLENDALE, CA 91205 � TEL (818) 55D-0337 15-07esm_elec(081117) EXHIBIT "B" ELECTRICAL EASEMENT PLAT f (FORMERLY CANNING STREET) A YERS AVENUE N6 '15 V 3.07{ POINT of BEGINNING S 22101'45' W - s.29' S 22'01'450 w.- POINT "A" 16.00' S 10.50- 10.50' 21.00' A.P.N. 6304-001-025 SCALE: 1 "=30' PREPARED BY: 1'=30' SEABOARD ENGINEERING COMPANY N - 15-07 PREPARED 1+15 E. COLORADO STRMt. SIE 205 DATE: BY: E.P. OLENDALE, CALIFON"91205 06/11/17 TEL. (818) 550-0337 FAX(818) 550-03N Fg-MDM.D, g:MoAR0[5EAoNRDgjDM CCM 9fEt I 15-07esm--Jc-(CV 117) CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certify that interests in real property conveyed to or created in favor of the City of Vernon by that certain Electrical Easement dated June 22, 2017, executed by 4490 Ayers Avenue, LLC, a California limited liability company, is hereby accepted by the undersigned officer on behalf of the City pursuant to the authority conferred by Minute Order by the City Council of the City on October 3, 2017, and the grantee consents to recordation thereof by its duly authorized officer. Dated: 2017 CITY OF VERNON MELISSA YBARRA, Mayor ATTEST: MARIA E. AYALA, City Clerk APPROVED AS TO FORM: HEMA PATEL, City Attorney CEIdED RE SEP 2 a 201T , "".�.., RECEIVED .1 0 SEP 2 6 20T7 CITY cow Y0, , .- STAFF REPORT CITY ADMINISTRATION PUBLIC WORKS DEPARTMENT DATE: October 3,2017 TO: Honorable klayvr and City Council FROM: Daniel Wahl, Director of Public Works Originator: Lissette Melendez,Associate Engineer VOL/ RE: Acceptance of Utility Easement from Alameda Corridor Transportation Authority ("ACTA"),Assessor's Parcel Numbers 6302-009-042 & 045 Recommendations A. Find that the acceptance of the Easement proposed in this staff report is not a "project" as that term is defined under the California Environmental Quality Act (CEQA) Guidelines Section 15378, and even if it were a project, it would be categorically exempt in accordance with CEQA Guidelines Sections 15301 (maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use) and 15061(b)(3) (general rule that CEQA only applies to projects that may have a significant effect on the environment); and B. Accept the Easement, in substantially the same form as attached to this staff report, and authorize the Mayor to execute the Certificate of Acceptance. Bac round The Public Works Department has received a fully executed Easement by the Alameda Corridor Transportation Authority, a joint powers authority ("ACTA"), for the purpose of installing, maintaining, repairing, using and replacing overhead utilities and sewer utilities including ingress and egress for such purposes. ACTA reserved these rights on behalf of the City of Vernon before they sold the property to Dedeaux Properties, LLC. The easement is located within Assessor's Parcel Numbers 6302-009-042 and 6302-009-045. The easement has been reviewed and approved as to form by the City Attorney's Office. Fiscal Impact Acceptance of the proposed easement has no fiscal impact. Attachments 1. Easement 2. Certificate of Acceptance RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Vernon 4305 Santa Fe Avenue Vernon,CA 90058 Attention: City Clerk -- SPADE ABOVE THIS LINE FOR RECORDEW USE APN:6302-009-045 and 6302-009-042 This instrument is exempt from Recording Fees (Govt. Code § 27383)and from Documentary Transfer Tax (Rev. &Tax Code § l 1922) EASEMENT DEED ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY, a joint powers authority created under the laws of the State of California ("ACTA"), hereby grants to the CITY OF VERNON, a municipal corporation ("City"): a. An easement and right of way in, on, under and/or across the real property described as Parcel 1 [MCOG 697-7] and Parcel 2 [MCOG 613-7] in Exhibit A hereto for the purpose of installing, maintaining, repairing, using and replacing overhead utilities and ingress and egress for such purposes. b. An easement and right of way in, on, under and/or across the real property described as Parcel 1 [MCOG-697-1.3] in Exhibit B for the purpose of installing, maintaining, repairing, using and replacing sewer utilities, including, but not limited to, a manhole and lateral line and for ingress and egress for such purposes. [Signatures on the following page] 50522006v1 IN WITNESS WHEREOF, this Easement Deed has been duly executed as of 2017. "ACTA" ALAMEDA C IDOR -RAN €'ORTATION AUTHORITY, j int powers a grity By: John Dole Chief Exec ive Officer APPROVED AS TO FORM: CHARLES J. PARKIN, City Attorney By: Name: ' Title: i !1 ()-(1eN'I,FAL favfvs�- Date: 17 2. 50522006 v1 CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certify that interests in real property conveyed to or created in favor of the City of Vernon by that certain Easement Deed dated , 2017, executed by ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY, a joint powers authority, is hereby accepted by the undersigned officer on behalf of the City pursuant to the authority conferred by Minute Order by the City Council of the City on 2017,and the grantee consents to recordation thereof by its duly authorized officer. Dated: 2017 CITY OF VF..RNON MELISSA YBARRA,Mayor ATTEST: MARIA E. AYALA, City Clerk APPROVED AS TO FORM: HEMA PNI'EL, City Attorney I 3. 50522006_0 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA } ) ss. COUNTY OF l-os A+,ge(cs } On uilwl�� U, .IcA-1 _ before me, a notary public, personally appeared oL,4, DvLeC4 who proved to me on the basis of satisfactory evidence to be the person(!) whose name(#) is/a t subscribed to the within instrument and acknowledged to me that he/siwkiry executed the same in i his/lmp0dvsir authorized capacity(iw), and that by his/ItoolldLrir signature(e) on the instrument the person(s), or the entity upon behalf of which the person(*) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (AFFIX NOTARIAL SEAL) C}tAHY I'. •a. ANNA JIANG ' Coml2t7465a � � p HOUi11'R�� G41F09l�1 W Lou AW.c13�X TY 4. 50522006_0 PS OMAS t EXHIB1T A 2 Parcel 1 MCOG-647-7 4 That portion of Parcel"113", in the City of Vernon, County of Los Angeles, State of 5 California,as described in the deed to the Cities of Los Angeles and Long Beach 6 recorded December 29, 1994 as Instrument No. 94-2292144 of Official Records;in the 7 Office of the County Recorder of said County, lying within a strip of land 110.00 feet s wide,the centerline of said strip described as follows: 9 1a Commencing at the centerline intersection of East Alameda Street,20.00 feet wide,and 11 256 Street,.60.00 feet wide,as shown out the Record of Survey filers in Book 165; 12 Pages 48 through 51,inclusive,of-Records of Survey, in the Office of the County 13 Recorder of said-County;thence along the centerline of said East Alameda Street 14 -South t}0'°36'23"East 444.22 feet; thence leaving said.center-line North 89°23'37'°.East t.5 25.00 feet to the True Point of Beginning,said point also-being-on the easterly line:of tb parcel:MCID 749 as desenbcd in the deed recorded hme-t9,2007 as Instrument-No. 17 2007-14765-76 ofOfficial Records;-thence South 21°04'34"East 13-35 feet to a-point on a 18 aon-tangent curve concave-southeasterly having a radius of I215:5.0 feet-and a radid1line 19 to said 66°44'14�*West. 2d j 21 The sidelines of said strip of land shall be prolonged or shortened-so as to terminate 22 northwesterly on the easterly line of said parcel MCOG-749 and southeasterly on the 23 above mentioned 1215.50 foot radius curve. 24 25 ' Containing 134 square feet,more or less. 25 27 ;I The distances shown hereon are grid distmices. Ground distances may be obtained by 28 dividing the grid disrances by the mean combination factor of 0.99999366. 39 ' 30 See Exhibit`B-l"attached hereto and made a part hereof. 31 F4SURVFY5 DKIJ FR[07.41U"-Q$Vtr-754%LEGALSJC-MCOG-69,-7 reel-doc l ill1I2009 Page l of 2 5 PSOMAS 2 This real property description has been prepared by me or under my direction, in 3 conformance with the Professional Land Surveyors' Act, 4 f No. 52a2 I 3 Jeremy L. Evans, PLS 5282 Date 9 tl I2 i3 14 15 15 17 18 19 20 21 22 23 24 25 26 77 t� 29 30 3! FASUHVEYS12DMJ_FRI07A11ta&08Vv �M-754V,ErrALSIX-MOOC -7 mvl.doc 11f11/2009 Page 2 or2 7 / i P5OMAS 1 E,XHl13IT A 2 Parcel 2 3 MCOG-613-7 4 In the City of Vernon, County of Los Angeles, State of California,being that portion of 5 i Parcel "1B"as described in the Deed to the Cities of Los Angeles and Long Beach 6 i recorded December 29, 1994 as Instrument No. 94-2282144,together with that portion of 7 the land described in the Deed to Southern Pack Company recorded September 23, 8 1937 in Book 15617,Page 39,both of Official Records, in the Office of the County 9 Recorder of said County, lying within a strip of land 10.00 feet wide,the centerline of to said strip described as follows- tl 12 Commencing at the centerline intersection of East Alameda Street,20.00 feet wide,and 13 25t' Street, 60.00 feet wide,as shown on the Record of Survey filed in Book 157, 14 Pages 93 through 100,inclusive,of Records of Survey, in the Office of the County 15 ;� Recorder of said County;thence along the centerline of said East Alameda Street 16 South 00036'23"East 78.17 feet;thence leaving said centerline North 89°23'3T'East 17 25.07 feet to apoint on the easterly line of Parcel MCOG-749 as described in the 18 document Recorded June I9,2007 as Inshument No.2007-1476576 of Official Records, 1.9 in the Office of the County Recorder of said County,said easterly line being a curve 20 concave easterly having a radius of 51.00 feet,a radial line to said point bears 21 Noah 87°30'31"West,said point also being the True Point of Beginning; thence 22 North 44'57'16"East 68.86 feet to the southeasterly line of Parcel MCOG-613-5 as 23 . described in the document Recorded June 19,2007 as Instrument No. 2007-1476576 of 24 Official Records in the Office of the County Recorder of said County. 25 26 The sidelines of said strip shall be prolonged or shortened so as to terminate northeasterly 27 on said southerly line of 25 h Street and the southeasterly line of said Parcel MCOG-613- 28 5,and southwesterly on the easterly line of said Parcel MCOG-749 and the easterly line 29 of said Parcel MCOG-613-5. 30 31 FASURVEYSUDMJ Fm1107ANnsk0811U-7541LEGALSIX-MC0G-613-7.doc I I/IM009 Page 1 of PSOMAS I z Containing 684 square feet,more or less. 4 I The distances shown hereon are grid distances. Ground distances may be obtained by 5 dividing the grid distances by the mean combination factor of 0.99999366. 6 i 7 See Exhibit"B-1"attached hereto and made a part hereof. 9 9 This real property description has been prepared by me or under my direction, in to conformance with the Professional Land Surveyors' Act. 11 1213 No. 521512 14 � _ — -— .��..�_ Exp. 1231/D9 15 Jeremy L. Evans, P.L-S. 5282 Date # OF CN-I t6 17 Is 19 20 21 22 23 24 25 26 27 28 29 30 ' 31 1-:WRVEYSI2DMJ 1-I1107 411twk OR11[r-7541 F-CiAISIX-MCOG-613.7.doc 1 1110IZ009 Page 2 of 2 9 EXHlBrr B-1 FIWIRI P.O.C. 25TH STREET in ui 40 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY AIAI&DA CORRIDOR PARCEL PLAT ulveyarS | / P5OMAS EXHIBIT B t z Parcel 1 3 4 MCOG-697-1.3 5 That portion of Parcel"IB" in the City of Vernon, County of Los Angeles, State of 6 Califomia,as described in the Deed to the Cities of Los Angeles and Long Beach 7 recorded December 29, 1994 as Instrument No,94-2282144 of Official Records, in the 8 Office of the County Recorder of said County, lying within a strip of land 10.00 feet 9 wide,the southeasterly line of said strip described as follows: 10 11 Commencing at the northwesterly corner of Parcel MCOG-613.1 as described in the 12 document recorded November 2,2006 as Instrument.No. 06-2440305,Official Records 13 of said County,said corner being the beginning of a non-tangent curve concave 14 southeasterly having a radius of 1192.87 feet;a radial line.to said point bears 15 North 371137'12"-West; thence southwesterly along said curve and the northwesterly line 16 of said Parcel MCOG-613.1 110.24 feet through a central angle of 05'17'42"to a point 17 in the northerly line of Parcel"iB"as described in said Instrument No.94-2282144,and 1.8 as shown on the Record of Survey filed in Bodk 1765,_Pages 4$through 51,inclusive of 19 Records of Survey,in the Office of the County Recorder of said County,said point also 20 being the northwesterly comer of Parcel MCOf-697-1.1 as described in the document 21 recorded January 30,2007 as Instrurnent No.2007-0189281, Official Records of said 22 I; County;thence continuing southwesterly along said curve and the northwesterly line of 23 �; said Parcel MCOG-697-1.1 280.39 feet through a eentmi angle of 13°28'03"to the True 24 Point of Beginning;thence continuing southwesterly along said-curve and said 25 northwesterly line 10.00 feet through a central angle of 00°28'49"to the termination of 26 said strip. 2s The northeasterly and southwesterly lines of said strip shall bear North 54'11'06"West '_'9 from the True Point of Beginning and the Point of Termination. The.northwesterly line 30 j of said strip shall be prolonged or shortened so as to terminate at said northeasterly and 3 t ! southwesterly lines. F1SURVEYSL71)&U1_FR10741VA: kOBUtr-75411EGALM-MCOO-697.13.doc 1 U1012004 Pngc 1 of2 i PS OMAS 2 Containing 100 square feet. more or less. 3 4 The distances shown hereon are grid distances. Ground distances may be obtained by 5 dividing the grid distances by the mean combination factor of 0.99999366. 6 7 See Exhibit"B-1"attached hereto and made a part hereof. 8 9 This real property description has been prepared by me or under my direction, in i to conformance with the Professional Land Surveyors' Act. 1I i 12 13 0` No. 5262 14 - E xp, 12 f31 f 09 1s Jeremy L. Evans, P.L-S. 52.$2 Date 16 17 is 1.9 20 21 22 23 24 25. 26 27 2s 29 30 31 F-SURVEY512DNlJ Fri 107.4 1 Vask 0911tr-754'd,EGAL,SV{-MCOC-697-13.doc 1111 OR009 Page 2 of 2 /a EXHIBIT B-1 :F`•LFi4S,r9)Y .. 1____ �:. nrr r:m= psle:-. 33 _�� w:4f.:olr: TITLE ;[TM 24 76 07014-.1s — — °+ ?'UP OF JAt E"TT&`_ &SESSORS uF -W A ;;'lr rFr N/A — I PITE 4"L'OY 4)0 p 5TH STRErET P.0.C. I RCa 'aTli93 1:�1i0_�4' i R,v. I ar93- !1DO ,.'F\NA'�- g.t+ rt ' 4F i ri . ♦ __ r N4V' 'r rNE s� fib' or,- O.R. i17 ± 17tiC. � Lli N4N�Y E H fx i i�OR L07 A 1 t� f # v.uNTi T# imp;-miA - TRACI INST_ A� , T_P.03. Ma g. 6r I G ." + CLR_ r t E }: -,,�fE DETAIL "A" y �o HERE 6 i- / f Ld ! t v ' r �+ r I '4C.y Li { rthr� IR 4 { T.Y.0,B. r, ENF DADA ` ' I EEAMNC _ QlST4NCE ' f t- �L I �f' 4 ' E16'' II o -5 ' +/ - r OETWL "A" CURVE DATA { r� DELI A 4Af11 LDS JNGTH ' . it r :G`, I' S {l.T][iF .Al : .r = 1 ,lp' ACET PARCEn_ NB AREA SOFT. --- -- ---- { SHfET IIx 1 P:G! 5'17-'3 I IIfO LETTER 754 ALAMEDA CORRIDOR 7nNJ]b7a]L-P-641 4 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY W.0 PARCEL PLAT L'"'Wool Engineers mcc)� rj —1. •_� - �.,yFfi„ 5urvepor5 '11 PlCncerc I yv RECEIVED STAFF REPORT CITY CLERK'S ME CITY ADMINISTRATION DATE: October 3, 2017 TO: Honorable Mayor and City Council FROM: Carlos R. Fandino Jr., City Administratornal Originator: Diana Figueroa, Administrative st� g � Y RE: A Resolution Approving the Ground Lease Re-Assignment and Sublease at 2970 E. 50'11 Street and Authorizing the Execution of Related Ground Lessor Estoppel, Consent and Ground Lease Amendment Recommendation A. Find that approval of the resolution proposed in this staff report is exempt from the California Environmental Quality Act ("CEQA"), because it is an administrative action that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project"as defined by CEQA Guidelines section 15378; and B. Adopt a resolution approving the ground lease re-assignment and sublease at 2970 E. 50`h Street and authorizing the execution of related Ground Lessor Estoppel, Consent and Ground Lease Amendment. Background As the Landlord of the property located at 2970 E. 501s Street (the "Premises"), the City recommends approving the proposed resolution which will allow the re-assignment of the Ground Lease for said premises (the "Lease") to NM GLCR, LP or another affiliate of New Mountain Net Lease Acquisition ("NM GLCR").; and an NM GLCR sublease to Arctic Glacier U.S.A., Inc. ("Arctic Glacier USA"). The main provisions of the Ground Lessor Estoppel, Consent and Ground Lease Amendment (the "Amendment")can be summarized as follows: • The Lease will be re-assigned from Arctic Ice Properties, LLC to NM GLCR; • NM GLCR will sublease the Premises to Arctic Glacier USA (the current occupant). The term of the Lease commenced on June 30, 2005 and is scheduled to expire on January 9, 2031. Under the Lease, the tenant is entitled to seven (7) options to extend the term of the Lease, Page 1 of 2 with each option being for a term of ten (10) years. By the Amendment, NM GLCR proposes to exercise three (3) of the seven (7) options, thus extending the term of the Lease to January 9, 2061 and leaving four (4) 10-year options available under the Lease. At present, all rent and other charges due and payable under the Lease have been paid in full to the City. Fiscal Impact A one-time $1,200 processing fee will be assessed by the City for the ground lease re- assignment. Attachment(s) 1. Resolution Approving the Ground Lease Re-Assignment and Sublease at 2970 E. 50d' Street and Authorizing the Execution of Related Ground Lessor Estoppel, Consent and Ground Lease Amendment Page 2 of 2 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE GROUND LEASE RE-ASSIGNMENT AND SUBLEASE AT 2970 E. 50TH STREET AND AUTHORIZING THE EXECUTION OF RELATED GROUND LESSOR ESTOPPEL, CONSENT AND GROUND LEASE AMENDMENT WHEREAS, the City of Vernon owns certain real property located at 2970 E. 50th Street in the City of Vernon, consisting of approximately 113, 000 square feet of land and a building located thereon (the "Premises" ) ; and WHEREAS, on January 5, 2005, the City Council of the City of Vernon adopted Resolution No. 8632 approving a Ground Lease Agreement (the "Lease" ) with Union Ice-Pacific, L. P. , through its General Partner, Union Ice GP Inc. ("Union Ice" ) , dated as of December 27, 2004 , for rental and renovation of the Premises for use as an ice production, food processing and cold storage facility; and WHEREAS, on October 12, 2005, the City Council of the City of Vernon adopted Resolution No. 8866 approving an Amendment to the Lease with Union Ice, which modified the commencement date of the Lease to June 30, 2005; and WHEREAS, on February 20, 2007, the City Council of the City of Vernon adopted Resolution No. 9251 approving the execution of a Landlord' s Estoppel Certificate, Agreement and Consent which (i) permitted assignment of the Lease to Arctic Ice Properties, LLC ( "Arctic Ice" ) ; and (ii) permitted sublease (as amended, modified or restated, "Sublease" ) of the Premises to Arctic Glacier Vernon Inc . or an affiliate thereof ("Arctic Glacier Vernon" ) ; and WHEREAS, on or about June 12, 2012, the City was notified by Arctic Glacier Vernon that (i) it along with several of its affiliates had commenced Court-supervised restructuring proceedings in Canada and thereunder had agreed to sell their business and all of their assets to H. I .G. Zamboni, LLC ("HIG" ) , which is the corporate parent of Arctic Glacier U.S.A. , Inc. ("Arctic Glacier USA" ) , effective as of June 7, 2012 (the "Bankruptcy Sale" ) ; and (ii) it desired to assign its interest in the Sublease' to HIG or an affiliate thereof, with the intention of continuing the operation of Arctic Glacier Vernon' s business uninterrupted following closing of the Bankruptcy Sale; and WHEREAS, as of June 28 , 2012, HIG changed its name to "Arctic Glacier LLC, " but this fact was not made known to the City at the time; and WHEREAS, on July 17, 2012, the City Council of the City of Vernon adopted Resolution No. 2012-125 approving and authorizing the execution of a consent to the assignment of the Sublease from Arctic Glacier Vernon to HIG, which, unbeknownst to the City, had legally changed its name to "Arctic Glacier LLC, " or an affiliate thereof;2 and WHEREAS, on July 27, 2012, the Bankruptcy Sale was completed (the "2012 Sublease Transaction" ) ; and WHEREAS, following the 2012 Sublease Transaction, the current lessee under the Lease is Arctic Ice, and the current sublessee under the Sublease and occupant of the Premises is Arctic Glacier USA; and WHEREAS, by memorandum dated October 3 , 2017 , the City Administrator has recommended the approval of re-assignment of the Lease and Sublease and the authorization to execute the related ground 1 The June 12, 2012 letter misidentified the instrument for assignment as the Lease; this should have read "the Sublease." 2 In the fifth recital of Resolution No. 2012-125, the sender of the June 12, 2012 letter was misidentified as "Union Ice" ; this should have read "Arctic Glacier - 2 - lessor estoppel, consent and ground lease amendment to and for the benefit of NM GLCR, L. P. or another affiliate of New Mountain Net Lease Acquisition Corporation ("NM GLCR" ) ; and WHEREAS, the City Administrator further recommends approval of a sublease of the Premises by NM GLCR to Arctic Glacier USA; and WHEREAS, NM GLCR intends to continue to perform the obligations under the Lease from and after the date of such re- assignment; and WHEREAS, the City Council of the City of Vernon desires to approve the Lease re-assignment, the authorization to execute related ground lessor estoppel, consent and ground lease amendment to and in favor of NM GLCR, and the sublease from NM GLCR to Arctic Glacier USA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , because it is an administrative action that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378 . SECTION 3 : The City Council of the City of Vernon hereby approves, ratifies and confirms the recitals set forth herein with respect to the 2012 Sublease Transaction. SECTION 4 : The City Council of the City of Vernon hereby approves the re-assignment of the Lease at 2970 E. 50th Street to NM Vernon." In the sixth recital, the instrument to be assigned was misidentified as the - 3 - GLCR and approves and authorizes the execution of the related Ground Lessor Estoppel, Consent, and Ground Lease Amendment (the "Amendment" ) in substantially the same form as the copy which is attached hereto as Exhibit A, including the consent to NM GLCR granting a leasehold mortgage on its interest in the Premises as permitted in the Amendment. SECTION 5 : The City Council of the City of Vernon hereby approves of a sublease of the Premises from NM GLCR to Arctic Glacier USA. SECTION 6 : The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Amendment for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 7 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, making any non-substantive changes to the Amendment attached hereto (including that NM GLCR may replace the initial "Lender" named therein with another lender upon reasonable prior notice to the City Administrator) . SECTION 8 : The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk' s designee, to send a fully executed Amendment to NM GLCR. Lease; this should have read "the Sublease." - 4 - SECTION 9 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 3rd day of October, 2017. Name : Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED TO FORM : I a Brig, D zx, Seni Deputy City Attorney - S - STATE OF CALIFORNIA } } ss COUNTY OF LOS ANGELES } I, , City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, October 3, 2017, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of October, 2017, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 6 - EXHIBIT A GROUND LESSOR ESTOPPEL CONSENT AND GROUND LEASE AMENDMENT THIS GROUND LESSOR ESTOPPEL, CONSENT AND GROUND LEASE AMENDMENT (this "Estoppel and Amendment") made as of this day of September, 2017, by and between THE CITY OF VERNON (individually and collectively, together with their successors and/or assigns, "Lessor") and [NM GLCR, L.P., a Delaware limited partnership] ("Lessee"). WHEREAS, Lessor has heretofore leased certain lands described on Exhibit A attached hereto (the "Premises") to Arctic Ice Properties, LLC ("Arctic Ice"), pursuant to a Ground Lease dated December 27, 2004, as amended by that Amendment to Lease dated August 24, 2005, as further amended by that certain Ground Lease re- assignment and sublease dated February 20, 2007(as same may have been amended,modified, substituted, assigned or extended, the"Lease"); WHEREAS, the current lessee under the Lease is Arctic Ice, which subleases the Premises to the current tenant, Arctic Glacier U.S.A., Inc. ("Sublessee").The agreement between Arctic Ice and Sublesseee shall be referred to herein as the "Sublease." WHEREAS, Lessee is desirous of obtaining from UBS AG, by and through its branch office at 1285 Avenue of the Americas, New York, New York (together with its successors and/or assigns, "Lender"), a loan in the approximate amount of$29,100,000.00(the"Loan")secured by(among other things)a first leasehold mortgage upon Lessee's interest as lessee under the Lease in the Premises(the"First Leasehold Mortggfe")and evidenced by,among other things, that certain Loan Agreement, by and between Lessee, as `Borrower," and Lender (the "Loan Agreement"; the First Leasehold Mortgage, the Loan Agreement, and all other documents executed and/or delivered in connection with the Loan are referred to herein,collectively,as the"Loan Documents"); WHEREAS, the First Leasehold Mortgage and any future leasehold mortgage and other security documents encumbering all or any portion of Lessee's interest in the Premises pursuant to the Lease shall be referred to herein as a"Leasehold Mortgage"and the holder of any Leasehold Mortgage,or any successor or assignee as holder of such Leasehold Mortgage(as applicable), is referred to herein as a"Leasehold Mortgagee';and WHEREAS, Lender is unwilling to make the Loan unless(i) Lessor confirms and restates certain provisions of the Lease respecting leasehold mortgages for Lender's benefit, and (ii) Lessor and Lessee amend the Lease to provide for certain revisions respecting leasehold mortgages for Lender's benefit, NOW THEREFORE, in consideration of ten dollars($10.00)and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Lessor hereby certifies to and agrees with Lender as follows: I. Lessor hereby acknowledges that Lender's notice address is as follows,for all purposes of the Lease: Address for Lender Notice: UBS AG, by and through its branch office at (or such other address as 1285 Avenue of the Americas,New York,New York Lender may provide from 1285 Avenue of the Americas time-to-time) New York,New York 10019 Attention: Transaction Management-Henry Chung with a copy to: Cassin&Cassin LLP 711 Third Avenue, 201 Floor New York,New York 10017 Attention: Dennis W. Mensi, Esq. Facsimile No.: (212) 557-2952 (01323048;1) 1 2. Lessor hereby certifies, as of the date hereof,to Lender and Lessee and as follows: (a) Lessor is the owner of the fee simple estate in the Premises and is the Lessor under the Lease. (b) Lessee is the owner of the leasehold estate in the Premises and is the Lessee under the Lease. (c) The Lease is in full force and effect in accordance with its terms and has not been further assigned, supplemented, modified or otherwise amended and each of the obligations on Lessor's part to be performed to date under the Lease have been performed. (d) To the best of Lessor's knowledge,each of the obligations on Lessee's part to be performed to date under the Lease have been performed. (e) To the best of Lessor's knowledge, Borrower has no offsets, counterclaims, defenses, deductions or credits whatsoever with respect to the Lease, or any amounts owing thereunder. (f) With respect to the Lease, no options to renew or extend exist, and no security deposits, escrows or prepaid rent or liens have been paid, except as set forth therein. The Base Rent, additional rent, and other additional charges related to the Premises, including all charges for real property taxes, operating expenses and other such expenses, and all other sums payable by Lessee to the Lessor under the Lease, including utility charges during the original and any renewal term of the Lease,are the responsibility of Lessee under the Lease. (g) Other than the Lease and the Sublease, there do not exist any other effective agreements (including Subordination,Non-Disturbance and Attornment Agreements) concerning the Premises, whether oral or written between Lessor and Lessee(or their respective predecessors) under the Lease. (h) As of the date hereof, no Base Rent or additional rent is delinquent from Lessee under the Lease. The Base Rent currently payable by Lessee under the Lease is$1 I,913.56 per month. Base Rent due under the Lease has been paid through September 30, 2017. The Base Rent will next reset effective as of January 2026. (i) Subject to the extension set forth in Section 4(e) below, the current terra of the lease shall expire on January 9,2061, whereupon Lessee will have remaining four(4)renewal options of ten(10)years each. 0) Aside from the Sublease, neither Lessor nor Lessee has assigned the Lease, nor has Lessor sublet the Premises. (k) Lessor has not assigned, conveyed, transferred, sold, encumbered or mortgaged its interest in the Lease or the Premises and there are currently no mortgages, deeds of trust or other security interests encumbering Lessor's fee interest in the Premises and Lessor has not granted to any third party an option or preferential right to purchase all or any part of the Premises. (1) Lessor has not received written notice of any pending eminent domain proceedings or other governmental actions or any judicial actions of any kind against the Lessor's interest in the Premises. (m) Lessor has not received written notice that it is in violation of any governmental law or regulation applicable to its interest in the Premises and its operation thereon, including, without limitation, any environmental laws or the Americans with Disabilities Act, and has no reason to believe that there are grounds for any claim or such violation. (n) There are no actions, voluntary or otherwise, pending or, to the best knowledge of Lessor, threatened against Lessor under the bankruptcy, reorganization, moratorium or similar laws of the United States, any state thereof or any other jurisdiction. 3. Lessor hereby consents and agrees to the following: (a) assignment of the Lease from Arctic Ice to Lessee; (01323048;1) 2 (b) sublease of the Premises from Lessee to Sublessee; and (c) anything in the Lease to the contrary notwithstanding, Lessee entering into the First Leasehold Mortgage in favor of the Lender as part of the security for the Loan,the Loan will also be secured by up to six (6) additional properties owned in fee by the Lessee, and recording the same of record thereby creating a lien and security interest on Lessee's leasehold estate in the Premises and assigning its rights under the Ground Lease to the Lender;provided,however,that the First Leasehold Mortgage and all rights acquired under it shall be subject and subordinate to each and all of the covenants, conditions, obligations and restrictions set forth in the Lease(as amended)and to the rights of Lessor thereunder; and provided,however,Landlord's consent to any of the foregoing is not intended,and shall not be construed (a) to modify or otherwise affect any provision of the Lease (except as may be set forth herein),or(b) as a waiver of any of Landlord's rights under the Lease. 4. In lieu of a separate subordination, non-disturbance and attomment agreement with the Lender, Lessor and Lessee agree to the following amendments and modifications of the Lease: (a) Notwithstanding anything to the contrary contained in the Lease,any mortgage, assignment, pledge,assignment of rents,deed of trust,security agreement,UCC financing statement and/or other security documents encumbering the Premises or any interest therein, other than any Leasehold Mortgage whether entered into by Lessee (any such mortgage, etc., being referred to herein as a"Fee Mortgage"; the holder of any Fee Mortgage is referred to herein as a"Fee Mortgagee") shall automatically be subject and subordinate to the Lease and to any Pick-Up Lease(as defined in Exhibit B attached hereto),and Lessor shall cause any such Fee Mortgage to expressly state in the instrument recorded against the Premises that such Fee Mortgage is so subordinate,and the Lease and the rights of Lessee(and,to the extent of any Pickup Lease,the rights of the Leasehold Mortgagee or its designee) in and to the Premises shall have priority over the Fee Mortgage. Lessee agrees with Lessor, for the benefit of any Fee Mortgagee that has satisfied the requirements of this Lease,to attom to any transferee of Lessor's interest through foreclosure of a Fee Mortgage or a conveyance in lieu of foreclosure. (b) Section 34 of the Lease is hereby deleted from the Lease and replaced with the provisions set forth on Exhibit B attached hereto. (c) Notwithstanding anything to the contrary in the Lease(including,without limitation, Section 10 thereof), at any time when a Leasehold Mortgage shall be outstanding, or a Leasehold Mortgagee (or its nominee or designee)shall hold title to the Lessee's Interest,(a)Lessor agrees that the Leasehold Mortgagee may be added to the "Loss Payable Endorsement" (and as a mortgagee) of any and all insurance policies carried by Lessee with respect to the Lessee's interest therein; (b)the Leasehold Mortgagee shall be entitled to participate in any settlement regarding insurance proceeds or condemnation awards; (c) the Leasehold Mortgagee shall be entitled to collect and hold any such insurance proceeds, and to make such insurance proceeds available to restore the Premises in accordance with the terms and provisions contained in the Loan Agreement required in connection with the restoration of the Premises (as are customarily imposed by a Leasehold Mortgagee in connection with commercial loans similar to the Loan) so long as the Lease is not terminated as a result of such casualty solely to the extent such termination is permitted in the Lease;and(d) all condemnation awards payable with respect to the Premises and/or other improvements payable to Lessee (or on account of the Premises and/or other improvements) shall be paid to Leasehold Mortgagee for use in restoration or application in accordance with the terms of the Leasehold Mortgage. (d) There shall be no merger of the Lease or any interest in the Lease or of Lessee's leasehold interest with the fee estate in the Premises, by reason of the fact that the Lease or such interest therein, or Lessee's leasehold interest in the Premises, may be directly or indirectly held by or for the account of any person who shall also hold the fee estate in the Premises, or any interest in such fee estate,nor shall there be such a merger by reason of the fact that all or any part of Lessee's leasehold interest may be conveyed or mortgaged in a Leasehold Mortgage to a mortgagee or beneficiary who shall also hold the fee estate in the Premises or any interest of Lessor under the Lease. (01323048;11 (e) Lessee hereby notifies Lessor of and exercises the initial three(3)Options to extend the term of the Lease(for a total extension of thirty(30)years)as permitted by Section 36 of the Lease and Lessor and Lessee hereby agree that such extension of the term is effective as of the date hereof. 5. This Estoppel and Amendment and the representations, warranties and covenants contained herein are given with the understanding that this Estoppel and Amendment constitutes a material inducement for Lender in making the Loan to Lessee and that Lender shall rely hereon in making the Loan to Borrower. Lender may at any time, without Lessor's consent, sell, assign, participate or securitize all or any portion of Lender's rights and obligations under the Loan Documents, and any such sale, assignment, participation or securitization may be to one or more financial institutions or other entities,to private investors,and/or into the public securities market,in Lender's sole discretion. This Estoppel and Amendment and the representations, warranties and covenants contained herein shall inure to the benefit of Lender, its successors and assigns (including, without limitation, each and every owner and holder of the Loan,each person who,pursuant to proceedings to enforce the Leasehold Mortgage or conveyance in lieu of such proceedings, may succeed to Lessee's interest under the Lease and each person who may thereafter acquire Lessee's interest under the Lease by purchase or otherwise) and shall be binding on Lessor, its heirs, legal representatives, successors and assigns and Lessor further agrees that this Agreement may be relied upon by Lender, its successors and assigns and any nationally recognized statistical rating agency rating any securities issued in connection with the Loan or any portion thereof. 6. This Estoppel and Amendment may be executed in any number of counterparts,each of which shall be effective only upon delivery and thereafter shall be deemed an original, and all of which shall be taken to be one and the same instrument,for the same effect as if all parties hereto had signed the same signature page. Any signature page of this Estoppel and Amendment may be detached from any counterpart of this Estoppel and Amendment without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Estoppel and Amendment identical in form hereto but having attached to it one or more additional signature pages. IN WITNESS WHEREOF,the undersigned parties have executed this Estoppel,Consent and Amendment as of the date and year first written above. LESSOR: THE CITY OF VERNON By: Name: Title: ACCEPTED AND AGREED TO: LESSEE: [NM GLCR,L.P.,a Delaware limited partnership] By: Name:-- Title: (01323048:1} 4 EDIT A PARCEL 1 AS SHOWN ON RESOLUTION NO. 8363 FOR LOT LINE ADJUSTMENT, AS EVIDENCED BY DOCUMENT RECORDED FEBRUARY 10, 2004 AS INSTRUMENT NO. 2004-0296188 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: rARCF.L I THAT PORTION OF LOT 31, OF THE 500 ACRE TRACT OF THE LOS ANGELES FRUIT LAND ASSOCIAl ION.IN THE CITY OF VERNON.COUNTY OF LOS A'IGELES, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 3 PAGES 156 AND 157 OF MISCEI LANEOUS RECORDS, IN THE OFFICE OF T)IF COUNTY RECORDER OF SAID COUNTY.DESCRIBED AS I OLLOWS BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 31; 1HENCE SOUTH 321 50 FEET ALONG THE EAST LINE OF SAID LOT 31 TO THE NORTH LINE OF THAT 1 '00 FOOT WIDE RIGHT OF WAY OF THE LOS ANGELES ?UNCTION RAILWAY_ AS DESCRIBED IN DEED TO CENTRAL MANUFACTURING DISTRICT INC.. RECORDED 4-7-1927. IN BOOK 4752. PAGE. 265 OF OFFICIAL RECORDS, IN SAID RECORDER'S OFFICE:TIIENCE WEST 347.70 FEET ALONG SAID NORTH LINE OF SAID RIGHT OF WAY TO rNE INTERSECTION OF A LINE THAT IS 397 70 FEET WEST %4EASURED PERPENDICULAR TO AND IS PARALLEL_ WITH THE EAST LINE OF SAID LOT 31; THENCE NORTH 321.30 FEET ALONG LAST SAID PARALLEL LINE TO THE NORTH LINE OF SAID LOT 31. '111ENCE EAST 387.70 FEET ALONG SAID VORTH LINE OF SAID LOT 31.ALSO BEING THE CENTERUNE ]F EAST SM STREET,40.00 FEET WIDE, AS DESCRIBED IN DEED TO THE CITY OF VERNON. RECORDED 9-5-1929,AS DOCUMENT NO. 1410. IN NOOK 9115 PAGE 149 OF OFFICIAL RECORDS. 114 SAID R1 CORDER'S OFFICE, TO THE POINT OF BEGINNING ExCErT THEREFROM THE NORTH 20_OD FEET OF SAID LOT)] THE SOUTH LINE OF SAID NORTH 2O.00 FEET.ALSO BMWG THE SOUTH LINE OF EAST 50TH STREET 41..00 FEET WIDE.AS DESCRIBED IN DEED TO THE(TrY OF VERNON.RECORDED 9-5-1929.AS DOC UMEN F NO. 1410.IN BOOK 9335,PAGE 149 OF OFFICIAI RECORDS.IN SAID RECORDER'S OFFICE (01323048,1) EXHIBIT B 34. (a) Notwithstanding the provisions of Section 13.1 of the Lease to the contrary, Lessee may from time to time, without the consent of but upon written notice to Lessor, execute and deliver a mortgage, assignment, pledge, assignment of rents, deed of trust, security agreement, UCC financing statement and/or other security documents encumbering all or any portion of Lessee's interest in the Premises pursuant to the Lease (any such mortgage, etc., being referred to herein as a "Leasehold Mortgage'; the holder of the Leasehold Mortgage, or any successor or assignee as holder of such Leasehold Mortgage (as applicable), is referred to herein as a "Leasehold Mortgagee") that does not result in a change in use of the Premises; provided, however, Lessor shall have a reasonable right of approval of financing terms to the extent they relate to Lessor's interest in the Premises. The Leasehold Mortgagee may enforce its Leasehold Mortgage and acquire title to the interest encumbered thereby in any lawful way,including, without limitation, through foreclosure; provided, all such rights shall be subject and subordinate to each and all of the covenants,conditions, obligations and restrictions set forth in the Lease(as amended) and to the rights of Lessor thereunder. Subject to the terms of the Leasehold Mortgage, following a default thereunder(beyond any applicable notice and cure period), pending a foreclosure of a Leasehold Mortgage, the related Leasehold Mortgagee may take possession of and rent the Premises, and upon acquisition thereof, through foreclosure or otherwise, may, without further consent of Lessor, sell and assign Lessee's interest in the Premises by assignment in which the assignee shall expressly assume and agree to observe and perform all of the covenants of Lessee herein contained,and such assignee may make a purchase money leasehold mortgage of Lessee's leasehold interest in the Premises to the assignor. Lessor agrees that following the foreclosure of Leasehold Mortgage, Lessor will waive its right to enforce any noncurable default(i.e., any default hereunder that is personal to the previous lessee) against the transferee of Lessee's interest through foreclosure or a conveyance in lieu of foreclosure. A Leasehold Mortgagee shall be liable to perform the obligations herein imposed on Lessee only during the period that Leasehold Mortgagee has ownership of Lessee's interest in the Premises. Nothing contained in the Leasehold Mortgage shall release or be deemed to relieve the Lessee from the full and faithful observance and performance of Lessee's covenants herein contained, or from any liability for the nonobservance or nonperformance thereof,nor be deemed to constitute a waiver of any right of Lessor under this Lease. (b) Upon the execution and recording of a Leasehold Mortgage, the Leasehold Mortgagee shall send to Lessor a true copy of the Leasehold Mortgage with the recordation information noted, together with written notice specifying the name and address of Leasehold Mortgagee. So long as such Leasehold Mortgage shall remain unsatisfied of record or until written notice of satisfaction is given by Leasehold Mortgagee to Lessor,and subject to the provisions of the first sentence of this Section 34(b), the following provisions shall apply with respect to such Leasehold Mortgage. W There shall be no termination, cancellation, surrender, acceptance of surrender, amendment or modification of the Lease by joint action of Lessor and Lessee or by Lessee alone,without in each case the prior consent in writing of Leasehold Mortgagee. Any such termination, cancellation, surrender,acceptance of surrender, amendment or modification made without the consent of Leasehold Mortgagee shall not be binding on Leasehold Mortgagee. (ii) Lessor shall, upon serving Lessee with any notice of Default and/or Breach, simultaneously serve a copy of such notice upon Leasehold Mortgagee, and no such notice to Lessee shall be deemed given unless a copy is so served upon Leasehold Mortgagee in the manner specified in this Lease for the giving of notices. (iii) In the event of any Default and/or Breach by Lessee under this Lease,Leasehold Mortgagee shall have the same period,after service of notice upon such Default and/or Breach to remedy or cause to be remedied the Default and/or Breach, that Lessee has under this Lease to remedy or cure same, plus an additional fifteen(15) days if such Default and/or Breach can be cured solely with the payment of money,or an additional thirty(30)days for all other Defaults and/or Breaches(such period, the"Leasehold Mortgagee Cure Period"). Lessor shall accept such performance by or at the instigation of a Leasehold Mortgagee as if the performance had been done by Lessee. Each notice of Default and/or Breach given by Lessor shall (i) state the amounts of Base Rent and other payments that are then claimed to be in default, and/or(ii)provide a description of any non-monetary Default and/or Breach. f 01323048:1) 6 (iv) Notwithstanding any provision in this Lease to the contrary, if any Default and/or Breach shall occur that, pursuant to any provision of this Lease entitles Lessor to terminate the Lease, and if before the expiration of the related Leasehold Mortgagee Cure Period with respect to all such defaults (measured from the date of service of the notice of termination upon such Leasehold Mortgagee),a Leasehold Mortgagee shall have notified Lessor of its desire to nullify such notice and Leasehold Mortgagee shall have agreed to pay or cause to be paid to Lessor within the Leasehold Mortgagee Cure Period all amounts of the Base Rent and other payments then in default, and shall have agreed to commence or cause to be commenced the work of complying with all of the other requirements of the Lease,if any are then in default,and shall prosecute or cause the prosecution of same to completion with reasonable diligence, then in such event, Lessor shall not be entitled to terminate this Lease, and any notice of termination theretofore given shall be void and of no effect. (v) If Lessor shall elect to terminate this Lease by reason of any Default and/or Breach, Leasehold Mortgagee shall not only have the right to nullify any notice of termination by agreeing to cure such Breach as described in Paragraph 34(b)(iv)above,but shall also have the separate right to postpone and extend the specified date for the termination of the Lease as stated by Lessor in its notice of termination, provided that Leasehold Mortgagee shall continue to cure or cause to be cured any then existing monetary Breach and any other Breach capable of being cured by Leasehold Mortgagee, and meanwhile pay or cause to be paid the Base Rent,and provided further that Leasehold Mortgagee shall forthwith take steps to acquire or sell Lessee's interest in the Premises by foreclosure of Leasehold Mortgage or otherwise and shall prosecute the same to completion with reasonable diligence. If Leasehold Mortgagee is prohibited by any process or injunction issued by any court or by reason of any action by any court having jurisdiction of any bankruptcy, debtor rehabilitation or insolvency proceeding involving Lessee from commencing or prosecuting foreclosure or other appropriate proceedings, the period for Leasehold Mortgagee to acquire or sell Lessee's interest in the Premises shall be extended for the period of such prohibition, provided that Leasehold Mortgagee shall diligently attempt to remove any such prohibition. If Lessee's interest is acquired or sold as described above through foreclosure of Leasehold Mortgage or a conveyance in lieu of foreclosure, the intended termination of the Lease by Lessor under the notice described above shall be automatically nullified,and this Lease will continue as if such notice of termination had never been given. (vi) In the event of termination of this Lease for any reason whatsoever (including, without limitation, if the Lease shall be rejected(or deemed rejected)in a bankruptcy or similar proceeding involving Lessee or otherwise), Lessor shall promptly notify the Leasehold Mortgagee of such termination and the amount of the sums then due to Lessor under this Lease, and the Leasehold Mortgagee shall have the right to have Lessor enter into a new lease in the Premises with Leasehold Mortgagee or its nominee or designee (such new Lease,a"Pick-Up Lease"), in accordance with the following provisions: a. A Leasehold Mortgagee or its nominee or designee shall be entitled to such new lease if such Leasehold Mortgagee shall make written request upon Lessor for such new lease on or before the date that is thirty(30)days after the date on which such Leasehold Mortgagee shall have received the notice from Lessor of such termination and if such written request is accompanied by the agreement of the Leasehold Mortgagee to pay to Lessor upon the execution and delivery of the Pick- Up Lease the sums due to Lessor under this Lease as of the date of such Pick-Up Lease. b. The Pick-Up Lease shall be for what would have been the remainder of the Term if the Lease had not been terminated, effective as of the date of such termination, at the Base Rent and upon the terms, provisions, covenants and agreements as herein contained, including all rights of Lessee(including,without limitation, for renewal options)that are provided in this Lease. C. The Pick-Up Lease shall be of the same priority as this Lease and shall be senior in priority to any Fee Mortgage in effect as of the granting of the Pick-Up Lease. d. In the Pick-Up Lease, the Lessee named therein shall agree to perform and observe all covenants contained therein on lessee's part to be performed, except that, in accordance with Section 13.2(a)hereof,upon an assignment of the Pick-Up Lease,the Lessee named therein shall not have any further rights,obligations or liabilities under the Pick-Up Lease. f 0l323048;l 1 7 e. The initial conveyance by any Leasehold Mortgagee or its nominee or designee lessee under the Pick-Up Lease shall not require the consent of Lessor or constitute a breach of any provision of or a default under the Pick-Up Lease. f. Except when a Leasehold Mortgagee or its nominee or designee becomes the Lessee under this Lease or a Pick-Up Lease,no liability for the payment of the Base Rent or the performance of any of Lessee's covenants and agreements under this Lease shall attach to or be imposed upon a Leasehold Mortgagee,all such liability being hereby expressly waived by Lessor. In accordance with Section 13.2(a) hereof, if a Leasehold Mortgagee or its nominee or designee becomes the Lessee under this Lease or a Pick-Up Lease, upon an assignment of the Lease or Pick-Up Lease,the Lessee named therein shall not have any further rights, obligations or liabilities under the Lease or Pick-Up Lease. (vii) No payment made to Lessor by Leasehold Mortgagee shall constitute an agreement that such payment was, in fact, due under the terms of the Lease. A Leasehold Mortgagee having made any payment to Lessor pursuant to Lessor's wrongful,improper or mistaken notice or demand shal l be entitled to the return of any such payment or portion thereof,provided that Leasehold Mortgagee shall have made demand therefor not later than one(1)year after the date of payment. (viii) Notwithstanding any provision in this Lease to the contrary, foreclosure of a Leasehold Mortgage or any sale of Lessee's interest in the Premises in connection with a foreclosure,whether by judicial proceedings or by virtue of any power of sale contained in such Leasehold Mortgage, or any conveyance of Lessee's interest in the Premises from Lessee to a Leasehold Mortgagee or its nominee or designee by virtue of, or in lieu of, foreclosure or other appropriate proceedings, or any conveyance of Lessee's interest in the Premises by a Leasehold Mortgagee or its nominee or designee, shall not require the consent or approval of Lessor or constitute a Default and/or Breach under the Lease. (c) In the event of any conflict between the provisions of this Section 34 and any other provision of this Lease,this Section 34 shall control. (01323048;1� 8 } i.r RECEIVED s f RECEIVED s. SE p 2 8 Z017 _* SEP 2 6 2011 oily CLEgSOFFICE STAFF REPORT CITY ADMINISTRATION FIRE DEPARTMENT Cf'pf DATE: October 3,2017 TO: Honorable Mayor and City Council FROM: Bruce K. English, Fire Chief 6 Originator: Adriana Ramos, Fire Administrative Analyst RE: Request to Repeal and Approve a Revised Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon in Connection with the Fiscal Year 2014 Urban Areas Security Initiative Grant Program Recommendation A. Find that approval of the amendment proposed is exempt from California Environmental Quality Act ("CEQA") review, because it is a government fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Repeal the Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon in connection with the Fiscal Year 2014 Urban Areas Security Initiative ("2014 UASI") grant program, that was approved by City Council on September 20, 2016; and C. Approve a revised Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon, in substantially the same form as submitted herewith, and authorize the Mayor to execute documents necessary to obtain additional grant funds and extend the performance period. Background On March 3, 2015, the City Council of the City of Vernon adopted Resolution No. 2015-11 approving participation in the 2014 UASI grant program. The City of Los Angeles approved and awarded 5898,507.00 to the City of Vernon's Fire and Police Departments to fund the purchase of chemical, biological, radiological, nuclear and explosive ("CBRNE"), Hazardous Materials and Urban Search & Rescue training and equipment, Physical Security Enhancement Equipment and Personal Protective Equipment. Page 1 of 2 On June 21, 2016 the City Council of the City of Vernon approved the First Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon, resulting in an increase of grant funding by$1,000,000. On September 20, 2016, the City Council of the City of Vernon approved the Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon, which awarded the City an additional $235,684 in grant funds. Before the City of Los Angeles could execute the approved amendment, it was identified that the City of Vernon needed additional time to complete the payments and would have a small amount of cost savings at the end of the grant period. Therefore, staff is recommending the repeal of the previously approved Second Amendment and the approval of the revised Second Amendment, which reflects the time extension, now through May 2017, and the small reduction in the contract amount ($-661.00). The proposed revised amendment has been reviewed and approved as to form by the City Attorney's Department. Fiscal Impact The 2014 UASI grant is 100% reimbursable and there are no cost-share or match requirements. The City of Los Angeles will reimburse the City of Vernon for all purchased equipment up to the awarded grant funds. To receive reimbursement for equipment purchased using grant funds, the Fire and Police departments will be responsible for submitting all required documents/paperwork to the City of Los Angeles, demonstrating that the items were delivered and paid within the specified time frame. Attachment(s) 1. Revised Second Amendment to Agreement Number C-125491 of City of Los Angeles Contract between the City of Los Angeles and the City of Vernon. Page 2 of 2 SECOND AMENDMENT TO AGREEMENT NUMBER C-125491 OF CITY OF LOS ANGELES CONTRACT BETWEEN THE CITY OF LOS ANGELES AND THE CITY OF VERNON THIS SECOND AMENDMENT to Agreement C-125491 ("Second Amendment") is made and entered into by and between the City of Los Angeles, a municipal corporation (the "City"), and the City of Vernon, a municipal corporation (the "Subgrantee" or "Subrecipient"). WITNESSETH WHEREAS, the City and Subrecipient entered into that certain City of Los Angeles Contract Number C-125491 (the "Agreement") related to the Fiscal Year 2014 Urban Areas Security Initiative Grant ("UASI 14" or the "Grant"), whereby the City agreed to disburse UASI 14 grant funds to Subrecipient in accordance with the UASI 14 approved budget and Subrecipient agreed to use the grant funds to support the development and sustainment of core capabilities as outlined in the National Preparedness Goal by addressing the unique equipment, training, planning, organization, and exercise needs of the Los Angeles/Long Beach Urban Area ("LAILBUA"), and assisting it in building an enhanced and sustainable capacity to prevent, protect against, mitigate, respond to, and recover from acts of terrorism; such agreement having a term of September 1, 2014 to May 31, 2016, with an original allocation of UASI 14 grant funds to Subrecipient in the amount of Eight Hundred Ninety Eight Thousand Five Hundred Seven Dollars ($898,507.00), and the execution of said Agreement having been authorized by the Los Angeles City Council (C.F. #14-0820, 11/25/14); and WHEREAS, on or about August 6, 2016, the City and Subrecipient entered into the First Amendment ("First Amendment") to the Agreement, wherein the term of the Agreement was extended to July 1, 2016 ("First Grant Extension"), such First Grant Extension having been authorized by the Los Angeles Administrative Code Section 14.8 ("Section 14.8"), and wherein Subrecipient's UASI 14 funding was increased by the amount of One Million Dollars ($1,000,000.00) for Interoperable Communications Systems (the "Interoperable Communications Modification"), such Interoperable Communications Modification having been authorized by the Los Angeles City Council (C.F. # 14-0820, 05/04/16), and resulting in a total allocated amount of UASI 14 funds to Subrecipient of One Million Eight Hundred Ninety-Eight Thousand Five Hundred Seven Dollars ($1,898,507.00); and WHEREAS, on or about November 24, 2015, CalOES approved a reallocation of UASI 14 funds such that Subrecipient's UASI 14 funding was increased by the amount of One Thousand Nine Hundred Fifty-One Dollars ($1,951.00) for Fixed ALPR Project (the "Fixed ALPR Modification"), such Fixed ALPR Modification having been authorized by Section 14.8, and resulting in a total allocated amount of UASI 14 funds to Subrecipient of One Million Nine Hundred Thousand Four Hundred Fifty-Eight Dollars ($1,900,458.00); and WHEREAS, on or about March 7, 2016, CalOES approved a reallocation of UASI 14 funds such that Subrecipient's UASI 14 funding was increased by the amount of One Hundred Fifty-Four Thousand Eleven Dollars ($154,011.00) for Regional Training Prop Equipment (the "First Regional Training Prop Equipment Modification"), such First Regional Training Prop Equipment Modification having been authorized by Section 14.8, and resulting in a total allocated amount of UASI 14 funds to Subrecipient of Two Million Fifty-Four Thousand Four Hundred Sixty-Nine Dollars ($2,054,469.00); and WHEREAS, on or about July 1, 2016, CalOES approved a reallocation of UASI 14 funds such that Subrecipient's UASI 14 funding was increased by the amount of Eighty Thousand One Hundred and Twelve Dollars ($80,112.00) for Regional Training Prop Equipment (the "Second Regional Training Prop Equipment Modification"), such Second Regional Training Prop Equipment Modification having been authorized by Section 14.8, and resulting in a total allocated amount of UASI 14 funds to Subrecipient of Two Million One Hundred Thirty-Four Thousand Five Hundred Eighty One Dollars ($2,134,581.00); and WHEREAS, the City and Subrecipient each desire to extend the term of the Agreement to May 31, 2017 ("Second Grant Extension"), such Second Grant Extension having been authorized by Section 14.8; and WHEREAS, Subrecipient has failed to expend One Thousand Fifty-One Dollars ($1,051.00) (the "Cost Savings") of its allocated UASI 14 grant funds and, such Cost Savings having been deemed a cost savings by the Mayor's Office (as such term is defined below), Subrecipient's UASI 14 grant allocation was decreased by the Cost Savings amount resulting in a total allocated amount of UASI 14 funds to Subrecipient of Two Million One Hundred Thirty-Three Thousand Five Hundred Thirty Dollars ($2,133,530.00) (the "Cost Savings Modification"); and WHEREAS, Section 502 of the Agreement provides for amendments to the Agreement; and WHEREAS, the City, through the Mayor's Office of Public Safety ("Mayor's Office"), which has been designated by the City to administer the Agreement and the projects contemplated therein, and Subrecipient each desire to enter into this Second Amendment for the purpose of amending and/or modifying the Agreement to (a) extend the term of the Agreement to reflect the Second Grant Extension, (b) increase Subrecipient's allocated Grant funds under the Agreement to reflect the Fixed ALPR Modification, the First Regional Training Prop Equipment Modification, the Second Regional Training Prop Equipment Modification and the Cost Savings Modification, and (c) make such other changes as are required in connection with the foregoing, all as detailed elsewhere in this Second Amendment and as authorized by Section 14.8; and WHEREAS, the Second Amendment is necessary and proper to continue and/or complete certain activities authorized under the Agreement. NOW, THEREFORE, the City and Subrecipient hereby covenant and agree that the Agreement be amended, effective July 1, 2016, as follows: 1. Section 201 of the Agreement entitled "Time of Performance" is hereby amended in its entirety to read as stated within the quotation marks in the following paragraph: "The term of this Agreement shall be from September 1, 2014 and end May 31, 2017 (the "Term"); provided, however, that any and all expenditures made by Subrecipient shall be reimbursed by Subrecipient's allocation of Grant Funds pursuant to this Agreement only if such expenditures were made no later than sixty (60) days prior to the end of the Term of this Agreement (the "Expenditure Deadline"). Any and all expenditures made by Subrecipient after the Expenditure Deadline shall not be reimbursed under this Agreement unless, prior to such expenditure, the Mayor's Office, in its sole discretion, has approved in writing the making of such expenditure after the Expenditure Deadline. Subrecipient shall cooperate with any necessary close out activities in connection with its use of the Grant Funds." Such amendment extends the Term of the Agreement to reflect the Second Grant Extension. 2. Paragraph A of Section 301 of this Agreement entitled "Payment of Grant Funds and Method of Payment" is hereby amended in its entirety to read as stated within the quotation marks in the following paragraph: "The City of Los Angeles shall disburse to Subrecipient its allocated Grant amount of Two Million One Hundred Thirty-Three Thousand Five Hundred Thirty Dollars ($2,133,530.00) to be used for purchase of equipment, planning, exercises, organizational activities, and training as described in Section 202 above. Such Grant amount represents the amount allocated to Subrecipient in the FY 14 UASI grant budget as approved by the Grantor. The disbursement of such funds shall be made on a reimbursement basis only. Subrecipient shall maintain procedures to minimize the time elapsing between the award of Grant Funds and the expenditure of funds to be reimbursed by such Grant Funds." Such amendment increases Subrecipient's UASI 14 grant funds allocation set forth in the Agreement to reflect the Fixed ALPR Modification, the First Regional Training Prop Equipment Modification, the Second Regional Training Prop Equipment Modification and the Cost Savings Modification. The Budget (as such term is defined in the Agreement) shall be amended accordingly to reflect such modification and Subrecipient's use of grant funds in connection thereto. 3. Except herein amended or modified, all terms and conditions of the Agreement small remain unchanged and in full force and effect by way of this Second Amendment. 4. This Second Amendment may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. This Second Amendment includes four pages which constitute the entire understanding an agreement of the parties with respect to the matters set forth herein. IN WITNESS WHEREOF, the City and Subrecipient have caused this Second Amendment to be executed by their duly authorized representatives. APPROVED AS TO FORM: For: THE CITY OF LOS MICHAEL N. FEUER, City Attorney ANGELES By ERIC M. GARCETTI, Mayor Deputy City Attorney Date By Eric M. Garcefiti, Mayor ATTEST: Date HOLLY L. WOLCOTT, City Clerk By Deputy City Clerk Date APPROVED AS TO FORM AND For: The City of Glendale, a LEGALITY: municipal corporation By B City Attorney y Date _ Date ATTEST: BY [SEAL] City Clerk Date City Business License Number: Internal Revenue Service ID Number: Council File/OARS File Number: 14-0820 Date of Approval: 05/04/16 City Contract Number C-126293 RECEIVED SEP 2 8 Z017 RECEIVED *." F CITY CLERK'S OFFICE SEP 2 8 2017 11Y A+3 M i 01 STRO STAFF REPORT PUBLIC UTILITIES DEPARTMENT DATE: October 3,2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities A N RE: Authorize the Issuance of a Purchase Contract with OneSource Distributors for Two Metal-Enclosed Switchgears Recommendation A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because accepting and awarding a bid is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. As to the replacement of electrical distribution transformers, the proposed action is exempt from CEQA review, in accordance with CEQA Guidelines § 15302, because the proposed project consists of the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced; and B. Approve and authorize the issuance of a purchase contract with OneSource Distributors, for an amount not to exceed $227,160.25, including taxes and fees, for two (2) metal-enclosed switchgears. Background S&C metal-enclosed switchgears are known for their operating simplicity and superior dependability in switching electric lines and protecting medium-voltage power circuits in commercial and industrial installations. S&C products have been used in the utility industry for over 50 years and S&C is considered a leader in the design and manufacturing of above ground metal-enclosed switchgears. This equipment has proven to deliver the reliability that electric utilities require. Vernon Public Utilities (VPU) has a number of S&C metal-enclosed switchgears in its system such as the transfer switch mechanism at Maisano Substation, and at a few other primary metered customer locations. City staff are fully trained by S&C field technicians to operate and set protection settings for all existing S&C switchgears in Vernon. The two switchgears Page 1 of 2 referenced in this staff report are needed to provide primary electric usage metering and transfer switches to a large commercial/industrial customer in Vernon. The switchgears comply with VPU's technical specifications and are fully compatible with the City's electric system. The proposed switchgears are only available from S&C directly, or from either of its two authorized distributors. Staff solicited quotes from all three sources and only received quotes from S&C and OneSource Distributors ("OneSource"). Staff did not receive a quote from S&C's other authorized distributor. OneSource was able to provide a discount compared to the manufacturer's quote, thus VPU staff recommends that a purchase contract be issued to OneSource. The Terms & Conditions for the proposed purchase contract would vary slightly from the City's standard terms as OneSource has requested some additional language (see Attachment 2). The City Attorney's Office has reviewed and approved the proposed Terms & Conditions. Fiscal Impact The not to exceed amount of$227,160.25 for two (2) switchgears, which includes taxes and fees, has been included in the Public Utilities Department budget for fiscal year 2017-2018 and will be charged to account 055.9100.900000. Attachments 1. OneSource Distributors Quote No. Q-5595804 2. Proposed Terms & Conditions for purchase contract Page 2 of 2 Quotation QUOTE DATE QUOTE NUMBER 12101 WESTERN AVE 0811 7/2 0 1 7 S5595804 GARDEN GROVE,CA 92641 ORDER TO: PAGE NO 714-685-5390 Fax 714-521-2031 BR15 oNESOURCE DISTRIBUTORS, LLC 12101 WESTERN AVE l Of 4 GARDEN GROVE.CA 92N1 714-68553M Fax 714-521-2031 QUOTE TO- SHIP TO: CITY OF VERNON CITY OF VERNON (Utility House) 4305 SANTA FE AVE ATTN: DEPARTMENT D DEPT. D 4305 SANTA FE AVE VERNON. CA 90058 VERNON, CA 90058 CUSTOMER NUMBER CUSTOMER ORDER NUMBER RELEASE NUMBER SALESPERSON 27838 Jim Frankenfield, x1270 WRITER SHIP VIA TERMS SHIP DATE FREIGHT EXEMPT MARYB ; BW - BEST WAY NET 30 DAYS 09/15/2017 Yes I NUN ORDER QTY DESCRIPTION UNIT PRICE EXT PRICE i 2 lea LOT PRICE 207927.0001ea 207927 00 QTY 2 S&C Metal-Enclosed Switch gear-Outdoor Style-3 Bay Assembly, rated 25kV Nominal, 125 kV BIL, 1200A Main Bus, 760 MVA Shohrt Circuit with individual Bays as follows: Optional Features for this Assembly: VA3-Two Single-Pole Circuit Breakers for Low-Voltage Circuits Bay 1 Entrance Module Switch-Fuse Manual with the following optional features: Switch Type: Alduti Rupter 1200A Fuse type: SM5S Outdoor Construction-Light Gray Finish dustproof construction for outdoor bay ANSI Category"A" features terminal adapters for 2 cables per phase-AL 2 fused VTa connected Phase-To-Ground Bay 2 Tie-Metering Module Through Bus From Left with the following l option features: No Switch Type No THIS IS A QUOTATION Subtotal Prices are subject to change without notice. APPLICABLE TAXES EXTRA! S&H Charges Returns are subject to the QnoSource Returns Poky which can be found at wwwAsourcedist.com or by cantacting a OneSource Representative. Payment terms subject to cradlt evaluation and Customer credit availability Amount Due "` Continued on Next Page' Pm ed By MARYB on&17l2017 8 48 57 AM 11! I1111I11�11111 II! II111111 ONSOURCE Quotation QUOTE DATE QUOTE NUMBER 08/17/2017 S5595804 12101 WESTERN AVE GARDEN GROVE,CA 92841 ORDER TO: PAGE NO 714-685-5390 Fax 714-521-2031 BR15 ONESOURCE DISTRIBUTORS, U.0 12101 WESTERN AVE 2 of 4 GARDEN GROVE.CA 9M 1 714.B&S, 8I Fax714-621-2n31 QUOTE TO: SHIP TO: CITY OF VERNON CITY OF VERNON (Utility House) 4305 SANTA FE AVE ATTN: DEPARTMENT D DEPT. D 4305 SANTA FE AVE VERNON,CA 90058 VERNON, CA 90058 CUSTOMER NUMBER CUSTOMER ORDER NUMBER RELEASE NUMBER SALESPERSON 27838 Jim Frankenfield, x1270 WRITER SHIP VIA TERMS SHIP DATE FREIGHT EXEMPT MARYB BW- BEST WAY NET 30 DAYS 09/15/2017 Yes NUM ORDER QTY DESCRIPTION UNIT PRICE EXT PRICE Fuse Type Outdoor construction-Light Gray Finish dustproof construction for outdoor bay ANSI Category"A" features VT rollout carriage with 2 fused VT's connected PH-PH provisions for socket-type KWHM in Saginaw Enclosure on door two wound-type CT's rated 200:5 Bay 3 Feeder-Module Switch-Fuse-Power Op with the following optional features: Switch Type Alduti-Rupter 1200A Fuse Type SM-5S Outdoor construction-light gray finish dustproof construction for outdoor bay ANSI Category"A" features, switch operator Type AS-30, 115 VAC control voltage extra auxiliary switch, coupled to interrupter switch extra auxiliary switch, coupled to switch operator remote control receptable THIS IS A QUOTATION Subtotal Prices are subject to change without notice. APPLICABLE TAXES EXTRA! S&H Charges Returns are subject to the OneSource Raturns Policy which can be found at www.Isourcedist.com or by contacting a OneSource Representative. Payment terms subject to McIlt evoluatlan and customer credit availability Amount Due ** Continued on Next Page Primed By MARYB on BI172017 8 48 57 AM III I11 II I I1�1 II11 III 1 1111 111 ONSOURCE Quotation QUOTE DATE QUOTE NUMBER I 08/17/2017 S5595804 12101 WESTERN AVE GARDEN GROVE.CA 92841 ORDER TO: PAGE NO 714-685-5390 Fax 714-521-2031 BR IS ONESOURCE DISTRIBUTORS LLC 12101 WESTERN AVE 3 of 4 GARDEN GROVE.CA 92841 714-035-5390 Fax 714-521-2031 QUOTE TO: SHIP TO: CITY OF VERNON CITY OF VERNON (Utility House) 4305 SANTA FE AVE ATTN: DEPARTMENT D DEPT. D 4305 SANTA FE AVE VERNON.CA 90058 VERNON, CA 90058 CUSTOMER NUMBER CUSTOMER ORDER NUMBER RELEASE NUMBER SALESPERSON 27838 Jim Frankenfield, x1270 WRITER SHIP VIA TERMS SHIP DATE FREIGHT EXEMPT MARYB BW - BEST WAY NET 30 DAYS 09/15/2017 Yes NU MI ORDER QTY DESCRIPTION UNIT PRICE EXT PRICE This quotation includes the following accessories and fuses for this S&C Metal-Enclosed Switchgear assembly: (12) SM-5 Fuse Refill Units (active and spares) Drawings will be available 6-8 weeks after receipt of formal purchase order with complete ordering information Shipment of the equipment will be scheduled 12-14 weeks after drawing release, plus approval time, if required. Major changes during drawing approval may extend shipment lead time. Prices are FOB common carrier shipment point, with transportation prepaid allowed to common carrier delivery point to one destination. 3 lea CA SALES TAX 19233.250/EA 19233.25 9.25% THIS IS A QUOTATION Subtotal Prices are subject to change without notice. APPLICABLE TAXES EXTRA! S&H Charges RAWrns are subject to she OneSource Roturns Policy which can be found at www.1 soureadisl,eom or by contacting a On@Source RepreeenWve. Payment terms SubiacL to credit evaluation and cLwtomer credit avallabiIity Amount Due "Continued on Next Page ` Prmled By MARYB on Sh 72017 8 48 57 AM III I11 II I I1�1 1111 II I I I !11 111 609RCE Quotation QUOTE DATE QUOTE NUMBER 08/17/2017 S5595804 12101 WESTERN AVE GARDEN GROVE,CA 92841 ORDER TO: PAGE NO 714-685-5390 Fax 714-521-2031 BR15 ONESOURCE DISTRIBUTORS LLC 12101 WESTERN AVE 4 of 4 GARDEN GROVE CA 92841 714-iBS5390 Fax 714521-2Ml QUOTE TO: SHIP TO: CITY OF VERNON CITY OF VERNON (Utility House) 4305 SANTA FIE AVE ATTN: DEPARTMENT D DEPT. D 4305 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 CUSTOMER NUMBER CUSTOMER ORDER NUMBER RELEASE NUMBER SALESPERSON 27838 Jinn Frankenfield, x1270 WRITER SHIP VIA TERMS SHIP DATE FREIGHT EXEMPT MARYB BW - BEST WAY NET 30 DAYS 09/15/2017 Yes N!In ORDER QTY DESCRIPTION UNIT PRICE EXT PRICE I i THIS IS A QUOTATION Subtotal 227160.25 Prices are subject to change without notice. APPLICABLE TAXES EXTRA! S&H Charges 0.00 Returns are,subject to the OneSource Returns Policy which can be found a! www.I sourced ist-corn or by contacting a One5ource Representative. Payment terms subject to credit evaluation and customer credit availability Amount Due 227160 25 Printed By MARYB on 8/17f2017 8 48-57 AM TERMS AND CONDITIONS OF PURCHASE ORDER/CONTRACT(FOR GOODS)-CITY OF VERNON This is a government contract. The terms are not changed by any words added by Contractor,nor superseded because of any form used by Contractor in the course of business.Any change in terms must be agreed to by an authorized representative of the City, in writing.Acceptance by the City of goods,materials,or services is not an acceptance of Contractor's other terms. 1.Parties:(a) Purchaser: City of Vernon("City");(b)Contactor:As set forth on the attached Purchase Order/Contract. 2.Terms:(a)the term"goods"includes goods,material,chattels,equipment,machinery,manufactured articles,merchandise,fixtures, products,software,appliances,and any other items to be supplied pursuant to this Purchase Order/Contract;(b)the term"warranty" includes,warranties,guarantees,representations,and promises. 3.Contractor agrees to furnish the goods,materials,or services described in the Purchase Order/Contract to which this is attached and subject to all terms and conditions of the Purchase Order/Contract,this Attachment to the Purchase Order/Contract,and all other attachments hereto. 4.Contractor agrees to submit all invoices to the address indicated on the Purchase Order/Contract. 5.Contractor agrees to invoice at net prices without federal excise tax or federal fuel tax. 6.Contractor agrees to show on all invoices the name of the department to which goods or services were furnished,and whether the invoice covers complete or partial delivery or performance,the Purchase Order/Contract number,and any applicable cash discount. 7.Contractor agrees to prepay transportation charges and show them separately on all invoices. 8.Contractor agrees to show applicable sales or use tax as separate items on all invoices. 9. Clear title and risk of loss to all materials furnished under the Purchase Order/Contract shall pass to the City upon delivery and loading of conforming goods or materials at the F.O.B.point designated in the Purchase Order/Contract. 10.City shall have no responsibility for payment of over-shipments,goods not delivered due to shortages,theft,or otherwise non- conforming shipments. 11.Any item ordered on the face hereof that is listed in the Safety Orders of the California Division of Industrial Safety shall fully comply with the latest revised requirements of said Safety Orders. 12.The goods shall be tendered by delivery to City at the time and place specified in the Purchase Order/Contract. Contractor is responsible for maintaining and providing proof of delivery. If transportation of the goods is undertaken by an entity other than Contractor,Contractor shall be responsible for and handle all claims against such entity for shortages,damages,theft,and other such occurrences.All goods,materials, and equipment ordered shall,except as otherwise noted in this Purchase Order/Contract,be delivered in a new and unused condition.Unless otherwise specified,all products and goods are to be packed in accordance with the best commercial practice. 13.All automotive equipment delivered to the City shall meet all requirements of the latest revision of the California Vehicle Code and of the Federal Department of Transportation. 14. Contractor warrants to City that all items covered by this Purchase Order/Contract conform to any applicable samples,drawings, specifications,plans,or other descriptions provided by Contractor and expected by City(collectively,"Specifications").Contractor is not authorized to substitute goods with different Specifications unless agreed to in writing by City. All goods shall be merchantable; fit for City's intended purpose;of good material,workmanship and design,and free from defect. Contractor also guarantees that the goods are of sufficient size or capacity to perform as specified.This Purchase Order/Contract incorporates by reference any and all warranties(express,implied,oral,or written)made by Contractor prior to or at the time this Purchase Order/Contract is accepted, including those contained in brochures,catalogues,advertisements,owner's manuals,etc.,provided that in the event of a conflict,the warranty providing the most protection to City shall prevail. All warranties shall survive inspection, acceptance,and payment. 15.Within a reasonable time after delivery of the goods,City shall have the right to inspect the goods to determine their conformity with the Specifications.Thirty(30)days from the date of delivery or installation is deemed to be the reasonable time for City to inspect the goods. If all or any part of the goods are deemed to be non-conforming,City may reject such non-conforming goods, whereupon such rejected goods promptly shall be removed by Contractor at Contractor's-cost and the Purchase Price with respect to such rejected goods either shall be refunded by Contractor if already paid,or shall be reduced if still owing. In either case,if City so directs in writing,Contractor shall promptly replace such non-conforming goods with goods conforming to the Specifications.All direct and incidental costs of rejecting,removing,and replacing such non-conforming goods shall be bome by Contractor. j4v direct Page 1 of 3 June 2017 find ant idr r:reef cons. xssoc`iafed ti,rrJi rite rem vviqg and rc}}f�rcLng+tcm-cc}xl Lwmirt d The ralu rJ the purchase order, 16.Notwithstanding anything to the contrary contained in the Purchase Order/Contract, in no event shall Contractor be entitled to any payment on account of lost profits or consequential damages in connection with any termination of the Purchase Order/Contract,or otherwise in connection with the Purchase Order/Contract. 17. Prior to the issuance of the Purchase Order/Contract,Contractor may be required to provide to City evidence of insurance. Failure to maintain the required amounts and types of coverage throughout the duration of services supplied shall constitute a material breach of this Purchase Order/Contract and shall entitle the City to terminate this Purchase Order/Contract. 18.As respects acts,errors,or omissions in the performance under this Purchase Order/Contract,the Contractor agrees to indemnify and hold harmless the City,its officers,elected officials,agents,employees, representatives,and volunteers from and against all claims,demands,defense costs,liability,or consequential damages arising out of the Contractor's negligent acts,errors,or omissions in the performance under the terms of this Purchase Order/Contract or those of Contractor's subcontractors or anyone for whom Contractor is legally liable.As respects all acts or omissions which do not arise directly out of the performance of this Purchase Order/Contract,including but not limited to those acts or omissions normally covered by general and automobile liability insurance,the Contractor agrees to indemnify,defend(at City's option),and hold harmless the City,its officers,elected officials,agents,employees,representatives,and volunteers from and against all claims, demands,defense costs liability,or consequential damages arising out of or in connection with the Contractor's(including Contractor's employees,representatives,subcontractors or anyone for whom the Contractor is legally liable)performance or failure to perform under this Agreement: excepting those which arise out of the sole negligence of City.Contractor shall indemnify and save harmless City from laborers,mechanics',and materialmen's liens upon materials,equipment,work in progress,or the premises on which the work is to be performed. 19. Contractor shall not perform work on City owned property,and shall not commence work,or cause materials to be delivered to the job site,until so authorized in writing by the Head of the Department(or designee)for whom the work was ordered. 20. Contractor certifies and represents that,during the performance of this Purchase Order/Contract,the Contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race,religion,color,national origin,ancestry,disability, sex,age,medical condition,or marital status. Contractor further agrees that it will not maintain any segregated facilities. 21. Contractor shall obtain a City Business License under the terns and conditions of Vernon City Code, Sections 5.20,et seq.,where required. 22. Contractor hereby represents,warrants,and certifies that no officer or employee of the Contractor is a director,officer,or employee of the City of Vernon,or a member of any board,commission,or committee,except to the extent permitted by law. 23.The City,or its authorized auditors or representatives,shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Purchase Order/Contract and/or is paying the amounts to which Contractor is properly entitled to under the Purchase Order/Contract or for other purposes relating to the Purchase Order/Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after the termination of the Purchase Order/Contract. The Contractor shall maintain all such records in the City of Vernon. If not,the Contractor shall,upon request,promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including,but not limited to,such additional (out of the City)expenses for personnel, salaries,private auditors,travel, lodging,meals and overhead. 24. It is understood that in the performance of any services herein provided,for Contractor shall be,and is,and independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method,except as required by this Purchase Order/Contract. Further,Contractor has and shall retain the right to exercise full control over the employment, direction,compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for,and shall indemnify,defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security,withholding and all other wages,salaries, benefits,taxes,exactions,and regulations of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors,agents or employees are not entitled to any of the benefits or rights afforded employees of City, including,but not limited to,sick leave,vacation leave,holiday pay,Public Employees Retirement System benefits,or health, life,dental, long-term disability or Workers' Compensation insurance benefits. 25. Contractor shall not assign or transfer this Purchase Order/Contract or any rights hereunder without the prior written consent of the City which may be withheld in the City's sole discretion. Any unauthorized assignment of transfer shall be null and void and shall constitute a material breach of Contractor of its obligations under this Purchase Order/Contract. Page 2 of 3 June 2017 26.Time is strictly of the essence of this Purchase Order/Contract and each and every covenant,term and provision hereof. 27.The City's waiver of any term,condition,breach or default of this Purchase Order/Contract shall not be considered to be a waiver of any other term,condition,default of breach,not of a subsequent breach of the one waived. 28.The provisions of Vernon's Living Wage Ordinance,Vernon City Code,Sections 2.131,et seq.,require that contractors providing labor or services to the City pay employees in accordance with the Ordinance. 29.The City reserves the right to cancel any portion of this Purchase Order/Contract at any time prior to the delivery of goods:This is custom gear and thus is made to order. No cancellation after drawings are approved. 30.This Purchase Order/Contract does not and is not intended to confer any benefit on or create any right exercisable or enforceable by any third party. 31.This Purchase Order/Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California.Contractor agrees that the State and Federal courts which sit in the County of Los Angeles,shall have exclusive jurisdiction over all controversies and disputes arising hereunder,and submits to the jurisdiction thereof. 32. This Purchase Order/Contract, including any Exhibits attached hereto,constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations,representations, understandings, correspondence,documentation,and agreements(written or oral). In case of conflict between the terms of this Purchase Order/Contract and the terms of any other document which is a part of this transaction,the terms of this Purchase Order/Contract shall strictly prevail.Any and all additional terms and conditions must be approved by the City Attorney in writing. 33. If any provision of this Purchase Order/Contract shall be determined to be invalid or unenforceable,such provision shall be deemed to be severed and the remainder of the Purchase Order/Contract shall be given full force and effect. 34. In case of default by Contractor,the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby,Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure."Force Majeure"shall mean an event beyond the control of either party,which prevents either party from complying with any of its obligations under this Agreement, including but not limited to:(a) any act of God(e.g., fires,explosions,earthquakes,drought);(b)riot or strikes;or(c)acts or threats of terrorism. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Purchase Order/Contract as a result of Force Majeure.At that time Contractor is to submit in writing a Recovery Plan for this Purchase Order/Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default,then the City may cancel this Purchase Order/Contract in its entirety at no cost to the City,owing only for goods and services completed to that point. Page 3 of 3 June 2017 v RECEIVED RE DIVED SEP 2 8 2017 SZ? 2 7 2W CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION PUBLIC UTILITIES DEPARTMENT ctl� DATE: October 3, 2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities, PJ RE: Approval of Fourth Amendment to the Power Purchase Tolling Agreement with Bicent California Malburg LLC Recommendation A. Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing maintenance activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Approve the Fourth Amendment to the Power Purchase Tolling Agreement with Bicent California Malburg LLC, in substantially the same form as submitted herewith, for the purpose of lowering the Malburg Generating Station (MGS) minimum dispatch level from the existing 80 megawatts (MW) level to 70MW; and C. Authorize the General Manager of Public Utilities to execute the Fourth Amendment to the Power Purchase Tolling Agreement (PPTA)with Bicent California Malburg LLC. Backp-round On April 10, 2008 Bicent California Malburg LLC ("Bicent") acquired the City of Vernon's interest in the combined cycle natural gas-fired generating facility known as Malburg Generating Station ("MGS"), located at 2715 East 50`h Street, Vernon, California, 90058, and entered into a Power Purchase Tolling Agreement ("PPTA") for substantially all of the output from MGS. On June 3, 2011, the City of Vernon and Bicent approved an amendment to the PPTA"2"d Amended PPTA," lowering the MGS minimum dispatch level of the facility from 95MW to 80MW (existing.) Due to an abundance of renewable energy generation, the cost of purchasing energy from the market has been significantly lower during most of the daytime hours. It is economical for the City to purchase its energy needs from the market instead of generating from MGS when market Page l of 2 prices are lower than the cost to generate. Staff has been working diligently with Bicent to lower the MGS minimum dispatch from 80MW (existing) to 70MW (proposed). The City has seen a significant financial benefit since the minimum dispatch was lowered in 2011. By lowering the MGS minimum dispatch level from 80MW to 70MW, the City will be purchasing the difference from the market at lower cost to the City. Staff believes that the proposed change to lower the minimum dispatch level will result in additional financial benefits to the City. Below is a brief summary of the Fourth Amendment to the Power Purchase Tolling Agreement with Bicent: 1. Allows the City to dispatch MGS as low as 70MW in a 2x 1 configuration. 2. Lowers the plant's monthly availability requirement (Applicable Threshold Capacity) for Bicent from the current 95%requirement to 93% requirement in four(4) years. 3. Extends the time to perform a test of the MGS's Capacity from the current annual requirement to a biennial (every two years) requirement. The proposed Fourth Amendment to the PPTA has been reviewed and approved by the City Attorney's Office. Fiscal Impact The expected total cost to the City will not exceed $160,000. Bicent estimates $60,000 for combustion turbine tuning and technical support, and approximately $100,000 for due-diligence to obtain lender consent from its investors. The anticipated financial benefit to the City is above $500,000 annually. Attachment(s) 1. Fourth Amendment to Power Purchase Tolling Agreement(PPTA) Page 2 of 2 FOURTH AMENDMENT TO POWER PURCHASE TOLLING AGREEMENT This FOURTH AMENDMENT TO POWER PURCHASE TOLLING AGREEMENT (this "Amendment") is entered into as of October 3, 2017 (the "Effective Date"), by and between Bicent (California) Malburg LLC, a Delaware limited liability company ("Seller"), and the City of Vernon, a municipal corporation and chartered city duly organized and existing under and by virtue of the Constitution and laws of the State of California that is also a publicly-owned electric utility as defined in Section 9604 of the California Public Utilities Code ("Buyer" or "W). Each of Seller and Buyer are referred to herein individually as a "Party" and collectively as the "Parties." Capitalized terms used herein and not otherwise defined have the meaning set forth in the Amended PPTA (as defined below). RECITALS A. On April 10, 2008, Seller acquired Buyer's interest in the combined cycle natural gas- fired generating facility known as the Malburg Generating Station, located at 2715 East 50th Street, Vernon, California, 90058 (the "Facili "), pursuant to that certain Amended and Restated Purchase and Sale Agreement, dated as of December 13, 2007, by and between Bicent(California) Power LLC, a Delaware limited liability company, and the City(as it has been or may be amended,the"PSA"). B. Concurrently, the Parties entered into that certain power purchase tolling agreement (the "Original PPTA"), pursuant to which Seller agreed to sell and deliver exclusively to Buyer, and Buyer agreed to purchase and receive, on a tolling basis, Contract Capacity, Contract Energy, Ancillary Services, and Resource Adequacy Benefits from the Facility under the terms and conditions set forth in the Original PPTA. C. On December 31, 2009, the Parties amended the Original PPTA pursuant to that certain first amendment to power purchase tolling agreement (the "First Amendment", and the Original PPTA, as so amended, the "15t Amended PPTA") to resolve certain disputes that arose between the Parties under the PPTA and PSA. D. On June 3, 2011, the Parties further amended the I" Amended PPTA pursuant to that certain second amendment to power purchase tolling agreement (the "Second Amendment", and the l' Amended PPTA as further amended, the "2°d Amended PPTA") to clarify certain PPTA terms relating to, inter alia, the Minimum Dispatch Level of the Facility. E. On February 3, 2016, the Parties further amended the 2°d Amended PPTA pursuant to that certain third amendment and consent to power purchase tolling agreement (the "Third Amendment", and the 2°d Amended PPTA as further amended, the "Amended PPTA") to amend Section 20.4 (Assignment) in connection with the consummation of the sale by affiliates of NGP Energy Capital Management and Paul B. Prager of all of the interests in Bicent (California) LLC, the indirect owner of the Seller and the Facility, to Malburg Generation LLC, an affiliate of GSO Capital Partners LP (the "Transaction"). F. The Parties deem it to be in their respective best interests to enter into this Amendment to address certain issues that have arisen during the course of their performance under the Amended PPTA. NOW, THEREFORE, in consideration of the respective covenants and promises contained herein and for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: AGREEMENT ARTICLE 1. AMENDMENTS AND AGREEMENTS A. DEFINITIONAL MODIFICATIONS 1.1 Amendments to Section 1.1 of the Amended PPTA. Section 1.1 of the Amended PPTA is hereby amended by adding the following defined terms in the appropriate alphabetical location in Section 1.1 of the Amended PPTA: "Applicable Threshold Capaciri'means the below-listed percentage of the Adjusted Contract Capacity applicable in the following Contract Years, or portion thereof: Applicable Contract Year Applicable Threshold Capacity% Amendment Effective Date through April 9, 95.00% 2018 April 10, 2018 through April 9, 2019 94.00% April 10,2019 through April 9, 2020 93.75% April 10, 2020 through April 9, 2021 93.50% April 10, 2021 through April 9, 2022 93.25% April 10, 2022 through the end of the Service 93.00% Term "Minimum Dispatch Level identified in Appendix A"means 95 MWs for Energy Payment calculation purposes. However, Buyer shall be able to deliver a Dispatch Notice as low as 70 MWs in a 2x1 configuration for energy dispatch purposes consistent with Section 11.4.2 hereof. 1.2 Amendment to Section 4.2 of the Amended PPTA. Section 4.2 of the Amended PPTA is hereby amended and restated in its entirety as follows: Fourth Ameudmem to Power Purchase Tolling AgrcemM 2 "Section 4.2 Energy Payment. The "Energy Payment" for any period shall mean: (i) if the Facility is dispatched at or above the Minimum Dispatch Level identified in Appendix A (i.e., 95 MWs) to this Agreement, for each MWh of Contract Energy delivered to the Energy Delivery Point pursuant to a Dispatch Notice during such period, the Fixed Energy Price for such period plus the Heat Rate Payment/Bonus for such period, or (ii) if the Facility is dispatched at less than the Minimum Dispatch Level identified on Appendix A to this Agreement (as low as 70 MWs in 2x 1 non duct fired configuration), or zero (consistent with Section 11.4.2), for each hour (or part thereof) so dispatched, the Minimum Dispatch Level identified on Appendix A (i.e., 95 MWs) to this Agreement multiplied by the Fixed Energy Price for such period plus the Heat Rate Payment/Bonus for such period, in each case, where:" 1.3 Amendment to Section 5.1 of the Amended PPTA. Section 5.1 of the Amended PPTA is hereby amended and restated in its entirety as follows: "Section 5.1 Failure to Deliver Contract Energv. If during any calendar month Seller fails to deliver the Contract Energy (or to the extent Seller's Availability Notices are less than the Available Capacity) after taking into account Scheduled Outages and any other failure to deliver Contract Energy otherwise excused under the terms of this Agreement or by Buyer's failure to perform, then Seller shall pay Buyer, on the date payment would otherwise be due in respect of the month in which the failure occurred, an amount equal to the positive difference, if any, obtained by subtracting the Energy Payment from the Average Energy Replacement Price, multiplied by the MWh of Contract Energy not delivered in such month;provided, however that no more than four (4) hours shall be attributed to any failure to deliver Contract Energy, per event; and provided further, that during any period that Seller delivers Ancillary Services to Buyer at Buyer's request that reduce the Facility's ability to provide the full amount of Contract Energy, Seller shall be excused from delivering that portion of the Contract Energy that Seller was not able to deliver as a result of its delivery of such Ancillary Services. Notwithstanding the foregoing, Seller shall not be required to make such payment to Buyer if the Threshold Capacity of the Facility in such calendar month is greater than or equal to Applicable Threshold Capacity for such month. The invoice for such amount shall include a written statement explaining in reasonable detail the calculation of such amount." 1.4 Amendment to Sections 5.3, 5.3.1, 5.3.2 and 5.3.3 of the Amended PPTA. Sections 5.3, 5.3.1, 5.3.2 and 5.3.3 of the Amended PPTA are hereby amended by deleting the term "95%" wherever it may appear and inserting the term "Applicable Threshold Capacity" in lieu thereof. 1.5 Amendment to Section 7.2 of the Amended PPTA. Section 7.2 of the Amended PPTA Fourth Annendmcnt to Powur.PumhucToUW .v n, 3 is hereby amended and restated in its entirety as follows: "Section 7.2 Adjusted Contract Capacity Test. Every two years during the Service Term, Seller shall schedule and complete a test of the Facility's Capacity in order to determine whether the Facility is operating at Reference Conditions in accordance with PTC 46 and the schedule set forth on Appendix B and to determine the Measured HR ("Adjusted Contract Capacity Test"). Such biennial Adjusted Contract Capacity Test shall be conducted at Seller's expense. In addition to the biennial Adjusted Contract Capacity Test, Buyer, at its expense, shall have the right to request for Seller to complete one (1) additional Adjusted Contract Capacity Test during the years that the biennial Adjusted Capacity Test is not completed at a time to be reasonably agreed upon by the Parties. Each Party shall be entitled, at their own expense, to hire an independent engineer mutually agreed upon by the Parties to witness and oversee any Adjusted Contract Capacity Test to confirm the accuracy of the results. For purposes of this Section 7.2, it shall not be unreasonable for Buyer to withhold its consent to any testing from June 1 through October 31 in any given year, unless otherwise required by a Governmental Authority." 1.6 Amendment to Section 11.4.2 of the Amended PPTA. Section 11.4.2 of the Amended PPTA is hereby amended and restated in its entirety as follows: "Section 11.4.2. If Buyer submits a Dispatch Notice for a megawatt output of less than the Minimum Dispatch Level (as set forth on Appendix A) but no less than 70 MWs, or zero, then Seller shall use its reasonable best efforts, subject to Permit Limitations, Good Utility Practice, OEM Recommendations and the Availability Notice, to deliver the Contract Energy in accordance with such Dispatch Notice;provided, however, that each combustion turbine shall be limited to no more than eighteen (18) start-ups per Contract Year in association with Buyer requested zero dispatches and shall otherwise remain subject to the Operating Limitations. Any charges, costs or penalties incurred as a result of any Dispatch Notice for less than the Minimum Dispatch Level identified on Appendix A to this Agreement shall be the responsibility of Buyer." 1.7 Amendment to Section 13.1 of the Amended PPTA. Section 13.1 of the Amended PPTA is hereby amended by inserting the following sentence after the last sentence thereof: "Notwithstanding the foregoing, if maintenance issues arise at the Facility which Seller reasonably believes, based on Good Utility Practice, result from Buyer's dispatch of the Facility at a megawatt output of less than the Minimum Dispatch Level (as set forth on Appendix A) but no less than 70 MWs, or zero, and Seller reasonably believes that the necessary repairs cannot be completed consistent with Good Utility Practice within the Outage Schedule for the then current Contract Year, Seller and Buyer agree to discuss in good faith an appropriate amendment fourth Amendment io Power Purchase Tolling Agreeroem 4 to such Outage Schedule to accommodate such repairs consistent with Good Utility Practice." ARTICLE 2. MISCELLANEOUS 2.1 Reference to A eement. Any and all other agreements, documents or instruments now or hereafter executed and/or delivered pursuant to the terms hereof or pursuant to the terms of the Amended PPTA are hereby amended so that any reference to the Amended PPTA, whether direct or indirect, shall mean a reference to the Amended PPTA as further amended by this Amendment. 2.2 Governing Law. THIS AMENDMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH PARTY WAIVES ITS RESPECTIVE RIGHT TO ANY JURY TRIAL WITH RESPECT TO ANY LITIGATION ARISING UNDER OR IN CONNECTION WITH THIS AMENDMENT. 2.3 Dispute Resolution. The Parties affirm that, except for disputes addressed in Section 13.1.1.3, any and all disputes, claims or controversies arising out of, relating to, concerning or pertaining to the terms of this Amendment, or to either Parry's performance or failure of performance under this Amendment shall be subject to the dispute resolution provisions of Article XIX of the Amended PPTA. 2.4 Counterparts. This Amendment may be executed and delivered by the Parties in any number of counterparts, with copies by electronic transmission acceptable, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 2.5 Full Force and Effect, Construction. Each Party confirms that the Amended PPTA is in full force and effect and remains a binding obligation of the Parties. To the extent that this Amendment conflicts in any way with the Amended PPTA, the Amended PPTA shall be deemed modified hereby. 2.6 No Obligation for Other Amendments. This Amendment is intended to be a part of, and will serve as a valid, written amendment to the Amended PPTA as required by Section 20.9 thereof. Except as otherwise set forth in this Amendment, this Amendment shall not by implication or otherwise alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Amended PPTA, all of which are ratified and affirmed in all respects and shall continue in full force and effect, and this Amendment will not operate as an extension or waiver by the Parties of any other condition, covenant, obligation, right, power or privilege under the Amended PPTA. This Amendment (including its exhibits and Tagab Amcndmml lo E42wcr&rclisnqTc41in, A Lreeanera 5 appendices) constitutes the entire agreement between the Parties relating to the subject matter of this Amendment, and shall not be considered to create a course of dealing, an admission of liability or to otherwise obligate either Party to execute similar amendments or grant any waivers under the same or similar circumstances in the future. [This space intentionally left blank] Fourth Amcnilmenl 6 IN WITNESS WHEREOF, the Parties have executed this Fourth Amendment to the Amended PPTA as of the date first above written. THE CITY: ATTEST: CITY OF VERNON CITY OF VERNON By- By: Kelly Nguyen, Maria E. Ayala, City Clerk General Manager of Public Utilities APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney BICENT: BICENT(CALIFORNIA) POWER LLC By- Name: Title: BICENT MALBURG: BICENT(CALIFORNIA)MALBURG LLC By: Name: Title: Fourth Amendment to Power Purchase Tolling Agreement IRINE "WED RECEIVED ' W. 18 209 SEP 2 8 2017 *,�• .�1)iviIiiI STRATI 0N ctn CLERKS OFFICE STAFF REPORT CFAJ/_`� PUBLIC UTILITIES DEPARTMENT DATE: October 3, 2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities AA kAf RE: Award of a Services Agreement to JRM for Unarmed Security Guard Services Recommendation A. Find that the approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378; and B. Approve the Services Agreement with JRM for unarmed security guard services, in substantially the same form as submitted herewith, for a total amount not-to-exceed $1,267,968 over the three-year term of the agreement; and C. Authorize the City Administrator to execute the proposed Services Agreement with JRM with an effective date of October 30, 2017; and D. Authorize the City Administrator to issue change orders, if necessary, for an amount not- to-exceed$90,000 over the three-year term of the agreement. Background Due to the Department's dissatisfaction with the current provider of unarmed security guard services, and in order to select a new provider of unarmed security guard services in accordance with the City's Purchasing Ordinance, the Vernon Public Utilities Department ("VPU') issued a Request for Proposal (RFP) for said services. City staff issued the RFP on August 24, 2017 and received a total of nine (9) timely proposals from qualified firms. A panel of City staff was assembled and collaborated to select the most suitable firm to perform the services listed in the RFP. The panel agreed to interview all firms that scored above 80 out of 100 total points. Two (2) firms were interviewed, JRM and Cypress Security, LLC. After thorough review, JRM was selected as the most qualified and desired firm for the recommendation to award a contract. Page 1 of 2 JRM has extensive security service experience and qualifications in line with the City's expectations and needs, therefore staff has elected to proceed with an award to JRM. Under this agreement JRM will serve VPU with unarmed security guard service at the VPU Station "A" Power Plant, Soto Yard, and other critical City properties to deter unwanted activities such as theft, vandalism, loitering, and trespassing. Staff recommends that Council approve the Services Agreement with JRM for a three-year term. Based on the City's minimum estimated staffing level of hours, the total cost to retain the services per their proposal is estimated at $422,656 per year over the three-year term of the agreement. Staff also recommends that the City Administrator be granted authority to issue administrative change orders to increase the compensation in the amount not exceed $90,000. The agreement with JRM will commence on Monday, October 30, 2017 once the agreement with the current provider of unarmed security guard services has ended. The agreement has been reviewed and approved to form by the City Attorney's office. Fiscal Impact The total not-to-exceed amount is $1,357,968 for the three-year term of the agreement including change orders. The unarmed guard services are included in the Public Utilities Department FY 2017-18 budget and will be budgeted for subsequent years accordingly. Attachments 1. Proposed Services Agreement Page 2 of 2 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND JRM FOR UNARMED SECURITY GUARD SERVICES COVER PAGE Contractor: JRM, A Division of S&S Labor Force Incorporated Responsible Principal of Contractor: Michael Izquierdo, Vice President Notice Information - Contractor: JRM, A Division of S&S Labor Force Incorporated 26893 Bouquet Canyon Road Saugus, CA 91350 Attention: Michael Izquierdo, Vice President Phone: 661-297-5906/805-844-2266 Notice Information - City: City of Vernon 4305 S.Santa Fe Avenue Vernon, CA 90058 Attention: Kelly Nguyen, General Manager of Public Utilities Telephone: (323) 583-8811 ext. 834 Facsimile: (323) 826-1408 Commencement Date: October 30, 2017 Termination Date: October 30, 2020 Consideration: Total not to exceed $ 1,357,968 (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 10.20 June 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND JRM FOR UNARMED SERCURITY GUARD SERVICES This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and JRM, a California corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on October 3, 2017. 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated August 24, 2017, Exhibit "A", and Contractor's proposal to the City ("Proposal") dated September 5, 2017, Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. The term of this Contract shall commence on October 30, 2017, and it shall continue until October 30, 2020 unless terminated at an earlier date pursuant to the provisions thereof. 2 June 2017 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C" attached hereto and incorporated herein by reference. 5.2 Subject to Section 7.0, Contractor's grand total compensation for the entire term of this Contract shall not exceed $1,357,968 without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, fumish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. June 2017 5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, "extra work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit "C," if the extra work has been approved by the City. 5.6 Licenses, Permits. Fees. and Assessments. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 4 June 2017 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. The General Manager of Public Utilities shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed $90,000. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or omissions of Contractor hereunder, or arising from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees. 5 June 2017 9.2 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.2.1 Automobile Liability with minimum limits of at least $1,000,000, including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least $1,000,000 per occurrence with a combined aggregate of$2,000,000 written on an insurance Services Office (ISO) Comprehensive General Liability "occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.2.4 Professional Errors and Omissions coverage of at least $2,000,000. 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State of California; or (ii) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, 6 June 2017 employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a "waiver"form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.2.7 Insurance shall be placed with insurers with a Best's rating of at least A- VIII. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 10.0 GENERAL TERMS AND CONDITIONS. 10.1 INDEPENDENT CONTRACTOR. 10.1.1 It is understood that in the performance of the services herein 7 June 2017 provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 10.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) 8 June 2017 years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 10.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness. 10.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 10.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. 10.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 10.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract 9 June 2017 or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEYS FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. 10.11 INTERPRETATION. 10.11.1 Applicable Law. This Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral). 10 June 2017 10.11.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 10.11.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 10.11.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 10.11.8 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 10.12 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES. Any dispute for under $25,000 11 June 2017 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 10.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Department of Public Utilities 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Kelly Nguyen, General Manager of Public Utilities If to the Contractor: JRM, a Division of S&S Labor Force Incorporated 26893 Bouquet Canyon Road Saugus, CA 91350 Attention: Michael Izquierdo, Vice President, JRM Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 10.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to 12 June 2017 this Agreement. 10.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 10.18 DEFAULT. In the event either party materially defaults in its obligations hereunder;the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 10.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs 13 June 2017 incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 10.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractors records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. 10.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 14 June 2017 10.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25)for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 10.24 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. 10.25 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". [Signatures Begin on Next Page]. 15 June 2017 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City JRM, a Division of S&S Labor Force and California municipal corporation Incorporated, a California corporation By� - By- Carlos Fandino, City Administrator Name: Title: ATTEST: By. Maria E. Ayala, City Clerk Name- Title: APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney 16 June 2017 EXHIBIT A REQUEST FOR PROPOSALS 17 June 2017 City of Vernon Request for Proposals (RFP) Unarmed Security Guard Services IF CO i 015 ILY 114 City of Vernon Public Utilities Department 4305 S. Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 583-8811 City of Vernon Unarmed Security Guard Services Request for Proposals 1. INTRODUCTION AND PROJECT The City of Vernon is seeking proposals from qualified vendors to provide unarmed security guard services for some of its critical City properties. The City will select one vendor, based on demonstrated competence, experience and a cost effective approach to providing unarmed security services to the Vernon Public Utilities (VPU) Station A, Power Plant, Soto Yard, and other City facilities. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vernon has been developed as an industrial community. At the turn of the 201' century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government:The City Council consists of five members, elected at-large,who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works Department, Public Utilities Department and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. 3. UNARMED SECURITY GUARD SERVICE Unarmed security guards are needed to deter activities such as theft, vandalism, loitering, and trespassing at critical City properties. Security guards are expected to recognize and report emergencies and illicit activities on City properties. Unarmed security services may be required at various critical City facilities, such as, City buildings, electric substations, water well sites, pumping plants, gas regulating stations, fiber network locations, critical infrastructure, and storage yards to deter unauthorized access and to report any suspicious activity, such as, burglary,tampering, or damage to City property and interests. Page 2 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals 4. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking proposals from qualified vendors to provide unarmed security guard services for some of its critical City properties. The City will select one vendor, based on demonstrated competence, experience and a cost effective approach to providing unarmed security services. Services Vendor shall provide standard security services normally associated with protecting people and property. Services shall include, but may not be limited to, the following: • Implement/enforce access control policy and procedures to critical City properties. • Recognize and report security threats and breaches. • Recognize and report suspicious and unpermitted activities. • Monitor and access alarm systems, surveillance systems, and other security systems. • Prepare and maintain appropriate logs and reports of activities, incidents, etc. • Monitor and provide information about activities in areas that may impact City critical properties. Expectations of Prerequisites and Training • All staff hired by the vendor must, at a minimum, possess a valid guard card permit and driver's license. • Vendor must provide all staff training as required by the Califomia Bureau of Security and Investigative Services (BSIS). • All staff hired by vendor must have passed background, reference, DMV, and criminal record checks. • Vendor shall ensure staff has sufficient skills necessary to provide the required services to uphold the highest level of professional standards, including, effective communication and thoroughly following direction. • The vendor shall provide a minimum of three(3)hours per quarter of supplemental training to assigned staff. Topics of training to be agreed upon by the City and vendor. • In addition to the minimum training required by the BSIS, the vendor shall provide all staff training prior to assignment training in the following areas: o Basic First Aid o Customer Service o How to Deal with Difficult People o Basic Report Writing o Emergency Response • The City reserves the right to require additional and/or specialized training for staff assigned to the City at the cost of the vendor. Staffing Specifications The vendor shall acknowledge ability to provide and tailor services based, in part, on a thorough understanding of the City's operations and security needs. The vendor is expected to consider the unique needs of the organization and work closely with City staff to select and schedule a stable and reliable security guard staff, making changes in personnel only when necessary. Page 3 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals • The City reserves the right to take part in the interview process and to approve or reject the assignment of vendor's staff. • The City has the right to remove any vendor staff member from its account at any time for any reason. • The vendor shall be responsible for any costs associated with training security staff and any substitute security staff. Uniforms & Equipment • Vendor shall furnish and maintain all professional uniforms for staff. The City reserves the right to approve or have input on uniform style, color, appearance, and proper fit. • Vendor shall furnish a company vehicle with appropriate badging and safety equipment for roving patrols. • Vendor shall furnish and maintain all safety equipment and protective gear. • Vendor shall furnish and maintain a cell phone with a backup battery for all guards on duty. Account Administration • The Vendor shall ensure all staff perform full designated shifts and provide confirmation to City. • The Vendor and the City will hold monthly status meetings at an agreed upon time. • Vendor will provide a 2417 telephone number and person to be contacted in emergency situations. • Vendor must provide vendor rules and operating procedures to the City. Minimum Staffing Level and Schedule Vendor shall provide a security team according to the staffing plans below. The plans reflect the City's current and regular expected staffing schedule. Staffing levels and/or schedules may be changed at any time, temporarily, or permanently at the discretion of the City of Vernon. Location Hours Per Week Usual Schedule Entry Gate 168 Hours 24/7 Coverage I Rovinq Patrol 84 Hours Thurs—Sun 24/7 Coverage Rovinq Patrol/Fixed Post 84 Hours Mon—Sun 6:00 p.m. -6:00 a.m. 5. QUALIFICATIONS & CRITERIA Qualifications: The City of Vernon will select one vendor for all of the outlined Scope of Services on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposals: • At least 5 years of experience in providing guard services to public agencies Page 4 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals and/or utility companies. • Demonstrate ability to meet or exceed all scope of services terms. • Provide most cost effective approach for unarmed security services. • Exemplify reliable, trustworthy, diligent, and professional qualities. • No professional and/or ethical conflict with the City of Vernon's interests. Selection Criteria: The City will conduct a comprehensive,fair, and impartial evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 50% Qualifications, background and prior experience of the vendor in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. 2. 20% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 6. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit one (1) unbound original, seven (7) hard copies and one (1) electronic copy (via email to jbalandran@ci.vernon.ca.us) of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum,the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5"X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a vendor brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. Page 5 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals 3. Prominently label the package: "City of Vernon Unarmed Security Guard Services Request for Proposals" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Kelly Nguyen, General Manager of Vernon Public Utilities 4305 S. Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 6:00 p.m. on September 7, 2017. Late response will not be accepted. 5. If you have any question about this RFP, please contact Jessica Balandran at(323) 583-8811 ext. 262. Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to the extent the City is aware of them. B Cover Letter:All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the Business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. F Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer;therefore,the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any vendor. All prices should reflect"not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer Page 6 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the speck individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected vendor shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion." (Copy attached as Exhibit A). 7. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its timeliness. 8. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime vendors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP- D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right Page 7 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City. 9. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 10. LIVING WAGE ORDINANCE The selected vendor shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. The vendor shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Vendor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form contract, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 11. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. Page 8 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION Page 9 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is (inset"sole owner'.'Purner','Presidem,"secretary'.or other Proper title) of (Insert nume ofbidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vemon,or of any other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder. a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly,collude,conspire,connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else,or to raise or fix any overhead,profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership,company,association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. 1 certify under penalty of perjury that the above information is correct By: ille' Dale Page 10 of 33 City of Vemon Unarmed Security Guard Services Request for Proposals EXHIBIT B STANDARD FORM CONTRACT Page 11 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] COVER PAGE Contractor: [insert name of contractor] Responsible Principal of Contractor: [insert name, title] Notice Information - Contractor: [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date. [insert commencement date] Termination Date: [insert termination date] Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 10.20 Page 12 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated _ Exhibit "A", and Contractors proposal to the City("Proposal") dated Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. Page 13 of 33 City of Vemon Unarmed Security Guard Services Request for Proposals .0 TERM. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit" " 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C" attached hereto and incorporated herein by reference. 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed [state amount] without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, fumish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. Page 14 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, "extra work" means any worts that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit "C," if the extra work has been approved by the City. 5.6 Licenses Permits Fees and Assessments. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. Page 15 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be retumed and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. The General Manger of the Public Utilities Department shall have the authority to issue change orders for administrative and non- material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed [insert amount]. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or Page 16 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or omissions of Contractor hereunder, or arising from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees. 9.2 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.2.1 Automobile Liability with minimum limits of at least$1,000,000, including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least$1,000,000 per occurrence with combined aggregate of$2,000,000 written on an Insurance Services Office (ISO) Comprehensive General Liability"occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall fumish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.2.4 Professional Errors and Omissions coverage of at least$2,000,000. Page 17 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State of California; or (ii) Secure and maintain in force a policy of workers'compensation insurance with statutory limits and Employers Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a 'waiver'form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.2.7 Insurance shall be placed with insurers with a Bests rating of at least A- VIII. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of Page 18 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or(c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 10.0 GENERAL TERMS AND CONDITIONS. 10.1 INDEPENDENT CONTRACTOR. 10.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, Page 19 of 33 City of Vemon Unarmed Security Guard Services Request for Proposals sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 10.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK. All documents and materials fumished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 10.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness. 10.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor Page 20 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 10.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. 10.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 10.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the perfomlance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. Further, if the Contractor performs any work Page 21 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEYS FEES. If any action at law or inequity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. 10.11 INTERPRETATION. 10.11.1 Applicable Law. This Contract shall be deemed a contract and shall be govemed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral). 10.11.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications conceming this Contract shall be of no force or effect. 10.11.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless Page 22 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 10.11.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 10.11.8 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 10.12 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES. Any dispute for under$25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object Page 23 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 10.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Attention: Kelly Nguyen, General Manager of Public Utilities 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Contact Information of Vendor Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 10.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement. 10.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily Page 24 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 10.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non- performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 10.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the Page 25 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 10.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. 10.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 10.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, Page 26 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25)for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 10.24 LIVING WAGES. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit"D". Upon the City's request, certified payroll records shall promptly be provided to the City 10.25 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit"E". Page 27 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City [CONTRACTOR'S NAME, a [State and California municipal corporation incorporated in] corporation By: By. [Insert Name and Title] Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney Page 28 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT A REQUEST FOR PROPOSALS Page 29 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT B PROPOSAL Page 30 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT C SCHEDULE Page 31 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT D LIVING WAGE PROVISIONS Minimum Livinci Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. Page 32 of 33 City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer"or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. Page 33 of 33 Unarmed Security Guard Services RFP Q&A 9/5/2017 1of2 1. What is the tentative timeline of proposals received? A: Proposals will be received on September 7, 2017. On September 11, 2017 staff should determine the most qualified and responsive vendor. Interviews will be scheduled for the week of September 18, 2017.Award of contract will tentatively take place at October 17, 2017 City Council meeting. 2. Rover specifications: A:The Rover must be an automobile that is presentable and in working order.The vehicle will be used as a deterrent,therefore it must look like a security vehicle with a clear visible logo, amber/hazard lights, and possibly white. 3. Is the vehicle driven only on paved roads? A: Yes. 4. On page 4 of the RFP, Uniforms& Equipment, bullet point 2,is the 1 vehicle provided by the vendor to be included in the hourly bill rate,or can it be billed back monthly?Since we have no estimate of the number or miles driven by the roving patrol, may be bill back the fuel usage monthly with documentation? A:The billing schedule is organized and designed at the discretion of the vendor submitting a proposal, this includes all types of billing, such as, hourly rates or direct bill. The City will not provide a pricing schedule to be filled out. 5. Clarification of the minimum staffing level hours and locations. A: - Entry Gate: Station A-4990 Seville Street 24/7 Coverage - Roving patrol: Soto Yard—4700 Soto Street(this also may include other areas) Monday 6 PM —6 AM Tuesday 6 PM —6 AM Wednesday 6 PM —6 AM Thursday 6 PM through Monday 6 AM 6. Are there more specifications on the scope of work? In the RFP under scheduling, it doesn't state much where the service will be,which City property? A:There may be additional locations added at a later time.The minimum staffing level hours and locations are clarified in question number 6. 7. Are there any additional services that may be needed that are not listed in the RFP? A:The City of Vernon may adjust the scope of work at a later time. Currently the services needed are specified in the RFP. 8. How many security guard/s will be needed at each jobsite? A: One guard is needed at Station A Entry Gate and one guard is a roving patrol based out of Soto Yard. Staffing those positions during the hours in question 5 is left up to vendor recommendation. 9. Is there a current security provider? A:Yes 10.Who is the current security provider? A:Absolute International Security 11.When was the current incumbent awarded the contract? A:The agreement was awarded and approved by City Council on August 4, 2015. 12.Will the City adjust our billing wage accordingly by the amount or a percentage rate as increases come into effect? A: All wages paid to vendor employees are to be handled by the vendor only. Any adjustments should be projected and estimated by the vendor. 13.What vehicle type and how many are currently utilized to perform the requested services? A: Please refer to question 2. 14. Is the unbound original proposal part of the 7 hardcopies to submit? A: No.The unbound original is in addition to the 7 hardcopies. 15.Can you tell me what/how many days are considered "Official City Holidays"where employees are mandated to be paid time and a half for paid holidays in the City of Vernon? A:The Official City Holidays can be found in the Fringe Benefits and Salary Resolution located on the Human Resources Department tab in the Benefits section on the City's Website: http;//cityofvernon-argfdeoartments/human-resources1228-benefits 16. Is the City of Vernon intending to transition any incumbent staff if a new vendor is awarded the bid? A:The City currently intends to transition one incumbent. Unarmed Security Guard Services RFP Q&A 9/6/2017 2 of 2 1. What is the final day the City will answer questions? A: No further questions will be answered or posted after this addendum. 2. What is the estimated usage[number of annual hours]of prior contract? A: Approximately 15,000 hours 3. What is the estimated total number of annual hours for this contract? A:Approximately 15,000 hours 4. What is the current bill rate? A: $16.58 to$17.41 per hour and $1.60 to$1.68 per hour for vehicle patrol S. What was the contact amount spent last year? A: $265,872.80 for FY 2016-2017 6. Clarification is needed regarding the City's living wage and future living wage increases. A:The current City's living wage ordinance is addressed in section 10 of the RFP, exhibit D of the sample agreement, and in the Vernon Municipal Code in Section 2.132.The current City of Vernon's living wage ordinance can be found in our Vernon Municipal Code Article XVIII Sections 2.131-2.144 and can be read here at this link: htt Iibra .amle al_r-om nx atewa _dil California vernon ca thecode cha ter2ad ministration*?f=templates$fn=default.htm$3.0$vid-amlejtal.vernon ca anc=JD 2_131 Further clarification of minimum wage and living wage across state, county, city, and federal laws can be found here: https://www.dir.r-a.gov/dlseltag rninimumwage,htrn EXHIBIT B PROPOSAL 19 June 2017 JRM A Division of S&S Labor Force Incorporated SECURITY/5AFM(RISK MANAGEMENT/LOG151TC5 JRM, a Division of S&S Labor Force Incorporated 26893 Bouquet Canyon Rd. Saugus, CA 91350 Office: 661.297.5906 September 5, 2017 City of Vernon Attn: Kelly Nguyen, General Manager of Vernon Public Utilities 4305 S. Santa Fe Ave. Vernon, CA 90058 Re: RFP for Unarmed Security Guard Services Dear Kelly Nguyen, Thank you for the opportunity to conduct business with the City of Vernon. We have analyzed the RFP and are pleased to submit our proposal for the `Unarmed Security Guard Services." Our proposal is based on proven, successful unarmed security guard service we have had the opportunity to provide Security Services in the past for the City of Vernon at the Soto Yard and the Power Plant. We have a three-year track record of keeping those assets safe from theft, vandalism, attack, and sabotage. We would like the opportunity to build upon our success and add to our past scope of service and work with the City of Vernon in protecting its assets. The following individuals, together or individually, are authorized as signatories and to negotiate on behalf of JRM dba to S&S Labor Force Incorporated relating to terms, conditions, pricing, etc.: 1. Mr. Michael Izquierdo, Vice President, JRM mikei _securitydirectors.ora call805.844.2266 2. Mr. Dean Kiel, Director of Operations, JRM deank@securitydirectors.or_g cell 480.650.5769 JRM is ready to begin operations within 30 days of contract award. This proposal will remain valid for a period of not less than ninety (90) days from the closing date of September r, 2017. Should you desire or require any clarifications, please don't hesitate to contact me via email or call at the above contact points. Sincer WirQ-haelz' ui"o Vice President IRM A Division of S&S Labor Force Incorporated SECURITY/SAFETY/RISK MANAGEMENTLLOGISITCS RFP for Unarmed Security Guard Services Business Info: Contact Info: JRM Michael Izquierdo 26893 Bouquet Canyon Rd. Vice President C-413 26893 Bouquet Canyon Rd. Saugus, CA 91350 C-413 Offioe: (661) 297-5906 Saugus, CA 91350 CA PPO Lic# 120043 Cell: (805) 844-2266 CA PI Lic. # 187994 www.securitydirectors.org Introduction JRM, a Division of S&S Labor Force Inc., was founded by two retired law enforcement officers. Our executive team has a combined 45 years of experience in the security field as well as federal and local law enforcement. JRM is an innovative and full-service professional security firm providing a complete range of standard and customized Private Security and Investigative Services. We specialize in customizing your security needs with consideration to our client's budgetary restraints while maintaining the highest quality of customer satisfaction. We use leading-edge technologies and strategic consulting services that provide the most cost- efficient protective solutions for every client's specific needs. We are fully licensed, certified and insured to provide you with the best responsive customer service. JRM utilizes the highest degree of integrity and responsiveness setting the highest ethical standards. JRM's mission statement is the following: -S&S Labor Force Inc. dba JRM will listen to our client's needs, collaborate on goals and deliver a customized world class level of service". JRM is committed to providing quality security and protection services to commercial and private clients. Our goal is to provide our clients with the highest level of protection for their assets and the safety of their personnel. We offer innovative and progressive security solutions specific to the needs of every client. JRM will always strive to provide and maintain our clients with the best customer service and the highest quality of personnel. S&S Labor Force Inc.dba JRM 26893 Bouquet Canyon Road,C-413,Santa Clarita CA 91350 ph.661.297-5906 JRM 1 S&S Labor Force Inc has, in the past, provided 3 years of security service from 2012 to 2015, in the City of Vernon. We previously staffed the Station "A" Power Plant and the Soto Yard. Our coverage consisted of seven (7) days a week patrols from 6:00 p.m. to 6:00 a.m. at the Soto Yard and 6:00 a.m. to 6:00 p.m. at the Power Plant. Since our security contract began and until it ended at those locations, we had no recorded thefts of product at the Soto Yard. We also did not have any breaches of security at the Station "A" Power Plant. JRM 1 S&S has not allowed any thefts or breaches due to the fact that we had implemented security procedures that allowed our staff to be proactive and identify any signs of potential theft or breach of the Power Plant. We had identified numerous attempts of theft at the Soto Yard. Our guards, in the past, have thwarted the would-be thieves by maintaining regular foot patrols and an immediate call to the Control Room Dispatch (CRD) and the Vernon Police Department (VPD) for response and investigation. Since the inception of JRM ! S&S security services in the City of Vernon, we have been instrumental in creating, developing, and maintaining the current and existing security protocols. We have conducted a security assessment that mirrors the current scope of services that are listed in the RFP and presented that to city personnel. JRM 1 S&S had always maintained open dialogue with Vernon Gas & Electric employees which was key to our past success. We are responsive when there are questions or inquiries and are proactive in making sure the needs and requests of the City are met. JRM 1 S&S executive team is quite familiar with the security needs and operations for the locations to be patrolled. It would take us minimal time to add the entire scope of services to what we have provided in the past. S&S Labor Force Inc.dba JRM 26993 Bouquet Canyon Road,C-413,Santa Clarita CA 91350 ph.661.297-5906 General Scope of Work JRM / S&S will build upon the foundation it has laid to this point with its policies and procedures at the Soto Yard and the Power Plant. We will perform regular patrols and monitoring of all City of Vernon's assets as described in the RFP. Security Officers will also be responsible for access control to these same assets and distribution of visitor badges as well as maintaining logs and daily reports. Our guards are instructed to observe and report, maintain logs and daily reports and monitor all activity relating to their assignments. Security officers will have procedures in place for them to call the CRD and/or the VPD based on the severity and immediacy of the situation. During patrols, officers will check for vandalism, suspicious circumstances, suspicious behavior by individuals, and anything else that seems out of the ordinary and report those findings to the CRD or VPD. These security problems and public safety concerns will be evaluated and reported immediately. JRM / S&S officers will write Daily Activity Reports (DAR's) and Incident Reports and will be maintained by the company for a period of two years. JRM / S&S understands the need for roving patrols and roving patrol 1 fixed posts as described in the RFP. These roving patrols will not only allow for higher visibility and expanded coverage but will allow officers to receive breaks in compliance with local state and federal laws. There are also times in which security officers may need assistance and / or support and having a rover could provide an additional level of safety for our officers. This proactive approach ensures that the City's assets are being monitored and is an active deterrent to those wishing to do harm to those assets. AS Labor Force Inc.dba JRM 26893 Bouquet Canyon Road,C-413,Santa Ciarita CA 91350 ph. 661.297-5906 JRM 1 S&S is a progressive company that stays in touch with current security trends. Power plants, grids, etc. are an important part of the United States' infrastructure. They are a marked target to those wishing to do harm. JRM takes these threats seriously and is constantly reminding, training, and updating its guards to remain vigilant and carry out the security plan JRM has implemented to help deter these types of threats_ Work Plan JRM's plan consists of providing 24/7 coverage, 7 days a week, at the entry gate of the power plant. Provide 24 hour coverage, Thursday through Sunday, of Roving patrols. Additionally, JRM will provide a fixed post / rover 7 days a week from 6pm to 6am. Each post location will have a unique set of policies and procedures based on the locations needs and its physical surroundings. Rovers will be responsible for providing high visibility, support and break other officers and will also have their own standard operating procedures to follow. JRM has company policies and procedures that are compliant to local, state, and federal guidelines. Those will continue to be updated and revised as changes come about. JRM will hire a security supervisor that will be the lead to all of the officers assigned to the described posts. This supervisor will be the first line of supervision that will respond immediately to any issues that may arise. The supervisor will oversee scheduling, reviewing DAR's, respond as needed to incidents, attend meetings, and anything else JRM and City of Vemon management deems necessary as part of their role. S&S Labor Force Inc.dba JRM 26893 Bouquet Canyon Road,C-413,Santa Ciarita CA 91350 ph. 661.297-5906 The roving patrols will be conducted frequently and ongoing, they will utilize the vehicle to stop at each designated location and make sure they are secure and in good order. At night, they will utilize a spot light to check the locations and immediate surrounding area. JRM proposes to install a "guard tour system" to track and verify the guards are conducting their patrols at each location. The technology behind this system is the following: the guard carries around a hand-held device, the size of a small flashlight, that records data when it is touched to a small memory button. The memory button has a unique ID number and when touched by the hand-held device, it records the ID number and date and time it was touched_ JRM also proposes affixing a memory button at each of the designated properties the City of Vernon wants checked during the roving patrols. As the guard conducts his patrols, he/she will utilize the guard tour system. At the end of each shift, the data is downloaded in a laptop or via Wi-Fi to the security supervisor. The security supervisor will then check the guard's tours they completed during their shift to ensure they are completing the roving patrols. JRM managers will also be "hands on" with this account, as we are now to ensure the City of Vernon is receiving the quality of security it expects. We will ensure we deliver quality, professional, well trained guards for this project. JRM managers will always make themselves available and accessible to our client, The City of Vernon. Larger companies tend to assign an account manager to manage accounts and you never see the management/ownership again and things go on auto-pilot. We will deliver firsthand supervision and management of this account and make it our priority. S&S Labor Force Inc.dba JRM 26893 Bouquet Canyon Road,C413,Santa Clarita CA 91350 ph. 661.297-5906 Fees and Costs JRM pays its employees a competitive salary that is based on this security specialist position. Energy and power plant security require a higher quality guard whose training and standards exceed the industry norm. JRM has taken into consideration the City of Vernon's living wage ordinance including the $10.30 an hour rate with health benefits and the $11 .55 an hour rate without health benefits as well as the 12 paid days off per year. Based on the coverage hours described in the RFP, we have a total of 336 labor hours a week. The following hourly rates for billing purposes includes all associated costs of labor, employer costs and overhead, vacation pay, holiday pay, overtime costs, and all other employer costs related to the employee's benefits, and are not to exceed: • Post Commander 1 Supervisor rate - $28.00 an hour (40 hours a week) • Security Specialist rate - $23.00 an hour (the other 296 hours a week) • Patrol Vehicle - $125.00 a week • Patrol Vehicle maintenance, insurance, and any other related costs to the patrol vehicle - $75.00 a week JRM will provide these additional services at no cost to the City of Vernon: • Ongoing training for security officers to be compliant with CA state law as well as regulatory training specific to power plant assignments • Frequent meetings with City of Vernon officials to discuss issues, concerns, best practices, and overall performance reviews of service • Uniform maintenance for officers S&S Labor Force Inc.dba JRM 26893 Bouquet Canyon Road, C-413,Santa Clarita CA 91350 ph.661.297-5906 • Collecting, maintaining, and distributing DAR's, incident reports, and other records pertaining to the security operations Ability of Proposer to Perform JRM's management team consists of: • Michael lzquierdo — Vice President (See Attached Resume) • Dean Kiel — Director of Security operations Our management team are both retired law enforcement officers who have retired in good standing with their respective department. They have a combined 45 years of security experience and law enforcement experience working with local and federal agencies_ Michael Izquierdo will oversee and monitor this account but Dean Kiel will be dedicated, full time, to overseeing this and other local accounts. They both are "hands on" managers and are involved in day to day operations of JRM and its accounts. They have firsthand experience and knowledge of the City of Vernon's assets it's contracting to protect. They have developed the security strategy from concept to actual execution for the Soto Yard. Prior to JRM providing security at this location, the City of Vernon had experienced thefts that reached into the tens of thousands of dollars in losses. During JRM's security oversight at Soto Yard, for three years, there was not one incident of theft. Together with City officials, JRM managers worked on a security strategy to implement at the Power Plant. Security protocols include monitoring the gate and contact and identify all visitors coming to the Power Plant. Security officers remain vigilant and report any suspicious activity in and around the Power Plant. These protocols have led to JRM guards identifying numerous AS Labor Force Inc.dba JRM 26893 Bouquet Canyon Road,C-413,Santa Clarita CA 91350 ph.661.297-5906 suspicious activities and having the Vernon Police Department dispatched to investigate. There have been no attacks, theft, vandalism, or any other major incidents at the Power Plant while JRM has provided security there. In addition to both sites, JRM managers were tasked to provide a security assessment of all additional City of Vernon property, yards, electrical grids, etc. They conducted this assessment and provided a complete security analysis to the City of Vernon personnel. In the three years JRM had provided security in the City, we have also been tasked with additional security coverage for construction projects in the City. The Power Plant was also shut down for maintenance and had up to thirty or more contractors coming on site for the project. JRM developed an identification and badge system for all visitors to the Power Plant. Overall, JRM has had a successful three years of security coverage at the Soto Yard and the Power Plant. JRM has worked closely with Mr. Don Quiroz from the City of Vernon. We have maintained an open dialogue with him with regards to our security operation. JRM managers are available and responsive to Mr. Quiroz and every other city employee they have worked with on this project for the last three years. JRM managers are constantly following the latest security trends and patterns throughout the United States. They understand the importance of the protection our land's infrastructure. Power Plant security is an important task and JRM has built a solid base to build upon going forward. References of accounts similar in size and scope: • The Recording Academy Building — Mr. Tim Whalen ph: 310.581.8675 • AIG Corporate Offices — Mr_ Dan Johnston email: diohnston@sunamerica.com • The Television Academy Building and Theater — Barrie Nedler ph: 81 8.754.2879 S&S Labor Force inc.dba JRM 26993 Bouquet Canyon Road,C-413,Santa Clarita CA 91350 ph. 661.297-5906 AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) _ )SS COUNTY OF LOS ANGELES ) Michael lzauierdo being first duly sworn deposes and says that helshe is Vice President of National Events (1=W"sok owner,"PAS.1P—aff-.--Cbry-.-Od-vOPM Ude) of JRM.A Division of S&S Labor Force (Insert name ofbidder) who submits herewith to the City or Vernon ab0proposai; That all statements of fact in such proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon,or ofany other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder. a. Did not directly or indirectly,induce or solicit anyone else to submit a false or sham bi§pmposal; b. Did not directly or indirectly,collude,conspire,connive or agree with anyone else that said bidderor anyone else would submit a false or sham bid/proposal,or that anyone should refrain from biddingor withdraw his/her bid/proposal; c. Did not,in any manner,directly or indirectly seek by agreement,communication or conferencewith anyone to raise or fix the bid/proposal price of said bidder or of anyone else,or to raise of fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not,directly or indirectly,submit his/her bid/proposal price or any breakdown thereof.or the contents thereof,or divulge information or data relative thereto,to any corporation,partnership, company,association,organization,bid depository,or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty o rury that the above information is correct By: Title: Vice President of National Events Date: September 7.2017 MICHAEL A. IZQUIERDO 1050 S. Flower St. #506, Los Angeles, CA 90015* (805) 844-2266 ' mikei@securitydirectors.org Summary..— With over 28 years of law enforcement, investigation, and security management experience, I have developed strong tactical, analytical, and supervisorial skills. I have hands on experience creating and implementing security plans for major award shows, red carpet events, and various other shows. These security plans have included staffing, communication, traffic, logistics, credentialing, emergencies and evacuation, intelligence, and crisis management to name a few. I also have experience with executive protection and threat assessments. These experiences have allowed me to become an excellent project manager being able to have a clear vision,open lines of communication,delegate when necessary, problem solving ability, integrity, passion, budget conscious, and overall competence to carry out the project Work Experience JRM,a Division of SAS Labor Force, Los Angeles, CA 2016 to Present Vice President Security consultants to the Television Academy, Recording Academy, Dick Clark Productions, and other clients. Provided overall security plan, emergency action and evacuation plan for the 2016 Emmys, 2016 American Music Awards,Rockin New Years Eve,2017 Golden Globe Awards,2017 Grammy Awards,2017 Billboard Awards, 2017 BET Experience, 2017 NBA Awards, and other events. Noble LA Events, Inc.,Los Angeles,CA 2011 to 2016 Vice President of Special Events Oversaw nationwide movie anti-piracy program, oversaw and managed over 50 sub-contractors nationwide, oversaw building security and directly supervised over 35 employees, develop security strategies for major award shows,implement and manage security plans for those shows,develop standard operating procedures and policies and procedures, security trainer and security consultant, assigned to train various venues across the state to ensure their security staff is properly trained and current with the training requirements of the State of Califomia, Bureau of Security and Investigative Services. • Security planning for Grammy Awards, Golden Globe Awards, American Music Awards, Radio Disney Awards, Movie Premieres, and other red carpet events • Familiar with security plans and assisted in carrying out those plans for the BET Award Show, BET Experience, Soul Train Awards, BET Honors, Celebration of Gospel, and UNCF An Evening with Stars • Trained and certified over 1000 guards throughout the State of California to obtain their Proprietary Private Security Officer certification, exclusively for entertainment and concert venues throughout the state, curriculum includes topics such as terrorism awareness, weapons of mass destruction, powers to arrest, ethics, professionalism, sexual harassment and cultural awareness training, liability, communication and conflict management, emergency procedures, etc. • 1=amiliarwith entertainment venues and their management,including the Microsoft Theater,Staples Center, Shrine Auditorium, ACE Theater, The Orpheum, Greek Theater, House of Blues, Verizon Wireless Amphitheater, Shoreline Amphitheater, Sleep Train Amphitheater, The Fillmore, and many others Be5ecure Security,Consulting,and Investigations,Los Angeles,CA 2010 to 2011 Security AgeriOnvestigator Assisted with various types of investigations and surveillances, provided personal protection to our clients, was assigned to ensure the safety of Israeli visitors and delegates with a high threat assessment in a hotel environment, I consistently assessed the hotel and surrounding grounds against any threats, I was responsible for the evacuation and protection of our clients in case of threats or emergency, I was the liaison with our local law enforcement agencies. Riverside County Public Defender's Cffce, Riverside,CA 2006 to 2009 Public Defender Investigator Conduct criminal and civil investigations and gather evidence for the legal representation of our clients. Gather, analyze, and preserve evidence concerning crimes; interview, interrogate, and obtain statements from witnesses, victims, informants, and defendants; prepare detailed reports of actions taken, findings, and recommendations regarding assigned investigations;testify in court regarding the fads and findings of investigation; collect and examine historical, medical, and psychiatric records and reports; evaluate credibility of client and witness statements for use in testimony in court • Investigator of the year at Southwest Division for 2006 Successful investigations have led to dismissal and/or reduction of charges against clients Investigated and planned defense strategies for many death penalty cases • Established and maintained effective working relationship with co-workers, members of law enforcement, social service agencies, medical and psychiatric professionals, and the general public. Ventura County Sheriffs Department,Ventura,CA 1989 to 2005 Deputy Sheriff Patrol an assigned area of the County in the prevention of crime and enforcement of law and order, answer calls where criminal action is involved or suspected, maintain security in the county jails, serve civil processes, prepare reports and testify in court, serve warrants, and perform special services and related work as required. • Assigned as a misdemeanor general crime detective. Investigations included property crimes and crimes against person. I was assigned to a sex crime task force that investigated various sex crimes. I was assigned to assist in numerous felony crimes against persons utilizing my bilingual abilities. I wrote and executed search warrants. Interview and interrogate witnesses, suspects, and victims. Prepared and flied cases with the District Attorneys Office. • Assigned to a special enforcement unit where the primary function was undercover work and investigations. Performed numerous moving and stationary surveillances. Trained in basic narcotic enforcement Conducted investigations in gang crimes, graffiti, etc. • Assigned as a K9 Officer. Worked patrol with my K9 partner where we performed drug searches and provided protection and search techniques to apprehend suspects. Was given the responsibility to be an on scene commander when any call involved a K9 response. • Assigned as a field training officer. Responsibilities included training and preparing new recruits for patrol. Document positive and negative actions of the recruit Responsible to teach the recruit all aspects of law enforcement and make sure they follow the proper laws, procedures, and department and county policies. Licenses • BSIS Training Instructor License—TIB1727 • BSI Training Facility License—TFB1208 • BSIS Guard Card--1649738 • BSI Exposed Firearm Permit—309M1 • CCW—Cary Concealed Weapon Permit—HR210 alloys me to cant'concealed in all 50 states 2 EXHIBIT C SCHEDULE 20 June 2017 Exhibit C Fees Post Commander/Supervisor Rate $28.00 an hour Security Specialist Rate $23.00 an hour Patrol Vehicle $125.00 a week Patrol Vehicle Related Costs (maintenance, insurance, and any $75.00 a week other related costs) EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Wanes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 21 June 2017 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer' or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 22 June 2017 RECEIVE® SEP 2 8 2017 YlLY'��' SEP 2 8 2017 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION, PUBLIC UTILITIES DEPARTMENT cqlr DATE: October 3, 2017 TO: Honorable Mayor and City Council J� FROM: Kelly Nguyen, General Manager of Public Utilities A " fp�, RE: Award of a Services Agreement to NewGen Strategies and Solutions, LLC for Cost of Service and Rate Design Study Recommendation A. Find that awarding the bid as outlined in the staff report is exempt from California Environmental Quality Act ("CEQA") review, because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. And even if such activity were deemed a "project," it would be exempt from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve a Services Agreement with NewGen Strategies and Solutions, LLC for services regarding the Cost of Service and Rate Design study for the Public Utilities Department, for a compensation amount not-to-exceed $69,815 over the one-year term of the agreement; and C. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith, with NewGen Strategies and Solutions, LLC; and D. Authorize the City Administrator to issue change orders, if necessary, that may increase compensation for NewGen Strategies and Solutions, LLC in an amount not-to-exceed $15,000 over the one-year term of the agreement. Background The City of Vernon is seeking the services of a highly qualified consulting firm to assist in providing a detailed electric Cost of Service (COS) study that will provide justifiable and equitable methodologies for appropriate user fees that are adequate to fully fund the expenses associated with the electric systems, equipment repair, replacement, and capital. It is anticipated that the City's Integrated Resource Plan will provide current and projected power supply costs that will serve as an input data for the Cost of Service study. The Cost of Service includes recovery of all operating costs, amounts necessary to maintain reasonable operating reserves after funding operations, debt service, and capital projects. The City also seeks a rate design study to analyze existing rate and fee structure and recommend revisions to existing rate structures if necessary, ensure our utility rates cover the true cost of providing electrical service to our customers. On July 13, 2017, City staff properly publicized the Request for Proposal ("RFP") for Cost of Service/Rate Design Study for the Vernon Public Utilities Department ("VPU"), as stated in Vernon Municipal Code section 2.17.14 requirements. The City received a total of four (4) timely proposals from qualified firms. The four firms that provided proposals were NewGen Strategies and Solutions, LLC ("NewGen"), PA Consulting Group, EES Consulting, and Siemens Industry, Inc. A panel of City staff was assembled and collaborated to select the most suitable firm to perform the services listed in the RFP. After thorough review, NewGen scored the highest for the Cost of Service/Rate Design Study in the evaluation process and were selected as the winning respondent. The cost to retain services from NewGen is proposed at a not-to- exceed amount of$69,815 over the one-year term of the agreement. NewGen was found to be highly specialized in the electric power industry and was qualified to perform the required services. Conclusion In light of NewGen receiving the highest score in the RFP evaluation process for the Cost of Service/Rate Design study, it is recommended that City Council approve the award of the contract for one-year term in an amount not to exceed $69,815. It is recommended that the City Administrator be granted the authority to issue change orders to increase the compensation up to $15,000 for the agreement. The agreement for NewGen has been reviewed and approved by the City Attorney's office. Fiscal Impact The proposed amount is $69,815, with the cumulative total contract value (including potential change orders) not to exceed $84,815 for the consulting services. This project was identified in the 2017-2018 budget. Attachments 1. Proposed Services Agreement SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND NEWGEN STRATEGIES & SOLUTIONS, LLC FOR COST OF SERVICE/RATE DESIGN STUDY COVER PAGE Contractor: NewGen Strategies & Solutions, LLC Responsible Principal of Contractor: Tony Georgis, President Notice Information - Contractor: NewGen Strategies & Solutions, LLC 225 Union Boulevard, Suite 305 Lakewood, CO 80228 Attention: Tony Georgis, President Phone: (720) 633-9496 Facsimile: (720) 633-9535 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Kelly Nguyen, General Manager of Public Utilities Phone: (323) 583-8811 ext. 834 Facsimile: (323) 826-1408 Commencement Date: October 3, 2017 Termination Date: September 30, 2018 Consideration: Total not to exceed $84,815 (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 10.20 September 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND NEWGEN STRATEGIES & SOLUTIONS, LLC FOR COST OF SERVICE/RATE DESIGN STUDY This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and NewGen Strategies & Solutions, a Colorado corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on October 3, 2017. 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated July 13, 2017, Exhibit "A", and Contractor's proposal to the City ("Proposal") dated August 15, 2017, Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 2 September 2017 4.0 TERM. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C" attached hereto and incorporated herein by reference. 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed $84,815 without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. 3 September 2017 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, "extra work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit "C," if the extra work has been approved by the City. 5.6 Licenses, Permits. Fees, and Assessments. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 4 September 2017 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. The General Manager of the Department of Public Utilities shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed $15,000. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or 5 September 2017 omissions of Contractor hereunder, or arising from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees. 9.2 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.2.1 Automobile Liability with minimum limits of at least $1,000,000, including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least$1,000,000 per occurrence with a combined aggregate of$2,000,000 written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.2.4 Professional Errors and Omissions coverage of at least $2,000,000. 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State of California; or 6 September 2017 (ii) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.2.7 Insurance shall be placed with insurers with a Best's rating of at least A- VIII. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or(c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 10.0 GENERAL TERMS AND CONDITIONS. 7 September 2017 10.1 INDEPENDENT CONTRACTOR. 10.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 10.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be 8 September 2017 delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 10.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness. 10.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 10.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. 10.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 9 September 2017 10.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. 10.11 INTERPRETATION. 10.11.1 Applicable Law. This Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, 10 September 2017 representations, understandings, correspondence, documentation, and agreements (written or oral). 10A 1.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 10.11.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 10.11.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 10.11.8 Duplicate Originals. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 10.12 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR. The Contractor hereby represents 11 September 2017 and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 10.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Attention: Kelly Nguyen, General Manager of Public Utilities 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Tony Georgis NewGen Strategies & Solutions, LLC 225 Union Boulevard, Suite 305 Lakewood, CO 80228 Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date 12 September 2017 of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 10.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement. 10.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 10.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 13 September 2017 10.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 10.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. 14 September 2017 10.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 10.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 10.24 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. 10.25 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that 15 September 2017 it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit"E". [Signatures Begin on Next Page]. 16 September 2017 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City NewGen Strategies & Solutions, LLC, a and California municipal corporation Colorado corporation By: By: Carlos Fandino, City Administrator Name: Title: ATTEST: By: Maria E. Ayala, City Clerk Name: Title: APPROVED AS TO FORM: Hema Patel, City Attorney 17 September 2017 EXHIBIT A REQUEST FOR PROPOSALS 18 September 2017 City of Vernon Request for Proposals (RFP) Integrated Resource Plan Cost of Service/Rate Design Study Of tyIFOink Shy ELY 1TO�}� City of Vernon Public Utilities 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 583-8811 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 1. INTRODUCTION AND PROJECT The City of Vernon is requesting proposals from qualified consulting firms to prepare and complete a comprehensive Integrated Resource Plan (IRP) and an Electric Cost of Service and Rate Design Study (Project). The City will select one or more firms, based on demonstrated experience/qualifications related to the development of an Integrated Resource Plan (IRP) and/or a cost effective approach to design, conduct, and provide a forecast of the City's electric rate revenues and its costs of electric supply, including Vernon Public Utilities (VPU) budgeted costs to determine net revenues at present rates and to determine the required level of electric rates going forward. Consultants may bid for any one, or all, of the components of the Project. Consultants planning to combine with other firms in a common effort should provide all the requested information for all consultants/consulting firms involved. An agreement will be negotiated with the firm(s) considered best meeting the City's needs for this project. In the event a mutually satisfactory agreement cannot be negotiated with the City's first choice, negotiations may be terminated and commenced with the firm considered next best in meeting Vernon's needs for this particular project. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history, Vernon has been developed as an industrial community. At the turn of the 20th. century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's, Vernon was attracting large stockyards and meatpacking facilities. In the 1930's, Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works Department, Public Utilities Department and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. Page 2 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 3. PUBLIC UTILITIES OVERVIEW AND SERVICES REQUESTED Vernon Public Utilities (VPU): The City of Vernon owns and operates a municipal electric utility. VPU serves about 1,800 commercial and industrial customers within its service area. Vernon's system peak loads are somewhat non-seasonal due to the type of customer loads on the system, mostly industrial. Therefore, the summer and winter peaks are similar. The City of Vernon's customer mix consists of approximately 33% industrial, 62% commercial, 5% other, and less than 1% residential. The system averages about a 74% load factor largely due to its heavily industrial consumer base. Vernon operates electrical distribution and generation facilities which reside within California ISO control area, and are connected to California ISO through Southern California Edison's 220-66 kV Laguna Bell Substation. It should be noted that VPU is a municipal electric system engaged in the generation, transmission, distribution, and participating in CAISO's wholesale energy markets under the second amended and restated Metered Subsystem Agreement (MSSA), and its distribution system is fully embedded within the CAISO operating Balancing Area. VPU's system peak load is served by approximately 134 MW of generation supplied by natural gas-fired units within the Vernon Substation located at the Malburg Generation Station (MGS), which is owned by Bicent Power and operated by Heorot Power), a peaking generation plant at Vernon Substation capable of producing 11.5 MW of peaking generation with two gas turbines rated 5.75 MW each. In addition to the local generation production, VPU purchases additional energy to complement its 194 MW system demand from long-term contractual agreements for resources located outside California such as Palo Verde Nuclear Generating Station and Hoover Dam, and also from short-term power purchases. As such, the City of Vernon desires to engage a consulting firm(s) to prepare a comprehensive Integrated Resource Plan (IRP) and a detailed Electric Cost of Service and Rate Design Study. 4. .SCOPE OF SERVICES REQUIRED 4.1. Integrated Resource Plan 4.1.1. Scope of Integrated Resource Plan The City of Vernon will face multiple challenges over the next few years. These challenges include compliance with state regulations such as SB 350 regarding renewable energy supplies and greenhouse-gas emissions, maintenance of reliable service to ratepayers in the City, new and expanding distributed and demand side resources (including doubling energy efficiency savings), and increasing percentages of intermittent renewable resources in its power mix. There have been also other changes/developments affecting a wide range of issues and matters concerning the electric utilities including, but not limited to, business, regulatory and operations. All call for a thorough review of an electric utility's business plans, goals, and practices. Page 3 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals In order to construct a long-term plan that addresses all of these issues and guides future decisions, the City of Vernon seeks to engage a Consultant to provide consulting services to prepare a complete Integrated Resource Plan (IRP). The City expects the IRP to be looking as far ahead as year 2030 and perhaps beyond, and be flexible enough to be modified on "short notice" in response to sudden regulatory, business or operational changes or new requirements. It is anticipated that the plan will evaluate the City's existing resources, its electric distribution system, increasing renewable generation, the potential and impacts of demand side resources. The IRP will assist in developing policies on a variety of issues, including reliability standards, renewable portfolio standards, resource adequacy, greenhouse gas emissions, energy efficiency and demand side management programs, energy storage, distributed generation, risk management policies and financial goals. The IRP will include a forecast of load, inventory of The City's existing resources, review of applicable legislation and regulation, and identification of potential resources. Scenarios will be developed and evaluated. The key outcome of this RFP would be for the City to obtain a strategic power supply "roadmap" to include the acquisition of various simplified models/tools that will assist the agency in updating/reevaluating various power supply objectives after completion of the study. 4.1.2. Work Plan IRP Identify Methods and Options The scope of services will be to develop and recommend policy goals, strategies, resource and program options, and analytic methods that may be used in the IRP process. The IRP shall consider environmental goals in the context of the City's overall objectives to reliably serve electricity at reasonable and stable rates. The new IRP analyses shall give appropriate consideration to existing resource commitments, prudent utility policies and practices, energy cost risk and rate impacts, anticipated energy market conditions, and current and anticipated future local, state and federal legislation, policies, and regulations that may be applicable to the City policy, resource option, or program being proposed. Task 1 — Review City's Demand Forecast and energy efficiency programs The IRP will involve development of a load forecast. The Consultant shall first look at any load forecast that has been prepared for or by the City for its service territory. The Consultant should also look at load forecasts prepared by the California Energy Commission as that will provide useful guidance. The Consultant shall also review other demographic data and demand projections for the Southern California and Los Angeles basin areas. The Consultant should be able to get hourly electric system loads and the historical penetration of distributed energy resources in the City's system for the last several years. Based on the review of all these data, the Consultant shall recommend a demand forecast for use in developing the IRP. City staff currently uses a simpler load Page 4 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals forecasting method based on the historical load growth rate. In this long-term forecasting process, there are very few assumptions taken into account. If the analysis shows that the City has experienced a one percent load growth in the last five years, and the local economy will grow at a modest pace during the next fifteen years, then that same percentage will be used as the growth rate. As part of this task, the Consultant shall also review energy efficiency and demand side management programs that have been implemented by City, and will review with City anticipated impacts on the net demand forecast. The Consultant shall provide recommendations for the City to achieve energy efficiency targets established by the Energy Commission. Anticipated impacts of energy efficiency and DSM programs, transportation electrification, and distributed energy resources adoption will be reflected in the demand forecast recommended for use in the IRP. Task 2—Review City's existing and proposed energy resources and programs. The Consultant shall identify and recommend additional environmentally friendly energy portfolio opportunities and options, including an analysis of their relative technical feasibility, reliability and economic impacts, portfolio cost and risk impacts that may be associated with alternative goals, and assess or discuss the full life-cycle environmental impacts in the following areas: a) 50% RPS Goals; b) Increased EE/DR programs; c) Customer-owned distributed generation (PV); d) Greenhouse Gas Reduction Goals; e) Energy Storage is cost-effective. The Consultant will also review MGS power purchase agreement between Vernon and Bicent Power, and a supply of prepaid natural gas contract that the City purchased. Task 3— Review City's interconnections and Distribution Facilities The Consultant shall analyze the condition of the City's existing interconnections and distribution facilities and identify safety, reliability and operation issues. The analysis will incorporate the impacts of distributed energy resources on VPU's distribution grid, and determine the City's system capabilities and potential system upgrade projects to serve projected loads. The Consultant shall also review the existing City's rules and guidelines for interconnection of distributed energy resources. In 2015 the City completed a comprehensive study titled "Distributed Generation Impact Study". The Study addressed Distribution system impacts, environmental impact, safety assessment and financial analysis. The study comprehensively evaluated the condition of its electric distribution system and identify safety, reliability, system efficiency, and operating flexibility and provided recommendations for the utility to implement. The Study will be available for use in the IRP. Vernon's engineering staff currently uses ETAP system model for distribution load flow, short circuit, transient flicker, and motor starting analysis. It will be expected from the Consultant to not duplicate the study and instead use the study as a foundation for proposing any new improvements or measures to be undertaken by the utility resulting from this IRP study. Page 5 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals Task 4—Assess Renewable Energy and RPS Compliance Within the area of renewable energy, City faces the important question of how to cost- effectively meet its Renewable Portfolio Standard (RPS) requirements. The Consultant shall begin by reviewing City's current documentation of its RPS compliance status for 2017-2030, its current RPS-eligible contracts, its planned projects through 2020, any plans beyond 2020, and will then determine the expected "net short"—the difference between its RPS requirement and the existing and planned contracts it has in place. The net short will be calculated for both the current 33 percent RPS by 2020 mandate and the new 50 percent RPS mandate by 2030. Once the net short is known, the Consultant shall estimate renewable energy portfolios to fill the net short through 2030. These portfolios can be weighted based on input from City; for instance, a "solar-heavy" portfolio option could be compared to a "wind-heavy" portfolio option, a portfolio that evaluates the cost of renewables under different likely future incentive structures. Within the criteria for each portfolio option, the Consultant shall select a project mix to minimize costs and maximize benefits for City. The Consultant shall identify and model different portfolios/resource options that will meet City's future resource planning objectives including 50% RPS goals. The portfolios will also reflect different potential resource options to meet future power supply needs, including renewable energy resources, potential energy market purchases, and other viable supply options. Task 5— Develop Market Scenarios The Consultant shall develop fundamental market scenarios designed to measure the market impact of variation in key risk variables. The scenarios will be designed to address key market and industry wide trends and conditions, based on supply scenarios, scenarios for demand and energy prices to be analyzed as part of the IRP plan development. Upon development of the market scenarios, the Consultant then will develop a range of City resource portfolios. It is recognized that greater certainty exists about market conditions and regulatory policy initiatives likely to govern the California energy markets. A greater level of uncertainty exists about governing key fundamental aspects of the industry, such as Greenhouse Gas Regulation rules, renewable energy integration, electric vehicle penetration, and a multitude of other factors. The goal of the scenario assumptions will be to develop internally consistent sets of fundamental power market and industry condition data assumptions, which reflect potentially different views of how the markets will evolve over the next 13 years. In completing this stage of the forecast process, the Consultant will develop a list of risk variables that it views as having particularly important impact on City's planning decisions and business success, and will provide City with an assessment of the key drivers of uncertainty for each of those variables. A key goal of the scenario planning process is to provide City management with a robust quantitative assessment of how its business planning projections could be affected by key risk variables. It is anticipated that results from the scenarios will assist City in identifying additional detailed analyses needed to further quantify and examine business planning risks and potential outcomes. Task 6—Develop or Recommend Analytic Tools Page 6 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals The Consultant shall develop or recommend analytic tools appropriate for assessing broad policy and resource strategy options within the framework of the fundamental goals of resource planning. IRP Analytical Methods The IRP should provide a sustainable comprehensive strategy for the City to deliver reliable service, maintain competitive and stable rates, achieve environmental goals, manage market and other risks, and allow for future course corrections in response to changing conditions (such as market regulation) and new opportunities (such as breakthrough technology). DELIVERABLES: Task 1) Develop all data and input assumptions necessary for portfolio modeling and IRP analysis: a) Develop a baseline model that appropriately reflects Vernon's existing power resource portfolio behavior; b) Assess alternative resources, portfolios, market and regulatory scenarios; Task 2) Prepare and deliver a comprehensive written IRP report, including: a) List and describe key inputs, resources, scenarios, and portfolios considered; b) Describe analytic methods; c) List and describe key results and implications; d) Discuss and recommended action plan, including timing, quantities, and types of resources to be implemented over the IRP timeframe; and d) A detailed appendix including tables of all inputs and assumptions. 4.2. Cost of Service Study & Rate Design 4.2.1 Scope of Cost of Service Study & Rate Design The City of Vernon is seeking the services of a highly qualified consulting firm to assist in providing a detailed electric Cost of Service (COS) study that will provide justifiable and equitable methodologies for appropriate user fees that are adequate to fully fund the expenses associated with the electric systems, equipment repair, replacement, and capital. The Cost of Service includes recovery of all operating costs, amounts necessary to maintain reasonable operating reserves after funding operations, debt service, and capital projects. The City also seeks a rate design study to analyze existing rate and fee structure and recommend revisions to existing rate structures if necessary, ensure our utility rates cover the true cost of providing electrical service to our customers. This includes but is not limited to: power purchase, distribution upgrade, O&M and equipment repair and replacement costs, overhead allocation, operating transfers, in-lieu franchise fees; maintaining appropriate working capital and cash balances as well as meeting debt service requirements, and capital improvements needs. Page 7 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals The project will consist of the following phases and that the results of each phase will be reviewed with City personnel prior to initiating work on the next phase. The City expects each phase to be the basis for the next. The City welcomes other approaches with the understanding that the overall goals will be met by such proposal. The Project phases of work are: I. Cost of Service Analysis at Current Rates ll. Rate Design Development PHASE 1. Cost of Service Analysis at Current Rates 1. Develop a comprehensive, flexible, user-friendly model for use in preparing the COS. The model should be developed in Microsoft Excel or have the ability for outputs and/or inputs to be in an Excel compatible format. The model must address the functionalization and classification of costs. The model would preferably allow operating and non-operating revenues, operating costs, capital improvement program plans and funding, and debt of service payment, while maintaining necessary reserve levels and guidelines, day cash on hand, debt service coverage, and other financial metrics. 2. Review Vernon latest electric COS and cost allocation assumptions and methodologies for appropriateness. Provide recommendation and rationale for any changes to assumptions and methodologies. 3. The COS methodology employed should clearly identify the following, if applicable: • Assess revenue needs for the next five-year planning period (2018 — 2022), to include adequate coverage for operations and maintenance, capital projects and program activities and debt service. Use actuals from FY2017 and adopted budget or projections provided by Vernon staff for FY2018 — FY2022. • Allocation of costs between various customer classes, customer charges, demand, energy, and special categories; • Customer cost weighting factors including associated rationale; • Costs associated with distributed generation, such as net-metered solar customers; • Analyze and discuss the fiscal impacts of the following: ➢ Renewable energy portfolio requirements, current status of compliance and future purchases as may be necessary ➢ Compliance with reserve balances, days cash on hand, and debt coverage requirements ➢ Net metering program ➢ Effect of Distributed Generation ➢ Electric Vehicle program Page 8 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals DELIVERABLES: The Consultant is to present the findings and conclusions of each task and resulting recommendations in the cost of service study final report in a clear and concise manner. The Consultant should provide the Excel model including spreadsheets used in the analysis and a written report summarizing Vernon revenue requirement by customer class. The Consultant will train City staff on updating the model with the expectation that Vernon staff will continue to update the model annually. The Consultant shall conduct a meeting with City staff to review and discuss the report to allow an opportunity for feedback and revisions. The Consultant shall be available to present final report to the City of Vernon City Council. PHASE ll. Rate Design Development 1. Consultant shall review current customers in each classification and how they are billed through the existing rate structure and determine whether the current rate structure is allocating costs appropriately or needs to be adjusted. 2. Consultant should perform rate design and document the rationale, including the alignment to the Cost of Service. 2. Consultant shall develop a Utility rate model to ensure that projected revenues from rates are adequate to cover the projected revenue requirement including transfer and debt service coverage. 3. Consultant shall review the City's financial information, including, but not limited to, reserve policy requirements, long term debt coverage requirements, capital planning requirements, electric distribution system costs, power purchase costs, power transmission and dispatch costs, administrative and customer service costs, and offsetting wholesale revenues, and determine the amounts that need to be built into the retail rate structure to ensure Vernon recovers its cost of providing electric services over a five year planning horizon by customer class. 4. Consultant shall recommend to the City the use of appropriate methodologies for allocating costs to the various classes of customers considering the financial structure of the City. Consultant shall provide a breakdown of said costs and show how they relate to providing electric services to the different customer classes over the five year planning horizon and what adjustments, if any, need to be made to the rates over time in order to meet operating revenue requirements and to comply with financial policies. 5. In considering proposed changes to the City's existing rate schedule, the Consultant shall: a) Consider the level of existing rates, expenses incurred in providing the service to the different customer classes and the general policies and objectives of the utility. b) Advise the City on the appropriateness of rate concepts that could be applied to its customers. c) Propose changes based on the premise that each customer class should be classified and served under a schedule that is based on the costs of serving that customer class. d) Assess the bill impacts on representative customers in each customer class and if applicable, formulate a phased-in plan to minimize rate shocks. e) Propose a mechanism minimizing cross-subsidization across ratepayer classes and among ratepayers of a single class. Page 9 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals f) Update the time of use (TOU) rates and rate periods for existing TOU customers and develop conceptual time-of-use rates for consideration by the electric utility for all their customer classifications. g) Review the existing City of Vernon TOU-V schedule and determine if it can be split into 2 or 3 schedules based on service voltage or customer demand. h) Develop a set of rules and rates for distributed energy resources customers consistent with the City's net energy metering program. i) Restructure the rates to fully account all costs and benefits associated with the increasing penetration of distributed energy resources. j) Review existing electric rules and tariffs including special rate schedule such as interruptible rates, EDR, RPS, pass-through rates, added facility charges. k) Provide a billing comparison between Vernon and other surrounding utilities. DELIVERABLES: The Consultant shall present the findings and conclusions of the tasks in the rate study final report in a clear and concise manner. The report should include detailed recommendations for changes, if any, to current practices and/or procedures. The report will also include a detailed, clear presentation and explanation of allocation of costs by rate structure, the required rate adjustments, and the impact of various rate design options on customer bills at various usage levels. The Consultant shall conduct meetings with City staff to review and discuss the report to allow an opportunity for feedback and revisions, and identify next steps. A copy of the report in Microsoft Word is also required. The excel spreadsheet shall also be provided with the ability to make modifications in inputs and assumptions. The Consultant shall train City staff on updating the model with the expectation that City staff will continue to update the model annually. After review by staff, the Consultant shall attend meetings, make presentations, and prepare answers to questions from City Council regarding the results of the study, as needed. It is expected that a series of public meetings will be scheduled to inform and educate customers and other stakeholders on the benefits of the recommended rate design. The Consultant shall attend, make presentations and answer questions of these meetings in an effort to obtain input and final approval for recommended rate adjustments. Page 10 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 5. SCHEDULE OF COMPLETION City of Vernon proposed schedule follows: Activity Date Release RFP July 13, 2017 Questions - August 7, 2017 RFP Response - August 15, 2017 RFP Evaluation Completed August 28, 2017 Notification of DecisionInitiation of Contract Negotiation witAugust 30, 2017 CouncilSuccessful Consultant(s) Contract City • • September 26, 2017 Final IRP Report January 22, 2018 Service/RateFinal Cost of Design Report April 16, 2018 6. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select one firm for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposals: 1. At least five (5) years professional experience conducting work in the area(s) proposed. 2. History of providing responsiveness and quality services. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial Page 11 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the firm in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 7. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit four (4) hard copies and one (1) electronic copy (via email to _ongarambe(cD-ci.vernon.ca.us_ of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Prominently label the package: "Integrated Resource Plan and/or Cost of Service and Rate Study Design" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Octavian Ngarambe, Resource Planner Page 12 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 4305 Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 5:00 p.m. on Tuesday, August 15, 2017. Late response will not be accepted. 5. If you have any questions about this RFP should be sent solely via email to ..ongarambe(a-)-ci.vernon.ca.us.. Monday, August 7, 2017 on or before 5:00 p.m. is the deadline to submit any questions regarding the RFP. Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to the extent the City is aware of them. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be Page 13 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected firm shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. References • List 3-5 project references, including contact names and telephone numbers for projects of comparable size and scope performed by the key personnel listed above. To the extent any references for individual employees of either the Consultant are different from those noted in the previous section, they should also be provided. • Provide a current client list including jurisdiction name, contact name, and telephone number, and length of engagement. • Provide an example of a recently completed IRP/and rate study. I. Work Summary Provide a narrative description summarizing the expected tasks and activities, with a description of the analysis, reports and participation, which the Consultant expects to provide pertaining to that activity. This would include a summary of the steps to be completed to accomplish the scope of work, approaches to the project, and your firm's understanding of the project requirements. J. Work Plan and Project Schedule The total contract price should be based upon the work plan Consultant submits with the Proposal. The work plan should demonstrate the Consultant's understanding of the scope of work. The work plan will be used as a written document that City staff and the Consultant can refer to throughout the project. The project schedule shall include the estimated time required to complete each step in the scope of work, including estimated start and completion dates (non- binding). The number of hours allocated to each individual by each task should be indicated with a project schedule type display showing each activity in the proposed work plan. A summary time estimate will work closely with the Consultant throughout the engagement in order to assess the project's progress and status. The plan must include an appropriate number of kick-off and regular meetings, information gathering and disseminating sessions, and updates with key Vernon personnel to understand and discuss the City's issues and concerns, become acquainted with key staff, and identify persons who will provide data. Ensure a sufficient number of meetings with City staff to provide staff with preliminary findings and strategies based upon the available data. This shall include conducting "reality checks" with staff and feedback regarding the projects, phasing, intentions, resource strategy options, rate suggestions, revenue sources, Page 14 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals and the like that would be acceptable to field staff and elected officials. Consultant shall meet with staff to identify potential changes to projects and/or phasing of projects, to present findings, to demonstrate the effect(s) of various scenarios on the comprehensive plan and rate structures, and to obtain a consensus on the scenario(s) to present to the City Council. K. City-Furnished Documentation The City will assist with data collection whenever possible. Appropriate City staff will be made available for interviews and to gather data the Consultant determines is essential to complete the integrated resource plan, cost of service analysis, rate design models, and final reports. Proposal must be clear in addressing what the City will be expected to assist with. Therefore, provide a description of required documentation and estimated time and effort required by City Staff to assist in the preparation of the work plan and study. L. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion." (Copy attached as Exhibit A). 8. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its timeliness. 9. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. Page 15 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto is subject to the California Public Records Act and may be subject to review in the event of an audit. 10. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST. The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 11. LIVING WAGE ORDINANCE The selected consultant shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. The consultant shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form contract, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 12. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. Page 16 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION Page 17 of 18 June 2017 AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is (Insert"Sole Owner",'Partner","President,"Secretary",or other proper title) of (Insert name of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct By: Title: Date: March 2013 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals EXHIBIT B STANDARD FORM CONTRACT Page 18 of 18 June 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] COVER PAGE Contractor: [insert name of contractor] Responsible Principal of Contractor: [insert name, title] Notice Information - Contractor: [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 10.20 June 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor"). The City and Contractor agree as follows: 1.0 .EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES.. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated , Exhibit"A", and Contractor's proposal to the City ("Proposal") dated , Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL.. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 2 June 2017 4.0 TERM.. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit 5.0 COMPENSATION AND FEES.. 5A Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit"C" attached hereto and incorporated herein by reference. 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed [state amount] without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. 3 June 2017 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, "extra work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit"C," if the extra work has been approved by the City. 5.6 .Licenses, Permits, Fees. and Assessments.. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 4 June 2017 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. 7.0 CHANGE ORDERSThe Director of the Department of Public Utilities shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed [insert amount]. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or 5 June 2017 omissions of Contractor hereunder, or arising from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees. 9.2 .INSURANCE.. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.2.1 Automobile Liability with minimum limits of at least $1,000,000, including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least$1,000,000 per occurrence awitha combined aggregate of$2,000,000 written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.2.4 Professional Errors and Omissions coverage of at least $2,000,000. 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State 6 June 2017 of California; or (ii) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a "waiver"form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.2.7 Insurance shall be placed with insurers with a Best's rating of at least A- VIII. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or(c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 7 June 2017 10.0 .GENERAL TERMS AND CONDITIONS. 10.1 INDEPENDENT CONTRACTOR. 10.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 10.2 .CONTRACTOR NOT AGENT.. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, 8 June 2017 floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 10.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness. 10.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 10.6 .WAIVER. The City's waiver of any term, condition, breach, or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. 9 June 2017 10.7 SUCCESSORS.. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 10.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS.. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEY'S FEES.. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. 10.11 INTERPRETATION. 10.11.1 Applicable Law. This Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties 10 June 2017 regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral). 10.11.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 10.11.4 Severability.. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 10.11.5 Order of Precedence.. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 10.11.8 Duplicate Originals.. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 .Construction.. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 10.12 .TIME OF ESSENCE.. Time is strictly of the essence of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR.. The Contractor hereby represents 11 June 2017 and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES.. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 10.15 NOTICES.. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Attention: 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 12 June 2017 10.16 NO THIRD PARTY RIGHTS.. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement. 10.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 10.18 DEFAULT.. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 10.19 .TERMINATION FOR CAUSE..Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of 13 June 2017 money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 10.19.1 Additional Services.. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. 10.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of 14 June 2017 Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 10.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 ENFORCEMENT OF WAGE AND HOUR LAWS_ Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 10.24 LIVING WAGES.Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. 10.25 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". 15 June 2017 [Signatures Begin on Next Page]. 16 June 2017 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City [CONTRACTOR'S NAME, a [State and California municipal corporation incorporated in] corporation By: By: Carlos Fandino, City Administrator Name: Title: ATTEST: By: Maria E. Ayala, City Clerk Name: Title: APPROVED AS TO FORM: Hema Patel, City Attorney 17 June 2017 EXHIBIT A REQUEST FOR PROPOSALS 18 June 2017 EXHIBIT B PROPOSAL 19 June 2017 EXHIBIT C SCHEDULE 20 June 2017 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages.: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation.: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 21 June 2011 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 22 June 2017 EXHIBIT B PROPOSAL 19 September 2017 PROPOSAL August 15, 2017 °� � COST OF SERVICE, AND RATE DESIGN a. � STU DY City of Vernon, CA { cr �r+ `� low MAW O Y it . ./••i�/rI r,.. TA . wa �tllill PREPARED BY: NewGen . & Solutions ECONOMICS STRATEGY STAKEHOLDERS SLISiAINABILITY www.newgenstrategies.net i 225 Union Boulevard i Suite 305 p Solutions Lakewood, CO 80228 Office: (720) 633-9514 016 August 15, 2017 City of Vernon Attn: Octavian Ngarambe Resource Planner 4305 Santa Fe Avenue Vernon, CA 90058 Subject: City of Vernon Cost of Service and Rate Design Study RFP Dear Mr. Ngarambe: NewGen Strategies and Solutions, LLC (NewGen), is submitting this proposal to provide Cost of Service and Rate Design services to the City of Vernon (City) in response to the Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposal (RFP). The proposed consulting team shares an acute appreciation of the challenges facing the City as it completes its Cost of Service (COS) and Rate Study (Study). We believe our approach is unique because of its focus on four primary areas: ■ NewGen's familiarity and knowledge of the unique operating aspects of the City's electric system leads to an efficient Study. Leveraging our past experience in 2015 with the Distributed Generation Impact Study and Power Engineers, NewGen has unique insight and knowledge regarding the City's system that provides efficiencies in our proposal and Study. NewGen understands the unique operating characteristics of the City's system, high amount of commercial customers, high load factor system, impacts of distributed energy resources (DER) on the distribution system, and DER sensitivity on the financial performance of the utility. • Nationally recognized rate expertise and market leading, dynamic models ensure defensibility. Combining our nationally recognized rate expertise with robust and dynamic modeling capabilities produces a comprehensive analysis and helps to ensure and defend the eventual Study recommendations. Our team includes nationally recognized experts in COS and rate making in the public power market. NewGen has also participated and led the Solar Future Arizona stakeholder workshops, and our staff developed and have led the EUCI Cost of Service and Rate Making educational course for utility professionals and regulators for more than 10 years. ■ NewGen's deep COS and rate design expertise is reflected in our innovative and easy-to-use models and tools for clients. Our models often utilize dynamic and easy-to-use visual dashboards to allow for immediate and comprehensive scenario analysis. These scenario analyses may benefit the City in evaluating the COS impacts of varying levels of capital investments or system renewals, financing structures, or the use / increase in Economics I Strategy I Stakeholders Sustainability www.newgenstrategies.net City of Vernon Attn: Octavian Ngarambe August 15, 2017 reserve balances. NewGen also has a proven track record of transitioning our COS, rate, and financial models to our clients for their use. Clients such as Benton PUD, Keys Energy, CPS Energy, Lubbock Power and Light, and Alameda Municipal Power have each used NewGen models for multiple years for their own financial analyses and rate making. ■ Our integrated COS, stakeholder, and rate strategy expertise supports public endorsement. Our team includes a project manager with proven and integrated stakeholder, rate strategy, and COS experience. Understanding the inter-relationships and integrated nature of COS, rate strategy-related measures (e.g. distributed energy resources (DER) support, demand response, time dependent rates, and energy efficiency programs), and stakeholder engagement allows our team to optimize and fully leverage rate making and the COS process. Integrating the community's values while reinforcing the City's strategy and principles in a COS supports broader stakeholder acceptance and endorsement. The City will benefit from our team's lessons learned and best practices gained from previous COS and stakeholder engagements. NewGen's proposal shall remain valid for a period of not less than ninety(90) days from the date of submittal. We do not intend to use subcontractors on this assignment. Our office and contact information throughout the proposal process is as follows: Business Entity Contact NewGen Strategies and Solutions Tony Georgis—President,Energy Practice 225 Union Blvd., Suite 305 225 Union Blvd., Suite 305 Lakewood,CO 80228 Lakewood,CO 80228 720-633-9496 720-633-9496 Our objective is to support the City in the successful completion of this Study. In addition to working with the City in the past, our combined Project Team has worked for many public power entities in California including: Burbank Water and Power, Glendale Water and Power, Merced Irrigation District, Riverside Public Utilities, Alameda Municipal Power, City of Anaheim, City of Palo Alto Utilities, and Redding Electric Utilities. Nationally, NewGen has provided financial and COS services for several leading public power utilities such as Austin Energy, CPS Energy, Lafayette Utilities System, Keys Energy, and Santee Cooper. If you have questions concerning this proposal or would like additional information, please contact me at (720) 633-9496 or tgeorgis@newgenstrategies.net. Sincerely, NewGen Str tegies and Solutions, LLC -7;44 1117 Tony Georgis President, Energy Practice _ -- ------- - - —-------------------- 2 Thoughtful Decision Making for Uncertain Times CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY Table of Contents INTRODUCTION............................................................................................................................... 1 GENERALSCOPE OF WORK............................................................................................................. 1 Project Understanding and Approach......................................................................................... 1 WORKPLAN..................................................................................................................................... 3 Phase 1—Cost of Service Analysis at Current Rates................................................................... 3 Task 1—Initiate Project, Data Request, and Kick-off Meeting................................................ 3 Task 2—Revenue Requirement Analysis.................................................................................4 Task3—Cost of Service ........................................................................................................... 6 Phase 2—Rate Design Development ........................................................................................ 10 Task4—Rate Design.............................................................................................................. 10 Task 5—Present Study Results and Draft/Final Reports....................................................... 14 FEESAND COSTS ........................................................................................................................... 15 ABILITY OF THE PROPOSER TO PERFORM..................................................................................... 16 FirmBackground ....................................................................................................................... 16 ProjectTeam ............................................................................................................................. 17 ProjectExperience..................................................................................................................... 17 REFERENCES..................................................................................................................................20 WORKSUMMARY .........................................................................................................................21 WORK PLAN AND PROJECT SCHEDULE......................................................................................... 21 CITY-FURNISHED DOCUMENTATION ............................................................................................ 21 AFFIDAVIT OF NON-COLLUSION ................................................................................................... 21 APPENDIX A—RESUMES APPENDIX B—CLIENT LIST APPENDIX C—WORK SAMPLES APPENDIX D—AFFIDAVIT OF NON-COLLUSION Economics I Strategy I Stakeholders I Sustainability www.newgenstrategies.net CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY INTRODUCTION The NewGen Strategies and Solutions, LLC (NewGen) team views cost of service (COS) and rate design studies as a strategic effort. We strive to design utility rates that send pricing signals aligned with the community's values, external stakeholder committees, and the utility's programs, policies, and objectives. NewGen closely collaborates with our clients so that the results and recommendations of the project reflect the values of your utility and the community it serves. Our team will advise the City of Vernon (City) on current industry trends, issues, and benchmarks while working together to determine the proper path forward in consideration of your cost structure,your values,and your customer expectations. We have extensive experience engaging, facilitating, and educating stakeholders. Our COS-related stakeholder experience includes educating and training customers and policy makers, facilitating boards and management teams, and conducting targeted and open public meetings. Our ability to communicate complex technical issues in an easy to understand manner facilitates strategic and financial decisions, develops a common understanding among stakeholders, and builds support for the utility's direction. GENERAL SCOPE OF WORK Project Understanding and Approach NewGen's approach to the Cost of Service and Rate Design Study(Study)will facilitate and deliver a flexible and dynamic roadmap for rates aligned with the City's overarching strategy,supporting financial goals and policies, and stakeholder concerns as shown in the attached graphic. Leverage Innovative and Easy-to-Use Prior Experience with Vernon Gas& Models to Deliver More for Less Electric Ensures integrated Rate Strategy innovative models provide dynamic and Previously worked with Vernon�n p y support of the Distributed Generation instant rate and customer bill impact Impact Study analyses Roadmap for Rates I Led nationally recognized solar DE/net Achieving Financial Proven transfer of models to client for metering rate workshop with APS Policies,Utility Strategy, future use and updates Developed EUCI COS and Rate Course Tailored and non-proprietary tools integrated Rate,Stakeholder,and Strategy Expertise Supports Public Endorsement and implementation Project Manager and Asst.Project Manager have Integrated Utility Stakeholder, COS,and Strategic Planning Expertise Recent market leading experience with successful integrated stakeholder and COS projects Thoughtful Decision Making for Uncertain Times 1 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Nationally Recognized Rate Expertise and Prior Experience with Vernon Gas and Electric Ensures Integrated Rate Strategy NewGen's team members were a sub consultant to Power Engineers for the 2015 Distributed Generation Impact Study. NewGen led the financial analysis study regarding distributed generation penetration on the City's system under the California regulatory requirement of 5% of system load. To support this effort, NewGen also completed a COS and rate study for the project. This prior experience with the City places NewGen in the unique position of delivering a more efficient Study, leveraging the knowledge gained and updating/enhancing previously developed models. Additionally, the Project Team includes nationally recognized experts in COS and rate making in the public power market. Several of our staff included in the proposal routinely provide expert witness testimony on behalf of public power clients. In addition, NewGen staff have developed and taught numerous classes on COS and rate design methodology, including developing the annual EUCI Cost of Service and Rate Design course. Furthermore, NewGen recently participated and led stakeholder workshops in Arizona focused on the impacts of net metering, prudent rate making, and COS fundamentals in support of evaluating solar rooftop distributed energy and fixed/variable cost recovery and solar/non-solar customer subsidization issues. The Solar Future Arizona workshops were widely regarded as a national and market leading discussion of net metering implementation and rooftop solar impacts. The workshops were implemented in support of a recent Arizona Corporation Commission order with Arizona Public Service. Leverage Innovative and Easy-to-Use Models to Deliver More for Less NewGen has leveraged our deep COS and rate design expertise to create comprehensive, innovative, and easy-to-use models and tools. Combining our deep rate-related expertise with our modeling capabilities, allows us to deliver more to clients for less. For example, NewGen recently created a dynamic rate making model specifically targeted at the growing availability of advanced metering infrastructure (AMI) related customer data (e.g., 15-min meter reads). This new rate model utilizes a creative and easy-to-use visual dashboard to allow for immediate and comprehensive time differentiated rate design evaluation. The dashboard allows users to seamlessly select multiple options and variables, such as hours to include 'On-peak', months to include in seasonal summer periods and rate differentials, and immediately see the revenue impacts, customer load shape changes, and system load reduction benefits (e.g., load shifting). In addition, our COS model and methodologies have been refined over the past 10 years of use and allow for easy user entry, allocation factor selections, and scenario evaluation of COS results for customer classes. All of our models and tools are tailored specifically to each client we serve and facilitate presentations and demonstrations to boards, councils, and commissions. NewGen plans on leveraging our past models, but updating and enhancing them with our recent market insights and continued refinements. Integrated Rate,Stakeholder,and Strategy Expertise Supports Public Endorsement and Implementation The Project Team includes staff with integrated stakeholder, strategy, and COS experience. Understanding the inter-relationships and integrated nature of COS, strategic planning, and Thoughtful Decision Making for Uncertain Times 2 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP stakeholder engagement allows our team to optimize and fully leverage rate making and the COS process. Integrating the community's and City's values, while reinforcing overarching strategic planning guidance in a COS, supports broader stakeholder acceptance and endorsement. The City will benefit from our team's lessons learned and best practices gained from previous COS and stakeholder projects. These lessons and best practices will support broader public endorsement and implementation of a new rate strategy. This COS and rate design experience includes recent and similar projects for Austin Energy, Tri-State Generation and Transmission Association, Inc., and Fort Collins Utilities. WORK PLAN NewGen proposes the following scope of work to accomplish the services requested by the City. The scope of work is split into two Phases as described in the RFP, namely; ■ Phase 1—Cost of Service Analysis at Current Rates ■ Phase 2—Rate Design Development Phase 1 — Cost of Service Analysis at Current Rates Task 1 — Initiate Project, Data Request, and Kick-off Meeting Upon authorization to proceed NewGen will begin gathering detailed information related to the City's operations and financials to support the Study, and development of a rate strategy and policy document. NewGen will provide a detailed and specific data request to the City to gather the required information. NewGen will review the data and identify any potential gaps in information or additional data required for the initial development financial forecast and COS. Typically, this data includes items such as: ■ The City's historical financial statements and proposed annual budgets ■ Utility operating characteristics (e.g., customers, asset data, load profiles, etc.) ■ Customer billing determinants (e.g., monthly billing database summary by class — customer counts, customer demand, and energy use) ■ Stakeholder engagement or key account engagement and communication tools ■ Long-term capital plans ■ Review the City's existing rate strategy developed in the 2015 Distributed Generation Impacts Study and any additional financial metrics to be included in the Study. ■ Other financial, asset, and operating data or decisions After reviewing the initial data for the financial forecast, COS, and Study, NewGen will schedule a kick-off meeting. The purpose of the meeting is to discuss the Study;review initial data request, 2015 rate strategy, and policy elements; and identify any gaps or issues impacting the financial model and COS development. The kick-off meeting will also serve to review the existing or initial Thoughtful Decision Making for Uncertain Times 3 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP City rate policies as noted in the RFP and develop the high-level framework of a rate strategy for this Study. Deliverables: ■ Data request ■ On-site kick-off meeting ■ Review and update of the City's 2015 Rate Strategy Task 2— Revenue Requirement Analysis Using the City's budget accounts, expenses, and capital data gathered as part of Task 1, NewGen will create an electric utility revenue requirement for a projected five-year planning period (2018—2022). The revenue requirement will reflect both internal and external influences and all costs to serve customers. Internal influences would include requirements mandated by the City, such as the City's financial policies or Utility Tax. External influences would include requirements mandated by entities outside the City, such as bond covenants or regulatory compliance (including renewable portfolio requirements). NewGen will review the revenue requirement with City staff to assess and quantify potential known and measurable adjustments that should be made to any accounts or utility operations in order to make them reflective of reasonable recurring costs and revenues. NewGen will create a single Test Year to serve as the basis for the financial model projections and COS. To properly develop the revenue requirement, NewGen will develop a five-year financial forecast used to determine the adequacy of revenues over the forecast period. This forecast and related scenario analysis will provide the City the ability to evaluate multiple capital plan options, changes in generation requirements,and optimal financing structures. The financial forecast will include projections of annual revenues under existing rates, as well as annual revenue requirement, including operating expenses, capital requirements, debt service requirements, and reserve requirements, by year for the forecast period. This will allow NewGen to determine whether the City's current electric rates will provide adequate revenues to meet utility operating and capital costs for the five-year study period. The financial forecast will identify the overall change in revenue required to provide for adequate funding of capital improvement programs, recurring annual operating and capital expenditures, debt service requirements, and to maintain sufficient cash balances and capital reserves. NewGen's financial forecast will also include the ability to perform scenario analysis regarding the relationship of annual rate changes, frequency of rate changes, mix of debt to cash funding of capital projects, and prioritizing capital projects. The financial model will include both data summary and visual dashboards for instantaneously running scenarios and evaluating the results. The scenario analysis will inform and optimize decisions regarding the magnitude and frequency of rate increases with debt issuances. The figures below illustrate the dashboards and reporting capabilities of NewGen's financial forecast models. Thoughtful Decision Making for Uncertain Times 4 i CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP SccrliriO Sflilyil¢� co'np,rnsghi Financial Metrics and KPI reporting �.: . • - — --- A ..4.+.+Ir..tr.�w tr .w tY .0 . Y[w..aw....l.+a.•w ror tw tw to u A c wwnrPmMowx tt c—w.w•,....rM t.�. rs wn .rw aN A a tY•.r+ t n t a. A an�rr.w•r..tr1641 w' r' w' A WrrIM•.1.�•.r•rww. rY !11• INr M• • � ( � 1 I 4 M t • . v _.. F wllww.ol { Owk korwio Con+yro r .. ! " 7 Uifrrrncr inwn(Q} PMtiknt1ychikn � ,.� variahles•seleel t•� cosv%cw"M aga co%t aY/UNf 110N N ^t Ir 11 wtr ry y� r• �� The revenue requirement and financial forecast model are Microsoft Excel-based models and will be delivered to the City as a part of the Study. NewGen will review the preliminary forecast results with City staff to assess the estimated impacts on rates and the cash flow of the electric utility. NewGen will make revisions to the forecast, as appropriate, to reflect comments from City staff and/or Commission and prepare the final cash flow analysis. Deliverables: ■ Revenue requirement and Test Year ■ Five-Year financial forecast with revenue adequacy and scenario analysis (up to five scenarios) Thoughtful Decision Making for Uncertain Times S CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Task 3—Cost of Service After developing the revenue requirement in Task 2,there are three key steps to completing the COS: 1) unbundle or functionalize the revenue requirement into utility functions (e.g., generation, transmission, distribution, and customer); 2) classify costs (e.g., energy, demand, and customer); and 3) allocate the costs to the customer classes. Included throughout the three steps of the COS is the creation of allocation factors to support the allocation of shared costs to different functions or classifications and the eventual customer class allocation factors to allocate the final costs of service to each customer class. In order to ensure that revenue is recovering the full COS rendered, all sources of revenue will be reviewed. In addition, if NewGen's review of customer classes identifies opportunities for customer class consolidations or reconfigurations,we will work with the City to develop revised customer classes that optimize the City's ability to equitably pair classes with appropriate rate structures. This will require billing determinants (e.g., combined class peak demand, energy use, and customer counts)to be translated from the existing customer classes to the revised customer classes. This is an activity NewGen has performed many times in prior studies and we will be able to work with City staff to accomplish this conversion for the City, if needed. The model will use basic Microsoft Excel tools such as reference tables, pull down menus, and lists for inputs and adjusting selections, such as allocation methodologies or specific allocators. The COS model will be composed of three interconnected components, which are graphically depicted below and followed by short discussions on each component. Component A Component B Component C Revenue Requirement I I ! O: I bt Service Transfers/Taxes ♦ 1 # CapitalNet Margin Total Revenue Expenditures # ! Requirement # ! L — — — — — — _ — — -- — -4� Cost of Service Model Thoughtful Decision Making for Uncertain Times 6 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Component A—functional Unbundling Functional unbundling provides detailed descriptions of the utility's revenue requirement by core utility ,,:,g:p»L"1KM • function. Accounting information is generally w'=== =X`i" . ;4_1 ,e•»»rx t»ticn•Kttuac••t, wao provided by Federal Energy Regulatory Commission s»:•,..• Select furictbn/alt«atbn �� r'Tsa rs •+u Mns W t1:!N3: aM (FERC) account number. For each item, if adjusted, """"'" tanorstoreathaccount ., the amount of the adjustment is identified with an associated work paper. Once the detailed Test Year n,T1t1/OA ten YJ»enw� revenue requirement has been established the MI>»I RCf.••CM•L•iKK1IN "I amount is assigned to the production, transmission __aYL••t'Yt1,u i •t'a1t,a>,••nwwu•anu•n distribution, and customer functions. Assignments are made either through direct assignments or other allocation methodology. At the conclusion of the Component A analyses,the revenue requirement is functionalized. An illustration of the revenue requirement and functional unbundling is included in the above graphic. Component B—Sub-functional Unbundling Sub-functionalizing the production, transmission, distribution, and customer functions developed in Component A provides additional detail and cost causality to the City's revenue requirement. Additionally, costs are classified as demand-related, energy-related, customer-related, or a direct assignment. Similar to functionalization, sub-functionalization is accomplished either through direct assignments or other allocation methodology. Component B analyses result in the City's revenue requirement expressed on a sub-functional basis for each cost classification (e.g., production demand costs or production energy costs). The graphic below provides an illustration of the COS sub-functionalization and classification of costs. COS Demo-DistributIon Function onrti ---o.uriy».w_---_ •-- T.�e Y.`v^ Abor.0an,9.r I- PAC omtw"PAC Revenue RetpTirenlent t:.11iulatiun Operation and Mointenanre Expenses Adminlattstion •7111 8002 PAY.PERM FULL TIME SALARY 490.006 Ott Co,t C>ru 7W 91,211 101,76t •7111 '' PAY. TN RSA tN M() 0 11,M, Ll yJu 2.25A 2.42 •Jilt 149 a,t CW.Low 211 31 Select classification or •7112 i,873 a,t+b•�uea. 35l 3i9 :111 allocation for each account 0 0 0 n 11 within the functions 0 o,tca a 0 0 •lilt IM111 0 NA 0 0 T 711 a009 PAKEDUCATION INCENIM 0 NA 0 0 Till 401 BEN.RETIROJENT TMRS $0.117 Ott Cott Chit tabor 15,244 10.6+2 W110ITY I— Mt Component C—Allocated Cost of Service Using the information developed in Component B,the Test Year sub-functionalized and classified revenue requirement is allocated to each of the proposed customer classes using various customer class allocation methodologies. These allocation methodologies or allocators are developed in alignment with the cost classification. For example, production demand costs are Thoughtful Decision Making for Uncertain Times 7 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP allocated utilizing a customer class's contributions to system demand, such as four-coincident peak (4CP), and production energy costs are allocated utilizing a customer class's contribution to net energy for load. An illustration of the COS model allocations to customer classes is provided below. OeTmut.SveaicssntacGlcutnloo __.v__._____T..__—_ s q..ono.aoa rrasaAw.cry...., Select allocation facton . and develop COS for exhclm it, w � uwt.m .�•�••..• ;•+n:» •::sot ma» t>•=•so �, ^,a ix wtaMn matt »tss low KMii sou totes team sssr Mfn H i..mHe Classified colts we ntn a sw swtw t e: » fUT1Ilaliled and iflacated t0 :f taw naa.ase. custonw class It li TlMrntttWt Work Papers Work Papers for supporting adjustments and THE NEWGEN COS AND RATE MODELS ARE allocations used in Components A, B,and C are included MICROSOFT EXCEL BASED AND HAVE BEEN in the model for reference. These Work Papers SPECIFICALLY DESIGNED AND TAILORED TO generally include supporting calculations, such as INSTANTLY MANAGE,MANIPULATE, customer class contributions to system load and peak EVALUATE,AND REPORT ON THE LARGE demands, minimum system calculations for customer AMOUNTS OF DATA NOW AVAILABLE and demand classifications of distribution costs, and WITH AMI SYSTEMS. asset related data, such as transformer inventory or NEWGEN AND OUR MODELS ARE CAPABLE miles of lines and/or purchased power cost breakdown. OF DESIGNING A TOU RATE OPTION AND ILLUSTRATING THE LOAD AND REVENUE In the COS model, one of the key Work Papers will IMPACTS IN FRONT OF A GOVERNING summarize the customer consumption and billing data. BODY,SUCH AS THE CITY COMMISSION. This Work Paper will comprehensively and accurately calculate customer class consumption characteristics and contributions to monthly system peak demands. To properly evaluate the time-of-use (TOU) classes and specifically how segments within the TOU-V class may contribute differently to the COS results, the Study must have detailed or hourly data from AMI or interval meters for a sample or all customers within the class. NewGen has extensive experience manipulating large AMI data sets and ensuring their validity and accuracy. If or where detailed load research or AMI data is unavailable, NewGen will rely on past or new proxy data such as other City, utility, or publicly available load profiles. A draft COS framework and model will be provided and reviewed with City staff for initial feedback and approval prior to fully developing the COS model. NewGen will hold a review meeting with City staff to review the draft results of the COS model including individual customer class COS. Feedback from the meeting, and any modifications requested by the City, will be integrated into the final COS results,as appropriate. This process also ensures City staff is familiar with all models prior to the final transition of the models to the City. NewGen has also included a more formal staff training meeting prior to the transition of the COS model. The training will Thoughtful Decision Making for Uncertain Times 8 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP educate,familiarize,and train staff on the creation,update,and operation of the model for future use by the City. Model Instructions and Use NewGen integrates and embeds instructions and automated QA/QC processes in our COS and rate models. Our models include automated checking of calculations and formulas that ensure the model is operating properly and concisely notifies users if the model was updated or if any errors are present. Instructions are included as 'pop-up' windows and overall graphics to guide updates by City staff after completion of the Study. The instructions are included within each tab or functional area of the model to remind and guide future users of the data, calculations, and purpose of each tab or area in the model. NewGen has a significant track record of our clients adopting and using our models after project completion, including CPS Energy, Lubbock Power and Light, Benton PUD,Alameda Municipal Power, and Keys Energy. Examples of the instructions and automated checking of calculations are included in the following graphics. A B F Automated QA/QC O&M Manaip?nu:nt System including calculation SOIUf10t1i check of model,staff r responsible for update F ue+«.Nau.A,wN.o+u uwupdmADr Nr7/rD36itIB and date. + .. Nc+e en oo.OiY Shea• tel W nrun Yw W 0B+1 Meets-._-_ lM+ ._-.._.__..-.______---_-_-. u/N1M&_41MID4t TV I NgNiKY MOb•+S oN e6 1'—Wno+a tM 100""P—A: %m— Ad+NewM<oav + D + D N to 10 IrtNr Be+d Sr ti � irt�`fQ{ry'�,�C'tnent f-4rL•tian w a+«...r.n resA...+ery r Oyermrl+a and MoG+renonat F]pewaes tl � .MadKtlOn cu eR+u*wi ++ i 0—. 1 !tr.�.wrw.+ewwr..ar+a.etw.r.. • u..ys 'Tr�rEOraWt4irr.rfdM�eYw ':►�PT4q+r++M+rertMOP+Ls 2lierwrMerew+a�ra.r etrl�lel�fYM „� �+ewW r�Mww�rC«�6 F Pop-up windows on all ',a.rr+oa+rr.r•yaerar+�rtrrrrr tabs to facilitate and i e.�.w.l►.aw�la�>t.Nrrr..n r e. .a.. w+rrrrw+n.snr+e.Ne des rw rr instruct the user on updating the model. t 1t Cb.e le Deliverables: ■ COS model and COS derived rates; evaluation of the TOUN class as three segments ■ Onsite Draft COS results review meeting with staff ■ Periodic COS model coordination and collaboration meetings via web conference ■ COS model embedded instructions and training webinar for future use of the COS by staff Thoughtful Decision Making for Uncertain Times 9 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Phase 2 — Rate Design Development Task 4— Rate Design The next step in the Study is developing the rate design model and recommended rates. Task 4 includes reviewing existing base rates and fuel pass-through rates for each customer class, and confirming the City's ability to fully recover the revenue requirement through such rates, including transfer payments, debt service, and maintenance of all identified financial metrics. Rates will be designed to follow and support the Rate Strategy Document and, to the extent practical, align with the COS results. Furthermore, new rate structures or policies (e.g., unbundled rates, energy efficiency tiered rates, or residential demand rates) identified in the Rate Strategy Document will also be integrated into the rate design model. After developing the recommended rates,the revenue adequacy of the new rates will be proven by forecasting and calculating the annual rate revenue generated for each customer class and comparing it to the class and total system COS for the five-year forecast period. Average bills and related impacts for each class will automatically be calculated to compare existing, COS-based, and recommended new rates. The results of the initial rate design will be presented and discussed with City staff. Based on feedback from the rate review, NewGen will revise or provide optional or alternative rate design scenarios, such as a phase-in of rate changes or adjustments in customer/demand/energy rate components. NewGen is committed to satisfying the City's needs and goals with regard to rates and will ensure the recommended rates reflect industry standards and achieve the City's objectives. Included in Task 4, and the NewGen rate design model, is additional billing database rate impact analyses and modeling to provide a comprehensive and complete view of all rate impacts to customers. We recommend additional billing and customer impact analyses because the Study may identify varying levels of customer rate changes and structural changes to existing rates (e.g., base and pass-through, TOU rates, inclining block, etc.). A detailed customer impact analysis would provide detailed information on rate impacts for all classes and individual customers and support the broader communication, understanding and endorsement of the Study results and potential rate changes. This billing database and impact analysis includes customer class rate curves based on load factors for each class as well as individual customer class bill impacts(e.g., histograms). Finally,the bill impact model will include comparisons to rates of two or three neighboring utilities against which the City wishes to measure competitiveness of its electric rates. The following figures illustrate NewGen's modeling capabilities and visual dashboards we generally incorporate into our COS and rate design models and past deliverables for the City. These dashboards were designed to manage, manipulate,and evaluate the large amounts of data for each customer within customer classes. These dashboards also provide the capability to instantly evaluate scenarios and review the results and impacts of the scenarios with stakeholders. Thoughtful Decision Making for Uncertain Times 10 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP An illustration of our interactive rate modeling dashboard is included with more detailed explanations of the components, functionality and flexibility embedded in the model. The COS and rate design models will be tailored to meet the City's needs and are flexible to incorporate additional metrics, functionality, inputs, or graphics. • b _SUM(M6:Mt1) 0 C 0 E K G « 1 J K E M N 0 G 9 GSQ CIW.nr Ch./al t�,9 i1U 00 3K2 t6J00 S69J 150 k+:0:0 S92S1� kl'S 31 ft322.35: 305 — Design phases and each Ewa)Err9.1AW111 T90N.535 SORB SNJN.323 f0IM W186M O3 W2 SWM44 G}M D—W F.".*1NW1 VAM NA to t955o0 S32V937 S9M $3237337 S2M. 1320.937 Z rate component D—WW lW.s M Vik9 "OW 17.MVA tlttM OMSK SG= 959992 $W" t6.73T.9a 1907 SIDMZ (customer,demand, s.ew.f B...P.0- no&' SAMM to msmmMWINS to¢ so fI2OLS t" i uT13 $1.77c 11AWS Tors C.r AO.➢b—* in M energy charges),g ),then T. !�7 T. sx bu, compare to the COS ,w, CDs-* ;t C results and current rates. 3,:'i r2 OV3 13u23J2 T Olt.wwa2r2uaJW •tu, .tdt3 13% •12 11% at 40% .Nan CDS ,2T'l' 3535 •lox' Z OS'/.' t70 15X &= 25% Gil RabeCw.•OtNal♦1.<atWSartre Rnttlh GS2Rafetune P WMCWof WAek-JAs s9t+ t.>ao 'xv —to«u»Kr.4....yl tiau —I.rrw u.WtuKl I.ry w Me KON t UCO —1•^'t"•M.KOU t hw i Instantly sLheonthly billing impae newrates for eomerin histom. E saa � o� Ssa sou ■ - IT t� :ar to sT t.T. 4Y1 >J, !d• for ti+! 1.. 1•/. 40. Jon IN 4T 1J M n 131 la.t lrfa lwG/«[a 3E&~f ffM" ® GS'2 +®®� 8e1XhW rking &lung FWrc . / NewGen Rate Model Visual Dashboard and Scenario Capabilities NewGen proposes to create an hourly TOU rate model for the larger TOUN and TOU-G customer classes for the City. This TOU model allows for instant analysis of class load profiles and system impacts from changing pricing signals and TOU periods. Some of the key components of the dashboard include time differentiated rate structure selections, annual and customer monthly existing load profiles, resulting customer and system load profile changes resulting from the rate selections, customer class monthly billing impacts, and the load duration curve changes. As seen below, the dashboard allows the user to select the months to displace customer class monthly load profiles. This allows the user to identify the on-peak and off-peak hourly periods and visually see when and to what extent each customer class contributes to the system load peak. These graphics and ability to select options (e.g.,June—August vs.June—September summer months) support the development of optimal TOU rates. The innovative model also allows users/Councils to quickly and dynamically evaluate additional alternative rates such as decoupling revenue from energy sales/demand, energy efficiency rates, residential demand, and other rates leveraging hourly data available from AMI or interval meters. Thoughtful Decision Making for Uncertain Times 11 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Annual system load profile and monthly customer class profile TOU/Time Differentiated Rate — structure selections J Customer class and system load impacts of time differentiated rate, customer class monthly billing impacts Load duration curve and resulting rate impacts and shifting NewGen Hourly TOU Rate Model Visual Dashboard and Scenario Capabilities To optimally develop and understand the impacts of a time differentiated rate, the user Residential must have flexibility to evaluate multiple on Time of-Use Rate Structure - Time Period Selection Tools and off-peak time periods (e.g., 12pm to 7pm peak), seasonality (e.g., summer vs. Rome n non-summer) and on- to off-peak rate differentials. The following graphic illustrates the ability to select (yellow shaded months and hours) any combination of months and hours during the day to include in the TOU Items Units Charge Revenue rate structure. In addition, the user can input Enerp Summer multiple rate differentials between on- and Peak 1,523,107 Offoff-peak periods to see the related revenue ' impacts and to ensure revenue neutrality of 1 ' any rate options selected. Total Revenue S 0.09897 SL20%073 The results and impacts to the customer bills (1.031) and system load profiles are also shown below. The benefits of the time differentiated TOU Rate Structure Selections rate, if designed properly, will begin shifting peak demand and load for the customer class and benefit the overall system peak and load. In addition, to further evaluate rate scenarios, the dashboard immediately calculates the customer monthly bill impacts in terms of dollars per bill for all customers and percentage rate impacts for each monthly customer bill. These results are Thoughtful Decision Making for Uncertain Times 12 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP communicated in histogram graphs illustrating the distribution of the bill increases or decreases in dollars and percentages. Customer Billing Impacts J%) Customer Billing Impacts($/Month) Wo �fr Customer and System Load Profiles and Billing Impacts A specific component of the Rate Design task is to assess the appropriateness and equity in the City's current approach to recovering costs from distributed generation customers (both solar and non-solar). For solar customers, NewGen will discuss with the City reasonable assumptions around value that accrues to the City's system on account of distributed generation being installed behind the customers' meter, and how that value changes with increasing amounts of penetration. This value will be net against any incremental costs the City incurs through customer installation of solar. This calculated net cost/benefit of distributed generation coming onto the City's system will be compared to the City's existing distributed generation rates in the context of the City's Net Metering program, and will be used to recommend any rule and/or rate changes NewGen will recommend to the City as part of the Study. In addition to updating all the City's existing retail rates, NewGen will also develop rates for electric vehicle (EV) charging, rates for small cell communication services, and standby rates for customers which install distributed generation. To develop EV rates, NewGen will work with the City to differentiate service to EV charging facilities based on customer class, specifically between industrial customers with EV fleets and other commercial EV charging operations. This process will include a discussion on the tradeoffs associated with designing EV rates in different ways, and the City's strategic objectives in designing EV-specific rates. To develop a new rate for small cell communication service customers, NewGen will create a new class within the City's COS model, and will allocate costs to that class accordingly. In the process of rate design for such customers, NewGen assumes such customers typically receive a consistent Thoughtful Decision Making for Uncertain Times 13 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RIFP or fixed amount of energy, and the pricing of an ultimate rate can be designed to appropriately recover costs and minimize the City's burden in administering such a rate. To develop standby rates for customers which install distributed generation, NewGen will review existing filings before the California Public Utilities Commission detailing methodology in developing standby rates, and present a summary of such research to the City. From this presentation, NewGen and the City will agree on a methodology for calculating a standby rate, and will apply that methodology to the unbundled COS results achieved through Phase 1 of this project. The pricing proposed under this Task for developing new EV rate(s),the small cell communication service rate(s), and standby rate(s) assumes the City will draft tariff language. At the City's discretion, NewGen is willing to draft tariff language as an additional service. Deliverables: ■ Dynamic Rate Design Model with visual dashboard for instant scenario and customer impacts analyses ■ Rate design, including one revision or option for each customer class, including all existing retail rate classes, and new rates for electric vehicles, a flat rate tariff for small cell communication service, and standby rates for customers which install distributed generation • If the TOU-V class is segmented by service or load characteristics, new rates will be developed • Revenue adequacy calculations • Onsite meeting to review recommended rates and revenue adequacy and training on models ■ Customer class and system billing impacts including benchmarking to other/neighboring utilities ■ A TOU hourly rate design model for TOU-V and TOU-G classes ■ Updated pricing on the City's existing electric rate schedules Task 5 — Present Study Results and Draft/Final Reports NewGen will prepare a complete draft report of the Study that will describe the process, assumptions, and policies that led to the development of recommended rates. The report will describe and present the Rate Strategy Document developed in Task 1 of the scope of work, system operating characteristics, the Test Year revenue requirement, financial forecast, COS analysis, rate design, and customer bill impacts. The draft report and a supporting Microsoft PowerPoint presentation will be presented to City staff for review and comment. NewGen will hold a draft report review meeting to discuss any feedback or changes to the report after City staff has reviewed the documents. NewGen will then deliver a final report and presentation integrating all agreed upon changes or comments from the City. Thoughtful Decision Making for Uncertain Times 14 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP NewGen will present Study results to the City Commission, stakeholders and the public as noted in the RFP. A full list of onsite presentations and stakeholder or public meetings is included in the deliverables below. Deliverables: ■ Up to three presentations for City Commission or public meetings including the presentation of Study process, objectives, and results/recommendations ■ Electronic copy of the Draft Report for the City's review and comment ■ Electronic copy of the Final Report incorporating the City's comments and modifications ■ Microsoft PowerPoint presentation of Study results FEES AND COSTS NewGen proposes to complete this project on a time and materials basis, with a not-to-exceed price of$69,815 for the base bid. Work requested by the City that falls outside this scope of work will be considered Additional Services and will be billed on a time and materials basis. The Project Team will not commence on any Additional Services, or exceed the proposed budget, without prior written consent from the City. - -- -- --- ------- Thoughtful Decision Making for Uncertain Times 15 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP DerekTony Andy Admin Total Total Total Total Est. Est. Est. Est. Est. Est. Est. Est. Tasks Hours Hours Hours Hours Hours Labor p• . Phase 1 -Cost of Service Analysis at Current Rates Task 1 - Initiate 4 5 4 - 13 $2,405 $1,605 $4,010 Project, Data Request, and Kick-off Meeting Task 2 - Revenue 9 52 12 73 12,570 - $12,570 Requirement Analysis Task 3 - Cost of 18 50 16 84 15,070 840 $15,910 Service Phase 2-Rate Design Development Task 4-Rate Design, 16 64 34 114 19,365 $840 $20,205 Including TOU Hourly Rate Model Task 5 - Present 22 50 10 82 14,600 $2,520 $17,120 Study Results and Draft/Final Report Total Base Bid 69 221 66 10 379 $64,010 $5,805 $69,815 ABILITY OF THE PROPOSER TO PERFORM Firm Background NewGen is a management and economic consulting firm specializing in serving the utility industry and market. NEWGEN APPLIES OUR EXPERTISE AND NewGen provides strategy, financial, valuation, DELIVERS HIGH IMPACT SOLUTIONS THROUGH OUR DIVERSE AND stakeholder, and sustainability services to public and INTEGRATED MARKET PERSPECTIVES; private clients. Furthermore, each team member included RESULTING IN EFFECTIVE DECISION- in this proposal is highly experienced in Integrated Resource MAKING AND IMPLEMENTATION. Planning and municipal utility operations, having spent the majority of their careers supporting public power and utilities. NewGen was created by consultants who are dedicated to our client's mission and recognized as experts in our respective fields of service. Our assistance to the public and private sectors is provided with a keen insight into the growing role of stakeholders, resource availability(including renewables),environmental concerns,cost of providing utility services,and economic conditions, ensuring an integrated approach to utility operations and services. NewGen professionals provide the expertise gained from more than 130 COS studies and 12S expert witness cases and filings supporting utility customers, regulatory staff, and utilities. Thoughtful Decision Making for Uncertain Times 16 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP NewGen has experienced significant growth, since our inception in 2012, driven by our market leading expertise in helping public power and dedication to our clients and currently employs 35 expert and support staff in 10 different offices across the country. With our national presence, NewGen has served utility clients across the country from California to New England, and Florida to Alaska. Project Team Our Project Team consists of highly experienced energy and management consultants. An overview of each team member's experience and qualifications is provided in the table below and resumes for individual team members are provided in Appendix A. List of Key Personnel Experience d Qualifications Tony Georgis Mr.Tony Georgis brings more than 17 years of experience in engineering and economic analyses Director for the energy,water,and waste resources industries. His work includes various assignments for Project Role: private industry, local governments, and utilities including sustainability strategy, strategic Project Manager planning studies, stakeholder engagement, financial and economic analyses, COS and rate studies,energy efficiency,and market research. Tony has managed multiple utility COS and rate design studies including the development of revenue requirements,unbundling costs,classifying costs,and allocation factors. Tony also served as the project manager for the previous financial analysis and COS study in support of the Vernon Distributed Generation Impacts project. Andrew Reger Mr.Andrew Regerjoined NewGen as a Senior Consultant in July 2016 with 7 years of experience Senior Consultant in the energy industry. Andy's prior experience focused on resource planning and load forecasting, DER market analysis with an emphasis on rooftop solar,and cost of service(COS) Project Role: and rate design with an emphasis on solar rate design for utility clients. Andy has also previously Lead Analyst conducted a comprehensive analysis of best practices in utility solar program administration,as well as analyses of the integration challenges posed by increasing amounts of variable renewable generation. Andy previously held positions at Leidos Engineering and the National Renewable Energy Laboratory(NREL). Derek Klingeman Derek Klingeman has four years of experience in the utility industry, primarily on the generation Analyst side both from a project developer's and technology provider's perspective. He is experienced in conducting market research and quantifying business opportunities based on quantitative and Project Role: qualitative market data. Additionally,he has a background in cash flow analysis and forecasting. COS and Rate Analyst Project Experience The Project Team has considerable experience in performing the services requested in the RFP. We have provided the following information for a select group of projects and clients. This information describes similar projects in size and scope, which the Project Team has performed within the last five years. NewGen has performed additional COS studies in California for utilities in Anaheim, Riverside, Alameda, Redding, Vernon, Merced, Turlock, and Glendale. In addition, NewGen led COS studies for other public power utilities such as Austin Energy, Fort Collins, Keys Energy, Santee Cooper, CPS Energy, and Bryan Texas. Thoughtful Decision Making for Uncertain Times 17 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Vernon Department of Gas and Electric—Distributed Generation Impacts Study and Cost of Service/Rate Design(Vernon,CA) Project Team Member Participation/Roles:Tony Georgis(Project Manager) NewGen provided subconsulting services to Power Engineers for the City of Vernon's Department of Gas and Electric (DG&E) Distributed Generation Impacts Study. In close coordination with the DG&E, NewGen developed rates that protect the utilities financial strength and minimize cost shifting between customer classes due to the adoption of conventional and renewable distributed generation technologies on the DG&E system. The focus of the Study was evaluating and projecting financial impacts of distributed generation on the system using a ten-year financial forecast and related COS. The forecast included a projection of customer loads,system revenues, operation and maintenance expense, capital improvement program, debt service, City transfers, and other financial requirements of DG&E. The model was designed to perform "what if" scenarios and test the sensitivity of assumptions on DG&E's financial health under a number of different distributed generation variables. The model projected the cost shift and magnitude of fixed and variable cost misalignment with revenues and cumulative effects on the system and customers. The model also allowed for selecting penetration levels of varying types of distributed generation (e.g. conventional gas engines or rooftop solar). Merced Irrigation District—Energy Resources Electric Cost of Service and Rate Design Study(Merced,CA) Project Team Member Participation/Roles:Tony Georgis(Project Manager),Derek Klingeman(Analytical Support) Similar to many public utilities in California, Merced Irrigation District(MID) is facing a number of complex market, policy, resource,financial,stakeholder, and environmental issues that will likely drive increasing costs and require additional flexibility and agility by the utility. In addition to the amplification of broader electric utility market trends such as DG, conservation, renewable policies, pressure on rates, and increasing customer engagement, MID faces additional California specific concerns such as Proposition 26, AB 327, drought/hydro availability, rate policy challenges,and a high RPS target. Navigating these complex issues is vital to competing in today's changing market and must be integrated with MID's broader utility strategy. Riverside Public Utilities—Electric Cost of Service and Rate Design(Riverside,CA) Project Team Member Participation/Roles:Andy Reger(Analytical Support) Members of the NewGen team,as a sub-contractor to their former company(Leidos), completed the electric utility COS and rate design efforts on behalf of the City of Riverside and Riverside Public Utilities (RPU). RPU has initiated efforts to greatly increase its technology and system investment under an ambitious plan referred to as "Utility 2.0". Under this strategic plan, RPU realized its rates and rate structures were not well suited for the pending changes to its system. Further, the investment needed to support the strategic plan exceeded the revenue generated from the existing rates and rate structures. The NewGen team created a Test Year revenue requirement and developed a defensible cost allocation methodology to apply the utility costs equitably to its customer classes. Working collaboratively with the RPU project team, a detailed recommended rate plan was developed over a five-year planning horizon. This effort included Thoughtful Decision Making for Uncertain Times 18 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP analyzing the impacts of Proposition 26, California's so-called "Stop Hidden Taxes Initiative," and the Net Energy Metering (NEM) reform within the State of California. The study is currently underway and is anticipated to be completed in 2017 with new rates and rate structures in place for 2018. However, the processes will include presentations and solicitation of feedback from City Council, as well as various committees and City boards, which may alter the date or the decisions to implement new rates/ rate structures. Alameda Municipal Power—Retail Rate and Cost of Service Study(Alameda,CA) Project Team Member Participation/Roles:Tony Georgis(Project Manager) NewGen updated and enhanced a previous COS rate model that NewGen team members developed for Alameda Municipal Power (AMP) in 2013. The study included a full COS study, model update to integrate AMP's AMI data, modernize the COS model structure, and development of rates and a rate design model. As part of the rate design, NewGen evaluated the effectiveness ofTOU rates for the AMP system and developed a Power Cost Adjustment(PCA) that can be integrated into the AMP rate structure to reduce the risk exposure to AMP and share price volatility with customers. This study scope included providing the model to AMP staff along with training to allow AMP staff to update the COS and rate models for future Test Years. Anaheim Public Utilities—Retail Rate and Cost of Service Study(Anaheim,CA) Project Team Member Participation/Roles: Tony Georgis(Project Manager) Members of the NewGen team have provided COS and rate services for Anaheim Public Utilities for the past two COS studies. The studies have included a full retail COS study to compare the cost to serve each retail class with the revenues received from each class. Additional elements included the development and evaluation of the revenue requirement, Test Year, and customer cost allocations. The study was also utilized to examine the appropriateness and revenue adequacy of Anaheim's retail rate structures and suggest retail rate changes or adjustments. Lafayette Utilities System—Retail Rate and Cost of Service Study(Lafayette,LA) Project Team Member Participation/Roles: Tony Georgis(Project Manager) NewGen performed a comprehensive review of the utilities financial condition and prepared a cost of service and rate design study to support indicated rate adjustments. NewGen prepared a 10-year financial model, which allowed LUS to evaluate various capital, rate, and financing scenarios that would meet the overall utilities' objectives and revenue requirements. The financial planning model allowed LUS to run real time scenarios considering changes in rate levels, debt financing, and variations in their projected capital improvement plan. The financial planning tool identified specific known and measurable adjustments that were incorporated in the development of Test Year Revenue Requirement cost of service study. Based on the results of the various scenarios, an increase in base rates for each of the three systems was required to meet the utilities' financial objectives. Given the size of the increases, multiple-year phase-in strategies were considered and eventually a two-year rate phase-in strategy was adopted. COS models were developed for the electric, water, and wastewater system based on the Test Year Thoughtful Decision Making for Uncertain Times 19 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Revenue Requirements calculated in the financial model. The COS models then unbundled and classified costs to develop the eventual cost of service for each customer class. Based on the COS results, specific rate changes were recommended for each customer class in each of the three systems to begin aligning with the COS results. NewGen staff supported the LUS' management team in its interactions with the Lafayette City-Parish and the Lafayette City-Parish Council. The proposed rates were successfully adopted in the fall of 2016. Santee Cooper—Review Cost of Service,Design Rates,Update Line Extension Policy and Rates;SC Project Team Member Participation/Roles:Andy Reger(Analyst) Members of the NewGen team provided assistance with the development of the 2012, 201S and 2018 Rate Studies, which included reviewing the revenue requirement, cost allocation methods, and proof of revenue analysis. These assignments included presenting before, and working with, Santee Cooper's Industrial Customer Association to develop new Industrial rate service offerings. NewGen is currently working with Santee Cooper on updating the cost of service and rate design model to allow for dynamic scenario planning. Efforts have also included the development of specific rate and rate programs for the industrial customer base served by Santee Cooper, including the development of interruptible rate offerings that provided a benefit to both the industrial customer and the utility. Members of the NewGen team also led a successful review and analysis of Santee Cooper's Line Extension Policy and related tariff. The task encompassed reviewing and developing fees and charges for fixed cost investments for developers / new retail services within Santee Cooper's service territory. The Line Extension Policy was reviewed with Santee Cooper engineering and rates staff, and was ultimately approved by the Santee Cooper Board of Directors. REFERENCES NewGen has included references in the table below for similar or comparable size and scope of projects performed by our project team included for this Study. A current client list is provided in Appendix B. Examples of recently completed COS/Rate Study is provided in Appendix C. ContactNewGen Client 1 1Project •. Roles Type of Work Lafayette Utilities System Tony Georgis—Project Manager Proiect:Cost of Service and Utility Rate Design for Mr.Jeff Stewart Electric,Water,Wastewater Systems Phone:(337)291-5838 Completion Date:September 2016 Email:jstewart@lus.org_ _ Merced Irrigation District Tony Georgis—Project Manager Proiect:Cost of Service and Utility Rate Design Mr.Richard Dragonajtys Completion Date:March 2017 Phone:(209)722-5761 Email:rdrg onajtys:j�mercedid.org Santee Cooper Andy Reger—Sr.Consultant Project: Financial Forecast, Cos of Service and Mr.Marc Blakeney Rate Design Phone: (843)761-8000 ext.5635 Completion Date: 2017 Email:mdblaken(Msanteecooper.com Thoughtful Decision Making for Uncertain Times 20 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP WORK SUMMARY NewGen has integrated the Work Summary elements described in the RFP with the detailed Scope of Work included above. WORK PLAN AND PROJECT SCHEDULE We developed the Gantt chart below to outline our anticipated schedule of tasks for this project. Based on the actual execution of this project, the Project Team believes the timeframe could be condensed, although this is dependent on the efficiency of data transfer between City staff and consultant project teams, City staff availability for the proposed Workshops. Estimated hours by task are included in the Fees and Costs section above. #Aanth: Task 1-Kick-off Mtg.I Data Request I Task 2-Revenue Requirement I Task 3-Cost of Service Task 4-Rate Design Task 5-Present Study Results/Report Check-In Conference Calls 0 Q Q Q 0 ! 0 Q Q ----11------- - =In-Person Meeting Q =Virtual Meeting =Final Report CITY-FURNISHED DOCUMENTATION As identified in Task 1, NewGen will begin gathering detailed information related to the City's operations and financials to support the Study and development of a rate strategy and policy document. NewGen will provide a detailed and specific data request to the City to gather the required information. Please refer to the Work Plan section for additional details. AFFIDAVIT OF NON-COLLUSION NewGen's completed Affidavit of Non-Collusion is attached as Appendix D. Thoughtful Decision Making for Uncertain Times 21 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP APPENDIX A - RESUMES Thoughtful Decision Making for Uncertain Times New* Tony Georgis u m � & SO'Ut�Ons Director, Energy Practice • tgeorgis@newgenstrategies.net Tony Georgis brings almost 20 years of experience in the consulting/utilities industry focusing on the energy,water, and waste resources industries. His work includes various assignments for utilities, local governments, and private industry,including sustainability strategy,strategic planning studies,financial and economic analyses,cost of service and rate studies,energy efficiency,and market research. In support of sustainability strategy projects, Tony has developed frameworks, optimization, and decision models for sustainability program prioritization and monetization of climate change regulatory, market, and physical impacts. He has also been published in trade journals such as Resource Recycling, Utility Automation and Engineering T&D and has spoken on this topic at several industry conferences. EDUCATION ■ Master of Business Administration,Finance Specialization,Texas A&M University ■ Bachelor of Science in Mechanical Engineering,Texas A&M University PROFESSIONAL REGISTRATIONS / CERTIFICATIONS ■ Registered Professional Engineer(PE)Mechanical,Colorado ■ Registered Professional Engineer(PE) Mechanical,Louisiana KEY EXPERTISE ■ Sustainability ■ Financial/Economic Analysis ■ Strategic Planning ■ Cost of Service and Rate Design RELEVANT EXPERIENCE Sustainability, Energy Strategy, and Strategic Planning Mr. Georgis has led and managed the development of strategic plans and Roadmaps for utilities, energy agencies and municipal governments to guide decision making in increasing complex business environments. His strategic planning experience includes energy, water, wastewater, and solid waste utilities in addition to local government entities. In support of strategic planning engagements, Mr. Georgis often facilitates internal planning teams and external stakeholder engagement activities to facilitate broad and/or targeted stakeholder input to the plans. Strategic plan or Roadmap development typically include overarching strategic elements such as the organization's vision/mission; tactical components such as projects and activities supporting and ensuring implementation; and tracking/reporting tools for the organization's measurement of progress to the plan. Mr. Georgis has also led the development of clean energy and Sustainability(or CSR) plans for cities, counties and utilities to improve triple bottom line(economic, environmental,and social)and energy performance. Mr.Georgis utilizes an enterprise-wide approach to sustainability in order to manage regulatory, customer, and financial demands while improving the triple bottom line. He has facilitated the development of city-wide sustainability plans, serving as a sustainability subject matter expert while forging collaboration among internal and external stakeholders including city/utility staff, key department managers, community representatives, utility customers, and non-profit or non-governmental organizations(NGOs). In support of sustainability planning efforts,Mr.Georgis has developed optimization models to prioritize and identify the"next best dollar spent"in pursuit of sustainability goals while estimating total costs to implement. He has also implemented sustainability auditing/reporting tools Economics ( Strategy I Stakeholders I Sustainability www.newgenstrategies.net Tony Georgis Director, Energy Practice such as GHG inventories/reporting and development of a utility-tailored version of the Global Reporting Initiative (GRI). Mr. Georgis'clients for sustainability,energy strategy, and strategic planning include: ■ City of Fort Collins,Colorado ■ City of Longmont,Colorado ■ Fort Collins Utilities,Colorado ■ City of El Paso,Texas ■ Loudoun County,Virginia ■ Western Area Power Administration,Colorado ■ Tampa Bay Water, Florida ■ Lakeland Electric,Florida ■ City of Colorado Springs,Colorado Cost of Service and Rate Design In his role as senior consultant and project manager, Mr. Georgis leads numerous utility financial planning, cost of service, and rate design projects. Specific tasks typically include the development of the revenue requirement, functionalization of costs, allocation of costs to customer classes, review of existing customer class criteria, evaluation of line extension and facilities charges,rate design,and transitioning of models for the client's future use. He has also led the development of financial forecasting models to support long-term capital,expense,and revenue budgeting and decision making. Mr. Georgis routinely facilitates workshops in support of developing utility rate strategies or rate studies and presents study and financial recommendations to governing bodies, boards, and city councils. Mr.Georgis'clients for cost of service and rate design include: ■ American Samoa Power Authority ■ Lafayette Utilities System, Louisiana ■ U.S.Army; Huntsville,Alabama ■ Farmington Electric Utility, New Mexico ■ Colorado Springs Utilities,Colorado ■ Lubbock Power and Light,Texas ■ La Plata Electric Association,Colorado ■ City of Weatherford,Texas ■ Vernon Gas and Electric,California ■ New Braunfels Utilities,Texas ■ Anaheim Public Utilities,California ■ Austin Energy,Texas ■ Merced Irrigation District,California ■ City of Garland,Texas ■ Alameda Municipal Power,California ■ Benton Public Utility District,Washington Economic, Financial or Market Analyses Mr. Georgis often provides technical, financial, and advisory support services for various energy and utility related projects. He is an expert in developing financial pro formas, bond financings, performing scenario analyses, and evaluating market conditions to support project financing or feasibility decision making. He has analyzed technical assumptions, optimized project financing, performed scenario/sensitivity analyses, and assisted clients in bidding processes. He has provided economic analyses of utility scale renewable energy projects, power plant fuel conversions, LNG terminals, conventional/renewable distributed energy resources, and DSM/demand response program benefits. Mr.Georgis'clients for economic,financial or market analyses include: ■ Terrebonne Parrish, Louisiana ■ Water and Power Authority, US Virgin Islands ■ Hawaii Gas Company,Oahu, Hawai'i ■ Solid Waste Authority of Central Ohio,Ohio ■ U.S.Army; Huntsville,Alabama ■ Freeport Container Port,Grand Bahama ■ Florida Municipal Power Agency, Florida ■ Maryland Energy Administration, Maryland ■ Austin Energy,Texas ■ ISO-New England, Massachusetts Thoughtful Decision Making for Uncertain Times 2 Tony Georgis Director, Energy Practice i ■ CalRecycle,California ■ Niobrara Energy Development,Colorado ■ SWACO,Ohio ■ Fort Collins Utilities,Colorado ■ Arizona Power Authority,Arizona PRESENTATIONS AND PUBLICATIONS Mr. Georgis has presented at numerous industry associations and conferences, providing training for utility staff, and published several trade journal articles. These presentations, articles, and training have focused on utility finance, strategic planning, market trends/opportunities, and sustainability. Mr. Georgis' presentations and publications are displayed below. Industry Presentations ■ Tire Industry Association Recycling Conference ■ Global Commerce Conference 2010: Leadership 2008: Selling Tire-derived Products to the in Sustainability — Sustainability Decision Architectural and Construction Markets Making,Implementation and Reporting ■ Tire Industry Association Recycling Conference ■ Platts Energy Markets Webinar 2010: SEC 2009: Carbon Credits and Recycling Products Guidance on Climate Change Disclosures ■ Energy Utility and Environmental Conference ■ Association of Climate Change Officers 2010: 2010: Evolution and Optimization of Energy SEC Climate Change Disclosure Guidance Efficiency and Smart Grid Measures ■ Harvard University Zofnass Program for ■ Tire Industry Association Scrap to Profit 2010: Sustainable Infrastructure 2011: Tools and Evolution of the Carbon Markets and Frameworks to Drive the Business Case for Opportunities for the Scrap Tire Industry Sustainability ■ Inter-American Development Bank 2010: ■ Washington PUD Association Finance Officers Transportation Sustainability and Climate 2016: Balancing Aging Infrastructure, Rates, Change Seminar and Residential Demand ■ University of Colorado Denver Managing for Sustainability 2012: Regulatory Drivers for Sustainability Industry Publications and Articles ■ Growing Rolefor Demand Response in ISO Operations.Utility Automation and EngineeringT&D,November 2008 ■ Recycling and Climate Change: A Primer. Resource Recycling,August 2009 ■ Recycling and Climate Change: Opportunities for Recycling as a Climate Change Strategy. Resource Recycling, September 2009 3 Thoughtful Decision Making for Uncertain Times i Andrew Reger Senior Consultant ' ' & Solutions areger@newgenstrategies.net Andy Reger joined NewGen Strategies and Solutions, LLC(NewGen) as a Senior Consultant in July 2016 with seven years of experience in the energy industry. Prior to joining NewGen, he was employed at Leidos Engineering, LLC where his work focused on cost of service(COS) and rate design,distributed energy resource market analysis with an emphasis on rooftop solar,solar rate design,integrated resource planning,and load forecasting for utility clients. Prior to his tenure with Leidos, Mr. Reger worked with the Markets and Policy group of the National Renewable Energy Laboratory(NREL). At NREL, Mr.Reger conducted a comprehensive analysis of best practices in utility solar program administration as well as analyses of the integration challenges posed by increasing amounts of variable renewable generation. EDUCATION • Master of Business Administration in Finance/Energy, University of Denver ■ Bachelor of Arts,University of Colorado KEY EXPERTISE • Cost of Service and Rate Design • Distributed Energy Resources • Solar Rates,Community Solar Program Design • Integrated Resource Planning RELEVANT EXPERIENCE Prior to Joining NewGen, Mr. Reger's experience includes: Cost of Service and Rate Design Mr. Reger develops and reviews cost of service (COS) analyses and retail rate design studies for electric utilities. During multiple engagements, using both publicly available modeled data and actual sub-hourly distribution circuit load data, Mr. Reger has developed estimates for hourly customer class load to inform the allocation of demand costs for the purposes of rate design. Additionally, he has developed multiple customized,spreadsheet-based rate design tools to create a comparison of utility competitiveness with neighboring utility rates, estimate customer bill impacts,and analyze the effect of rate design on the customer economics of installing distributed generation. Mr. Reger has also provided guidance to clients regarding the development of rates for customers with installed distributed generation,supported the development of recommendations and presentations to city councils,and has engaged with industrial customers through a formalized stakeholder engagement forum. Mr. Reger's cost of service and rate design clients include: ■ Farmington Electric Utility System, New Mexico ■ South Carolina Public Service Authority(Santee ■ Los Alamos Department of Public Utilities, New Cooper),South Carolina Mexico ■ City of Fort Collins Utilities,Colorado ■ Redding Electric Utility,California ■ Virgin Islands Water and Power Authority, U.S. ■ Riverside Public Utilities,California Virgin Islands Solar Rates and Community Solar Program Design Mr. Reger supports clients through the development of solar rates and feed-in tariffs (FIT) designed to balance concerns over utility fixed cost recovery with customers' interest in accessing solar. His work has entailed analyses to quantify the value of solar generation to a given utility, leveraging the value of solar to develop a revenue Economics I Strategy I Stakeholders I Sustainability www.newgenstrategies.net Andrew Reger Senior Consultant requirement for a solar customer class, and designing solar rates to ensure appropriate utility fixed cost recovery from both rooftop solar and community solar customers. Additionally, Mr. Reger provided analysis of proposed FIT legislation mandating that a specific amount of solar generation be installed within a client's service territory. Mr. Reger provided a line-by-line critique of the proposed FIT to support the preparation of testimony by the utility in response to the legislation. He also provided an analysis of proposed legislation compared to solar incentive programs around the U.S.,as well as an analysis of the economics of the proposed FIT from the perspective of the utility,the solar customer,and a solar developer participating in the program. Mr. Reger also provided analytical support to one of the first California utilities to meet its Net Metering cap, necessitating the development of a rate design alternative to Net Metering. Mr. Reger provided insight into the development of cost and operational profiles for photovoltaic(PV)systems in the region and analyzed the impacts of PV installation from the perspective of the utility(fixed cost recovery)and the customer(bill savings and payback) under different rate scenarios. This analysis was used to inform a proposed, adopted, and implemented solar rate design that included a new"time-of-use"component and a demand charge for Residential PV customers. As part of a technical and economic review of a client's methodology for estimating the residual value of large-scale solar projects, Mr. Reger developed a model to compare solar module degradation rates, future merchant power prices, and minimum system performance requirements against operations and maintenance and major maintenance schedules to optimize the residual value of a PV system's in a discounted cash flow valuation. Mr. Reger has facilitated a client's strategic development of a community solar program within its service territory. As part of this effort, Mr. Reger attended on-site meetings with the city council and public utilities commission, offering his expertise related to solar program design and issues of fixed cost recovery. Mr. Reger's solar projects include the following. ■ Farmington Electric Utility System,New Mexico ■ Turlock Irrigation District,California ■ NRG Energy,Texas ■ Virgin Islands Water and Power Authority, U.S. ■ South Carolina Public Service Authority(Santee Virgin Islands Cooper),South Carolina ■ Anaheim Public Utilities,California Distributed Energy Resources Mr. Reger offers expertise in distributed generation (DG) market analysis. He has compiled multiple capital and operating cost assumptions for DG and storage technologies and developed a database of retail electric rates from around the U.S. to derive a comprehensive DG parity analysis. Mr. Reger has also developed three proprietary software-based modeling tools to be used by a client in its assessment of the DG market, supporting the client's ability to make future modifications to organizational strategy based on market conditions. To support a client's strategic approach to identifying optimized site-technology combinations to achieve its DG implementation goals, Mr. Reger characterized the operational and economic features of 14 distributed generation technologies at various scales of installed capacity. Additionally, Mr. Reger was a lead author of a Distributed Generation Guidebook published by the American Public Power Association in 2015. The guidebook describes the various DG technologies(renewable,thermal,and energy storage),and highlights what is driving the DG market from a customer's perspective. The document suggests ways in which public utilities can manage DG impacts as well as defines actions they can take to leverage emerging business opportunities. Mr.Reger's distributed generation analysis clients include: ■ American Public Power Association, ■ Farmington Electric Utilities System, Washington DC New Mexico ■ Anaheim Public Utilities,California ■ South Carolina Public Service Authority(Santee ■ Confidential Investor Owner Utility Cooper),South Carolina Thoughtful Decision Making for Uncertain Times 2 Andrew Reger Senior Consultant Integrated Resource Planning and Procurement Andy Reger offers experience in integrated resource planning (IRP) garnered through endeavors with utilities and joint power agencies. He has provided quality assurance/quality control(QA/QC)review of the results of a client's extensive resource modeling for numerous scenarios in support of the creation of a final report for each of client's 132 wholesale member utilities. He has also identified and quantified the risks a client could face over its IRP's 20- year planning horizon, and helped develop the data needed to complete the IRP scenario modeling. Mr. Reger has analyzed a client's long-term generation fuel and energy market price projections, including multiple scenarios designed to analyze the early retirement of a large coal-fired generation asset,compared to market forecasts. Additionally,as part of a resource plan and procurement project, Mr.Reger developed an initial list of developers to whom notices of procurement could be delivered to optimize the number and quality of bids the client would receive in response to the clients RFP for generation resources. Mr. Reger also provided QA/QC in the development of a spreadsheet-based levelized cost model designed to rank the all-in costs of bids received in response to its request for generation resources. He has also led the development of a levelized cost comparison between an investor owned utility's costs of self-developing a large-scale wind project and procuring wind energy through various power purchase agreements. This analysis was submitted as part of an Independent Evaluator's report to the Colorado State Public Utilities Commission. His resource planning and procurement clients include: ■ American Municipal Power, Inc.(AMP),Ohio ■ Commonwealth Utilities Company(CUC) ■ Burbank Water and Power,California ■ Owensboro Municipal Utilities,Kentucky ■ Xcel Energy,Colorado and Minnesota ■ Farmington Electric Utilities System, New Mexico Project Experience Prior to Leidos While at NREL, Mr.Reger developed a comprehensive review of existing utility solar incentive programs around the U.S.,and worked with representatives from such utilities,solar industry groups,and solar installers to distill a set of best practices in administering a utility solar program. This information was contained in a report published by NREL -Distributed Solar Incentive Programs:Recent Experience and Best Practices for Design and Implementation. WORKSHOPS AND PRESENTATIONS Mr. Reger has given numerous presentations to industry groups. These activities have focused on distributed generation and solar energy. Host organizations and the topics Mr.Reger presented are displayed below. Electric Utility Consultants,Inc.(EUCI) ■ Pre-conference workshop: Solar Operations & ■ Utility Solar Business Opportunities Maintenance ■ Pre-Conference Workshop:Solar Rates American Public Power Association ■ Pre-Conference Distributed Energy Resources ■ Co-authored APPA's Distributed Generation Workshop Handbook ■ Community Solar A to Z Municipal Electric System of Oklahoma(MESO) ■ Distributed Energy Resources Workshop 3 Thoughtful Decision Making for Uncertain Times NewGen Derek Klingeman • & Solutions Staff Consultant • dl<lingeman@newgenstrategies.net Derek Klingeman assists on cost of service and rate design studies and provides pro forma financial analysis, valuation, and economic impact analysis on a wide variety of projects for NewGen. Mr. Klingeman has worked extensively with large billing databases to study usage trends, uptake in various programs,and to model the impact of proposed rate changes. Prior to joining NewGen, Mr. Klingeman worked as an energy management consultant for industrial clients with a focus on distributed generation. He recently graduated with a master's degree in Mineral and Energy Economics where he studied energy markets and finance. Additionally,he has a background in cash flow analysis and forecasting. EDUCATION ■ Master of Science in Mineral and Energy Economics,Colorado School of Mines • Bachelor of Business Administration in Finance, University of New Mexico RELEVANT EXPERIENCE Cost of Service and Rate Design — Electric Mr. Klingeman assists on cost of service and rate design studies for electric utility clients. The specific tasks he has performed include development of a revenue requirement using budget data,unbundling the revenue requirement into utility functions,classifying costs and allocating costs to customer classes,creating allocation factors to support the assignment of shared costs to different functions or classifications. He has also evaluated energy consumption profiles, billing accuracy, base operations, contract terms, rate options, asset / facilities upgrades (e.g., energy efficiency/demand response),distributed generation options,and tenant billing recovery. Mr. Klingeman has conducted rate benchmarking studies to compare and assess competitiveness of current and proposed rates for various customer classes, load factors, and utilities. Mr. Klingeman's cost of service and rate design projects include: ■ Lafayette Utilities System,Louisiana ■ Merced Irrigation District,California ■ Riverside Public Utilities,California ■ United Power Electric Cooperative,Colorado ■ Turlock Irrigation District, California ■ U.S.Army, Huntsville,Alabama The following represents experience prior to joining NewGen. • National Renewable Energy Laboratory (NREL) — Commercial Licensing Intern. Performed economic, technological, and market feasibility assessments for nascent NREL innovations, developed patenting and licensing strategies for select NREL technologies, and helped establish and negotiate patent license financial terms with industry partners. ■ Navigant Consulting— Industry Analyst. Authored report on the status of renewable energy in the mining industry. Responsibilities included conducting interviews with subject matter experts and mining industry leaders,researching mining power consumption and power generation trends,and developing detailed 10-year investment forecasts. • Remote Energy Solutions—Research Analyst. Analyzed energy consumption and energy savings opportunities for large industrial clients. Modeled and performed cash flow analysis of energy efficiency and distributed generation investment opportunities. Researched alternative markets for gas and electricity and incentives for select technologies. Economics I Strategy I Stakeholders I Sustainability www.newgenstrategies.net CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP APPENDIX B - CLIENT LIST Thoughtful Decision Making for Uncertain Times NewGen Strategies and Solutions, LLC Client List Anaheim CA Argyle,Town of Association of Plastics Recyclers(APR) Atlantic Municipal Utilities Atmos Cities Steering Committe Austin City of Austin Water Benton PUD No.1 Bose McKinney&Evans LLP Brio Consulting,LLC Bryan Texas Utilities Bryan,City of Burnet City of Buske Group The Carollo Engineers,Inc. CDM Smith,Inc. Charlottesville,VA,City of Cheyenne,WY Cibolo,City of Colleyville,TX,City of Conroe,TX City of CPS Energy Cumberland River SEPA Customers Custom Water Company Denton Double Diamond Companies Farmington,City of NewGen Strategies and Solutions, LLC Client List Fate,City of Forney City of Fort Collins,CO,City of Garland City of Garland Power&Light Garver Engineering GELIS Golden City of Golden Valley Electric Association Gonzales County WSC Grand River Dam Authority Grapevine City of. Graves Dougherty Hearon&Moody Greater Ouachita Water Company Green River,WY City of Greer,Herz&Adams,LLP HDR Engineering,Inc Homer Electric Association Honolulu Water Board Houston-Galveton Area Council Hutto,City of ITC Midwest LLC Jackson Walker LLP Johnson Flodman Guenzel&Widger Kentucky Municipal Energy Agency Keys Energy Services Kimley-Horn and Associates Inc. NewGen Strategies and Solutions, LLC Client List Kissinger&Fellman P.C. Lafayette Utilities Sys 6„ Lancaster City of League City Levi Water Supply Corporation Lewisville City of Liberty Hill,City of Liston Law Firm,PC Lloyd Gosselink Rochelle&Townsend P.C. Lubbock City of Mansfield City of Marilee Special Utility District Mayfield Electric and Water Systems McCord Development McGregor,Texas,City of Merina&Company LLP MWH Americas Inc. Navajo Tribal Utility Authority New Braunfels City of nFront North Texas Municipal Water District Nueces County WCID 4 Office of Public Utility Counsel Okanogan PUD No.1 Paris City of Paris,KY,City of Patricia Coy&Associates,LLC NewGen Strategies and Solutions, LLC Clienl List Pflugerville City of Redding,City of Riverside,CA,City of Rockport,City of Rusk County Appraisal District,TX Sabine River Authority San Isabel Electric Association,Inc. Santee Cooper Schertz,City of South Texas Water Authority St.Tammany Parish,LA Sugar Land,TX,City of Tacoma,WA,City of Taft Stettinius&Hollister LLP Temple City of Terrell City of Thompson Coburn LLP Titus County Fresh Water Supply District#1 Tri-State Tucson AZ City of Tyler City of II U.S.Army Engineering&Support Center URS Corporation Americas Waco City of West Texas Cities West University Place,City of West Wise Special Utility District NewGen Strategies and Solutions, LLC Client List Willow Park City of Windels Marx Lane&Mittendorf,LLP WorleyParsons Wyoming Municipal Power Agency CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP APPENDIX C - WORK SAMPLES Thoughtful Decision Making for Uncertain Times ELECTRIC RATE STUDY AND MODELING Municipal Utility IJ 0v A, e 3 w 60 t ' ' I v PREPARED BY: NewGen to • & Solutions ECONOMICS STRATEGY STAKEHOLDERS SUSTAINABILITY www.newgenstrategies.net Table of Contents Section1 Project Summary.............................................................................................1-1 Introduction ..................................................................................................................1-1 Electric Utility Description.............................................................................................1-2 Projected Energy Requirements...................................................................................1-2 Usage Characteristics by Class......................................................................................1-3 Study Elements and Tasks.............................................................................................1-4 Rate Strategy Document...............................................................................................1-4 Financial and Rate Making Tools...................................................................................1-5 Financial Forecast and Revenue Requirement..............................................................1-6 FinancialForecast...............................................................................................1-6 Unbundled Revenue Requirement.....................................................................1-7 Cost-of-Service..............................................................................................................1-8 RateDesign....................................................................................................................1-9 Conclusions.................................................................................................................1-10 Recommendations......................................................................................................1-11 Section 2 Revenue Requirement and Financial Forecast..................................................2-1 Revenue Requirements.................................................................................................2-1 FinancialForecast..........................................................................................................2-2 Test Year Revenue Requirement...................................................................................2-4 Purchased Power(Excluding Transmission).......................................................2-4 Other Production Expenses................................................................................2-4 TransmissionExpenses.......................................................................................2-4 Distribution Expenses.........................................................................................2-4 Customer Expenses.............................................................................................2-4 Administration....................................................................................................2-5 DebtService........................................................................................................2-5 TaxesOther than Income..............................................................................................2-5 Capital Paid from Current Earnings...............................................................................2-5 OtherExpenses.............................................................................................................2-5 OtherRevenues.............................................................................................................2-6 Electric Utility- Budget,Adjustments,and Test Year...................................................2-6 Projected Operating Results..........................................................................................2-6 Section3 Cost-of-Service Study.......................................................................................3-1 Electric Rate Functions..................................................................................................3-2 Production Function ...........................................................................................3-2 TransmissionFunction........................................................................................3-2 DistributionFunction..........................................................................................3-2 Customer Service Function.................................................................................3-3 Unbundling of Revenue Requirement...........................................................................3-3 Classificationof Costs....................................................................................................3-4 Allocation of Test Year Revenue Requirement.............................................................3-6 &Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 I i Table of Contents DemandAllocations............................................................................................3-7 EnergyAllocations...............................................................................................3-9 Customer Allocations..........................................................................................3-9 Street Lighting Allocations................................................................................3-10 Unbundled Cost-of-Service...............................................................................3-10 Cost-of-Service and Current Revenue.........................................................................3-12 Section4 Rate Design.....................................................................................................4-1 RateDesign Objectives..................................................................................................4-1 UTILITYRate Strategy....................................................................................................4-1 Revenue Adequacy of Proposed Electric Rates.............................................................4-2 Electric Rate Structure...................................................................................................4-2 Base Rates and Purchased Power Recovery Factor............................................4-3 Franchise Fee and Payment in Lieu of Tax..........................................................4-4 DiscountFactor...................................................................................................4-4 RateDesign Results.............................................................................................4-4 ResidentialService..............................................................................................4-4 Residential Electric Heating Service....................................................................4-5 Small General Service..........................................................................................4-7 Large School Service............................................................................................4-8 Secondary General Service.................................................................................4-9 Primary General Service....................................................................................4-11 State University General Service.......................................................................4-12 Large Municipal Service....................................................................................4-13 General Religious Service..................................................................................4-14 Small Municipal &School Service.....................................................................4-15 Street/Flood Lighting Service............................................................................4-17 NetMetering Rate ............................................................................................4-17 Purchased Power Recovery Factor...................................................................4-18 Section5 Conclusions and Recommendations.................................................................5-1 Conclusions....................................................................................................................5-1 Recommendations.........................................................................................................5-1 List of Appendices A Revenue Requirement B Functional Unbundling and Classifications of Costs C Cost-of-Service List of Tables Table 1-1 Estimated Energy Requirements..............................................................................1-3 Table 1-2 2012 Summary of Electric Utility Characteristics by Customer Class......................1-3 Table 1-3 Comparison of Current Rate Revenues and Revenue Requirements......................1-8 Table 1-4 Cost-of-Service and Rate Design Results ...............................................................1-10 Table 2-1 Scenario Results and Rate Increases With and Without New Generation..............2-2 ii I Electric Rate Study Rpt_FINAL_12-03-13v2 Table of Contents Table 2-2 Recommended Scenarios Without New Generation...............................................2-3 Table 2-3 Adjustments and Test Year Revenue Requirements...............................................2-6 Table 2-4 Projected Operating Results....................................................................................2-7 Table 3-1 Unbundled Test Year Revenue Requirement..........................................................3-4 Table 3-2 Classifications of Test Year Revenue Requirement.................................................3-6 Table 3-3 Demand Allocations.................................................................................................3-8 Table3-4 Energy Allocators.....................................................................................................3-9 Table 3-5 Customer Allocators..............................................................................................3-10 Table 3-6 Unbundled Revenue Requirement by Class..........................................................3-11 Table 3-7 Comparison of Revenues and Revenue Requirements.........................................3-12 Table 4-1 Cost-of-Service and Rate Design Results.................................................................4-2 Table 4-2 Current, Cost-of-Service and Proposed Rates: Residential Service.........................4-4 Table 4-3 Current,Cost-of-Service and Proposed Rates: Residential Electric Heating Service..........................................................................................................................4-6 Table 4-4 Current, Cost-of-Service and Proposed Rates:Small General Services...................4-7 Table 4-5 Current, Cost-of-Service and Proposed Rates: Large School Service ......................4-8 Table 4-6 Current, Cost-of-Service and Proposed Rates: Secondary General Service..........4-10 Table 4-7 Current, Cost-of-Service and Proposed Rates: Primary General Service...............4-11 Table 4-8 Current, Cost-of-Service and Proposed Rates: State University General Service........................................................................................................................4-12 Table 4-9 Current, Cost-of-Service and Proposed Rates: Large Municipal Service...............4-13 Table 4-10 Current,Cost-of-Service and Proposed Rates: Large Municipal Service.............4-14 Table 4-11 Current,Cost-of-Service and Proposed Rates: Small Municipal and SchoolService.............................................................................................................4-16 Table 4-12 Current,Cost-of-Service and Proposed Rates: Street/Flood Lighting Services.......................................................................................................................4-17 Table 4-13 Proposed Net Metering Rate...............................................................................4-17 List of Figures Figure 1-1: Monthly Coincident Peak Demand for 2012.........................................................1-2 Figure 1-2: Financial and Cost-of-Service Tools and Relationships.........................................1-6 Figure 1-3: Cost-of-Service Process.........................................................................................1-7 Figure 2-1: Financial Forecast Model Development................................................................2-1 Figure 3-1: Cost-of-service Process..........................................................................................3-1 Figure 3-2: Functional Unbundling..........................................................................................3-3 Figure 3-3: Classification of Unbundled Utility Revenue Requirement...................................3-5 Figure 4-1: Existing and Recommended Rate Structures........................................................4-3 Figure 4-2: Proposed Residential Rate Compared to Current Rates and Cost-of- Service..........................................................................................................................4-5 Figure 4-3: Proposed Residential Electric Heating Rate Compared to Current Rates andCost-of-Service......................................................................................................4-6 Figure 4-4: Proposed Small General Service Rate Compared to Current Rates and Cost-of-Service.............................................................................................................4-8 Figure 4-5: Proposed Large School Service Rate Compared to Current Rates and Cost-of-Service.............................................................................................................4-9 Electric Rate Study Rpt_FINAL_12-03-13v2 I iii Table of Contents Figure 4-6: Proposed Secondary General Service Rate Compared to Current Rates andCost-of-Service.....................................................................................................4-10 Figure 4-7: Proposed Primary General Service Rate Compared to Current Rates and Cost-of-Service............................................................................................................4-12 Figure 4-8: Proposed Large Municipal Service Rate Compared to Current Rates and Cost-of-Service............................................................................................................4-14 Figure 4-9: Proposed General Religious Service Rate Compared to Current Rates andCost-of-Service.....................................................................................................4-15 Figure 4-10: Proposed Small Municipal &School Service Rate Compared to Current Rates and Cost-of-Service...........................................................................................4-16 Figure 4-11: Proposed PPRF Method Applied Historically.....................................................4-20 iv I Electric Rate Study Rpt_FINAL_12-03-13v2 Section 1 PROJECT SUMMARY Introduction (UTILITY) is an enterprise of the City of XXXXXX (the City), Texas providing electricity to customers within and outside the boundaries of the City. UTILITY operates the utility and is managed by the Electric Utility Board (Board). The Board is appointed by the City Council, which retains authority for approval of the annual budget, rates for electric service, eminent domain, and approval of debt issuances. The current City budget also requires the electric utility to pay an annual fee to the City. In November of 2012, UTILITY retained NewGen Strategies and Solutions, LLC (NewGen) to develop a long-term financial forecast,cost-of-service,and proposed rate design study(Study) for UTILITY. Historically, UTILITY was in direct competition with IOU UTILITY,within the City. Due to the direct competition and similarity in utility infrastructure and systems within City, the Board typically set retail rates by matching and/or providing a discount from IOU Utility's retail rates. However, with the acquisition of IOU Utility's system, planning for future power supply requirements, and growth in capital plans, UTILITY began evaluating projected system revenues and expenses. The projected under recovery of costs led UTILITY to pursue the Study to ensure current and future financial stability. To ensure and evaluate UTILITY's financial stability,the Study included a long-term financial plan for the electric system,determined the total cost of providing electric services, equitably distributed the costs to customers, and designed rates to safeguard the financial integrity of the utility. The total cost of providing services includes costs associated with operations and maintenance (OW), debt service (including debt covenant requirements), and cash capital outlays. This report (Report) discusses the process, analyses,and recommendations related to the Study. UTILITY and the City's fiscal year (FY) is from October 1 to September 30. Unless otherwise stated in this Report, all data presented herein is shown in FYs. The Study was performed for years 2013 - 2019 (the Study Period) and included the preparation of a detailed seven-year financial forecast, an analysis of estimated revenue requirements, an unbundled cost-of- service analysis based on FY ending September 30, 2013 (the Test Year), a rate analysis, and the development of proposed new electric rates for each customer class. Various policy issues were also identified and discussed. UTILITY and City staff provided the majority of the system- specific data utilized for the Study. In certain cases, where information was not available, NewGen developed estimates using our expertise and publicly available information. This Report summarizes the analyses undertaken and the results of the Study, including recommended rates. The cost-of-service analysis performed for each of UTILITY's retail electric customer classes was based on fully embedded costs. The rate design portion of the Report includes recommendations on retail rates for each customer class. This Report has been performed in accordance with generally accepted industry practices for municipal utilities and contains five sections. Section 2 discusses the development of the financial forecast and resulting revenue requirement, Section 3 provides the cost-of-service results, &Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-1 Section 1 Section 4 presents the proposed electric rates, and Section 5 summarizes conclusions and recommendations. Electric Utility Description In 2012,UTILITY served approximately 98,103 retail electric customers. The electric utility sold approximately 2,556,000 megawatt-hours(MWh) of electricity during that time and collected operating revenues of$189,208,522 in 2012. UTILITY purchases 100 percent of its power requirements. It has a wholesale power purchase contract with IOU Utility that supplies 100 percent of its electricity needs. The transmission system consists of approximately 96 miles of transmission lines. The distribution system consists of approximately 2,202 miles of distribution lines. UTILITY's electric system is a summer peaking system, experiencing its greatest maximum monthly demands during the months of June through September. Figure 1-1 shows monthly system coincidence peak demands for 2012 and the system peak of 615,268 kilowatts (kW), which occurred in August 2012. UTILITY's average annual load factor is approximately 50 percent. Coincident Peak Demand 700,000 600,000 500,000 3 400,000 a 300,000 - — -- v 200,000 — 100,000 — Opl FY 2012 Figure 1-1: Monthly Coincident Peak Demand for 2012 Projected Energy Requirements UTILITY's forecasted electric consumption for the Study Period is shown in Table 1-1. This consumption reflects sales to UTILITY's retail customers and system losses at approximately 5.88 percent of total kilowatt-hours (kWh). Forecasted purchases during the Study Period were based on historical growth trends by customer class and discussions with UTILITY staff. The retail energy requirements represent an average system increase in energy consumption of 1.5 percent per year. 1-2 1 Electric Rate Study Rpt_FINAL-12-03-13v2 Project Summary Table 1-1 Estimated Energy Requirements Losses at Retail Sales Approx.5.88% Total Year (kWh) (kWh) (kWh) 2013 2,593,861,274 161,943,063 2,755,804,337 2014 2,632,769,193 164,372,209 2,797,141,402 2015 2,672,260,731 166,837,792 2,839,098,523 2016 2,712,344,642 169,340,359 2,881,685,001 2017 2,753,029,811 171,880,464 2,924,910,276 2018 2,794,325,258 174,458,671 2,968,783,930 2019 2,836,240,137 177,075,551 3,013,315,689 Usage Characteristics by Class The cost-of-service analysis examines detailed customer usage characteristics by customer class. Table 1-2 summarizes these characteristics for the existing customer classes, including estimated revenue generated for 2012 by each class and the number of customers in each class, according to UTILITY's electric utility statistics. Table 1-2 2012 Summary of Electric Utility Characteristics by Customer Class Average Average Annual kWh Annual Retail kWh No.of Sales per Revenue per Class/Service Sales Meters Revenue Customer Customer Residential Standard 660,447,956 55,822 $56,352,723 11,831 $1,010 Residential Electric 342,290,813 28,532 26,366,199 11,997 924 Heating Small General 51,544,806 6,540 4,410,343 7,881 674 Large School 52,091,801 187 3,447,306 279,063 18,468 Secondary General 1,030,838,927 5,306 64,201,806 194,272 12,099 Primary General 113,414,600 9 5,528,018 12,601,622 614,224 State University 164,303,572 238 10,085,174 690,351 42,375 General Large Municipal 83,836,730 223 4,304,243 376,794 19,345 Street/Flood Lighting 353,259 326 9,180 1,084 28 Municipal Lighting 24,326,945 1 - 24,326,945 General Religious 23,658,340 293 1,416,314 80,745 4,834 Small Muni&School 9,003,768 627 591,264 14 372 944 Total 2,556,111,517 98,103 $176,712,570 26,055 $1,801 Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-3 Section 1 Study Elements and Tasks The Study included four key elements, as well as stakeholder engagement and education throughout the Study period. The four key elements in the Study included: • Rate Strategy Document • Financial Forecast Model and Revenue Requirement • Cost-of-Service • Rate Design Rate strategy documents provide a path, policies,and goals for a utility to follow in setting and developing rates for customers. This document informs and guides the development of the subsequent financial model, revenue requirement, and eventual rate design. The financial forecast model projects UTILITY costs and revenues from 2013 through 2019 to allow for scenario analysis and evaluation of debt and rate changes to recover the full costs of operating the utility. Based on the output of the financial forecast model, the revenue requirement is created to fully capture and summarize all UTILITY costs for a Test Year. This Test Year revenue requirement is used to calculate the cost-of-service for each customer class,which guides the eventual rates designed to recover the cost-of-service. Each of these elements was critical to the development of the final rates implemented in June 2013. Each of the elements are discussed in more detail below and focused on the planning period of 2013 through 2019 to align with the end of the current wholesale purchased power contract. While the financial forecast model focused on a seven-year planning period, the revenue requirement, cost-of-service,and rate design were developed to align with the 2014 budget year. Rate Strategy Document The rate strategy document defines the financial and rate related policies and metrics to guide current and future electric rates. The document is developed through collaboration with governing bodies (e.g. Board and Council) and utility staff. It includes key financial performance metrics, policies, and objectives such as debt service coverage ratios, reserve levels, inter/intra-subsidization, pricing signals (e.g. conservation), rate alignment with cost- of-service,and use of debt or cash financing for capital projects. As noted previously, UTILITY's past rate strategy included matching IOU Utility's local retail electric rates with a slight discount due to the direct competition within UTILITY's certified area. Through the course of the Study,a new rate strategy document was developed including the following initial guidelines: • Align rates with the cost-of-service results • Develop reserves to provide rate stabilization • Target a mix of approximately 50 percent debt and 50 percent cash financing of capital programs • Unbundle or separating retail rates into UTILITY base rates and a 100 percent pass through of purchased power related costs 1-4 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Project Summary • Update the financial model twice per year aligned with budgeting and end of FY • Update cost-of-service model every three to five years or with any major operational or customer changes (e.g. end of purchase power contract or large new industrial customer) • Begin consolidating customer classes to align with cost-of-service principles • Utilize gradualism where applicable with significant rate changes or customer class consolidations (e.g.transition customer classes over multiple years) These initial guidelines were included and guided the development of the financial forecast model and related scenario analysis to further evaluate and determine current and future rate changes. Financial and Rate Making Tools NewGen created three core financial and rate modeling tools. These tools work together and are integrated to help UTILITY make rate and financial related decisions. The tools help UTILITY manage the financial performance of the utility,forecast debt requirements and rate changes needed for operations and capital,and translate system-wide rate changes into customer class specific rates and bill impacts. The figure below illustrates the relationship between the tools, their recommended use, and when they should be updated. Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-5 Section 1 Recommended Use When to Update ■ Forecast financial performance ' Update every six months and key financial metrics ■ Use as input for budgeting and ■ Calculate debt and rate funded annual forecasting capital needs ■ Significant changes in capital • ■ Calculate system-wide rate and/or changes in debt/cash changes and scenarios needs i- ■ Apply system-wide rate changes ' Update every three to five to customer classes years ■ Calculate customer class specific • • cost-of-service and rate Update for major changes to structures system (e.g. power contracts, new industrial customer,class ■ Ensure equity and alignment with consolidation) rate strategy ' Design customer class base and ■ Update in conjunction with cost- pass through rates of-service • & Fixed and variable rate design ' Update to fixed and variable components within customer • , 9 Proof of revenue adequacy class ■ Monthly bill impacts a Update to base or pass through rate components Figure 1-2: Financial and Cost-of-Service Tools and Relationships Each of the models and tools is described in more detail below. Financial Forecast and Revenue Requirement Financial Forecast NewGen developed a seven-year financial forecast model for UTILITY to evaluate and plan for multiple scenarios and the related debt and rate changes required to meet the financial needs of the utility. NewGen reviewed historical and budgeted operating data,capital expenditures, and operating expenses in the development of the financial forecast. The financial model allowed NewGen to evaluate multiple scenarios for UTILITY,including the option of developing natural gas fired power plant and alternative debt and cash funding structures for capital plans. Results from the various scenarios evaluated by NewGen were conveyed to the Board in a presentation on March 19, 2013. The recommended scenario reflected a balanced approach 1-6 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Project Summary including"front loaded"debt in the near term,with less reliance on debt to fund capital needs in the long term, and a phased approach to the necessary rate increases over a three-year period. Unbundled Revenue Requirement The overall cost-of-service process includes four steps as represented in the graphic below. Step 1: Determine revenue requirement: total costs to provide electrical service to customers Step 2: Functional unbundling of costs and services (production,transmission,distribution,and customer) Step 3: Classify costs(demand, energy,or customer) Step 4: Allocate costs to each customer class Figure 1-3: Cost-of-Service Process The revenue requirement represents the total costs for UTILITY to provide electric service to customers that must be recovered through rate related revenues. The revenue requirement is the foundation of a cost-of-service study and calculates the costs the customers impose on the system. In preparing our analysis of the electric rates and the development of the revenue requirement, NewGen relied upon UTILITY's audited financial reports; the Operating and Capital Budget for FYs 2013 and 2014 (the Budget); purchased power invoices; records of operation; customer billing data; and other detailed information and data compiled and provided by the City's and UTILITY's management and staff. To develop the revenue requirement, NewGen utilized UTILITY's FY 2014 Budget, as the base year. The base year budget was modified to account for known and measurable adjustments reflecting changes in the operation of the system or customer consumption. The combined result of the adjustments and the base year represent the Test Year. The expenses and revenues used in this Study reflect FY ending September 30, 2014(the Test Year). The Test Year revenue requirement typically includes: O&M expenses, other non-cash expenses, cash funded capital, debt service,taxes or payments in lieu of taxes less other non- rate related revenues. The Test Year is then "unbundled" into the four operating functions of the utility: production, distribution, transmission, and customer service. Within each of the four functions, costs are then classified into demand-related, energy-related, customer- related,and directly assignable. Classified costs are then allocated to each customer class(i.e., Residential, Small General Service, etc.) by examining the underlying drivers from each customer class that influence utility costs. For example, customer-related costs are generally Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-7 Section 1 considered a function of the number of customers served by the electric utility. Therefore,the number of customers in each rate class is used to allocate customer-related costs between classes. The Test Year annual revenue requirement for the Study is$201,115,067. Appendix A includes the Test Year revenue requirement,Appendix B includes the functional unbundling and classifications of costs, and Appendix C includes the cost-of-service results for each customer class. Additional details and information regarding the development of the revenue requirement and financial forecast is included in Section 2 of the Report. Cost-of-Service Section 3 of the Report describes the final step in the cost-of-service process. The cost-of- service compares customer class revenues to customer class revenue requirements. The results of the Study indicate the degree to which existing rates recover revenues from each customer class on a cost-of-service basis and are considered in designing new electric rates. The results of the cost-of-service analysis provide a detailed assessment of the costs required to serve each of the customer classes. These customer class costs are then unbundled into billing components,including demand,energy,and customer charges,as well as the purchased power costs recovered via the Purchased Power Recovery Factor(PPRF). These total customer class costs are compared to the projected revenues under the current rates to determine if the current rates are sufficient in fully recovering the customer class cost-of-service. Once completed,the cost-of-service analysis is the basis for the rate design portion of the Study. A comparison of the revenue requirement by class and revenues collected under current tariffs is shown in Table 1-3. Table 1-3 Comparison of Current Rate Revenues and Revenue Requirements Estimated Revenue Revenues Under Projected Requirement Current Rates Over/Under Difference Class/Service ($) ($) Recovery($) (%) Residential Standard $64,299,075 $58,620,270 ($5,678,804) -9.7% Residential Electric 32,439,863 27,463,381 (4,976,482) -18.1% Heating Small General 4,400,485 4,569,048 168,563 3.7% Large School 4,012,518 3,599,753 (412,765) -11.5% Secondary General 70,251,448 66,017,986 (4,233,462) -6.4% Primary General 6,582,362 5,757,767 (824,594) -14.3% State University General 10,874,083 10,681,630 (192,453) -1.8% Large Municipal 5,471,872 4,505,965 (965,907) -21.4% Street/Flood Lighting 61,017 59,886 (1,131) -1.9% General Religious 2,046,301 1,482,591 (563,710) -38.0% Small Muni&School 676,045 624,823 (51,222) -8.2% Total $201,115,067 $183,383,098 ($17,731,969) -9.7% 1-8 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Project Summary Rate Design Section 4 of the Report describes the results of the rate design. Rate design is the culmination of a cost-of-service study as the rates and charges for each customer class are designed to equitably and fully recover the system wide cost-of-service and customer class revenue requirements. UTILITY's rates include the two main components: • Base rate(UTILITY service charge, energy-charge,demand-charge, and franchise fees) • PPRF (Pass through costs associated with purchased power and related transmission costs: demand and energy PPRF charges) UTILITY's rates and tariffs are unbundled to represent UTILITY related costs (i.e. base rates) and the purchased power,or non-UTILITY costs(i.e.PPRF pass through rates). The base rates and PPRF rates are applied to the appropriate monthly billing determinants (e.g. number of customer months,kWh consumption,etc.)to project the new rate revenues by customer class. These projected revenues from the proposed rates are compared to the revenue requirements to ensure the rates generate sufficient revenue to recover the cost-of-service. This process is known as the"revenue adequacy"test. Based on a review of the existing rate structure, it was determined that the cost recovery of the different components (e.g. service, energy and/or demand charges) of the current rates were not in alignment with the cost-of-service results. The recommended rates were developed by applying the rate strategy guidelines of aligning rates with the cost-of-service and gradual rate changes. Therefore,the proposed rates in the Study were designed to bring each customer class closer to its cost-of-service while evaluating the impact of rate changes on customers' monthly bills. As a result, proposed rates, although moving closer to the cost- of-service, do not precisely match the cost-of-service results. The proposed rates are estimated to fully recover UTILITY's costs and generate the results shown in Table 1-4. Details of the rate design process are described in detail in Section 4. I Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-9 Section 1 Table 1-4 Cost-of-Service and Rate Design Results Projected Projected Revenues Revenues Rate Increase Under Proposed Revenue Under Current (Decrease) Proposed Rate Increase Customer Class Requirement Rates Needed Rates (Decrease) Residential Standard $64,299,075 $58,620,270 9.7% $64,325,314 9.7% Residential Electric 32,439,863 27,463,381 18.1% 32,442,888 18.1% Heating Small General 4,400,485 4,569,048 -3.7% 4,571,790 0.1% Large School 4,012,518 3,599,753 11.5% 4,018,496 11.6% Secondary General 70,251,448 66,017,986 6.4% 70,252,986 6.4% Primary General 6,582,362 5,757,767 14.3% 6,584,942 14.4% State University 10,874,083 10,681,630 1.8% 10,681,630 0.0% General Large Municipal 5,471,872 4,505,965 21.4% 5,407,299 20.0% Street/Flood Lighting 61,017 59,886 1.9% 63,486 6.0% General Religious 2,046,301 1,482,591 38.0% 1,777,943 19.9% Small Muni&School 676 045 624 823 8.2% 675.575 8.1% Total $201,115,067 $183,383,098 9.7% $200,802,348 9.5% In addition to ensuring the new rates fully recover costs,the individual customer bill impacts of the proposed rates are analyzed in the billing impacts analysis. The billing impacts are a detailed analysis of the monthly bill impacts to every UTILITY monthly bill. Additional information and analysis for UTILITY's proposed rates is included in Section 4 of the Report. Conclusions Based on the Study performed, NewGen made the following conclusions: • UTILITY's existing base rates include a portion of purchased power costs and are not clearly defined. • UTILITY's cost structure and incurrence of costs are different from IOU Utility's cost structure due to UTILITY purchasing power and IOU Utility generating power with their own assets. This results in a different cost-of-service and eventual rates for each utility, thus the existing UTILITY policy of matching IOU Utility rates is no longer applicable and likely does not properly recover costs. • UTILITY's current rates and rate structure are not properly recovering all purchased power costs as portions of the power and transmission cost recovery factors are under recovering the total purchased power and transmission costs from IOU Utility. ■ Based on our development of the Test Year revenue requirement,current rates are not generating sufficient revenues to meet current and projected costs. 1-10 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Project Summary • Existing rate components (e.g. demand, service, energy) are not properly aligned with the cost-of-service results. This results in shifting a portion of the existing rates from a variable component to a fixed component. • The financial forecast projections require multiple rate increases and significant debt issuances to adequately recover the forecasted revenue requirements including increasing capital needs for the scenario without building new generation. If UTILITY were to pursue financing and building their own power plant,the likely scenario would require additional rate increases at larger magnitudes and a dramatic increase in the amount of debt issuances. However, after the new generation was operational, the rates would likely decline, benefiting from the lower cost generation alternative. • UTILITY base rates require modification to better align with the cost-of-service results. • Proposed UTILITY rates remain lower than IOU Utility's rates and are competitive in the region and within the state of Texas. Recommendations Based on our conclusions, and supporting analyses, NewGen suggests the following recommendations: ■ UTILITY and the City should adopt rates as described and proposed in the Study and this Report. • UTILITY's rate structure should be modified to accurately reflect base rates(e.g.UTILITY costs) and purchased power costs (e.g. non-UTILITY costs or IOU Utility purchased power). • UTILITY should evaluate the need for further rate adjustments in coordination with debt issuances annually by updating the financial forecast model. Based on the current information, the financial forecast indicates that rate increases may be necessary in future years based on increasing capital needs,operating costs,and decisions regarding the long-term purchased power options. • Based on the financial forecast model,UTILITY should utilize increased amounts of debt in the initial years of the planning horizon, and then decrease the use of debt as rate revenues increase in later years. The recommended mix of debt and rate revenue funded capital is approximately 65 percent debt and 35 percent rate revenues over the entire planning period in the financial model. This recommended case includes annual rate increases of approximately 9.7 percent,7.3 percent,and 6.2 percent in FY 2014, FY 2015,and FY 2016. • UTILITY should update the financial forecast model periodically(e.g. every six months) to support budgeting and rate related decision-making. Updating the financial forecast will improve long-term capital planning, expected cash and debt funding needs, rate changes, and key financial metric reporting. • UTILITY should perform a comprehensive cost-of-service study every three to five years, or when aligned with a major change in operations such as a new purchased power contract, a new large industrial customer, or significant change in system operations. Electric Rate Study Rpt_FINAL_12-03-13v2 1 1-11 Section 1 • UTILITY should consider consolidating existing religious and municipal related customer classes to align with cost-of-service supported customer classes (e.g. small general, secondary general service, etc.) • NewGen also recommends modifying the monthly and periodic reporting of UTILITY financial performance from an accrual or utility basis to cash basis. Utility basis reporting is typically used by investor owned utilities, and infrequently used by municipal utilities. Reporting financial or budget to actual performance on a cash basis will allow for more accurate and applicable reporting of UTILITY over or under recovery of expenses and aligns with municipal utility industry practices. This will also align with the cost-of-service and easily convey if over or under recovery of expenses is related to purchased power costs(PPRF revenues)or UTILITY costs(base rate revenues). This will support and improve UTILITY's financial and capital decision-making. 1-12 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Section 2 REVENUE REQUIREMENT AND FINANCIAL FORECAST As part of the Study, NewGen developed a seven-year financial forecast for UTILITY. The financial forecast projects UTILITY rate revenues,operating expenses,capital budgets,and key financial metrics(e.g. debt service coverage) over a seven-year period. The financial forecast develops a Test Year revenue requirement inclusive of all UTILITY operating and capital expenses. The Test Year revenue requirement is then forecasted and adjusted for specific changes in operations, customers, or assets for future years. Revenues are calculated using audited financial statements from UTILITY,then adjusting and forecasting UTILITY system load to estimate future year's revenues. The figure below illustrates the key elements of and process used to develop the financial model. D•. Requirement and Rate Requirement and and Rate Changes Revenues 14 Revenues . Cover Costs UTILITY Operating and Capital UTILITY System JTILITY Customer ExpenseExpenses,Audited Rate Load, Rates and Rate Changes and Revenues • Annual Debt Issues Figure 2-1: Financial Forecast Model Development Revenue Requirements To remain financially sound, UTILITY's electric rates must produce sufficient revenues to recover the total costs of providing electric service to their customers. These costs imposed on the system by customers are commonly referred to as the utility's "revenue requirement" and consist of normal operating expenses, debt service, capital improvements and additions, transfers to the City, non-operating expenses, and reserve requirements. These total revenue requirements are then compared to utility revenues to evaluate the need for rate changes. The revenue requirement acts as the foundation of a cost-of-service study. UTILITY's revenue requirement was developed within the financial forecast model and utilized the utility's FY 2014 budget and capital plan. This FY 2014 data was used to create the base year revenue requirement. Known and measurable adjustments are then made to the base year revenue requirement and rate revenues to calculate the Test Year revenue requirements which aligned with FY 2014 expenses. Known and measurable adjustments to the base year include changes that are expected to occur and can be measured. Examples of known and measurable adjustments include a large customer entering or leaving the system, adjusting revenues and expenses for weather abnormalities,or major changes in staffing levels. In order to determine the adequacy of UTILITY's current electric rates, NewGen worked with UTILITY staff in calculating actual FY revenues for the Study Period based on FY 2012 audited financial statements. The FY 2012 revenues were then adjusted and forecasted to reflect the expected revenues for FY 2013 and FY 2014. &Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 1 2-1 Section 2 Financial Forecast The financial forecast model is used to optimize the mix of rate changes and debt issues to meet the electric system financial needs, perform scenario analysis, and identify the key drivers impacting financial performance. This financial forecast allowed NewGen to evaluate multiple scenarios for UTILITY, including the potential effects of owning and building a new natural gas power plant by 2019. NewGen calculated multiple cases to evaluate the impact of varying levels of cash and debt funding on financial performance. The results of this scenario analysis created the final Test Year revenue requirement and formed the basis for the final recommendations for rate changes, and debt funded capital. NewGen reviewed and utilized UTILITY historical and projected operating data, capital plans, and operating expenses in support of the financial forecast development. NewGen examined various funding cases for options with and without the construction of a new power generation plant. The cases included: N Zero percent debt and 100 percent cash financing of capital • 50 percent debt and 50 percent cash financing of capital ■ 90 percent debt and 10 percent cash financing of capital For each case listed above, NewGen calculated a number of scenarios based on a required 'one-time' rate increase and a phased-in rate increase over three to four years to adequately recover costs. The'one time'and phased-in rate increases illustrate the impacts of gradualism and potential use in UTILITY's future rate decisions. All debt issuances associated with normal and capital improvement plan (CIP) projects were assumed to be issued for a 20-year term. All generation plant related debt was assumed to be issued for a 30-year term. Based on the above cases, NewGen used the financial model to calculate the system average rate increases required to fully recover UTILITY system costs. Table 2-1 below includes the results of the scenario analysis. Please note,the table represents the system average rate increases. Individual customer class rate changes can vary significantly from those in Table 2-1 as a result of the cost-of-service and rate design results. Table 2-1 Scenario Results and Rate Increases With and Without New Generation Case 1: No Debt Case 2: 50%Debt Case 3: 90%Debt Without New Without New Without New Year Generation Generation Generation One Time 2014 26.0% 19.0% 12.5% Increase 2014 10.5% 9.0% 6.0% Phased-In 2015 10.0% 7.0% 5.0% Increase 2016 10.0% 6.0% 5.0% 2017 N/A N/A N/A The table above illustrates the impacts of increasing use of debt and phasing in of rate increases. As the amount of debt used is increased,it reduces the required rate increases. For example, in the without new generation scenario, the one-time rate changes decrease from 2-2 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Revenue Requirement and Financial Forecast 26 percent to 12.5 percent from Case 1: no debt to Case 3: 90 percent debt. In addition,the use of gradualism or phased-in rate increases spreads the required rate increases over multiple years to lessen rate shock associated with a one-time rate increase. Due to the preliminary nature of UTILITY's evaluation of constructing or building new power generation facilities, NewGen did not include precise rate increases and/or decreases in the report. However, in evaluating the general and expected financial impacts of financing and constructing new power generation facilities, it is likely to include additional short term rate increases and substantial increases in debt issuances. It is expected that the additional short- term rate increases would then be followed by rate decreases as the power plant becomes operational providing the intended lower cost power generation alternative to purchased power. Based on the results of the three cases and scenario analysis, NewGen developed recommended scenarios without the costs of new generation. Table 2-2 includes the recommended scenarios. As with the previous table,the rate increases and system average rates represent the system-wide impacts and do not represent individual customer class impacts. Table 2-2 Recommended Scenarios Without New Generation Without New Generation;65%Debt for CIP 2014 2015 2016 2017 Rate Increases 9.7% 7.3% 6.2% N/A System Average Rate($/kWh) $0.0776 $0.0831 $0.0872 N/A A mix of 65 percent debt and 35 percent cash funding is recommended over the course of the planning period for the UTILITY CIP related projects. The 65 percent debt financing for CIP includes 'front-loading' the debt (e.g., 75 percent debt) in the early years while utilizing less debt (e.g., 40 percent to 50 percent) in the later years. The resulting average capital funding mix for the CIP projects over the Study Period is approximately 65 percent debt and 35 percent cash. The recommended scenario with phased-in increases over three years and without new generation was chosen as the basis for calculating the revenue requirement and cost-of- service. The recommended scenario without new generation was eventually endorsed by the Board for the basis of the first year of UTILITY's cost-of-service. As the future decision regarding the construction of a new power plant or pursuing another purchased power contract is currently under evaluation, the Board chose to delay future rate increases or changes until more in- depth evaluation of UTILITY's options could be completed. The revenue requirement calculated by the financial forecast model for FY 2014 was then finalized and used as the basis of the Test Year revenue requirement and the cost-of-service analysis. Electric Rate Study Rpt_FINAL_12-03-13v2 1 2-3 Section 2 Test Year Revenue Requirement A projected Test Year revenue requirement was prepared for the Study Period. The projected costs and revenues used in the Study are forward looking and consider expected costs in years 2014 through 2019. The Study utilized UTILITY's FY 2014 budget and the financial forecast model as the basis of the Test Year with known and measurable adjustments. The following is a discussion of the core components of the Test Year revenue requirement and the known and measurable adjustments to the 2014 UTILITY budgeted operating expenses. Purchased Power (Excluding Transmission) The production expenses are primarily associated with the wholesale purchased power contract with IOU Utility. The Test Year purchase power expense, excluding the portion associated with transmission fees, is$117,359,183. This represents an increase of$5,131,757 (or 4.6 percent)from the 2013 Budget. The largest contributor to this increase was a projected increase in the demand rate portion of this cost in FY 2014. The wholesale purchased power expenses and related transmission expenses account for 66 percent of the total UTILITY operating costs. Other Production Expenses The Test Year production O&M expenses,aside from purchased power,are$13,030,556. This represents an increase of$1,420,190 (or 12.2 percent) from the 2013 Budget. The primary contributor to this increase is a $1,000,000 increase in electric maintenance costs to reflect recent trends for maintaining the existing steam generation plant. The remaining increase is related to typical factors escalating operating expenses, such as salary increases, customer growth,and inflation. Transmission Expenses UTILITY's transmission expenses are included in the purchased power contract with IOU Utility. The Test Year transmission expenses are $15,475,564. There were no major adjustments to the transmission costs, but the Test Year amount is$228,703 (or 1.5 percent)greater than the 2013 Budget due to general inflation. Distribution Expenses Distribution expenses for the Test Year are$15,949,805. There were no major adjustments to the distribution costs, but the Test Year amount is$799,625 (or 5.3 percent)greater than the 2013 Budget due to general inflation and minor adjustments to various line items. Customer Expenses Customer-related expenses include costs associated with customer accounting, customer service,information systems,and the call center. Total customer-related expenses for the Test Year are$9,611,929. There were no major adjustments to the customer-related costs,but the Test Year amount is $261,136 (or 2.8 percent) greater than the 2013 Budget due to general inflation and minor adjustments to various line items. 2-4 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Revenue Requirement and Financial Forecast Administration Administration expenses include costs associated with regulatory compliance and community affairs. Total administration expenses for the Test Year are$4,314,070. There were no major adjustments to the administration costs, but the Test Year amount increased by$308,369 (or 7.7 percent)from the 2013 Budget due to general inflation and minor adjustments. Debt Service Debt service expenses for the 2013 Budget were$22,300,585,which reflects the debt service payments associated with previous bond issues. The total Test Year debt service expenses are $20,535,664. This represents a decrease of$1,764,922(or 7.9 percent). The Test Year amount includes the issuance of a new bond to fund capital projects as projected in the financial forecast model; however, the Test Year debt service still decreases from 2013 due to more than $6 million in existing debt issues being fully repaid in 2013. Taxes Other than Income UTILITY pays a franchise fee, payment in lieu of taxes(PILT),and a general fund transfer to the City. The franchise fee and PILT payments are based on annual billed revenues and the general fund transfer is based on an allocated overhead methodology employed by the City. Total payments to the City for the Test Year are$13,264,075. The Test Year amount is$617,226(or 4.4 percent)less than the 2013 Budget. The reduction in Test Year transfers is primarily driven by weather normalization. Prior year actuals for PILT and franchise fees were driven by record summer heat and related energy sales. As weather is normalized,the transfers were reduced to reflect an average weather Test Year. Capital Paid from Current Earnings Capital paid from current earnings represents the cash funding of capital necessary to keep the utility in good working condition. Capital from current earnings is balanced with debt funding to fully fund the CIP and normal capital needs of UTILITY. The recommended financial model scenario optimized the use of debt and cash financing for capital projects. NewGen worked with UTILITY staff to fully identify and quantify the near term CIP plan and normal capital needs. Capital paid from current earnings for the Test Year is $13,228,955. This represents a $1,415,955 (or 12.0 percent) increase over the 2013 Budget. The remaining portion of CIP for the Test Year is funded through the issuance of new debt or bonds. Other Expenses Other expenses in the Test Year are primarily related to uncollectible accounts(i.e., bad debt), which is not a budgeted expense. Thus, an estimate of this cost was developed based on historical results and trends. The Test Year amount for other expenses, in total, is$700,771. This represents a$692,844 increase from the 2013 Budget,which only included$7,927 in cost of goods sold and did not include any expense for uncollectable accounts. Electric Rate Study Rpt_FINAL_12-03-13v2 1 2-5 Section 2 Other Revenues Other revenues include non-rate related revenues, such as late fees, that are not recovered from the rates and rate revenues. Accounts and items included in other revenues include reimbursements from other City departments; interest earnings on operating reserve funds; revenue from miscellaneous fees; sale of used equipment, leases/rents; and off-system sales of electricity to IOU Utility. Total other revenues for the Test Year are$22,355,505. By far,the largest contribution to Test Year non-rate related revenues was off-system sales of electricity to IOU Utility of$11,242,210. This account includes energy sales from electricity generated at UTILITY's generation plants and sold to IOU Utility. Reimbursements from the City to UTILITY for shared services such as billing represented an additional $5,141,789, with the remaining $5,971,507 related to penalties, rentals, interest income, and miscellaneous revenues. There were no major adjustments to the other revenue accounts; however,the total Test Year amount is$620,801 (or 2.9 percent)greater than the 2013 Budget due to general inflation/customer growth. Electric Utility - Budget, Adjustments, and Test Year Table 2-3 provides a summary of the 2013 Budget, adjustments, and the Test Year values utilized to generate the revenue requirement for the system. Table 2-3 Adjustments and Test Year Revenue Requirements Item 2013 Budget Adjustments Test Year Purchased Power(w/o Transmission Fees) $112,227,426 $7,555,357 $117,359,183 Other Production(w/o Purchased Power) 11,610,366 1,420,190 13,030,556 Transmission 15,246,861 228,703 15,475,564 Distribution 15,150,180 799,625 15,949,805 Customer 9,346,793 265,136 9,611,929 Administration 4,005,701 308,369 4,314,070 Debt Service 22,300,585 (1,764,922) 20,535,664 Taxes Other than Income 13,881,301 (617,226) 13,264,075 Capital Paid from Current Earnings 11,813,000 1,415,955 13,228,955 Other Expenses 7,927 692,844 700,771 Less:Other Revenue (21,734,704) 6( 20,801) (22,355,505) Total Revenue Requirement $193,855,437 $7,259,630 $201,115,067 Projected Operating Results Using the financial forecast model,estimated operating revenues were developed to compare to forecasted revenue requirements during the same period. Operating revenues consist of revenues from the sale of retail electricity, sale of off system electricity, plus penalties and miscellaneous service revenues. Table 2-4 summarizes the projected annual operating results for the Study Period. 2-6 1 Electric Rate Study Rpt_FINAL_12-03-13v2 V Cl) d• LA O N M O M - N O f- 00 ti LO LO d' 00 CO N N (O V' CV (V O M W O 00 N N O) LOil- LO O O LO MC\j 00 Cl) r1l O d' �t � 00 00 00 N_ a > N ti fl- f-- V' LO f- N O f.- m co V (D CV (V N 601 69 69 03 64 64 64 m 6S 63 O LO Lo O m00 00 LO M d) V LO JI Lf) O� M LC) O LC) N O ti (O � Lo Q co coLO CO O LD O N CD CM CV 00 Z N N co O N CD� O cl V O co N O LLI 6r3 cli d3 Ef3 Eft 69 64 EA EA E fY T M cn CO 00 LO 0') LO M (V ��.. 6) N LO 00 cV CD r M O LO LO Ln Cl 0 O 0 N GV LO O (D M C)r, PI- L cV � (D co CO co co 00 � ++ LO O LO r— CV cD ti (O N M f0 O r- O r- O �• V W O L.O d• N co LO CV Cl) CO N Q) 00 U I O 1• 6 CO (V �— Ef3 c- 64 N N 64 69 64 H3 d3 69 69 +L+ 69 64 U 2 W V f� f-- O ti V LO V co GV f� LC) V N m O O V r.- m f - O O O O O M CV M CO (.O LO O LO O d' LO O N V' � LC) co N N M V CD LO co N N " O C CV 00 M M O M O r- O CD (D N O CV co LO O l0 LO CT (O CV cn O d' CD N 64 6) N 64 ER 64 69 64 64 69 64 64 y f— CO C'M d• O LO d• LO LO O LO CO cof� M O 00 co CO V' cV N 00 Cl OR M CO CV CV L!7 O cl CO LO 00 to co O V N O O CV 00 �• co 00 00 N O 00 co 00 (O r.- co N ti lzl' a �• CO M fl LA O N O M LO V' CC ti V cn ;i f� ti O M C(� 64 69 H3 IT CN 6g 64 64 GI). 64 64 EA el) N cc d � _ N f` O LO L O V N LO iz O LO 0 00 O � CD co cn ti M LC) cV .O L CD CD N O ti o O -a O .-- O LO V LC) d• CDd' cod' (D �• to ti co to CDN O O N M Cl CD LO CV fl N LO C� N LO LC) N ti O C- 6') (`') M d O � N N d' N •� N �- U3 64 69 64 64 64 69 d co COO m O m O V CDO ti LO M ti O _ CV cn O CD O co M M M V � N O) O O (DCN co ON M Lo M cr C"M (M � M CD co � .- M N ti � ti CDa M V) O d7 N M CO Ei3 H3 Ef} 64 64 64 fA b3 U ! N tl .O i a cn } m c i a E �a � a) U W U O C a 7 U is 0 � U U) o c a) � o > Q o L6 Q m rn w w E > m rn cm w N = O > _v a) w .n C a d Q Q Z X X �j 'rn c 0 c 0 O c°'i N cn w o c CD �a m m a`> CL w O X o O` O M w a) O L-' N d d' H LU F-• CD I-- m 0 F- 0 N 0 0 Section 3 COST-OF-SERVICE STUDY After determining the system revenue requirement,a cost-of-service for each customer class is developed to determine the specific costs to serve each class. Customer class revenues are compared to class revenue requirements to evaluate the current rate's abilities to fully recover costs. NewGen performed an analysis of the cost to serve each customer class based on the revenue requirement developed in Section 2. There are three steps in developing the cost-of- service for each customer's class as illustrated below: _ ■ _ - _ ■ _ • _ ■ _ _ ■ _ ■ _ ■ _ ■ r ■ _ ■ _ . _ . _ . _ • _ ■ _ Component A Component B I . Component C Cost Classification class Allocation Factors ' Revenue ' Peak Demand , 1 Coincident Peak t Production ' Baseload Demand • 12 Coincident Peaks Requireme ' • Energy ' . Energy Consumed • O&M ' 1 Oebt Service Transmission' ■ Demand ' ' 3 Coincident Peaks E • Transfers/Taxes Capital Demand 12 Non-CPau ■ IStrlbution 11 customer No.of customers W —t i Expenditures - t Street Lights Direct Assignment Net Margin f ' total Revenue ' Customer Service • 'Wtd.Cust.Service R mt Customer • ■ Meter Reading ' ■Wtd.Cust.Meters q Cust.Accounting Wtd.Cust.Service ' ■ f Figure 3-1: Cost-of-service Process A. Functional Unbundling: Unbundle revenue requirement into utility functions (e.g. production, transmission, distribution,and customer service) B. Classify Costs Classify costs within each function as demand, energy, customer related, or directly assignable C. Allocate Classified Costs to Customer Classes Allocate classified costs (e.g. demand, energy, customer) within each function to the customer classes based on specific service and consumption characteristics of the customer classes. Once completed,the cost-of-service results indicate the degree to which existing rates recover the costs to serve customers. These results of the cost-of-service are then used in designing new electric rates. The cost-of-service analyses relied on the following key supporting data and analysis: ■ Test Year reported revenue requirements and revenues based on current rates; . r &Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 1 3-1 Section 3 • Adjustments to revenue requirements and revenues,as necessary,to better reflect the Study Period; • Total system and customer class power and energy requirements; • Actual and assumed customer service characteristics; and • Information obtained from customer accounts and records. Electric Rate Functions UTILITY'S electric rates have been unbundled into four functions: production, transmission, distribution,and customer service. The assignment of costs by function falls into two general categories: 1)direct assignments and 2)derived allocations. Direct assignments are costs that are readily associated with a specific utility function and are directly assigned to that function. For example,fuel is clearly an expense solely related to the production function,so it is directly assigned to that function. Derived allocators are allocation factors that are based on the sum,average,or weighted effect of different underlying factors. Derived allocators can be complex and should reflect the logical answer to the following question—what underlying activities drive the cost of this item? For example, administrative and general expenses are associated with the O&M of all utility functions. Thus,O&M expenses are allocated to each utility function using a derived allocator. Each of the four utility functions is described below. Production Function The production function consists of costs associated with operating and maintaining electric generation facilities and making capital investments,as necessary. This function also includes wholesale energy costs, including purchased power costs. The majority of UTILITY's production costs are wholesale purchased power costs. Transmission Function The transmission function consists of costs associated with operating and maintaining the transmission portion of the electric grid and making capital investments as necessary. The transmission facilities transmit electricity at high voltage from the generation stations to the distribution system. This function also includes transmission related costs included in the Power Purchase Contract with IOU Utility. Distribution Function The distribution function consists of costs associated with operating and maintaining the distribution portion of the electric grid and making capital investments as necessary. The distribution facilities deliver power to the retail customers after it has been transmitted. This includes low voltage distribution lines,distribution poles, underground lines,customer service connections, meters,and street lighting-related assets. 3-2 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Cost-of-Service Study Customer Service Function The customer service function consists of costs associated with operating and maintaining the customer-related facilities to meet customer support needs. This includes, but is not limited to, customer accounting, customer information systems, billing, meter reading, key account services, and the call center. Unbundling of Revenue Requirement The revenue requirement determined for the Test Year was "unbundled" into the four functional areas(or primary business units)of the system, including production,transmission, distribution, and customer as illustrated in the following figure. The results of the functional unbundling are summarized in Table 3-1. Component A (i Component B Component C Revenue P+ > Production ( eeo_M ■ ...■ ■ ■ 1 Requirement •• t�.rr ■ ■ O&M 11 Component A � ' t 1�rkm« a Cxp,ta: 1 Evicerdlurei Distribution ■ Revenue • Production ��, � I Ha Marre�,e" � � I I Requirement • • nvmt O&M _ . _ . _ . _ . _ . ja . _ . _ . _ Debt Service Transmission' ■ Transfers/Taxes I Capital • Distribution IExpenditures ■ Net Margin ITotal Revenue Customer Rqmt. . I • . . . . . . . . . . . . J ` . Figure 3-2: Functional Unbundling Electric Rate Study Rpt_FINAL_12-03-13v2 3-3 Section 3 Table 3-1 Unbundled Test Year Revenue Requirement Revenue Function Requirement $/kWh(1) %of Total Production $134,277,431 $0.0510 66.8% Transmission 22,105,303 0.0084 11.0% Distribution 41,868,879 0.0159 20.8% Customer 2863.455 0.0011 1.4% Total $201,115,067 $0.0764 100.0% (1) Based on Test Year energy sales of 2,633,163 MWh The production function, including UTILITY operating expenses and wholesale purchased power, represents 66.8 percent of the Test Year revenue requirement. The distribution function is the second largest cost center representing 20.8 percent of the Test Year revenue requirement. Overall, 66 percent of the total revenue requirement is associated with wholesale purchased power and transmission costs associated with the IOU Utility purchased power contract. The remaining 34 percent of the total revenue requirement is associated UTILITY assets and operations. Classification of Costs System costs can be classified into four generally accepted rate-making cost classifications: (i) demand or fixed costs; (ii) energy or variable costs; (iii) customer-related costs; and (iv)directly assignable costs. In order to provide a reasonable basis for the assignment of total revenue requirements (costs) to each customer class, costs for each function in the electric system have been analyzed and classified into four categories as illustrated below. 3-4 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Cost-of-Service Study . _ . _ • _ . _ •Component A Component B I• Component C Revenue Production 11 =.woaf n..�a.e •1�:� I Requirement Component A - Component B •osw 11 ' - oae k Ac' Transadsslon i' r- Cost Classification T—OW'11— 1 - t Peak I can;'a ostntution 11 Je Production easeloaa 1 t.on 61— Strertyn lent E Ne,M—in II a • ' nl/H 1 Toni Rainnw Customor Ramt. 't � »� ' ■ • Cea.Fn•,r•.� Wb Transmission • , Oennrtd` 01stributiart ' • oustarter Street - Customer SeMce Customer - Meter Reading Cust.Accountlog Figure 3-3: Classification of Unbundled Utility Revenue Requirement UTILITY'S functional costs were classified on the following basis: • Demand Costs—Capacity (fixed- or demand-related) costs are those costs incurred to maintain a utility system in a state of readiness to serve, enabling it to meet the total combined demands of its customers. Capacity costs include the portion of O&M expenses, debt service, capital expenditures, and other costs that are generally fixed, and do not vary materially with the quantity of usage or that cannot be designated specifically as a customer or variable cost. • Energy Costs—Energy, or variable costs, are costs that vary directly with energy usage, including such items as fuel, energy-related purchased power, and a portion of O&M expenses. • Customer Costs — Customer costs are those costs directly related to the number and type of customers, such as customer accounting, billing, and meter related expenses. • Direct Assignment Costs — Direct assignment costs are those costs that are readily identifiable and applicable to a particular customer or customer class (e.g. street lighting). Once the costs within each function are assigned to each service category, the demand, energy, customer, and direct assignment component of each service is calculated. As seen in Table 3-2,three major cost categories (demand, energy, and customer) cover the majority of all functional costs. This breakdown of demand, energy, customer, and direct assignment costs is later applied to each customer class to facilitate the electric system rate design, as provided in Section 4. Electric Rate Study Rpt_FINAL_12-03-13v2 1 3-5 Section 3 Table 3-2 Classifications of Test Year Revenue Requirement Revenue Classification Requirement $/kWh(1) %of Total Production Demand $ 54,467,996 $0.0207 27.1% Energy 79 809.436 0.0303 39.7% Subtotal $134,277,431 $0.0510 66.8% Transmission Demand $ 22,105,303 $0.0084 11.0% Distribution Demand $ 30,163,684 $0.0115 15.0% Customer 8,720,108 0.0033 4.3% Direct Assignment-Street Lights 2.985 086 0.0011 1.5% Subtotal $ 41,868,879 $0.0159 20.8% Customer Meter Reading $ 1,475,503 $0.0006 0.7% Customer Accounting 1,097,758 0.0004 0.5% Public Relations 994,265 0.0004 0.5% Disconnects,Fees,and Charges -3,466,090 (0.0013) -1.7% Customer Service 2,762 018 0.0010 1.4% Subtotal $ 2,863,455 0.0011 1.4% Total Costs $201,115,067 $0.0764 100.0% (1) Based on Test Year energy sales of 2,633,163 MWh As seen in Table 3-2, 39.7 percent of UTILITY's total revenue requirement is energy related or variable costs. The remaining 60.3 percent of the revenue requirement is classified as demand, customer, or direct assignment related costs, which are fixed costs. In addition, purchased power or IOU Utility related costs include demand (i.e. fixed) and energy (i.e. variable) while UTILITY'S costs are primarily fixed including demand and customer classified costs. Allocation of Test Year Revenue Requirement Based upon actual and assumed customer service characteristics, NewGen developed various factors for use in allocating the adjusted revenue requirements to individual customer classes. These allocation factors reflect accepted ratemaking principles and were based upon fully distributed embedded cost allocation procedures. The following summary describes the specific allocation factors used in the Study. Once revenue requirements are classified,they are allocated to the individual customer classes based on customer usage characteristics. For the system and customer classes, we have developed demand-related, energy-related, customer-related, and direct assignment allocation factors as described below. 3-6 1 Electric Rate Study Rpt_FINAL-12-03-13v2 Cost-of-Service Study Demand Allocations Demand allocation refers to the basis on which capacity-related costs are distributed or assigned (i.e., allocated) among the various customer classes for the purpose of determining the cost-of-service for each class. The demand allocation factors that were developed reflect the cost responsibility of the various customer classes with respect to their contribution to demand related system characteristics(e.g. contribution to monthly peak demand). For example, monthly coincident peak demand by customer class reflect the customer class' contribution to or portion coincident to the monthly system peak demand. Non-coincident peak demands reflect the customer class peak demand,whenever that may occur, it does not have to coincide with the overall system peak. Coincident and non-coincident demands are typically calculated considering a one,three,four,or 12 month time period. For customer class allocation purposes, four-month coincident peak (4CP), 12-month coincident peak (12CP), and four-month non-coincident peak (4NCP) methods were used to allocate the fixed production, transmission, and distribution related costs. The use of four- month coincident and non-coincident demand allocators aligns with the peak demands placed on the UTILITY system in the summer months(June through September),as shown previously in Figure 1-1. As the transmission and distribution systems are constructed to meet and deliver the maximum system peak demand, allocating demand related costs according to the customer class' contribution to that system peak demand is appropriate. The production purchased power costs are allocated using a 12CP method as IOU Utility's purchased power costs are based on each monthly peak demand. Thus, the customer classes' contribution to all 12 months of system peak represents their costs imposed on the production— purchased power portion of the system. The particular method used to allocate other demand related costs depends on the utility function and specific demand cost item. Table 3-3 lists the various demand allocators utilized in the Study. Electric Rate Study Rpt_FINAL_12-03-13v2 1 3-7 Section 3 Table 3-3 Demand Allocations AEDI4CP 12CP 4CP 4NCP SMD Customer Class (k" (k" (kW) (k" (k"(1) Residential Standard 233,693 1,835,962 934,770 1,033,176 3,950,499 Residential Electric Heating 92,630 1,006,124 370,520 415,322 2,340,360 Small General Service 10,056 108,491 40,225 54,521 162,150 Large School Service 9,700 114,995 38,802 84,063 215,325 Secondary General Service 198,770 2,031,656 795,078 945,111 2,924,980 Primary General Service 16,731 188,731 66,923 74,428 0 State University General Service 29,385 323,193 117,539 136,243 397,968 Large Municipal Service 13,844 151,526 55,378 74,835 223,717 Municipal Lighting(2) 0 0 0 0 0 StreeVFlood Lighting 71 158 0 646 1,641 General Religious Service 6,431 56,517 25,725 49,599 125,351 Small Muni&School Service 1,354 16,825 5,407 9 604 _28,840 Total 612,665 5,834,178 2,450,367 2,877,546 10,370,832 (1) Excludes primary voltage customers classes (2) Municipal lighting is redistributed to all other customer classes as a community benefit The Average and Excess 4CP(AED/4CP)method was used to allocate production demand costs. The AED/4CP allocation method measures the ratio between class demand and energy. The average class demand used in this calculation is the class contribution to the system peak during the months of June through September (i.e., 4CP). Under the AED/4CP method, the electricity usage characteristics of each customer class are evaluated to determine class average demand and class excess demand. Average demand (measured in kW) is a measure of the demand a class places on the system over the course of the year. Average demand is calculated by dividing annual customer class electricity usage (measured in kWh) by the number of hours in a year (i.e., 8,760 hours typically or 8,784 hours in a "leap year"). Mathematically, as an allocator, average demand is equivalent to energy. Excess demand measures the difference between each customer class's maximum demand and its average demand. The 12CP was used to allocate production demand-related purchased power costs. The 12CP was also used to allocate the transmission costs associated with the IOU Utility purchased power contracts. The utility's transmission related costs not associated with the IOU Utility contracts were allocated based on 4CP. Distribution demand-related costs were allocated to customer classes based on either 4NCP or the sum of maximum demands (SMD). An NCP allocator is typically used to allocate distribution costs,as these facilities are typically sized for localized peak demands rather than the system peak demand. The 4NCP method was used to allocate the distribution system demand-related costs associated with substations,poles,and conductors. The SMD,excluding the primary voltage customer classes, was used to allocate demand costs related to distribution transformers. The SMD is reflective of the localized demands customers place on 3-8 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Cost-of-Service Study the system at the meter. For customer classes that are billed for demand,the SMD represents annual billed demand. Energy Allocations Energy allocation factors are the basis for allocating costs or expenses classified as variable or energy-related and are assumed to vary directly with kWh sales. Energy-related costs classified as variable include fuel, variable O&M costs, and purchased power. Typically, net energy for load (NEFL), or the energy necessary to supply each customer class, is used to allocate these types of costs to individual customer classes. NEFL is also sometimes called adjusted metered load or energy at generation, as it includes the metered energy at the customer adjusted or increased to account for system transmission and distribution losses between the power generation facility and the customer's meter. Table 3-4 lists the energy allocations utilized in the Study. Table 3-4 Energy Allocators Customer Class NEFL(kWh) Residential Standard 721,793,603 Residential Electric Heating 373,857,174 Small General Service 56,470,208 Large School Service 57,121,012 Secondary General Service 1,131,220,150 Primary General Service 121,678,435 State University General 180,429,581 Service Large Municipal Service 91,890,774 Municipal Lighting 0) 0 Street/Flood Lighting 621,871 General Religious Service 25,890,876 Small Muni&School Service 9,905,690 Total 2,770,879,373 (1) Municipal lighting is redistributed to all other customer classes as a community benefit Customer Allocations Customer costs are defined as those costs related to the number of customers and the type of service required. Included in the customer-related costs are the costs associated with meter reading, customer service,sales, billing,collection,and other customer-related activities. The customer allocation factors were largely based on the number of customers in each class. In allocating certain customer-related costs to the various customer classifications, weighted customer allocation factors were utilized. Weighting reflects that servicing certain types of customers requires more effort and expenses than other types of customers. Weighting factors were developed based on discussions with UTILITY staff as well as applying industry knowledge and practices. Weighting factors derive relationships between the customer Electric Rate Study Rpt_FINAL_12-03-13v2 1 3-9 Section 3 classes and the pieces of equipment or services needed to serve the class and the relative costs of those items. Table 3-5 lists the various customer allocations utilized in the Study. Table 3-5 Customer Allocators Weighted Weighted Cust.- Weighted No.of Cust.- Serv.1 Cust.-Meter Accounts Customer Class Meters Meters Accounting Reading Receivable Residential Standard 55,822 55,822 55,822 55,822 0.569 Residential Electric Heating 28,532 28,532 28,532 28,532 0.291 Small General Service 6,540 6,540 6,540 6,540 0.067 Large School Service 187 373 373 373 0.002 Secondary General Service 5,306 10,612 10,612 10,612 0.054 Primary General Service 9 27 27 18 0.000 State University General Service 238 714 1,190 476 0.002 Large Municipal Service 223 668 1,113 445 0.002 Municipal Lighting0I 1 0 10 0 0.000 Street/Flood Lighting 326 326 163 326 0.003 General Religious Service 293 293 293 293 0.003 Small Muni&School Service 627 627 627 627 0.006 Total 98,103 104,534 105,302 104,064 1.000 (1) Municipal lighting is redistributed to all other customer classes as a community benefit Street Lighting Allocations The only portion of the cost-of-service directly assigned to a customer class was related to distribution street lighting costs. The distribution street lighting costs were initially assigned to the Municipal Lighting(i.e.,street lighting)customer class. The Municipal Lighting customer class is solely associated with the City street lighting service. The Municipal Lighting costs were then redistributed all other UTILITY customer classes based on number of customers,excluding the Municipal Lighting class. Unbundled Cost-of-Service The unbundled electric revenue requirement by customer class is shown in Table 3-6. 3-10 1 Electric Rate Study Rpt_FINAL_12-03-13v2 co co Cl) t 00 M I- N O N f� n m M O 00 o0 _ t oc) M O t LD O 7 t M cD O t O) N C LO Il- O) LO Cl) O co LO (D O M Lc) L2 O O O O cD cV c0 oD M O oD o0 t cc I� oc O) I� cc LD m � Lo O) LN O W N N O I` N O -4 cfi N 1-1 D v3 M Q r- N O LO C2` m t M 00 N Iz o I" r- r- � E L() > ca •V O O o0 N N O O t O c0 (•/) N C tFn N Ln rn t CO N to M N 19 � N Qi p O) N I- o co I- cN JI t p N Lo co t o0 o0 LC) Ln cD lC) W y C I� N O O M W O S co N N O M Q Q C U N u �- N N _ Ln LO M LO Z �..� N V) Ef3 lLl NLo cD M t O O M 1� O M cp 7 N cl cl CD M 6) O T L O I� ti Q) M Lc) c) M d •� Lco n � oo N t t co ` N -,I- t O 3 as iEf! m O C � N_ I- O co W co_ S cD N_ O r O O t M_ c0 M O)'`! O 6) O O L LL C•1 � coN N a) Q] �- N O CD v J Fn ! W i N CD r- t O Lc') N Lo N 1� n I� � O I` M t Il : Lf) 1� co ti co •V or-D t u) L J cor t O' O co 7: O n y J = M cD LD I` S ti c0 �- Q' J 3 U T T ll'7 O t I.- co co co O t M M aw m O co co N I� t t O O t oD a.+ y •N O) O) L oc co N I- D) N O NO ti co N t O t I` 'r (D LA r- R > u) m o0 r- t O n N p) � � ll'7 oD c cq Lo E ti Lc) o v3 se c0 •� cn _ G.1 L[) co f` Mr-- O ;I- N d a/ t0 U O mD N co N cq t O t I� co O L U Imo. c cD Lr t O N O) O N M d G7 I� LLc co co O l� t LIO a. N co M M 6-31 f� oD a0D C) S m .--• O M lb d N L.C) co cD O Co I` t lL') CD I` � Q� •a L U c t L lc I� � t O t t R .a C O '? ti N M I- N LO m N OD C C C °On iD cND M C) rn °On L(J co N U a) v G N N o0 M r- D) M M N Ef3 fR _ O O N N (D t �- ' 00 N I- CO d O () LC) LF) Cl) I- oD I O LA o0 DD _ cD N o0 M L() N CD S N I� cD Ll) Q� > N Lo Cl) O O LC) S cD Lo t Lo N U L to 0) o c0 t oM0 O N cL) O JNN j cl v 6-3 613 I O) I- O t t m t ` N I� N t Lo LO 6) lf7 O It -D co M ' O) O M co •C� t LA I- L!) ItcD O i r- LL) O V' LC) cD c0 ti Q) S LD co O) O O E C m N m In O co O) S t N N O) O V) O) d m O M Ln t O] cD O t cC co c O O D O M I d7 M M Q m 00 Lo I- I- coE LD a0 d' 00 CD •L t D1 M t N LP 0 0 N OO d O M co N N M �- o0 w o0 t o0 O lV cD O t M cD 117 cD t cD M d = N O o0 co I- a0 f- ti O a0 "It y W m O M t N r- O M N Ef3 H9 c0 m o0 t N t to t a0 ti O Ll� coO N W a0 N cD O o0 n oc LD I- co ti co ti O O Cl) Cl) O oD w O t o0 m 'O c-- oO Cl) CD M O co a0 6I CI) cD I-i. M O t t cD O) � a0 O N O I� O r- O t .- LD O LD V' EfT N M N 64 C C p O O m >TE N of .N U U a n o a E E E I cz o E J N m o) E m c m o o m o) o v) o E a`) c E E n i E '° aE) m w 7, U CL o w ~ o a o U v U u) in V) 0 w 0 cis Section 3 Cost-of-Service and Current Revenue To evaluate the ability of current rates to adequately recover the cost-of-service, NewGen estimated revenues based on Test Year billing data and current rates,then compared resulting revenues to the cost-of-service for each customer class. The results of the comparison are shown in Table 3-7. With the exception of Small General Service,the current rates and revenues do not adequately collect the full cost-of-service during the Test Year period. According to the cost-of-service,all classes except Small General Service require a rate increase to fully collect UTILITY'S costs to provide electric service. Table 3-7 Comparison of Revenues and Revenue Requirements Estimated Revenues Projected Revenue Under Current Over/(Under) Class/Service Requirement Rates Recovery Difference Residential Standard $64,299,075 $58,620,270 ($5,678,804) -9.7% Residential Electric Heating 32,439,863 27,463,381 (4,976,482) -18.1% Small General 4,400,485 4,569,048 168,563 3.7% Large School 4,012,518 3,599,753 (412,765) -11.5% Secondary General 70,251,448 66,017,986 (4,233,462) -6.4% Primary General 6,582,362 5,757,767 (824,594) -14.3% State University General 10,874,083 10,681,630 (192,453) -1.8% Large Municipal 5,471,872 4,505,965 (965,907) -21.4% Street/Flood Lighting 61,017 59,886 (1,131) -1.9% General Religious 2,046,301 1,482,591 (563,710) -38.0% Small Muni&School 676,045 624,823 (51,222) -8.2% Total $201,115,067 $183,383,098 ($17,731,969) -9.7% Also shown in Table 3-7 is the approximate percentage increase/(decrease) in each customer class's revenues necessary to fully recover the identified cost-of-service. The percentage increase or decrease shown in the table above provides guidance for future rate design without subsidization and full rate revenue recovery. Recommendations for new rate designs are presented in Section 4. 3-12 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Section 4 RATE DESIGN Rate design is the culmination of a cost-of-service study where the rates and charges for each customer classification are established in such a manner that the total revenue requirement of the utility will be recovered in the most equitable manner and consistent, to the extent reasonable and practical,in accordance with specific Board policy. Consideration was given to the recovery of fixed costs in the customer and demand charges as well as phasing in the proposed rates over time. Rate Design Objectives In general, proposed rate structures that are developed and submitted for adoption should meet the following objectives and best practices: • Rates should be simple and understandable. • Rates should be equitable among customer classes and individuals within classes,taking into consideration the costs incurred to serve each customer class. • Rates should be designed to encourage the most efficient use of the utility's system. • Rates may take into consideration other important factors, such as competitive concerns,conservation, local policies, etc. UTILITY Rate Strategy Through the course of the Study and workshops conducted with UTILITY and City staff,a high- level rate strategy was developed. Elements of the strategy included the following: • Rates should align with and use the cost-of-service results as a guide. ■ Implement new base rate and pass through rates aligned with how UTILITY incurs costs; base rates are aligned with UTILITY's direct costs while the pass through rates are aligned with the IOU Utility purchased power costs. ■ Utilize gradualism to begin aligning current customers with the respective cost-of- service customer class. Align current customers with the cost-of-service rate, eventually consolidating current social based customer classes (e.g. municipal, school, and religious) into appropriate cost-based classes (e.g. small general, secondary general). • Provide a net metering option for residential customers for distributed and/or renewable energy. • Continue current low-income assistance in the form of rounding up participating customer bills to provide an assistance fund administered by a local nonprofit. • Limit any individual customer class average rate increase to 20 percent or less in order to limit potential "rate shock". &Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 1 4-1 Section 4 Revenue Adequacy of Proposed Electric Rates The rates presented in this section have been designed to recover revenues equal to the Test Year revenue requirement presented in Section 3. The rates listed in this section of the Report reflectthe first increase in a series of initially projected increases necessaryto bringthe utility's revenues into alignment with its forecasted operating costs, capital plans, and purchased power needs as demonstrated in the Financial Forecast described in Section 2. Rates were designed based on billing information provided by UTILITY. To the extent actual billing determinants vary from that provided by UTILITY or future class usage characteristics vary from historical observations, actual revenues may vary from the expected revenues as presented herein. Electric Rate Structure The proposed electric rates include a demand charge (where applicable), energy charge, customer charge, and PPRF. Table 4-1 shows the cost-of-service as well as the projected revenue under current and proposed rates for each customer class. Elements of the UTILITY rate strategy were applied to develop the rates resulting in a limited rate increase for the Large Municipal and General Religious customer classes and no rate changes for Small General or State University General. The remaining customer classes' rate changes aligned with the cost- of-service results. Table 4-1 Cost-of-Service and Rate Design Results Cost-of- Projected service Revenues Projected Increase/ Proposed Rate Under Revenue Revenues Under (Decrease) Increase/ Proposed Customer Class Requirement Current Rates Needed (Decrease) Rates Residential Standard $64,299,075 $58,620,270 9.7% 9.7% $64,325,314 Residential Electric Heating 32,439,863 27,463,381 18.1% 18.1% 32,442,888 Small General 4,400,485 4,569,048 -3.7% 0.1% 4,571,790 Large School 4,012,518 3,599,753 11.5% 11.6% 4,018,496 Secondary General 70,251,448 66,017,986 6.4% 6.4% 70,252,986 Primary General 6,582,362 5,757,767 14.3% 14.4% 6,584,942 State University General 10,874,083 10,681,630 1.8% 0.0% 10,681,630 Large Municipal 5,471,872 4,505,965 21.4% 20.0% 5,407,299 Street/Flood Lighting 61,017 59,886 1.9% 6.0% 63,486 General Religious 2,046,301 1,482,591 38.0% 19.9% 1,777,943 Small Muni&School 676.045 624.823 8.2% 8.1% 675 575 Total $201,115,067 $183,383,098 9.7% 9.5% $200,802,348 Per policy direction from UTILITY, the proposed rates changes reflect a limit of a 20 percent rate increase for any single customer class as a group (e.g., Large Municipal or General Religious). No customer class received an overall decrease as a result of the proposed rates. This is consistent with gradualism principals often employed in rate making to reduce the 4-2 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design occurrence of "rate shock." In addition, by limiting any customer class rate increase to 20 percent, it reduced the total proposed rate revenues by$312,719 to$200,802,348. This is below the cost-of-service and Test Year revenue requirement. UTILITY expects the slight under collection to be manageable with minor operating cost reductions, slight shifting of capital plan projects,or utilizing a small portion of reserves. Figure 4-1 illustrates the components and differences between UTILITY's existing and the recommended rate structures. Existing Rate Structure Recommended Rate Structure Base Rates: Base Rates: 0 UTILITY O&M Expenses • UTILITY •: •- CapitalUTILITY Capital• UTILITY • City Transfers • Portion of -• Power Costs i PPRF: All Purchased Power Cost • Demand PPRF L RF. Portion of Purchased • Energy PPRF Power Costs Franchise Fee: 5% Franchise Fee: 5% 10iscount Factor: Varies by Class Discount Factor: 0%; Eliminate Figure 4-1: Existing and Recommended Rate Structures Base Rates and Purchased Power Recovery Factor Typically,a PPRF or fuel adjustment factor is a pass-through charge to fully recover the variable fuel and/or purchased power costs that are not controlled by a utility. UTILITY's current rate structure includes a large portion of the purchased power costs in base rates with the remaining portion of the purchased power costs recovered in fuel, power, and transmission cost recovery factors. Including purchased power costs in the base rates, often presents utilities with difficulties in fully recovering and tracking pass through costs. Furthermore, NewGen's analysis suggests that this charge should be adjusted to reflect the mix of variable (fuel and energy) and fixed (production and transmission demand) costs included in the purchased power contract with IOU Utility. In reviewing the PPRF charge structure, the cost-of-service analysis suggests the fixed cost component of the purchased power costs should be recovered via a purchased power demand charge, or a per kW basis (where appropriate). For customer classes without a demand charge, the fixed cost component of the purchased power costs would be recovered with the variable cost portion in the energy charge, or a per kWh basis. Electric Rate Study Rpt_FINAL_12-03-13v2 i 4-3 Section 4 The revised base rate and PPRF rate structures apply to all customer classes with the exception of the State University General Service Tariff which is served under an existing contract. The existing contractual rate and PPRF rate methodology will not be changed for this customer. Franchise Fee and Payment in lieu of Tax UTILITY charges a franchise fee, currently set at five percent of the total electric bill. This franchise fee is charged as a fee on customer's bill and remains unchanged under the proposed rates. The revenues associated with the franchise fee are directly transferred to the City. UTILITY also includes a one percent payment in lieu of tax (PILT) as an operating cost within the revenue requirement. UTILITY embeds the PILT fee within the UTILITY base rates. This fee is also directly transferred to the City. Discount Factor UTILITY's current rates reflect a discount factor applicable to customers inside the UTILITY's certificated area that was used in competition with IOU Utility for customers. The proposed rates eliminate this discount factor for all customer classes. Rate Design Results The proposed rates and average bill impacts are summarized for each customer class below. A graph including a histogram of customer monthly billing impacts and effective rates by load factor or consumption is included to illustrate and compare current rates, proposed rates and cost-of-service results. Residential Service The Residential class is composed of residential customers served on a retail basis. Table 4-2 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-2 Current,Cost-of-Service and Proposed Rates: Residential Service Cost-of- Item Unit Current Service Proposed Customer $/Month $5.60 $8.31 $6.50 Energy Summer t1I $/kWh $0.05355 $0.02535 $0.03244 Non-Summer $/kWh $0.04393 $0.02535 $0.02244 PPRF $/kWh $0.02845 $0.05667 $0.05667 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May The cost-of-service analysis indicates that the current customer charge should be increased to $8.31 per month per customer while the energy charge decreases and PPRF increases to align 4-4 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design with the recommended rate structure as shown in Figure 4-1. The energy and customer charge represent the base rates and UTILITY's costs,while the PPRF includes the full purchased power costs. The proposed customer charge increases to$6.50 per month, which is lower than the actual cost-of-service but is an incremental step towards cost-of-service and improved fixed cost recovery via the customer charge. Seasonal energy rates are maintained under the proposed rate structure. Figure 4-2 compares the unit costs ($/kWh) for the current and proposed rates as well as the cost-of-service for a series of monthly energy usage amounts. M Residential Rate(E01) $0.1300 Current,COS,and Proposed Rates 120,000 IIIIIIIIIIIIIIIIISurnmer Bills =Wnter Bills -_..— - -- -------------` $0.1200 � -,Current Summer-Rat-e 100,000 -*-Current Winter Rate $0.1100 — —__..__.....-.. .— .J _-- Cost of Servze �- 90,000 -*-Proposed Summer Rate ♦-ProposedWnterRate $0.1000 - - - - 00.000 N $0.0000 - _ —� 40,000 $0_ 00 oflon i 70.0 sa(mK) ., 250 S(X) /110 1,(HH) 1,sw "'mit) )"AH) ijmo 4,(100 kWh/Month Figure 4-2: Proposed Residential Rate Compared to Current Rates and Cost-of-Service As illustrated in Figure 4-2, at lower energy consumption levels or load factors,the unit costs ($/kWh) or effective electricity rate is driven more by the fixed or customer charges than the variable energy charges. This results in an effective rate that is higher per kWh for customers who consume lower amounts of energy (kWh). The rate or cost curves also show that the current and proposed rates tend to under-recover the cost-of-service at low energy usage levels. This is due to the current and proposed customer charges set at rates less than the cost-of-service. The average monthly consumption in the Residential customer class is 1,013 kWh per month based on an average of 1,438 kWh per month in the four summer billing months of June through September and 801 kWh per month in the remaining eight months of the year. The bill for an average residential customer is projected to increase by $8.51 per month (or 9.7 percent) under the proposed rates, assuming the Test Year purchased power costs. Residential Electric Heating Service The Residential Electric Heating class is composed of residential customers using electric heating, also called residential 'all electric'. Table 4-3 compares the current rate with the proposed rate as well as the cost-of-service. Electric Rate Study Rpt—FINAL-12-03-13v2 1 4-5 Section 4 Table 4-3 Current,Cost-of-Service and Proposed Rates: Residential Electric Heating Service Cost-of- Item Unit Current Service Proposed Customer $/Month $5.60 $8.47 $6.50 Energy Summer(1) $/kWh $0.05355 $0.02135 $0.04230 Non-Summer $/kWh $0.03347 $0.02135 $0.01230 PPRF $/kWh $0.02832 $0.05828 $0.05828 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May Similar to the Residential class,the cost-of-service analysis indicates that the current customer charge should be increased, while the energy charge and PPRF should adjust to reflect the revised base rate and PPRF methodology. The proposed customer charge increases to $6.50 per month, which is lower than the actual cost-of-service but is an incremental step towards cost-of-service and improved fixed cost recovery via the customer charge. Seasonal energy rates are maintained under the proposed rate structure. Figure 4-3 compares the unit costs ($/kWh) for the current and proposed rates as well as the cost-of-service for a series of monthly energy usage amounts. The shape of the rate curves in Figure 4-3 are similar to those in Figure 4-2 with similar results. residential Electric Heating Rate(E03) $0.1450 Current,COS,and Proposed Rates 50,0010 111111111111111Sunwrier Bills $0.1350 ---- — -- ---- OWinter)3ixs 4M,(xx) --*-Current Summer Rate I. 40 $ayst) --k-Current Winter Rate -*-Cost of service 35,000 $0.1150 --a-Proposed Winter Rate, $0.1050 — -------- sed Summ Ratc „ 25,0001 +n $o.0950 20'000 tM,)xx) $aos50 loom $0.0750 — 5,000 $0.0650 i A01 SIx) !M0 1,Ouo t,M00 ),Ixx) J,M to I'mm 4,004) kWh/Month Figure 4-3: Proposed Residential Electric Heating Rate Compared to Current Rates and Cost-of-Service The average monthly consumption in the Residential Electric Heat customer class is 1,026 kWh per month based on an average of 1,118 kWh per month in the four summer billing months of 4-6 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design June through September and 981 kWh per month in the remaining eight months of the year. The monthly bill for this average customer in the Residential Electric Heat class is projected to increase by$14.51 per month (or 18.1 percent) under the proposed rates,assuming Test Year purchased power costs. Small General Service Small General Service customers are commercial customers served at secondary voltage levels whose load does not exceed 10 kW of demand in any month. Table 4-4 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-4 Current,Cost-of-Service and Proposed Rates:Small General Services Item Unit Current Cost-of- Proposed Service Customer $/Month $10.91 $7.63 $10.91 Energy Summer t1I $/kWh $0.04445 $0.01777 $0.01600 Non-Summer $/kWh $0.03504 $0.01777 $0.01600 PPRF $/kWh $0.02752 $0.04987 $0.04987 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May As with previous customer classes, the existing rate structure is changed to align with the proposed base rate and PPRF methodology. This reduces the existing energy charge while increasing the PPRF charge. The existing customer charge is fully recovering the cost-of-service for the Small General Service class and is unchanged under the proposed rates. Seasonal energy rates are eliminated for this customer class under the proposed rate structure. Figure 4-4 compares the unit costs ($/kWh)for the current and proposed rates as well as the cost-of-service for a series of monthly energy usage amounts. As illustrated in Figure 4-4,the proposed rates are very similar to the current rates for the Small General Service customer class. Electric Rate Study Rpt_FINAL_12-03-13v2 1 4-7 Section 4 Small General Service(E10) Current,COS,and Proposed Rates $o.lzao ------- -- 40,000 aa>•Annual Bills 35,000 $0.1100 - ---_.__.__._ --..--�'CurrenfWafe --ii-Cost of service 30,000 $0.1000 *-Proposed Bate 25,000 'm $0.0900 20,000 � a 15,000 z $0.0800 - 'I 10,000 $0.0700 - ------- 5,000 $0.0600 250 Soo 750 1,000 1,500 2,000 3,000 4,000 5,000 kWh/Month Figure 4-4: Proposed Small General Service Rate Compared to Current Rates and Cost-of-Service The customers in the Small General Service class use an average of 677 kWh per month based on an average of 751 kWh per month in the four summer billing months of June through September and 640 kWh per month in the remaining eight months of the year. The monthly bill for an average customer is projected to increase by$0.02 per month (or 0.0 percent)under the proposed rates, assuming Test Year purchased power costs. Large School Service The Large School Service class includes public and private school facilities served at secondary voltage levels with loads exceeding 10 kW of demand in any month. Table 4-5 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-5 Current,Cost-of-Service and Proposed Rates: Large School Service Cost-of- Item Unit Current Service Proposed Customer $/Month $24.70 $31.80 $32.00 Energy $/kWh $0.00384 $0.00039 $0.00040 Demand Summer(1) $/kW $9.49 $4.63 $4.65 Non-Summer $/kW $7.12 $4.63 $4.65 PPRF Energy $/kWh $0.02657 $0.02888 $0.02888 Demand $IkW $0.13278 $5.49 $5.49 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May 4-8 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design The proposed rates are closely aligned with the cost-of-service results. Following the recommended rate structure in Figure 4-1, the proposed rates shift purchased power costs into the PPRF while reducing the base rate energy and demand charges. Seasonal demand rates are eliminated for this customer class under the proposed rate structure. Figure 4-5 compares the unit costs ($/kWh) for the current and proposed rates as well as the cost-of-service for a variety of customer load factors. As illustrated in Figure 4-5,the proposed rates are very similar to the current rates for the Large School customer class. barge School(E15) $0200D _--current,COS,and Proposed Rates 700 $0.1800 - - - iiIiIIIIIIIIIIIIIAnnual Bills 6410 -*-Current Rate $0.1600 •- -- ----of service e 500 $0.1400 #cost..of_5esvice..__.. N t 400 � Y$0.1200 -- - N 300 $0.1000 200 $0.0800 $0.0600 100 $0.0400 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Load Factor Figure 4-5: Proposed Large School Service Rate Compared to Current Rates and Cost-of-Service An average customer in the Large School Service class consumes 23,967 kWh per month based on an average of 25,762 kWh per month in the four summer billing months of June through September and 23,070 kWh per month in the remaining eight months of the year. The average monthly bill for this customer class is projected to increase by$172.23(or 10.6 percent) under the proposed rates,assuming Test Year purchased power costs. Secondary General Service The Secondary General Service class includes customers at secondary voltage levels with loads exceeding 10 kW of demand in any month. Table 4-6 compares the current rate with the proposed rate as well as the cost-of-service. Electric Rate Study Rpt_FINAL_12-03-13v2 i 4-9 Section 4 Table 4-6 Current,Cost-of-Service and Proposed Rates: Secondary General Service Cost-of- Item Unit Current Service Proposed Customer $/Month $18.57 $23.01 $23.00 Energy $/kWh $0.00371 $0.00044 $0.00064 Demand Summer ttt $/kW $12.01 $4.57 $6.45 Non-Summer $/kW $9.02 $4.57 $3.45 PPRF Energy $/kWh $0.02625 $0.02888 $0.02888 Demand $/kW $0.56582 $7.14 $7.14 Franchise Fee % 5.0% 5.0% 5.0% Discount % -2.1% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May The proposed rates for the Secondary General Service are closely aligned with the cost-of- service results. Following the recommended rate structure in Figure 4-1, the proposed rates shift purchased power costs from the existing base rates into the PPRF. The seasonal demand rates are maintained for this customer class under the proposed rate structure. Figure 4-6 compares the unit costs ($/kWh) for the current and proposed rates as well as the cost-of-service for a variety of customer load factors. As illustrated in Figure 4-6,the proposed winter rate curve closely follows(and sits on top of)the cost-of-service curve and the proposed summer rate curve is only slightly higher. Secondary General Service(E16) $0 2300 Current,COS,and Proposed Rates 10,000 Summer Bills %7100 lliiililillili�Winter Bills %ow _-_*mLurrentSumnY-iJ1 to 8,000 - Current Winter Rate $0.1700 -*-Cost of Servke 7,000 $0.1500 - -Proposed Summer Rate b,UW N -- -i-Proposed Winter Rate 2 $0.1300 ----- 5,000 � a $0.1100 -- -- - 4,000 $0.09t10 .i,mm $0.0700 - 2,000 $0.0500 �- - 1,000 $0.0.100 - I09A 10% '10% 40% ti0% 60% 10% 80% 90% 11M)% Load Factor Figure 4-6: Proposed Secondary General Service Rate Compared to Current Rates and Cost-of-Service 4-10 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design An average customer in the Secondary General Service class uses 16,696 kWh per month based on an average of 18,416 kWh per month in the four summer billing months of June through September and 15,835 kWh per month in the remaining eight months of the year. The average Secondary General Customer's monthly bill is projected to increase by $66.48 per month (or 6.4 percent) under the proposed rates,assuming Test Year purchased power costs. Primary General Service The Primary General Service class includes customers whose take power at primary voltage. Table 4-7 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-7 Current,Cost-of-Service and Proposed Rates: Primary General Service Cost-of- Item Unit Current Service Proposed Customer $/Month $104.30 $391.94 $250.00 Energy $/kWh $0,00353 $0.00029 $0.00045 Demand Summer i1i $/kW $10.72 $4.15 $4.15 Non-Summer $/kW $8.03 $4.15 $4.15 PPRF Energy $/kWh $0.02569 $0.02827 $0.02827 Demand $/kW $0.55308 $8.49 $8.49 Franchise Fee % 5.0% 5.0% 5.0% Discount % -2.1% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May The proposed rates closely mirror the cost-of-service results. Following the recommended rate structure in Figure 4-1, the proposed Primary General Rates shift purchased power costs from the existing base rates into the PPRF. Seasonal demand rates are eliminated for this customer class under the proposed rate structure. Figure 4-7 compares the unit costs ($/kWh)for the current and proposed rates as well as the cost-of-service for a variety of customer load factors. As illustrated in Figure 4-7,the proposed rates are very similar to the cost-of-service for the Primary General Service customer class, as the proposed rate curve sits on top of the cost-of-service curve. Electric Rate Study Rpt_FINAL_12-03-13v2 4-11 Section 4 Primary General Service(E16P) $02300 Current,COS,and Proposed Rates -. 1 25 Annual Bills $0.2100 -d-Current Rate —i $0.1900 -- _..._..._.........._..-,4—Costof5ervice.... 20 $0.1700 -0 Proposgd Rate. $0.1500 15 t Y$0.1300 $$$ H $0.1100 - ------ — YO $0.0900 $0.0700 - ----- - 5 $0.0500 $0.0300 10% 20% 301A 40% 50% 60% 70% 80% 90% 100% Load Factor Figure 4-7: Proposed Primary General Service Rate Compared to Current Rates and Cost-of-Service An average Primary General Service customer consumes an average of 1,082,380 kWh per month based on an average of 1,129,766 kWh per month in the four summer billing months of June through September and 1,058,687 kWh per month in the remaining eight months of the year. The average monthly bill for this customer class is projected to increase by$7,686.62 per month (or 14.4 percent) under the proposed rates, assuming Test Year purchased power costs. State University General Service This class is composed of State University using more than 100,000,000 kWh per year. Table 4- 8 compares the current rate with the proposed rate as well as the cost-of-service. There is currently only one customer in this class. This customer currently has a contract that prevents their rates from being altered at this time. Thus,the proposed rates are equal to the current rates for this customer class. Table 4-8 Current,Cost-of-Service and Proposed Rates: State University General Service Item Unit Current Cost-of-Service Proposed Customer $/Month $0.00 $51.75 $0.00 Energy $/kWh $0.01400 $0.01172 $0.01400 PPRF $/kWh $0.04896 $0.04845 $0.04896 Franchise Fee % 0.0% 5.0% 0.0% Discount % 0.0% 0.0% 0.0% 4-12 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design Large Municipal Service The Large Municipal Service class includes municipal facilities served at secondary voltage levels with loads exceeding 10 kW of demand in any month. Table 4-9 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-9 Current,Cost-of-Service and Proposed Rates: Large Municipal Service Cost-of- Item Unit Current Service Proposed Customer $/Month $18.27 $42.03 $40.00 Energy $/kWh $0.00351 $0.00037 $0.00054 Demand Summer I1I $/kW $8.36 $4.54 $4.22 Non-Summer $/kW $6.27 $4.54 $4.22 PPRF Energy $/kWh $0.02645 $0.02888 $0.02888 Demand $/kW $0.43335 $6.96 $6.96 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May The proposed rates closely align with the cost-of-service results. Following the recommended rate structure in Figure 4-1, the proposed Large Municipal rates shift purchased power costs from the existing base rates into the PPRF. Seasonal demand rates are eliminated for this customer class under the proposed rate structure. Figure 4-8 compares the unit costs ($/kWh)for the current and proposed rates as well as the cost-of-service for a variety of customer load factors. As illustrated in Figure 4-8,the proposed rates are very similar to the cost-of-service for the Large Municipal Service customer class. Electric Rate Study Rpt_FINAL_12-03-13v2 1 4-13 Section 4 Large Municipal Service (E17) $0 2300 Current,COS,and Proposed Rates _ W Annual Bills $0.2100 -A-Current Rate $0.1900 - -cost OHM 500 $01700 -*--Proposed Rat 400 $0.1500 Co If$0.1300 300 H �EE $0.1100 - 3 $0.0900 200 $0.0700 100 $0.0500 $0.0300 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Load Factor Figure 4-8: Proposed Large Municipal Service Rate Compared to Current Rates and Cost-of-Service An average customer in the Large Municipal Service class consumes an average of 32,344 kWh per month based on an average of 34,896 kWh per month in the four summer billing months of June through September and 31,069 kWh per month in the remaining eight months of the year. The average Large Municipal customer bill is projected to increase by$381.23 per month (or 22.8 percent) under the proposed rates,assuming Test Year purchased power costs. While all customer class rate increases were limited to 20 percent or less, individual customers and monthly bills will vary from the class average of 20 percent or less. General Religious Service The General Religious Service class includes religious/church/worship facilities. Table 4-10 compares the current rate with the proposed rate as well as the cost-of-service. Table 4-10 Current,Cost-of-Service and Proposed Rates: Large Municipal Service Item Unit Current Cost-of- Proposed Service Customer $/Month $8.00 $13.51 $13.50 Energy Tier 1 $/kWh $0.03700 $0.02537 $0.01487 Tier 2 $/kWh $0.03500 $0.02537 $0.01487 Tier 3 $/kWh $0.03350 $0.02537 $0.01487 Tier 4 $/kWh $0.02200 $0.02537 $0.01487 PPRF $/kWh $0.02756 $0.05273 $0.05273 Franchise Fee % 5.0% 5.0% 5.0% Discount % 0.0% 0.0% 0.0% 4-14 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design The proposed rates eliminate the declining block rate structure in the current rates in favor of a flat energy rate. Following the recommended rate structure in Figure 4-1, the proposed General Religious rates shift purchased power costs from the existing base energy rates into the PPRF. The proposed rate structure is more consistent with industry trends and the cost- of-service results. Figure 4-9 compares the unit costs ($/kWh)for the current and proposed rates as well as the cost-of-service for a series of monthly energy usage amounts. As illustrated in Figure 4-9,the proposed rates move incrementally closer to the cost-of-service for the General Religious Service customer class. General Religious Service (E19) Current,COS,and Proposed Rates 500 $0.1400 450 $0 1300 mot-Current Rate 11 400 $01200 — Cos[of Service 350 —*--Proposed Rate N $0.1100 - � 300 m $0.1000 0 250 N �EE $0.0900 200 3 $0.08W 150 $0.0700 -- 100 $0.0600 — so %0500 250 500 r 1,000 2,000 3,000 4,000 5,000 10,000 15,000 20,000 kWh/Month Figure 4-9: Proposed General Religious Service Rate Compared to Current Rates and Cost-of-Service An average customer in the General Religious Service class consumes an average of 6,926 kWh per month based on an average of 9,169 kWh per month in the four summer billing months of June through September and 5,805 kWh per month in the remaining eight months of the year. The average General Religious monthly customer bill is projected to increase by$121.29 per month(or 26.3 percent)under the proposed rates,assuming Test Year purchased power costs. While all customer class rate increases were limited to 20 percent or less,individual customers and monthly bills will vary from the class average of 20 percent or less. Small Municipal & School Service The Small Municipal&School Service class is composed of municipal,public school,and private school facilities served at secondary voltage levels with loads that do not exceed 10 kW of demand in any month. Table 4-11 compares the current rate with the proposed rate as well as the cost-of-service. Electric Rate Study Rpt_FINAL_12-03-13v2 1 4-15 Section 4 Table 4-11 Current,Cost-of-Service and Proposed Rates: Small Municipal and School Service Item Unit Current Cost-of- Proposed Service Customer $/Month $10.45 $7.97 $10.45 Energy Summer(1) $/kWh $0.02987 $0.01518 $0.01320 Non-Summer $/kWh $0.02458 $0.01518 $0.01320 PPRF $/kWh $0,02926 $0.04744 $0.04744 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% (1) The Summer billing months are June through September;Non-summer is October through May The current customer charge is fully recovering the cost-of-service for the Small Municipal & School Service class and remains unchanged under the proposed rates. Seasonal energy rates are eliminated for this customer class under the proposed rate structure. Figure 4-10 compares the unit costs($/kWh)for the current and proposed rates as well as the cost-of-service for a series of monthly energy usage amounts. As illustrated in Figure 4-10,the proposed rates align closely with the cost-of-service for customers using more than approximately 750 kWh per month in the Small Municipal &School Service customer class. Small Municipal &School Service (E21) $01200 __ _ _ _ Current,COS,and Proposed Rates __ 6,000 Annual Bills $0.1100 -- —+l—Current Rate 5,000 $0.1000 — -- --- — ----- _1_oS —*—Proposed Rate 4,000 $0.0900 m 0 Y 3,000 b $0.0800 — E E 0 Z000 a $0.0700 — $0.0600 1,000 250 500 750 1,000 L500 2,000 3,000 4,000 5,000 kWh/Month Figure 4-10: Proposed Small Municipal &School Service Rate Compared to Current Rates and Cost-of-Service An average customer in the Small Municipal & School Service class consumes an average of 1,239 kWh per month based on an average of 1,250 kWh per month in the four summer billing months of June through September and 1,234 kWh per month in the remaining eight months 4-16 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design of the year. An average customer's bill for this customer class is projected to increase by $11.37 per month (or 14.5 percent) under the proposed rates, assuming Test Year purchased power costs. Street/Flood lighting Service The Street/Flood Lighting Service class includes municipally-owned and state-owned street lights. Table 4-12 compares the current rate with the proposed rate as well as the cost-of- service. The proposed rates are very similar to the current rates. Table 4-12 Current,Cost-of-Service and Proposed Rates: Street/Flood Lighting Services Item Unit Current Cost-of- Proposed Service Customer $/Month $0.00 $5.89 $0.00 Energy $/kWh $0.037894 $0.02832 $0.03850 PPRF $/kWh $0.02659 $0.03166 $0.03166 Franchise Fee % 5.0% 5.0% 5.0% Discount % -0.26% 0.0% 0.0% Net Metering Rate UTILITY does not currently provide a net metering rate option for customers. As a part of the Study, a new Net Metering rate was developed for the Residential and Residential Electric Heating customer classes. The net metering rate is available for residential customers utilizing conventional or renewable distributed generation. These customers typically operate the distributed generation to provide electricity to their home, thus reducing their need for electricity from the utility provider. In some cases, the residential customer may generate more electricity than they consume in a month, thus generating electricity for the utility or grid. These rates are commonly used for and target rooftop photovoltaic (PV) customers. Table 4-13 summarizes the new Net Metering rate. Table 4-13 Proposed Net Metering Rate Cost-of- Item Unit Current Service Proposed Service Availability(1) $/Month NA $24.60 $24.50 Energy Summer $/kWh NA $0.0072 $0.0104 Non-Summer $/kWh NA $0.0072 $0.0032 PPRF $/kWh NA $0.05667 $0.05667 Franchise Fee % NA 5.0 5.0 (1) Service Availability Charge includes all fixed costs elements of the cost-of-service including:customer, distribution demand,distribution customer,and street lighting costs. The non-customer costs are included in the energy rate for the Residential and Residential Electric Heat classes. Electric Rate Study Rpt_FINAL_12-03-13v2 1 4-17 Section 4 In general, net metering customers receive a reduction and/or credit to their bill in the form of the reduced energy charge component of the rate. For example, in Table 4-13 above, a net metering customers would receive a reduction to their monthly bill of$0.06707 (sum of the $0.0104 summer energy and$0.05667 PPRF charges) per kWh of electricity generated during that month. If or when net metering customers generate more electricity than they would consume,there is a potential for net meter customers to have monthly bills of$0 or a credit due to their excess electricity delivered to the grid. Due to this ability to effectively eliminate a residential electric bill, net meter rates should follow the cost-of-service results as closely as possible to ensure the utility fully recovers the fixed costs associated with delivering electricity and power to a customer. As distributed generation has grown in adoption and use, several utilities have not fully recovered the costs to serve customers because the fixed and variable components of the net meter rates were not aligned with the cost-of-service. The recommended Residential Net Metering rate also includes a limit to the amount of electricity (kWh) generated and credited to a customer's account. Net Meter Residential customers are credited the electricity generated up to, but not more than,their total monthly electricity consumption. Thus, each customer will have a minimum bill or must pay the monthly Service Availability charge regardless of the amount of electricity generated. In addition, the recommended rate does not pay Net Meter Residential customers for excess electricity generated and delivered to the grid. Purchased Power Recovery Factor A new PPRF was developed to replace the multiple UTILITY existing purchased power adjustment factors. The new PPRF fully recovers UTILITY's purchased power costs from IOU Utility including charges for: demand, energy, fuel, O&M, transmission, customer charges, power agency management fees,and any other purchased power related costs. All costs are classified as demand or energy related components to establish the demand (PPRF-D) and energy(PPRF-E)PPRF rates. The PPRF rates shall be established twice a year with the intention of matching PPRF revenues with actual purchased power costs over the course of a FY, adjusting for seasonal fluctuations in load and in purchased power prices. The PPRF was designed to accomplish three key goals: 1. Full cost recovery: All purchased power costs incurred by UTILITY are to be collected through the PPRF. 2. Stability: The PPRF rate will be adjusted seasonally at the beginning of the summer period (June)and non-summer period (October)each year to increase rate stability. 3. Flexibility:When necessary, UTILITY has the flexibility to change the PPRF to adjust for any unforeseen changes to the cost of purchased power. The PPRF rate is developed by estimating purchased power costs for each seasonal period(e.g. summer and non-summer). A PPRF rate stabilization fund is then used to manage over and under recovery of purchased power costs compared to PPRF revenues. The PPRF reserve also supports PPRF rate stability and includes a mechanism to adjust the rate in emergency or significant under or over collection scenarios. For example, if the purchased power costs unexpectedly rise and begin dramatically depleting reserves, UTILITY has the option to 4-18 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Rate Design implement an emergency PPRF adjustment to realign the purchased power costs and PPRF rates. Many of the purchased power cost components or rates from IOU Utility,such as the demand or energy rates,are known prior to setting the PPRF rates. However,the fuel cost adjustment component of the purchased power rate is variable and fluctuates monthly based on IOU Utility's estimated fuel costs and actual fuel costs incurred to generate power. NewGen designed the PPRF rates and a supporting PPRF model based on the known or fixed purchased power rate components and a forecast of the fuel cost component. NewGen used the Energy Information Agency's (EIA) short-term forecast of Henry Hub natural gas spot prices as a method to estimate fuel prices for purchased power costs. To estimate and understand the potential volatility in fuel prices,impacts to the PPRF rate,and potential over or under recovery of costs during the periods NewGen performed scenario analysis on the fuel cost,related fuel prices forecast,and PPRF rate revenues. Scenario analysis indicated a variance in forecasted fuel prices to actual prices of five percent would result in a total impact of approximately$1.5 million in the summer period and$2.25 million in the winter period. Based on the scenario analysis,NewGen recommended setting the PPRF rate stabilization fund equal to five percent of total annual purchased power costs, or approximately $7 million. Setting the reserve to this level allows for price fluctuations of up to 12 percent between actual IOU Utility fuel costs and PPRF projected fuel costs. In the event that PPRF rates result in a large over or under recovery of funds or is projected to result in a large over or under recovery within a given season,the PPRF includes the ability to make emergency PPRF rate adjustments outside of the normal rate setting periods. The recommended threshold for implementing an emergency adjustment is when the PPRF rate stabilization fund is projected to approach a zero balance due to under recovery of purchased power costs or when the PPRF rate stabilization fund approaches more than$7 million and has over recovered costs. Figure 4-11 illustrates the PPRF rate methodology and rate-setting process using historical data including UTILITY purchased power costs, PPRF revenues, and historical EIA natural gas fuel forecasts. The figure illustrates and compares the PPRF revenues with actual purchased power expenses to calculate monthly and summer/non-summer cumulative over or under recovery. Electric Rate Study Rpt_FINAL_12-03-13v2 14-19 Section 4 Purchased Power Recovery Factor `Ncummulative O/U —Monthly O/U —— Threshold High —Purchased Power Costs($/kWh) Residential PPRF($/kWh) A000,000 $6,000,000 — — ——— — — — $0.060 i $4,000,000 S0.050 $2,000,000 $0.040 $0 � $0.030 T -52,000,000 $0.020 44,000,000 -$6,000,000 $0.010 48,000,000 $- 'ti1' 11• NV 11, 1'L 'IV 1'l• -'IV11' NIV 1'1' 11' N"� 1'i ;ti'b N"� 11 0& �pJ O§1 1p deb 40 0Q '01 lip �' V0 41 0& '0 1 Qzo 4111 �e� sae PQ� 10, Figure 4-11: Proposed PPRF Method Applied Historically Based on this historical data, between October 2011— May 2013, the PPRF rate would have remained stable, without the need of an emergency PPRF rate adjustment. Over recovery generally persists through the period,as actual fuel costs remained lower than EIA forecasted prices until March of 2013. In March of 2013, purchased power costs rapidly increased due in large part to unforeseen increases in natural gas prices. This increase in actual fuel costs from purchased power led to a reduction in the cumulative over/under recovery for the period to near zero. If this trend was forecasted to continue, UTILITY would have implemented an emergency adjustment in May of 2013 or utilized reserves to manage the under recovery until the new rate was set in June of 2013, including the under recovery amount. 4-20 1 Electric Rate Study Rpt_FINAL_12-03-13v2 i Section 5 CONCLUSIONS AND RECOMMENDATIONS Conclusions Based on the Study performed, NewGen made the following conclusions: • UTILITY's existing base rates include a portion of purchased power costs and are not clearly defined. • UTILITY's cost structure and incurrence of costs is different from IOU Utility's cost structure due to UTILITY purchasing power and IOU Utility generating power with their own assets. This results in a different cost-of-service and eventual rates for each utility, thus the existing UTILITY policy of matching IOU Utility rates is no longer applicable and likely does not properly recover costs. • UTILITY's current rates and rate structure are not properly recovering all purchased power costs as portions of the power and transmission cost recovery factors are under recovering the total purchased power and transmission costs from IOU Utility. • Based on our development of the Test Year revenue requirement,current rates are not generating sufficient revenues to meet current and projected costs. • Existing rate components (e.g. demand, service, energy) are not properly aligned with the cost-of-service results. This results in shifting a portion of the existing rates from a variable component to a fixed component. • The financial forecast projections require multiple rate increases and significant debt issuances to adequately recover the forecasted revenue requirements including increasing capital needs for the scenario without building new generation. If UTILITY were to pursue financing and building their own power plant,the likely scenario would require additional rate increases at larger magnitudes and a dramatic increase in the amount of debt issuances. However, after the new generation was operational, the rates would likely decline, benefiting from the lower cost generation alternative. • UTILITY base rates require modification to better align with the cost-of-service results. • Proposed UTILITY rates remain lower than IOU Utility's rates and are competitive in the region and within the state of Texas. Recommendations Based on our conclusions,and supporting analyses, NewGen recommends the following: • UTILITY and the City should adopt rates as described and proposed in the Study and this Report. • UTILITY's rate structure should be modified to accurately reflect base rates(e.g. UTILITY costs) and purchased power costs (e.g. non-UTILITY costs or IOU Utility purchased power). in Solutions Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 1 5-1 Section 5 • UTILITY should evaluate the need for further rate adjustments in coordination with debt issuances annually by updating the financial forecast model. Based on the current information, the financial forecast indicates that rate increases may be necessary in future years based on increasing capital needs,operating costs,and decisions regarding the long-term purchased power options. • Based on the financial forecast model, UTILITY should utilize increased amounts of debt in the initial years of the planning horizon, and then decrease the use of debt as rate revenues increase in later years. The recommended mix of debt and rate revenue funded capital is approximately 65 percent debt and 35 percent rate revenues over the entire planning period in the financial model. This recommended case includes annual rate increases of approximately 9.7 percent,7.3 percent,and 6.2 percent in FY 2014, FY 2015,and FY 2016. • UTILITY should update the financial forecast model periodically (e.g. every six months) to support budgeting and rate related decision-making. Updating the financial forecast will improve long-term capital planning, expected cash and debt funding needs, rate changes, and key financial metric reporting. • UTILITY should perform a comprehensive cost-of-service study every three to five years, or when aligned with a major change in operations such as a new purchased power contract, a new large industrial customer, or significant change in system operations. • UTILITY should consider consolidating existing religious and municipal related customer classes to align with cost-of-service supported customer classes (e.g. small general, secondary general service, etc.) ■ NewGen also recommends modifying the monthly and periodic reporting of UTILITY financial performance from an accrual or utility basis to cash basis. Utility basis reporting is typically used by investor owned utilities, and infrequently used by municipal utilities. Reporting financial or budget to actual performance on a cash basis will allow for more accurate and applicable reporting of UTILITY over or under recovery of expenses and aligns with municipal utility industry practices. This will also align with the cost-of-service and easily convey if over or under recovery of expenses is related to purchased power costs(PPRF revenues)or UTILITY costs(base rate revenues). This will support and improve UTILITY's financial and capital decision-making. 5-2 1 Electric Rate Study Rpt_FINAL_12-03-13v2 Appendix A REVENUE REQUIREMENT Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 I A-1 i Appendix B FUNCTIONAL UNBUNDLING AND CLASSIFICATIONS OF COSTS Jim Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 I B-1 Appendix C COST-OF-SERVICE Thoughtful Decision Making for Uncertain Times Electric Rate Study Rpt_FINAL_12-03-13v2 I C-1 CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP APPENDIX D - AFFIDAVIT OF NON-COLLUSION --- - -------------------- -- -- - - -_ - - ----_--- - ---- - ---- - Thoughtful Decision Making for Uncertain Times AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) Tony Georgis ,being first duly sworn deposes and says that he/she is Partner and President,Energy Practice (Insert"Sole Owner","Partner","President,"Secretary",or other proper title) of NewGen Strategies and Solutions,LLC (Insert name of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not,in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct By: Title: President,Energy Practice Date: August 14, 2017 March 2013 EXHIBIT C SCHEDULE CITY OF VERNON COST OF SERVICE AND RATE DESIGN STUDY RFP Tony Andy Derek Admin Total Total Total Total Est. Est. Est. Est. E st. E st. Est, Est. Tasks Hours Hours Hours Hours Hours Labor Expense Total Phase 1 -Cost of Service Analysis at Current Rates Task 1 - Initiate 4 5 4 13 $2,405 $1,605 $4,010 Project, Data Request, and Kick-off Meeting Task 2 - Revenue 9 52 12 -- 73 12,570 - $12,570 Requirement Analysis Task 3 - Cost of 18 50 16 -- 84 15,070 840 $15,910 Service Phase 2-Rate Design Development Task 4-Rate Design, 16 64 34 -- 114 19,365 $840 $20,205 Including TOU Hourly Rate Model Task 5 - Present 22 50 10 82 14,600 82,520 $17,120 Study Results and Draft/Final Report Total Base Bid 69 221 66 10 379 $64,010 $5,805 $69,81 20 September 2017 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated i time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 21 September 2017 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 22 September 2017 1 .^ ED RECEWED RECEIV 5EP 2 8 2017 M SAP 2 8 Z017 iCYL�RK'S��F� STAFF REPORT ciTY ADMI�uisRNTto1 C C PUBLIC UTILITIES DEPARTMENT DATE: October 3, 2017 I TO: Honorable Mayor and City Council FROM: Kelly Nguyen, General Manager of Public Utilities '� � RE: Award of a Services Agreement with Black & Veatch Management Consulting, LLC for the Development of an Integrated Resource Plan Recommendation A. Find that awarding the bid as outlined in the staff report is exempt from California Environmental Quality Act ("CEQA") review, because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. And even if such activity were deemed a "project," it would be exempt from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve a services agreement with Black & Veatch Management Consulting, LLC ("Black and Veatch") for services regarding the development of an Integrated Resource Plan for the Public Utilities Department, for a compensation amount not-to-exceed $175,000 over the one-year term of the agreement; and C. Authorize the City Administrator to execute a Service Agreement, in substantially the same form as submitted herewith, with Black& Veatch; and D. Authorize the City Administrator to issue change orders, if necessary, that may increase compensation for Black & Veatch in an amount not-to-exceed $30,000 over the one-year term of the agreement. Background i The City of Vernon will face multiple challenges over the next few years. These challenges include compliance with state regulations such as SB 350 regarding renewable energy supplies and greenhouse-gas emissions, maintenance of reliable service to ratepayers in the City, new and expanding distributed and demand side resources (including doubling energy efficiency savings), i and increasing percentages of intermittent renewable resources in its power mix. There have been also other changes/developments affecting a wide range of issues and matters concerning the electric utilities including, but not limited to, business, regulatory and operations. All call for a thorough review of an electric utility's business plans, goals, and practices. In order to construct a long-term plan that addresses all of these issues and guides future decisions, the City of Vernon seeks to engage a Consultant to provide consulting services to prepare a complete Integrated Resource Plan (IRP). It is anticipated that the plan will evaluate the City's existing resources, its electric distribution system, increasing renewable generation, the potential and impacts of demand side resources. The IRP will assist in developing policies on a variety of issues, including reliability standards, renewable portfolio standards, resource adequacy, greenhouse gas emissions, energy efficiency and demand side management programs, energy storage, distributed generation, risk management policies and financial goals. On July 13, 2017, City staff properly publicized the Request for Proposal ("RFP") for developing an Integrated Resource Plan for the Vernon Public Utilities Department ("VPU"), as stated in Vernon Municipal Code section 2.17.14 requirements. The City received a total of seven (7) timely proposals from qualified firms. The seven firms that provided proposals were ABB, Black & Veatch, Ascend Analytics, PMCM Consulting Engineers, PA Consulting Group, EES Consulting, and Siemens Industry, Inc. A panel of City staff was assembled and collaborated to select the most suitable firm to perform the services listed in the RFP. After thorough review, Black& Veatch scored the highest for the Integrated Resource Plan in the evaluation process and was selected as the winning respondent. The cost to retain services from Black & Veatch is proposed at a not-to-exceed amount of$175,000 over the one-year term of the agreement. Black & Veatch was found to be highly specialized in the electric power industry and was qualified to { perform the required services. Conclusion In light of Black & Veatch receiving the highest score in the RFP evaluation process for developing an Integrated Resource Plan, it is recommended that City Council approve the award of the contract for one-year term in an amount not to exceed $175,000. It is recommended that the City Administrator be granted the authority to issue change orders to increase the compensation u to $30 000 for the agreement. The agreement for Black & Veatch has been p p � g g reviewed and approved by the City Attorney's office. 3 Fiscal Impact The proposed amount is $175,000, with the cumulative total contract value (including potential change orders) not to exceed $205,000 for the consulting services. This project was identified in f the 2017-2018 budget. P Attachments 1. Proposed Services Agreement SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND BLACK & VEATCH MANAGEMENT CONSULTING, LLC FOR DEVELOPING AN INTEGRATED RESOURCE PLAN COVER PAGE Contractor: Black &Veatch Management Consulting, LLC Responsible Principal of Contractor: John M. Chevrette, President Notice Information - Contractor: Black&Veatch Management Consulting, LLC 11401 Lamar Avenue Overland Park, KS 66211 Attention: John M. Chevrette, President Phone: 913-458-3716 Facsimile: 913-458-8559 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Kelly Nguyen, General Manager of Public Utilities i Telephone: (323) 583-8811 ext. 834 Facsimile: (323) 826-1408 I F Commencement Date: October 3, 2017 I Termination Date: September 30, 2018 fConsideration: Total not to exceed $205,000 (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three(3) years, pursuant to Section 10.20 r 4 I Qk 5$ 3 i September 2017 i SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND BLACK&VEATCH MANAGEMENT CONSULTING, LLC FOR DEVELOPING AN INTEGRATED RESOURCE PLAN This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and Black&Veatch Management Consulting, LLC, a Kansas limited liability company ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on October 3, 2017. x 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set i forth in the Request for Proposals dated July 13, 2017, Exhibit "A", and Contractor's proposal to { the City ("Proposal") dated August 15, 2017, Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. i 2.3 All services shall be performed in a competent, professional, and in accordance with the standards of care and diligence normally practiced by recognized consulting companies in performing services of a similar nature. EXCEPT AS PROVIDED IN THIS SECTION 2.3, CONTRACTOR MAKES NO OTHER WARRANTIES OR GUARANTEES, EXPRESS OR IMPLIED, RELATING TO CONTRACTOR'S SERVICES AND CONTRACTOR DISCLAIMS ANY IMPLIED WARRANTIES OR WARRANTIES IMPOSED BY LAW INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. This Section 2.3 governs, modifies, and supersedes any other terms in this Agreement which may be construed to address warranties or guarantees or the quality of the services. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 2 September 2017 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. ii 4.0 TERM. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit"C" attached hereto and incorporated herein by reference. 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed $205,000 without the prior authorization of the City Council and written amendment of this Contract. i 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. I 1 4 I X 1 3 September 2017 i i Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, "extra work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would 5 be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit"C," if the extra work has been approved by the City. 5.6 Licenses, Permits, Fees, and Assessments. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required s by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the x City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including 3 i i 4 September 2017 s n a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient F c detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after t the City approves the invoice. R 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. I 7.0 CHANGE ORDERS. The General Manager of the Department of Public Utilities t ( shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed $30,000. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all 5 September 2017 actions, suits, claims, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), that may be asserted or claimed by any person, firm or entity for bodily injuries or third party property damage to the extent caused by the negligence or willful misconduct of Contractor, its agents, employees, subcontractors or invitees, and shall in no event apply to the extent such claims or liabilities arise from the negligence or willful misconduct i of City, its officers, elected officials, agents or employees. 9.2 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. t 9.2.1 Automobile Liability with limits of$1,000,000, including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with limits of$1,000,000 per occurrence and aggregate of $2,000,000 written on an Insurance Services Office (ISO) "occurrence"form or its equivalent for f coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is E required. The City of Vernon, its directors, commissioners, officers, employees, agents and i j volunteers must be endorsed on the policy as additional insureds as respects liability arising out i of the Contractor's performance of this Contract. 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.2.4 Professional Errors and Omissions coverage of$2,000,000 per claim and in the aggregate. 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State 6 September 2017 of California; or (ii) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of i' this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. "! 9.2.7 Insurance shall be placed with insurers with a Best's rating of at least A- Vlll. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized i by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. t 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory z insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or(c) self-insure i a 1 the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 7 September 2017 10.0 GENERAL TERMS AND CONDITIONS. 10.1 INDEPENDENT CONTRACTOR. 10.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, aagents or employees employed by Contractor shall not, under any circumstances, be i considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, i holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term 3 disability or workers' compensation insurance benefits. 3 10.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon E termination of this Agreement. With the exception of the Pre-existing Intellectual Property described below, all reports, drawings, plans, specifications, computer tapes, floppy disks and 8 September 2017 printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City when Contractor has been compensated for the services rendered, and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials i on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. Nothing contained in this Agreement shall be construed as limiting or depriving Contractor of its rights to use its basic knowledge and skills to design or carry out other projects or work for itself or others, whether or not such other projects or work are similar to the work to be I performed pursuant to this Agreement. At all times, Contractor shall retain all of its rights in and to its designs, specifications, databases, models, know how, computer software, copyrights, trade and service marks, patents, trade secrets, and any other proprietary property developed or otherwise obtained by or for Contractor independent of this Agreement and any modification thereof("Pre-existing Intellectual Property"). Rights to intellectual property developed, utilized, or modified in the performance of the services shall remain the property of Contractor. Contractor hereby grants to the City an irrevocable, nonexclusive, royalty-free license to utilize Contractor's Pre-existing Intellectual Property provided to the City as part of the services. 10.4 CORRECTION OF WORK. If, during the six-month period following the earlier of termination or completion of the services, it is shown there is an error in the services caused solely by Contractor's failure to meet the standards set forth in Section 2.3, and the City has promptly notified Contractor in writing of any such error within that period, Contractor shall perform, at Contractor's cost, such corrective consulting services within the original scope of such services as may be necessary to remedy such error. The obligations and representations contained in Section 2.3 are Contractor's sole warranty and guarantee obligations and the City's exclusive remedy in respect of quality of the work is set forth in this Section 10.4. 9 September 2017 10.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. 10.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any s� time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. i 10.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be i ` binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 10.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEY'S FEES. If any action at law or in equity is brought to 10 September 2017 enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. 10.11 INTERPRETATION. 10.11.1 Applicable Law. This Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral). E 10.11.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 10.11.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 10.11.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 11 September 2017 10.11.8 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed 7 as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 10.12 TIME. Time is an important aspect of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR. The Contractor hereby represents i and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES. Any dispute for under$25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 10.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. 12 September 2017 If to the City: City of Vernon Attention: Kelly Nguyen, General Manager of Public Utilities 4305 Santa Fe Avenue Vernon, CA 90058 i If to the Contractor: i 4 John M. Chevrette, President Black &Veatch Management Consulting, LLC 11401 Lamar Avenue f Overland Park, KS 66211 i i Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 10.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement. 10.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City i I for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 13 September 2017 i 10.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other E sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 10.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City i for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the i request. a i I 14 September 2017 u a i 10.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract i and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. : The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. t The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. I I i 10.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no j member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 10.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five 15 September 2017 dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon y compensation for all hours worked in excess of 8 hours per day at not less than 1'/z times the basic rate of pay. 10.24 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. I 10.25 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". 10.26 LIMITATIONS. Neither party shall be liable to the other party for loss of profits or revenue; loss of use; loss of opportunity; loss of goodwill; cost of substitute facilities, goods or services; cost of capital; governmental and regulatory sanctions; and claims of customers for such damages; or for any special, consequential, incidental, indirect or exemplary damages whether a claim for any such loss arises out of breach of contract, warranty, tort (including negligence), strict liability, indemnity, or another theory. Except for an obligation to make payments, neither party shall be in default to the extent any nonperformance is caused by a circumstance beyond such party's reasonable control. The warranties, obligations, liabilities 16 September 2017 and remedies of the parties, as provided herein, are exclusive and in lieu of any others available at law or in equity. Contractor's total aggregate liability under this Agreement shall not exceed the compensation received by Contractor for the services. To the fullest extent allowed by law, releases from, and limitations of liability shall apply notwithstanding the breach of contract, tort including negligence, strict liability or other theory of legal liability of the party released or whose liability is limited. i [Signatures Begin on Next Page]. 5 t f i i i i i 17 September 2017 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City Black &Veatch Management Consulting, and California municipal corporation LLC, a Kansas limited liability company By: By: Carlos Fandino, City Administrator Name: t Title: ATTEST: s By. Maria E. Ayala, City Clerk Name: Title: APPROVED AS TO FORM: 4 E Hema Patel, City Attorney I f I 18 September 2017 EXHIBIT A REQUEST FOR PROPOSALS { 4 3 f t { f If#} i {71 t t 19 September 2017 City of Vernon Request for Proposals (RFP) Integrated Resource Plan Cost of Service/Rate Design Study � s 20, City of Vernon Public Utilities 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 583-8811 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 1. INTRODUCTION AND PROJECT The City of Vernon is requesting proposals from qualified consulting firms to prepare and complete a comprehensive Integrated Resource Plan (IRP) and an Electric Cost of Service and Rate Design Study (Project). The City will select one or more firms, based on demonstrated experience/qualifications related to the development of an Integrated Resource Plan (IRP) and/or a cost effective approach to design, conduct, and provide a forecast of the City's electric rate revenues and its costs of electric supply, including Vernon Public Utilities (VPU) budgeted costs to determine net revenues at present rates and to determine the required level of electric rates going forward. Consultants may bid for any one, or all, of the components of the Project. Consultants planning to combine with other firms in a common effort should provide all the requested information for all consultants/consulting firms involved. € An agreement will be negotiated with the firm(s) considered best meeting the City's needs for this project. In the event a mutually satisfactory agreement cannot be negotiated with the City's first choice, negotiations may be terminated and commenced i with the firm considered next best in meeting Vernon's needs for this particular project. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its i long history, Vernon has been developed as an industrial community. At the turn of the 20`" century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's, Vernon was attracting large stockyards and meatpacking facilities. In the 1930's, Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. I Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works Department, Public Utilities Department and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. Page 2 of 18 June 2017 i n ii City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 3. .PUBLIC UTILITIES OVERVIEW AND SERVICES REQUESTED Vernon Public Utilities (VPU): The City of Vernon owns and operates a municipal electric utility. VPU serves about 1,800 commercial and industrial customers within its service area. Vernon's system peak loads are somewhat non-seasonal due to the type of customer loads on the system, mostly industrial. Therefore, the summer and winter peaks are similar. The City of Vernon's customer mix consists of approximately 33% industrial, 62% commercial, 5% other, and less than 1% residential. The system averages about a 74% load factor largely due to its heavily industrial consumer base. Vernon operates electrical distribution and generation facilities which reside within California ISO control area, and are connected to California ISO through Southern California Edison's 220-66 kV Laguna Bell Substation. It should be noted that VPU is a I municipal electric system engaged in the generation, transmission, distribution, and participating in CAISO's wholesale energy markets under the second amended and restated Metered Subsystem Agreement (MSSA), and its distribution system is fully embedded within the CAISO operating Balancing Area. VPU's system peak load is served by approximately 134 MW of generation supplied by natural gas-fired units within the Vernon Substation located at the Malburg Generation Station (MGS), which is owned by Bicent Power and operated by Heorot Power), a peaking generation plant at Vernon Substation capable of producing 11.5 MW of peaking generation with two gas turbines rated 5.75 MW each. In addition to the local t generation production, VPU purchases additional energy to complement its 194 MW system demand from long-term contractual agreements for resources located outside California such as Palo Verde Nuclear Generating Station and Hoover Dam, and also from short-term power purchases. As such, the City of Vernon desires to engage a consulting firm(s) to prepare a comprehensive Integrated Resource Plan (IRP) and a detailed Electric Cost of Service and Rate Design Study. j 4. .SCOPE OF SERVICES REQUIRED l 4.1. Integrated Resource Plan 4.1.1. Scope of Integrated Resource Plan i The City of Vernon will face multiple challenges over the next few years. These challenges include compliance with state regulations such as SB 350 regarding renewable energy supplies and greenhouse-gas emissions, maintenance of reliable service to ratepayers in the City, new and expanding distributed and demand side resources (including doubling energy efficiency savings), and increasing percentages of intermittent renewable resources in its power mix. There have been also other changes/developments affecting a wide range of issues and matters concerning the electric utilities including, but not limited to, business, regulatory and operations. All call for a thorough review of an electric utility's business plans, goals, and practices. 3 Page 3 of 18 June 2017 City of Vernon integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals In order to construct a long-term plan that addresses all of these issues and guides future decisions, the City of Vernon seeks to engage a Consultant to provide consulting services to prepare a complete Integrated Resource Plan (IRP). The City expects the IRP to be looking as far ahead as year 2030 and perhaps beyond, and be flexible enough to be modified on "short notice" in response to sudden regulatory, business or operational changes or new requirements. It is anticipated that the plan will evaluate the City's existing resources, its electric distribution system, increasing renewable generation, the potential and impacts of demand side resources. The IRP will assist in developing policies on a variety of issues, including reliability standards, renewable portfolio standards, resource adequacy, greenhouse gas emissions, energy efficiency and demand side management programs, energy storage, distributed generation, risk management policies and financial goals. The IRP will include a forecast of load, inventory of The City's existing resources, review of applicable legislation and regulation, and identification of potential resources. Scenarios will be developed and evaluated. The key outcome of this RFP would be for the City to obtain a strategic power supply "roadmap" to include the acquisition of various simplified models/tools that will assist the agency in updating/reevaluating various power supply objectives after completion of the study. 4.1.2. Work Plan F IRP Identify Methods and Options The scope of services will be to develop and recommend policy goals, strategies, resource and program options, and analytic methods that may be used in the IRP process. The IRP shall consider environmental goals in the context of the City's overall objectives to reliably serve electricity at reasonable and stable rates. The new IRP analyses shall give appropriate consideration to existing resource commitments, prudent utility policies and practices, energy cost risk and rate impacts, anticipated energy market conditions, and current and anticipated future local, state and federal legislation, policies, and regulations that may be applicable to the City policy, resource option, or program being proposed. Task 1 — Review City's Demand Forecast and energy efficiency programs The IRP will involve development of a load forecast. The Consultant shall first look at any load forecast that has been prepared for or by the City for its service territory. The i Consultant should also look at load forecasts prepared by the California Energy Commission as that will provide useful guidance. The Consultant shall also review other demographic data and demand projections for the Southern California and Los Angeles basin areas. The Consultant should be able to get hourly electric system loads and the historical penetration of distributed energy resources in the City's system for the last several years. Based on the review of all these data, the Consultant shall recommend a i demand forecast for use in developing the IRP. City staff currently uses a simpler load I Page 4 of 18 June 2017 i f City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals forecasting method based on the historical load growth rate. In this long-term forecasting process, there are very few assumptions taken into account. If the analysis shows that the City has experienced a one percent load growth in the last five years, and the local economy will grow at a modest pace during the next fifteen years, then that same percentage will be used as the growth rate. As part of this task, the Consultant shall also review energy efficiency and demand side management programs that have been implemented by City, and will review with City anticipated impacts on the net demand forecast. The Consultant shall provide recommendations for the City to achieve energy efficiency targets established by the Energy Commission. Anticipated impacts of energy efficiency and DSM programs, transportation electrification, and distributed energy resources adoption will be reflected in the demand forecast recommended for use in the IRP. 3 s Task 2—Review City's existing and proposed energy resources and programs. The Consultant shall identify and recommend additional environmentally friendly energy portfolio opportunities and options, including an analysis of their relative technical feasibility, reliability and economic impacts, portfolio cost and risk impacts that may be associated with alternative goals, and assess or discuss the full life-cycle environmental impacts in the following areas: a) 50% RPS Goals; b) Increased EE/DR programs; c) Customer-owned distributed generation (PV); d) Greenhouse Gas Reduction Goals; e) Energy Storage is cost-effective. The Consultant will also review MGS power purchase agreement between Vernon and Bicent Power, and a supply of prepaid natural gas contract that the City purchased. Task 3— Review City's interconnections and Distribution Facilities The Consultant shall analyze the condition of the City's existing interconnections and distribution facilities and identify safety, reliability and operation issues. The analysis will incorporate the impacts of distributed energy resources on VPU's distribution grid, and determine the City's system capabilities and potential system upgrade projects to serve projected loads. The Consultant shall also review the existing City's rules and guidelines for interconnection of distributed energy resources. In 2015 the City completed a comprehensive study titled "Distributed Generation Impact Study". The Study addressed Distribution system impacts, environmental impact, safety assessment and financial analysis. The study comprehensively evaluated the condition of its electric distribution system and identify safety, reliability, system efficiency, and operating flexibility and provided recommendations for the utility to implement. The Study will be available for use in the IRP. Vernon's engineering staff currently uses ETAP system model for distribution load flow, short circuit, transient flicker, and motor starting analysis. It will be expected from the Consultant to not duplicate the study and instead use the study as a foundation for proposing any new improvements or measures to be undertaken by the utility resulting from this IRP study. Page 5 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals Task 4—Assess Renewable Energy and RPS Compliance Within the area of renewable energy, City faces the important question of how to cost- effectively meet its Renewable Portfolio Standard (RPS) requirements. The Consultant shall begin by reviewing City's current documentation of its RPS compliance status for 2017-2030, its current RPS-eligible contracts, its planned projects through 2020, any plans beyond 2020, and will then determine the expected "net short"—the difference between its RPS requirement and the existing and planned contracts it has in place. The net short will be calculated for both the current 33 percent RPS by 2020 mandate and the new 50 percent RPS mandate by 2030. Once the net short is known, the Consultant shall estimate renewable energy portfolios to fill the net short through 2030. These portfolios can be weighted based on input from City; for instance, a "solar-heavy" portfolio option could be compared to a "wind-heavy" portfolio option, a portfolio that evaluates the cost of renewables under different likely future incentive structures. Within the criteria for each portfolio option, the Consultant shall select a project mix to minimize costs and maximize benefits for City. The Consultant shall identify and model different i portfolios/resource options that will meet City's future resource planning objectives including 50% RPS goals. The portfolios will also reflect different potential resource options to meet future power supply needs, including renewable energy resources, potential energy market purchases, and other viable supply options. Task 5— Develop Market Scenarios The Consultant shall develop fundamental market scenarios designed to measure the market impact of variation in key risk variables. The scenarios will be designed to address key market and industry wide trends and conditions, based on supply scenarios, scenarios for demand and energy prices to be analyzed as part of the IRP plan development. Upon development of the market scenarios, the Consultant then will develop a range of City resource portfolios. It is recognized that greater certainty exists about market conditions and regulatory policy initiatives likely to govern the California energy markets. A greater level of uncertainty exists about governing key fundamental aspects of the industry, such as Greenhouse Gas Regulation rules, renewable energy integration, electric vehicle penetration, and a multitude of other factors. The goal of the scenario assumptions will be to develop internally consistent sets of fundamental power market and industry condition data assumptions, which reflect potentially different views of how the markets will evolve over the next 13 years. In completing this stage of the forecast process, the Consultant will develop a list of risk variables that it views as having particularly important impact on City's planning decisions and business success, and will provide City with an assessment of the key drivers of uncertainty for each of those variables. A key goal of the scenario planning process is to provide City management with a robust quantitative assessment of how its business planning projections could be affected by key risk variables. It is anticipated that results from the scenarios will assist City in identifying additional detailed analyses needed to further quantify and examine business planning risks and potential outcomes. Task 6—Develop or Recommend Analytic Tools Page 6 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals The Consultant shall develop or recommend analytic tools appropriate for assessing broad policy and resource strategy options within the framework of the fundamental goals of resource planning. IRP Analytical Methods The IRP should provide a sustainable comprehensive strategy for the City to deliver reliable service, maintain competitive and stable rates, achieve environmental goals, manage market and other risks, and allow for future course corrections in response to changing conditions (such as market regulation) and new opportunities (such as breakthrough technology). l DELIVERABLES: Task 1) Develop all data and input assumptions necessary for portfolio modeling and IRP analysis: a) Develop a baseline model that appropriately reflects Vernon's existing power resource portfolio behavior; b) Assess alternative resources, portfolios, market and regulatory scenarios; Task 2) Prepare and deliver a comprehensive written IRP report, including: a) List and describe key inputs, resources, scenarios, and portfolios considered; b) Describe analytic methods; y c) List and describe key results and implications; d) Discuss and recommended action plan, including timing, quantities, and types of resources to be implemented over the IRP timeframe; and d) A detailed appendix including tables of all inputs and assumptions. i G 4.2. Cost of Service Study & Rate Design E 4.2.1 Scope of Cost of Service Study & Rate Design The City of Vernon is seeking the services of a highly qualified consulting firm to assist in providing a detailed electric Cost of Service (COS) study that will provide justifiable and equitable methodologies for appropriate user fees that are adequate to fully fund the expenses associated with the electric systems, equipment repair, replacement, and capital. The Cost of Service includes recovery of all operating costs, amounts necessary to maintain reasonable operating reserves after funding operations, debt service, and capital projects. The City also seeks a rate design study to analyze existing rate and fee structure and recommend revisions to existing rate structures if necessary, ensure our utility rates cover the true cost of providing electrical service to our customers. This includes but is not limited to: power purchase, distribution upgrade, O&M and equipment repair and replacement costs, overhead allocation, operating transfers, in-lieu franchise fees; maintaining appropriate working capital and cash balances as well as meeting debt service requirements, and capital improvements needs. I Page 7 of 18 June 2017 e t City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals The project will consist of the following phases and that the results of each phase will be reviewed with City personnel prior to initiating work on the next phase. The City expects each phase to be the basis for the next. The City welcomes other approaches with the understanding that the overall goals will be met by such proposal. The Project phases of work are: I. Cost of Service Analysis at Current Rates ll. Rate Design Development PHASE 1. Cost of Service Analysis at Current Rates 1. Develop a comprehensive, flexible, user-friendly model for use in preparing the COS. The model should be developed in Microsoft Excel or have the ability for outputs and/or inputs to be in an Excel compatible format. The model must address the functionalization and classification of costs. The model would preferably allow operating and non-operating revenues, operating costs, capital improvement program plans and funding, and debt of service payment, while maintaining necessary reserve levels and guidelines, day cash on hand, debt E service coverage, and other financial metrics. 2. Review Vernon latest electric COS and cost allocation assumptions and methodologies for appropriateness. Provide recommendation and rationale for any changes to assumptions and methodologies. 3. The COS methodology employed should clearly identify the following, if applicable: IAssess revenue needs for the next five-year planning period (2018 — j 2022), to include adequate coverage for operations and maintenance, capital projects and program activities and debt service. Use actuals from FY2017 and adopted budget or projections provided by Vernon staff for FY2018— FY2022. • Allocation of costs between various customer classes, customer charges, demand, energy, and special categories; • Customer cost weighting factors including associated rationale; • Costs associated with distributed generation, such as net-metered solar customers; • Analyze and discuss the fiscal impacts of the following: ➢ Renewable energy portfolio requirements, current status of compliance and future purchases as may be necessary ➢ Compliance with reserve balances, days cash on hand, and debt coverage requirements ➢ Net metering program ➢ Effect of Distributed Generation ➢ Electric Vehicle program Page 8 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals DELIVERABLES: The Consultant is to present the findings and conclusions of each task and resulting recommendations in the cost of service study final report in a clear and concise manner. The Consultant should provide the Excel model including spreadsheets used in the analysis and a written report summarizing Vernon revenue requirement by customer class. The Consultant will train City staff on updating the model with the expectation that Vernon staff will continue to update the model annually. The Consultant shall conduct a meeting with City staff to review and discuss the report to allow an opportunity for feedback and revisions. The Consultant shall be available to present final report to the City of Vernon City Council. PHASE/L Rate Design Development 1. Consultant shall review current customers in each classification and how they are billed through the existing rate structure and determine whether the current rate structure is allocating costs appropriately or needs to be adjusted. 2. Consultant should perform rate design and document the rationale, including the alignment to the Cost of Service. 2. Consultant shall develop a Utility rate model to ensure that projected revenues from rates are adequate to cover the projected revenue requirement including transfer and debt service coverage. 3. Consultant shall review the City's financial information, including, but not limited to, reserve policy requirements, long term debt coverage requirements, capital planning requirements, electric distribution system costs, power purchase costs, power transmission and dispatch costs, administrative and customer service costs, and offsetting wholesale revenues, and determine the amounts that need to be built into the retail rate structure to ensure Vernon recovers its cost of providing electric services over a five year planning horizon by customer class. <, 4. Consultant shall recommend to the City the use of appropriate methodologies for allocating costs to the various classes of customers considering the financial structure of the City. Consultant shall provide a breakdown of said costs and show how they relate to providing electric services to the different customer classes over the five year planning horizon and what adjustments, if any, need to a be made to the rates over time in order to meet operating revenue requirements and to comply with financial policies. 5. In considering proposed changes to the City's existing rate schedule, the Consultant shall: Y a) Consider the level of existing rates, expenses incurred in providing the service to the different customer classes and the general policies and fr objectives of the utility. I b) Advise the City on the appropriateness of rate concepts that could be applied to its customers. c) Propose changes based on the premise that each customer class I should be classified and served under a schedule that is based on the costs of serving that customer class. d) Assess the bill impacts on representative customers in each customer class and if applicable, formulate a phased-in plan to minimize rate shocks. e) Propose a mechanism minimizing cross-subsidization across ratepayer classes and among ratepayers of a single class. Page 9 of 18 June 2017 i y City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals f) Update the time of use (TOU) rates and rate periods for existing TOU customers and develop conceptual time-of-use rates for consideration by the electric utility for all their customer classifications. g) Review the existing City of Vernon TOU-V schedule and determine if it can be split into 2 or 3 schedules based on service voltage or customer demand. h) Develop a set of rules and rates for distributed energy resources customers consistent with the City's net energy metering program. i) Restructure the rates to fully account all costs and benefits associated with the increasing penetration of distributed energy resources. j) Review existing electric rules and tariffs including special rate schedule such as interruptible rates, EDR, RPS, pass-through rates, added facility charges. k) Provide a billing comparison between Vernon and other surrounding utilities. DELIVERABLES: The Consultant shall present the findings and conclusions of the tasks in the rate study final report in a clear and concise manner. The report should include detailed recommendations for changes, if any, to current practices and/or procedures. The report will also include a detailed, clear presentation and explanation of allocation of costs by rate structure, the required rate adjustments, and the impact of various rate design options on customer bills at various usage levels. The Consultant shall conduct meetings with City staff to review and discuss the report to allow an opportunity for feedback and revisions, and identify next steps. A copy of the report in Microsoft Word is also required. The excel spreadsheet shall also be provided with the ability to make modifications in inputs and assumptions. The Consultant shall train City staff on updating the model with the expectation that City staff will continue to update the model annually. After review by staff, the Consultant shall attend meetings, make presentations, and prepare answers to questions from City Council regarding the results of the study, as needed. It is expected that a series of public meetings will be scheduled to inform and educate customers and other stakeholders on the benefits of the recommended rate design. The Consultant shall attend, make presentations and answer questions of these meetings in an effort to obtain input and final approval for recommended rate adjustments. I i I Page 10 of 18 June 2017 t a a City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 5. .SCHEDULE OF COMPLETION City of Vernon proposed schedule follows: Activity Date Release RFP July 13, 2017 Questions - August 7, 2017 li RFP Response - August 15, 2017 EvaluationRFP - - • August 28, 2017 I Notification of City of Vernon's Decision andInitiation of Contract NegotiationSuccessful Consultant(s) August 30, 2017 i Contract • • September 26, 2017 Final IRP Report January 22, 2018 Service/RateFinal Cost of Design Report April 16, 2018 6. .QUALIFICATIONS & CRITERIA I A. Qualifications: The City of Vernon will select one firm for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposals: 1. At least five (5) years professional experience conducting work in the area(s) proposed. 2. History of providing responsiveness and quality services. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial Page 11 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the firm in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. G 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. € 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 3 4. 20% References including past performance of proposer. 7. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit four (4) hard copies and one (1) electronic copy (via email to_.ongarambe ci.vernon.ca.us_ of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Prominently label the package: "Integrated Resource Plan and/or Cost of Service and Rate Study Design" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Octavian Ngarambe, Resource Planner Page 12 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals 4305 Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 5:00 p.m. on Tuesday, August 15, 2017. Late response will not be accepted. 5. If you have any questions about this RFP should be sent solely via email to _ongarambeCcD-ci.vernon.ca.us_. Monday, August 7, 2017 on or before 5:00 p.m. is the deadline to submit any questions regarding the RFP. Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to 1 the extent the City is aware of them. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation t' period. t a C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. i F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be Page 13 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. E The selected firm shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. References I List 3-5 project references, including contact names and telephone numbers • for projects of comparable size and scope performed by the key personnel listed above. To the extent any references for individual employees of either the Consultant are different from those noted in the previous section, they should also be provided. • Provide a current client list including jurisdiction name, contact name, and telephone number, and length of engagement. • Provide an example of a recently completed IRP/and rate study. I. Work Summary Provide a narrative description summarizing the expected tasks and activities, with a description of the analysis, reports and participation, which the Consultant expects to provide pertaining to that activity. This would include a summary of the steps to be completed to accomplish the scope of work, approaches to the project, and your firm's understanding of the project requirements. J. Work Plan and Project Schedule The total contract price should be based upon the work plan Consultant submits with the Proposal. The work plan should demonstrate the Consultant's understanding of the scope of work. The work plan will be used as a written document that City staff and the Consultant can refer to throughout the project. The project schedule shall include the estimated time required to complete each step in the scope of work, including estimated start and completion dates (non- binding). The number of hours allocated to each individual by each task should be indicated with a project schedule type display showing each activity in the proposed work plan. A summary time estimate will work closely with the Consultant throughout the engagement in order to assess the project's progress and status. The plan must include an appropriate number of kick-off and regular meetings, information gathering and disseminating sessions, and updates with key Vernon personnel to understand and discuss the City's issues and concerns, become acquainted with key staff, and identify persons who will provide data. Ensure a sufficient number of meetings with City staff to provide staff with preliminary findings and strategies based upon the available data. This shall include conducting "reality checks" with staff and feedback regarding the projects, phasing, intentions, resource strategy options, rate suggestions, revenue sources, Page 14 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals and the like that would be acceptable to field staff and elected officials. Consultant shall meet with staff to identify potential changes to projects and/or phasing of projects, to present findings, to demonstrate the effect(s) of various scenarios on the comprehensive plan and rate structures, and to obtain a consensus on the scenario(s) to present to the City Council. 3 K. City-Furnished Documentation The City will assist with data collection whenever possible. Appropriate City staff will be made available for interviews and to gather data the Consultant determines is essential to complete the integrated resource plan, cost of service analysis, rate design models, and final reports. Proposal must be clear in addressing what the City will be expected to assist with. Therefore, provide a description of required documentation and estimated time and effort required by City Staff to assist in the preparation of the work plan and study. L. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion." (Copy attached as Exhibit A). 8. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its timeliness. 9. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. Page 15 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, { although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto is subject to the California Public Records Act and may be subject to review in the event of an audit. 10. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST. I The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 11. LIVING WAGE ORDINANCE The selected consultant shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. The consultant shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form contract, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 12. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. Page 16 of 18 June 2017 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION r 1 1; S f t S gggyS i I Page 17 of 18 June 2017 AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) k being first duly sworn deposes I and says that he/she is (Insert"Sole Owner',"Partner","President,"Secretary",or other proper title) of ' (Insert name of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal,or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else,or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct By: Title: Date: March 2013 City of Vernon Integrated Resource Plan, Cost of Service and Rate Design Study Request for Proposals EXHIBIT B STANDARD FORM CONTRACT i i a i i s [i t { y� E (i3 1 (fff I {;fk i E Page 18 of 18 June 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] COVER PAGE Contractor: [insert name of contractor] Responsible Principal of Contractor: [insert name, title] Notice Information - Contractor: [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] J Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 10.20 June 2017 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor"). f The City and Contractor agree as follows: g 1.0 .EMPLOYMENT OF CONTRACTOR.. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES.. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated , Exhibit"A", and Contractor's proposal to the City ("Proposal") dated , Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services. 3.0 PERSONNEL.. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 2 June 2017 4.0 TERM.. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit 5.0 COMPENSATION AND FEES.. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C" attached hereto and incorporated herein by reference. 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed [state amount] without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor: 5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been 6 approved in advance by City and awarded in accordance with this Agreement. 5.4.2 Approved reproduction charges. 'i $ June 2017 y a r I 5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement. 5.5 Contractor shall not receive any compensation for extra work performed i without the prior written authorization of City. As used herein, "extra work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit"C," if the extra work has been approved by the City. 5.6 .Licenses, Permits, Fees, and Assessments.. Contractor shall obtain, at Contractor's sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement. 6.0 PAYMENT.. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. q June 2017 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs, and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS.The Director of the Department of Public Utilities shall have E s the authority to issue change orders for administrative and non-material changes to the scope of F services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended i beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due to Contractor under this Contract, but the combined total amount of such change orders shall not exceed [insert amount]. 8.0 CITY'S RESPONSIBILITY.. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 .COORDINATION OF SERVICES.. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 9.1 INDEMNITY.. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities"), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or 5 June 2017 omissions of Contractor hereunder, or arising from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees. 9.2 .INSURANCE.. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the y Contract, including any extensions thereto. The policies shall state that they afford primary ti coverage. 9.2.1 Automobile Liability with minimum limits of at least $1,000,000, including ,{ owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.2.2 General Liability with minimum limits of at least$1,000,000 per occurrence I awitha combined aggregate of$2,000,000 written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of i Vernon, its directors, commissioners, officers, employees, agents and volunteers must be i endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. 0 9.2.3 If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, J meeting the requirements set forth herein. i 9.2.4 Professional Errors and Omissions coverage of at least $2,000,000. 9.2.5 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (i) Provide copy of permissive self-insurance certificate approved by the State a I g June 2017 s m of California; or (ii) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or (iii) Provide a "waiver"form certifying that no employees subject to the Labor ' Code's Workers' Compensation provision will be used in performance of this Contract. 9.2.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty(30) days' prior written notice to City. 9.2.7 Insurance shall be placed with insurers with a Best's rating of at least A- VIII. 9.2.8 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.2.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or(c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. s s 7 June 2017 g 9 10.0 .GENERAL TERMS AND CONDITIONS.. 10.1 INDEPENDENT CONTRACTOR.. 10.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer e or employee of City and shall furnish such services in its own manner and method except as i required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation x and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor's actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for i Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 10.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 10.2 .CONTRACTOR NOT AGENT.. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 10.3 OWNERSHIP OF WORK.. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, I g June 2017 i floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 10.4 .CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, r inaccuracy, or incompleteness. 10.5 .RESPONSIBILITY FOR ERRORS.. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this f Agreement at no additional cost to City. In the event that an error or omission attributable to s Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard jto the correction. 10.6 .WAIVER.. The City's waiver of any term, condition, breach, or default of I this Contract shall not be considered to be a waiver of any other term, condition, default or breach nor of a subsequent breach of the one waived. The delay or failure of either art at an � q Y party Y time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. jNo waiver of any provision of this Agreement shall be effective unless in writing and signed by a 3 duly authorized representative of the party against whom enforcement of a waiver is sought. g June 2017 I s(F k 10.7 .SUCCESSORS.. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns. 10.8 NO ASSIGNMENT.. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City I' Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties from their obligations or otherwise constitute a novation. 10.9 COMPLIANCE WITH LAWS.. Contractor shall comply with all Federal, E State, County and City laws, ordinances, rules and regulations, which are, as amended from s time to time, incorporated herein and applicable to the performance hereof, including but without E limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of i i this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. f4 2 [ Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and I regulations Contractor shall be solely responsible for all costs arising therefrom. 10.10 ATTORNEY'S FEES.. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such ` party may be entitled. 10.11 INTERPRETATION.. 10.11.1 Applicable Law.. This Contract shall be deemed a contract and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall i have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof. 10.11.2 .Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties 9 10 June 2017 k y ,q regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral). 10.11.3 Written Amendment.. This Contract may only be changed ( by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 3 10.11.4 Severability.. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion r shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. f 10.11.5 Order of Precedence.. In case of conflict between the i terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 10.11.8 Duplicate Originals.. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 10.11.9 .Construction.. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of I ' any of the provisions of this Agreement. 10.12 .TIME OF ESSENCE.. Time is strictly of the essence of this contract and each and every covenant, term, and provision hereof. 10.13 AUTHORITY OF CONTRACTOR.. The Contractor hereby represents 11 June 2017 C I 1 and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 10.14 ARBITRATION OF DISPUTES.. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California I ' and judgment upon the award rendered by the Arbitrators may be entered in any court having i t r jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. s 10.15 .NOTICES.. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified i mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Attention: 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally 1 delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 12 June 2017 i a 10.16 .NO THIRD PARTY RIGHTS.. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement. 10.17 .TERMINATION FOR CONVENIENCE (Without Cause).. City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for i termination without cause. 10.18 .DEFAULT.. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to jthe defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Contract as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the city may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. 10.19 .TERMINATION FOR CAUSE..Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of 13 June 2017 money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs f incurred by the City in obtaining substitute performance. If this Agreement is terminated as I provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 10.19.1 Additional Services.. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 10.20 .MAINTENANCE AND INSPECTION OF RECORDS.. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead. 10.21 CONFLICT.. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of 14 June 2017 Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law. 10.22 .HEADINGS.. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be ' a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 10.23 .ENFORCEMENT OF WAGE AND HOUR LAWS.. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five % dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or i permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in s excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon E k compensation for all hours worked in excess of 8 hours per day at not less than 11/ times the I basic rate of pay. s 10.24 .LIVING WAGES.Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. 4 10.25 .EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not F discriminated against because of their race, religion, color, national origin, ancestry, disability, i sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that I it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". I e s 15 June 2017 [Signatures Begin on Next Page]. i i i i i F� f 16 June 2017 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Commencement Date stated on the cover page. City of Vernon, a California charter City [CONTRACTOR'S NAME, a [State and California municipal corporation incorporated in] corporation i By: By: Carlos Fandino, City Administrator Name: 1 3 Title: i a ATTEST: By: Maria E. Ayala, City Clerk Name: Title: APPROVED AS TO FORM: Hema Patel, City Attorney i 17 June 2017 EXHIBIT A REQUEST FOR PROPOSALS i s k x t, 9 3 f 3 (@f X (E 3 a Y } if 3 i la 1 $ June 2017 { I {4 i ti EXN�g�1 $ 4 4 S c 3 i �4 �p i { % �4 c� a� 4s *yL JUne Zp17 ,J i ;y �s EXN�g�� G SGHE�v`E �� ;_ �� i t� 9 'i, .� 1 �C\ 1 i i ;� t 1 ;� f ¢� y i ,,, 14 `� JU�e 2p1i i ��. 2� t �� z, _F a :� EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages.: i A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour I with health benefits, or$11.55 per hour without health benefits. i, Paid and Unpaid Days Off.: Employers provide qualifying employees at least twelve compensated days off per year for sick z leave, vacation, or personal necessity, and an additional ten days a year of uncompensated ` time for sick leave. F i No Retaliation.: I A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. i I i i I i x F i i j ;{ 21 June 2017 ;i 1 i EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity t Employer" or that all qualified applicants will receive consideration for employment without F regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. i t C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. E D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. E Fq§ 9 t t 'S 7 1 1 7 I 22 June 2017 i { EXHIBIT B PROPOSAL r r I 1 t 3 f f I 20 September 2017 Integrated Resource Plan CITY OF VERNON I a i I l i 15 AUGUST 2017 BUILDING A WORLD OF DIFFERENCE' 0,BLACK&VEATCH Black&Veatch Management Consulting,LLC © BLACK&VEATCH 11401 Lamar Avenue,Overland Park,KS 66211 P+1 913 458-3990 E KlingelJE@bv.com 15 August 2017 City of Vernon Attention: Octavian Ngarambe,Resource Planner 4305 Santa Fe Avenue Vernon,CA 90058 Subject: Integrated Resource Plan Study Dear Mr. Ngarambe: i Black&Veatch Management Consulting, LLC (Black&Veatch) is pleased to submit this proposal to the City of Vernon (City) to provide an Integrated Resource Plan (IRP). In the attached proposal,we have outlined our proposed study approach,scope of services,key personnel, fee structure, qualifications and experience, and proposed work schedule. f Black&Veatch has extensive integrated resource and power supply planning experience [ and has been providing services in this area for more than 30 years. Black&Veatch has supported numerous utility and municipal customers in preparation of their IRP studies over the years, and we believe our understanding of your culture and stakeholder needs will contribute tangible value to this effort. Black&Veatch believes we can provide numerous benefits to the City in the development of the IRP Study. Some of these benefits are enumerated below. Broad Experience in Integrated Resource Planning: Current market conditions and technological innovation create new opportunities but also challenges.The City will benefit from an independent and fresh review of their system by a firm with Black&Veatch's deep and broad experience in integrated resource planning,technical depth, and market knowledge. Some of the key challenges that Black&Veatch has dealt with in developing recent IRPs is need for system flexibility, managing intermittent renewable energies, and the growth of distributed energy resources. Understanding of Power Market Trends and Subject Matter Expertise: Black&Veatch has worked with many utilities, regulators, transmission providers,and generation owners in multiple markets. Over the last two years,key team members have been involved in IRPs or Planning studies for numerous clients, among others: • Virgin Islands Water&Power Authority • The City of Grand Island, Nebraska • San Francisco Public Utilities Commission (SFPUC) • City of Roseville, California • City of Pasadena, California • City of Azusa, California • Sacramento Municipal Utility District BUILDING A WORLD OF DIFFERENCE' Black&Veatch Management Consulting,LLC © BLACK&VEATCH 11401 Lamar Avenue,Overland Park,KS 66211 P+1 913 458-3990 E KlingelJE@bv.com Technical/Renewable Energy Expertise: Black&Veatch can draw from a large engineering and planning team which understands the integration and optimization of electricity service and distributed steam systems and that that can develop data inputs, engineering assumptions and costs, in the context of the broad framework of energy policies and energy markets. Experience in California: Black&Veatch has been very active addressing and understanding the needs of California clients for decades.The team has been engaged with California clients on a wide range of topics, including resource planning, integration of s renewables, and planning for higher penetrations of distributed resources.We understand well the requirements imposed on publicly owned utilities to perform IRP work under SB 350 and the filing obligations dictated by the California Energy Commission. We have endeavored to be responsive to the City's needs in this proposal and our goal is to provide outstanding service at a competitive cost. If you require additional information in I order to evaluate our proposal, or if there are any changes or modifications to this proposal ! that you would like us to consider, please do not hesitate to contact Ms.Julie Way at 913- 458-4343 or Mr. Lynn Allen at 913-458-7133. This response will remain valid for a period of not less than ninety(90) days from the date of submittal. On behalf of the Black&Veatch team,we look forward to the opportunity to provide these services to City. Very truly yours, BLACK&VEATCH MANAGEMENT CONSULTING, LLC Jeremy Klingel Associate Vice President 11401 Lamar Avenue Overland Park, KS 66211 +1 913-458-3990 klingelje@bv.com BUILDING A WORLD OF DIFFERENCE' CITY OF VERNON INTEGRATED RESOURCE PLAN Table of Contents Tableof Contents................................................................................................................................................................................................................. General Scope of __'_—_—___----_'------'_--._--_----_—_---'---'% Work Plan J Feesand Costs....................................................................................................................................................................................................................9 Abilityof the Proposer u`Perform.........................................................................................................................................................................10 Integrated Resource Planning(IDP]Qualifications and Experience.......................................................................................................1I MunicipalExperience...................................................................................................................................................................................................14 Renewable Energy Qualifications and Experience..........................................................................................................................................15 Distributionand Power Flow Analysis.................................................................................................................................................................l6 LoadForecasting Projects..........................................................................................................................................................................................18 WorkSummary...............................................................................................................................................................................................................19 WorkPlan and Project Schedule............................................................................................................................................................................. O CityFurnished Documentation................................................................................................................................................................................Z1 AppendixA Company Overview..............................................................................................................................................................................l2 AppendixB References................................................................................................................................................................................................Z3 AppendixC Resumes....................................................................................................................................................................................................34 Appendix D Affidavit of Non-Collusion 8y Contractor..................................................................................................................................77 uv.CoM BLACK uvcmr* |TABLE op CONTENTS / CITY OF VERNON I INTEGRATED RESOURCE PLAN Introduction Black&Veatch is pleased to present this proposal to the City of Vernon (City) in response to a request for a proposal (RFP) to provide services an Integrated Resource Plan (IRP).We have endeavored to prepare a proposal that is thorough and responsive to City's needs. We recognize that many utilities face complexities regarding future planning considerations, including existing and future legislative and regulatory initiatives at the state and federal level,the rapidly evolving nature of renewable technologies and the impacts of renewable integration, and emerging opportunities for distributed generation and load reduction through demand-side and energy efficiency measures.All of these considerations should be appropriately considered and addressed during the IRP process. We look forward to combining the experience and talents of our team with the City's staff to produce an IRP and methodology that will allow the City to successfully meet its obligations and help position the City to be flexible and responsive to future challenges, conditions and requirements. I We envision the IRP process in two distinct phases and have developed this proposal to I provide information to address each phase. The first phase would involve the development of an IRP Framework,which is envisioned to consider the following key elements: • Load forecasts,taking into account the growth of distributed energy resources • Review of previous distribution system analysis to determine impacts on the IRP analysis • Development of the appropriate modeling platforms (e.g. capacity expansion models, production cost models, combined platforms,stochastic risk analyses, or spreadsheet- based approaches) • Resource Plan and Renewable Options • Scenario analysis (e.g.sensitivity analysis, "worldview"scenarios, and stochastic risk assessment) The second phase consists of an IRP Implementation Plan, envisioned to consist of the following components: • Execution of the IRP modeling • Review of model results with City staff • A final report to address the following as a minimum (a) resource planning framework; (b) IRP framework; (c) data needs and sources; (d) model framework and analysis steps; and (e) scenario evaluation criteria. Black&Veatch has prepared this proposal in response to these requests. We encourage the City to review our proposal in detail and advise of any areas where additional information is needed or additional discussion about creative approaches is warranted. BV.COM BLACK&VEATCH I INTRODUCTION 1 i N CITY OF VERNON I INTEGRATED RESOURCE PLAN General Scope of Work Outlined below is the general scope of work proposed by Black&Veatch to perform the IRP.The tasks outlined in the RFP were clear,and this general overview largely matches the RFP S I information.Please note that Black&Veatch is only proposing to perform the work under the IRP I scope,and is not proposing to perform the Cost of Service analysis. • Task 1: Demand Forecasting. Black&Veatch will use its modeling tools,information provided by the City,and statewide outlooks to assess future electric demand for the City. These demand forecasts will be used in future tasks to forecast renewable energy requirements to meet RPS obligations and will be entered into the IRP model. Besides the base case forecast, a low and high demand scenario will also be developed as a sensitivity. • Task 2: Existing System Description. In order to properly assess the current state of the utility, Black&Veatch will work with City staff to gather information on current renewable energy generation and contracts, fossil generation resources, cases of greatest interest for future analysis, any studies performed on distributed resource adoption in the service territory, customer data,gas and market power price forecasts, resource adequacy compliance,T&D ownership, costs, and planned upgrades, and other items pertinent to the IRP. An understanding of the environmental objectives desired by the City and recommendations for programs to consider will also be part of this Task. • Task 3: Review of Interconnection and Distribution Work.The scope of this task will be to review the work performed by the City in the"Distributed Generation Impact Study"to define cases and system improvements to be considered as part of the IRP. It is assumed that this analysis will identify the level of distributed generation that can be currently modeled with no changes required to the distribution grid, the level of upgrades that might be needed to evaluate a high distributed generation case, and any other costs and impacts that may need to be modeled in Task 6. Black&Veatch will rely upon the findings in City's "Distributed Generation Impact Study" report to identify the condition of the City's existing interconnections and distribution facilities and safety,reliability and operation issues. • Task 4: Resource Options and RPS Compliance.This task will start with an assessment of the current state of the City's renewable procurement to meet RPS requirements,then perform a net short analysis to project additional procurement needs in the IRP period. From work recently performed by Black&Veatch on renewable energy cost and performance, a set of scenarios encompassing a range of technologies will be established using this data,with the cases reviewed with City staff. These will represent the basis for many of the scenarios used in the next task. • Task 5: Scenario Development.After the renewable energy options and cases have been defined,the specific scenarios to be run in the IRP model will then be established,taking into account different levels of distributed energy penetration, renewable assumptions, and load forecasts, along with market and policy changes that might occur.As with Task 4, these cases will be reviewed with City staff to finalize. BV.COM BLACK&VEATCH I GENERAL SCOPE OF WORK 2 CITY OF VERNON I INTEGRATED RESOURCE PLAN • Task 6: IRP Modeling. Black&Veatch staff will select and run the IRP model in this task, with key results (such as procurement requirements, NPV of costs, RPS compliance,and GHG emissions) tabulated and included in the final deliverable report. • Additional Work:At any time during the term of this work plan, the City may request that the Consultant perform Additional Work. As used herein, "Additional Work" means any work which is determined by the City to be necessary for the proper completion of the Project,but which the parties did not reasonably anticipate would be necessary at the execution of this Scope of Services. Additional Work may be authorized,and if authorized,will be compensated at the rates and manner set forth in the agreement between the City and the successful firm(s). The Consultant shall not perform, nor compensated for,Additional Work without written authorization from the City's Representative. More detail on the specific approach to each task can be found in the next section. E Work Plan Black&Veatch proposes the following Work Plan to meet the City's specifications for the Integrated Resource Planning(IRP) Study.The Work Plan is arranged in a way that represents our typical approach to IRP Studies,taking into account the specific needs of the City's RFP. Task 0 Project Initiation/Kick-Off Meeting Upon written notification to proceed, a kick-off meeting will be scheduled in which the City's project team can meet the key Black&Veatch staff and establish the study objectives, the constraints faced by the utility, and the obligations that an adopted plan must meet.The objectives can be further expanded upon our understanding of the obligations and objectives that need to be balanced in the ultimate IRP.Administrative procedures such as schedules for status meetings or conference calls and protocol for obtaining data and information and reviewing preliminary findings and results will be established. Core Black&Veatch staff members will attend the kick-off meeting which will be held at the City's offices in Vernon, California. In addition to discussing the areas in which the City staff needs support for developing the IRP, Black&Veatch will provide a presentation on the process and methodology to be used to execute the IRP and the anticipated division of labor between the City and Black&Veatch staff during the IRP process can be discussed in further detail. Black&Veatch will also prepare a data request list at notice to proceed. To the extent that data can be provided prior to the kick-off meeting, topics discussed at the kick-off meeting can include additional questions and data needs. Task 1 Load Forecast One of the initial and very important tasks in the IRP is the development of the load forecast. The process of developing this forecast involves collecting historical energy,loss, BV.COM BLACK&VEATCH I WORK PLAN 3 E I CITY OF VERNON I INTEGRATED RESOURCE PLAN and peak demand data for the utility as a whole and also at the level for which the forecast will be developed, usually by end user class. Black&Veatch will develop an independent forecast of the City's peak demand and annual energy growth using econometric methods.A forecast of annual energy use is typically prepared first by identifying correlations between historic energy use data and concurrent data for key drivers such as population; economic activity such as employment,personal income or retail sales; and weather data such as heating-and cooling-degree-days, precipitation and rolling peak daily temperatures.Annual coincident peak demands will be forecast based on statistically determined relationships between energy use and weather data around the time of the annual peak. It is also important to understand new developments and considerations that could impact the forecast in the future which may not be reflected in historical data.This could include major new industrial developments,the closing of a large industrial complex, or other ti factors.The City's major electric customers will be consulted directly, if preferred, for information on expansion or contraction plans. Other municipal entities, including regional h planning departments and economic development authorities,will be consulted as appropriate for projections of key driving variables which can be used with the econometric relationships to forecast annual energy use and annual system peak demand. Results will be compared against those developed by the California Energy Commission. 3 The demand forecast should also consider potential impacts of Distributed Energy Resources (DER) which may include the potential for residential and industrial customers to adopt solar photovoltaic (PV) resources on the customer side of the meter and other energy efficiency programs.Work performed as part of Task 3 will help to inform the DER forecast that we be applied to the final load forecast. I 'ask 2 Existing System Description Concurrent with the development of the load forecast, the supply side characteristics of the existing options need to be established so they can be entered into the planning model. Upon written notice to proceed, Black&Veatch will prepare a data request list. In addition to requesting information on the existing system,additional inputs needed for the planning model will be established. This includes economic parameters, such as inflation and escalation rates,bond interest rates and financing costs, and present worth discount rates. It is important that the economic parameters are consistent and used throughout the project for evaluations. Information typically requested to support the IRP study includes the following(as applicable to the City's system). • Current and historical generation and load data • Operational data for the City's units including outage and reliability data • Power purchase records/contracts • Number and type of customers BV.COM BLACK&VEATCH I WORK PLAN 4 CITY OF VERNON I INTEGRATED RESOURCE PLAN • Load profiles • Capacity sales contracts • T&D capacity and other technical data Black&Veatch understands that the City's existing assets consist of 134 MW of natural gas generation at the Malburg Generation Station,a 11.5 MW of peaking capacity,purchases from Palo Verde, Hoover Dam, and other short-term contracts. Black&Veatch's role in this task will include a review of generation estimates and operating data to support development of parameters to be used in the modeling analysis.The assessment will begin by Black&Veatch requesting data and information on the existing units if not provided through the initial list of information captured in Task 0.This data and information requested for the generation assessment generally includes: • Equipment description and ratings • Operating data • Maintenance history (Inspection reports,previous overhauls, equipment replacement) • Operating budgets • Emissions reports • Environmental permits In conjunction with the City staff,the above information will be used to develop a basis to project costs anticipated for continued operation to support the IRP analysis. In addition to gathering information on supply side resources,this task will identify the main goals and initiatives developed by the City that should be incorporated into the IRP. This will include RPS goals, future expectations of DER adoption, GHG goals, and desired use of energy storage. If detailed investigations into DER adoption levels have not been forecast by City staff, a discussion will be held with staff to get an understanding of likely potential for future adoption by each DER type,along with utilizing assumptions developed by the state. Black&Veatch will provide suggestions as part of this task for other programs to consider to meet long term environmental goals. Task 3 Review of Interconnection and Distribution Work In order to properly assess the level of DER resources that can be accommodated on the City's distribution grid and any improvements that should be considered, Black&Veatch will rely upon the findings in City's "Distributed Generation Impact Study" report to identify the condition of the City's existing interconnection and distribution facilities for safety, reliability and operation issues. To do this, Black&Veatch staff will gather data from the City on DER potential and impacts based on past work that has been performed, along with the report and the ETAP model inputs and results. Team experts will review the study and modeling data with an eye toward the items of greatest importance in IRP modeling; namely, any system limits that could impact the level of DER adoption, along with any costs for already identified system upgrades. Second, the team will review the projections made by City staff for the level of DERs that may be adopted by its customers during the IRP period based on work done in Task 2. These projections will be compared to BV.COM BLACK&VEATCH I WORK PLAN 5 I CITY OF VERNON I INTEGRATED RESOURCE PLAN the results of the ETAP analysis to determine if forecasted adoption will be within the level that can be accommodated by the City's distribution grid, or if upgrades and improvements may be required. From the results of these reviews,a set of DER adoption assumptions will be developed for incorporation into the load forecast and the IRP modeling efforts in Task 6,along with any t recommendations for investments into the distribution grid which may be prudent.A range of adoption will be established to be able to test sensitivities as part of the modeling effort. s i Task 4 Resource Options and Renewable Energy Compliance This task will entail the development of a list of renewable energy needs and supply-side options to meet future load requirements and policy obligations.The list of candidate options is typically impacted by many considerations and system characteristics, including the following: • Existing system characteristics and the need for power • Availability and economics of market purchase options • Siting considerations for new units • Construction schedule and cost of new units • Resource quality and availability for wind, solar, and other renewable options • Transmission considerations • Regulatory and environmental considerations When it comes to assessing the renewable energy needs of the City, the first step will be a net short analysis which takes into account existing resources,load forecasts, and RPS requirements. From this,the gap between where the City currently is in renewables procurement and where the City needs to be to meet RPS requirements can be defined and appropriate cases then defined which can fill this gap.As an example,a net short analysis that was done for a California utility looking to meet a 40 percent renewables requirement can be seen below. In this analysis,the contribution from already developed renewables projects and contracts can be seen on the bottom,with the gap between what would be needed for 33 and 40 percent renewables shown on the top two parts of the stacked bar. Analysis for the City will be for at least 50 percent renewables,with higher penetrations also a possibility. BV.COM BLACK&VEATCH I WORK PLAN 6 CITY OF VERNON I INTEGRATED RESOURCE PLAN 14000 13000 ' i 12000 11000'. 10000 9000 8000 -- Short Term Purchases 7000 i d , tQ 6000 O !i 5000 4000 ,�` „F- S�na1t1„kiydCo , 3000 Solar j 2000 1000 0" 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 t I I Building upon the information obtained in previous tasks, Black&Veatch will provide s recommendations and options most likely to fill the net short gap and achieve the City's planning objectives based on our judgement and experience. It is important not to select 3 too few options while, at the same time, not over-burden the study with technologies that clearly do not fit the City's needs, cost considerations and environment.We believe it is beneficial for this key step to be a collaborative effort between the City and Black&Veatch I staff. I From work recently performed by Black&Veatch on renewable energy cost and performance,a set of scenarios encompassing a range of technologies will be established using this data,with the cases reviewed with City staff.This may encompass portfolios which are solar or wind heavy, or those which rely upon more market purchases and use of Portfolio Content Category 2 or 3 RECs up to RPS limits. Results from this task will be used as a large part of the overall scenario development in Task S. Task 5 Scenario Development Based on the information developed in prior tasks, Black&Veatch will perform a screening analysis of the resource options identified above. Scenarios will take into account the renewable energy options defined in Task 4 as well as options for different levels of distributed energy penetration and load forecasts,along with market and policy changes that might occur. Following definition of the range of cases that may be explored, the top 5 cases for analysis will be developed after discussion with City staff and run through the IRP model in Task 6. Selection for the cases of greatest interest will be based off analysis of future planning inputs which are likely to have the greatest impact on the City's portfolio selection. To perform this analysis, a list of risk variables deemed to have the largest uncertainty and impact on the City's planning decisions will be defined. BV.COM BLACK&VEATCH I WORK PLAN 7 CITY OF VERNON I INTEGRATED RESOURCE PLAN In conjunction with the City, Black&Veatch will establish economic parameters to utilize in the economic analyses for the IRP model. Such key assumptions include current and near term fuel costs, fuel cost forecasts, discount rates, and load growth assumptions. Black& Veatch will review any existing fuel and transportation contracts to inform assumptions to be used for current and near term fuel costs. For fuel cost projections not fixed by existing contracts, Black&Veatch proposes using the fuel cost and market power price projections developed by Black&Veatch for our fundamental market modeling services. It is important that there be consistency between fuel prices and market power prices in the evaluations and use of the Black&Veatch long term fuel and market power price projections assures this consistency. Black&Veatch will provide recommendations to the City for other key economic parameters. Y, 3 x 'task 6 IRP Modeling In this task, Black&Veatch will develop a market power model of the City's power supply system representing existing local generating units, participation in jointly owned E generating units,purchases from third-parties (as applicable) using a model that will be selected as part of this Task.The following subtasks discuss the use of the model to evaluate various power supply alternatives for the City and other assumptions applicable ' to each subtask. ('4 { Renewable Generation Black&Veatch will use expansion planning capabilities to evaluate the further addition of j renewable power in the form of wind, solar, and baseload renewable energy facilities to the City's system. Black&Veatch will use its knowledge of the wind power market to estimate the cost of additional wind generation and solar power to be evaluated in the model. CAISO Market Purchases Black&Veatch believes this is one of the most important elements of the City's power supply evaluation. Black&Veatch will use the model to develop a 20-year forecast of hourly market prices within the CAISO region. The model will evaluate both sales and purchases by the City into the CAISO market and assess the costs and impacts on the City's unit operations resulting from market participation. Sensitivity Analyses After running the base case analysis, the 5 sensitivity cases defined in Task 5 will also be run in the model and reviewed with City staff. Ranking and Scoring As a follow-on task to the expansion planning and production costing runs,the leading plans developed are typically scored and ranked according to a uniform system adopted by the study team. This scoring system involves the assignment of scores for economic costs directly measured in the modeling, as well as other risk factors that cannot be easily measured in the modeling.All plans that survive to the ranking stage of the study will meet BV.COM BLACK&VEATCH I WORK PLAN 8 E8F E CITY OF VERNON I INTEGRATED RESOURCE PLAN the City's obligations and requirements such as reliability targets, environmental and other City's objectives. I Documentation and Reporting The final step is the documentation and presentation of the IRP study results.While the last I step, documentation will be occurring throughout the IRP process,starting with the assumptions document.As subsequent tasks are completed, draft sections of the IRP report will be prepared. We would anticipate a draft final report that consists of all report sections and, once internal approvals are obtained,the report will be finalized. Additional Work At any time during the term of this work plan,the City may request that the Consultant perform Additional Work. As used herein, "Additional Work" means any work which is determined by the City to be necessary for the proper completion of the Project,but which the parties did not reasonably anticipate would be necessary at the execution of this Scope of Services. Additional Work may be authorized,and if authorized,will be compensated at the rates and manner set forth in the agreement between the City and the successful firm(s). The Consultant shall not perform, nor compensated for,Additional Work without written authorization from the City's Representative. Fees and Costs As requested in the RFP, Black&Veatch will conduct the Work Plan presented above (excluding the Additional Work) for a fixed price of$175,000, including travel expenses as outlined below. Proposed payment terms are 30 days (net 30) from the invoice date. During contract discussions, a milestone payment schedule will be established to define when billing will occur. Black&Veatch understands that the City wishes to minimize travel costs so travel will only be as authorized by the City and associated travel expenses will be billed at actual cost without markup. Other than costs specifically associated with travel (such as airfare and lodging), the above price reflects time required for the following in person meetings: 9 Attendance by the Project Manager to attend a kick-off meeting in Vernon j • Attendance by the Project Manager to attend a project results meeting in Vernon BV.COM BLACK&VEATCH I FEES AND COSTS 9 CITY OF VERNON I INTEGRATED RESOURCE PLAN Ability of the Proposer to Perform The following individuals are the key assigned personnel for the IRP team.They will direct the work and be available for consultation by the City team on an as-needed basis. Julie Way will act as the Project Manager for this analysis and will be the technical lead in a number of areas. The rest of the team as highlighted below will focus on the phases related to renewables,load forecasting, distribution system analysis,and production cost I modeling. Full resumes are included in Appendix C. i I I City of Vernon I O Julie Way AhA Project Manager l I I Scott Olson [f7t John Wynne Dr.Sankar(Power) Gary Wilmer Renewables Lead Load Forecasting L Distribution System Analysis Production Cost Modeling I nam I Charith Steve Block t Tammineedi o (Power) (Power) Wind SME € Solar SME i I I Julie Way, Project Manager Julie Way is a licensed professional engineer and Project Manager with 30 years of experience in the energy industry including leading assessments for transactional due diligence for large portfolios. She has a very specific combination of planning, financial modeling, and technical design background, and hands-on engineering experience that will benefit the present study. She will leverage her extensive knowledge with experts in all areas to be studied in this assignment. i Scott Olson, Renewables Lead Scott Olson will be the Renewables Lead for this engagement. He has been engaged in all facets of the energy industry during his 19 years of private,public, academic,and consulting experience.Scott's current focus is on renewable energy integration studies, integrated resource planning assessments, and distributed resource impact evaluation. Examples of recent project engagements include assessment of solar and wind integration costs, renewable energy RFP development and bid reviews, modeling impacts of 50 percent renewable power in California, and independent engineering reviews of emerging BV.COM BLACK&VEATCH I ABILITY OF THE PROPOSER TO PERFORM 10 '7 tt y CITY OF VERNON I INTEGRATED RESOURCE PLAN technologies. Scott has been involved or the lead on many Western US and California initiatives outlined in this proposal. Charith Tammineedi, Solar SME Charith Tammineedi is a Renewable Energy Consultant with Black&Veatch whose primary duties include Performance Assessment of operational solar PV projects, Production Estimation and Performance Testing of solar PV projects. He has analyzed the performance of over 700 MW of operational projects. 4 f I Steve Block, Wind SME I Steve Block specializes in wind energy development and owner's engineering support within Black&Veatch's power business. He is active in wind energy project siting, development, Request for Proposal (RFP) development for procurement of wind turbines and construction contractors,bid reviews,and technical due diligence. He has over ten years' experience with wind resource studies,wind turbine technology assessment, project siting,project feasibility studies, conceptual design, integrated resource planning,and graphical presentation of resource analysis throughout the world. He is skilled with numerical and graphical analysis tools,and with geographical information systems (GIS) tools and analysis. John Wynne, Load Forecasting John Wynne is an economist and the Director of Economic Studies for Black&Veatch,who will lead the Load Forecasting effort for the project. He has 27 years with the company and has also worked for a state utility regulatory agency in Indiana. He is the most experienced Project Manager with the company in terms of managing IRP studies, and he has led planning studies throughout the country and internationally. He is also extremely experienced in the development of capacity solicitation RFPs,load forecasting and economic impact studies, power purchase agreements, and financial analysis. Dr. Sankar, (Power) Distribution System Analysis Dr. Sankar is an electrical system studies engineer and also the Group Lead for Systems Studies Group in Black&Veatch's Power Delivery Business. His responsibilities include the analysis of AC/HVDC systems, generator interconnection studies, distribution system analysis,harmonic analysis, and transient studies. Dr. Sankar has about 30 years of professional experience in the field of power involving system studies, construction and commissioning of power plants and substations. He has also worked in South East Asia, New Zealand and India on a variety of power projects. I Gary Wilmes, Production Cost Modeling Gary Wilmes is a registered Professional Engineer with diverse experience in many aspects of the electric power industry, including system planning, production cost modeling, r :I ti 'i BV.COM BLACK&VEATCH I ABILITY OF THE PROPOSER TO PERFORM 11 'i 1 CITY OF VERNON I INTEGRATED RESOURCE PLAN economic analysis, electricity market assessments,and conceptual design. He has conducted several system planning and feasibility studies for domestic and international clients. His activities have included technology screening and selection studies, development of utility generation expansion plans,generating system production cost simulation and analysis and reliability/availability assessments to predict plant availability and improvements attributable to proposed plant design changes. Mr.Wilmes has evaluated the economics of proposed DSM and Energy Efficiency programs using the DSMore (Demand Side Management Option Risk Evaluator) simulator as well as detailed hourly chronological production cost models such as ProSym and PROMOD to evaluate the economics of peak reductions and energy cost savings attributable to DSM and Energy Efficiency programs. Integrated Resource Planning (IRP) Qualifications and Experience California is the ground floor for the evolution of renewable energy market regulations, policy, implementation and operational integration. Black&Veatch has been hired by many ICalifornia load-serving entities, and is either currently engaged with or has assisted the following in resource planning related activities: • San Francisco Public Utilities Commission (SFPUC) • City of Roseville • City of Azusa • Pasadena Water& Power • Sacramento Municipal Utility District • Los Angeles Department of Water&Power Items that set Black&Veatch apart include: • Understanding of Power Market Trends and Subject Matter Expertise in California Power Market: Black&Veatch has worked with many utilities, regulators,transmission providers, and generation owner that operate in the California power market. Compliance with meeting the 50% Renewable Portfolio Standard (RPS) and flexibility resource requirements will be very important for the IRP. • Production Cost Model Expertise: Black&Veatch has unparalleled expertise in models such as PLEXOS and PROMOD that can be invaluable for providing modeling support to meet regulatory requirements. • Renewable Energy Expertise and Resource Data: Black&Veatch can draw from a large engineering and planning team that that can develop data inputs, assumptions, and understand energy policies. Black&Veatch helped to develop inputs for the Western Regional Energy Zone (WREZ) and the Renewable Energy Transmission Initiative (RETI) studies. Black&Veatch recently assisting the Los Angeles Department of Water&Power (LADWP) on a CAISO Energy Imbalance Market study and has a strong understanding of the CAISO wholesale markets. BV.COM BLACK&VEATCH I INTEGRATED RESOURCE PLANNING(IRP)QUALIFICATIONS AND EXPERIENCE 12 CITY OF VERNON I INTEGRATED RESOURCE PLAN Introductions have been provided in this document of the work that Black&Veatch has performed on IRPs for LADWP, SFPUC (both the POU and CCA), SMUD,and others. Below is a listing of additional recent and relevant project system planning and IRP project work that have been staffed by one or more of our team. Pasadena Water & Power (PWP) Integrated Resource Plan (IRP) Support and Related Tasks 2014-2015 Beginning in June 2014, Black&Veatch worked closely with Pasadena Water&Power (PWP) staff to support its 2015 Integrated Resource Plan (IRP) Update.This included numerous meetings to understand PWP's specific resource planning issues and stakeholder concerns,presentations at monthly Technical Advisory Group meetings, and public presentations to PWP customers to explain the IRP modeling process and results.The primary focus of the analysis was to develop a set of resource portfolio options (including both non-renewable and renewable technologies),to outline plausible scenarios to test those portfolio options against(including a range of natural gas prices and carbon allowance prices),and to complete detailed production cost modeling to determine which portfolio was most robust across a range of scenarios. City of Roseville Integrated Resource Plan (IRP) Support 12016-2017 Beginning in April 2016, Black&Veatch has been working closely with the City of Roseville staff to support its 2017 Integrated Resource Plan (IRP) Update. This included weekly meetings over the phone and on site to evaluate the City's portfolio of resources against the changing utility landscape. The primary focus of the analysis was to develop a set of resource portfolio options to comply with Senate Bill 350 IRP requirements while evaluating other scenarios such as Roseville's participation in the EIM market, a 100% renewable resource portfolio and to complete detailed production cost modeling to determine which portfolio was most robust across a range of scenarios. City of Azusa d 2015 Integrated Resource Plan, 2015-2016 r; Black&Veatch worked collaboratively with the City of Azusa to develop the 2015 Azusa Light&Power Integrated Resource Plan (IRP). Key objectives of the IRP included replacing I energy production from the San Juan Unit 3 coal plant,which is planned for retirement in 2017. San Juan 3 has been Azusa's predominant energy supply resource in recent decades and that plant's retirement will have a significant impact on Azusa's supply resource s portfolio.Additional challenges center on procurement and integration of renewable energy resources,to meet California's 50% Renewable Portfolio Standard (RPS) requirement by 2030 4 i a l BV.COM BLACK&VEATCH INTEGRATED RESOURCE PLANNING(IRP)QUALIFICATIONS AND EXPERIENCE 13 CITY OF VERNON I INTEGRATED RESOURCE PLAN Municipal Experience Black&Veatch has over 100 years' experience working with all levels of Government. From multi-million dollar IDIQ contracts for the Department of Defense and the Department of State to small task order contracts for the City of Charles Town,WV,we are experienced in providing responsive and cost-effective services to all levels of government clients. 'r San Francisco Public Utilities Commission Power Enterprise Consulting& Engineering Services fi The San Francisco Public Utilities Commission has awarded a multi-year, master service I agreement to Black&Veatch to support a range of renewable energy and Power Enterprise projects.A wide range of overall planning and engineering tasks were supported, from I rooftop solar PV on local schools to recommendations for major capital expenditures through 2041.The goal was to provide technical expertise to help Power Enterprise meet their long-term community goals and adapt to the changes in the California power market. Major projects include the following: • Community Choice Aggregation (CCA) Integrated Resource Planning Support: Performed the integrated resource plan for the C1eanPowerSF program,which provides load to residential, commercial, and industrial customers in San Francisco. • Integrated Resource Planning: Completed analysis and recommendations for the resources best suited to meet future electric load through 2041.Analyzed options for use of existing hydroelectric assets, new renewables, and market interactions through the use of production cost modeling. • Renewable Energy Assessment: Performed a detailed assessment of the renewable energy options, cost, and performance for projects located 1) in the city of San Francisco, 2) on SFPUC owned land in the Central Valley, and 3) elsewhere in the California ISO. Los Angeles Department of Water & Power Renewable Energy Consulting& Engineering Services The Los Angeles Department of Water&Power has awarded two multi-year, multi-million dollar contracts to Black&Veatch to support the aggressive expansion of its renewable energy commitment.We have supported Los Angeles Department of Water& Power with a broad range of tasks including IRP development, RPS strategy, RFP development and administration,technology assessments, due diligence of potential projects, and system optimization studies. Every major commercial renewable energy technology has been analyzed. Major projects include the following: • Solar and Wind Integration Study Black&Veatch staff designed an approach and evaluate the operational and economic consequences of absorbing over 1,S00 MW of variable energy resources. • Solar Incentive Program Support and Improvements: Provided resources to eliminate the backlog of applications, assisted in the daily processing of incentive BV.COM BLACK&VEATCH I MUNICIPAL EXPERIENCE 14 i CITY OF VERNON I INTEGRATED RESOURCE PLAN applications, and provide technical support for the automation of managing and processing applications. • Feed-In Tariff Design Support:Assisted in the design,pricing, and benchmarking of the Los Angeles Department of Water&Power Feed-In Tariff.Also provided interconnection and metering requirements, along with support for outreach meetings. • Integrated Resource Plan: Black&Veatch staff led the analysis and writing of the 2010 IRP which includes financial modeling using PROSYM software to develop a strategy to meet 33 percent renewables. Sacramento Municipal Utility District Renewable Energy Program Support Black&Veatch has supported Sacramento Municipal Utility District's (SMUD) efforts to meet the California Renewable Portfolio Standard since 2004.We have done many projects for SMUD representing a wide variety of projects, including the following: • Renewable Energy Long-Term Plan.Worked with the District to develop a long-term plan to meet the state target of 33% renewables by 2020. • 50%Renewable Energy Mandate Analysis.Analyzed the impacts of the voter-initiated Proposition 7.This ballot initiative would have mandated that utilities procure 50% of their energy from renewables. • Renewable Energy Ownership Options Study. Evaluated the economics and risks of alternative ownership structures intended to minimize risk and cost of renewable energy to District customers. Renewable Energy Qualifications and Experience Black&Veatch has strong project experience in all major renewable energy technologies and is actively engaged in world-class projects.The experience of our group extends across all areas of sustainable energy: biomass,water,wind,solar, geothermal,and other emerging technologies. Black&Veatch has been continuously involved with the assessment of the modern forms of these technologies for over 25 years.As a full service provider, Black&Veatch offers comprehensive support to our clients for all types of renewable energy projects and programs through their entire life cycle. Our complete range of services includes: • Strategic planning • Transmission planning • Market assessment • Renewable energy zone studies • RPS compliance plans • Renewable energy credit price forecasts • Renewable procurement support • Technology research and development • Due diligence • Project development support • Integrated resource planning • Engineering,procurement, construction BV.COM BLACK&VEATCH I RENEWABLE ENERGY QUALIFICATIONS AND EXPERIENCE 15 CITY OF VERNON I INTEGRATED RESOURCE PLAN • Renewable resource assessment • Operations and maintenance support • Project identification and siting • Plant rehabilitation and retrofit _ • Environmental permitting • Solar photovoltaic program management Whether it is up-front consulting and project development assistance; engineering, procurement, and construction; or optimization and rehabilitation of existing assets, Black ' &Veatch provides the services that enhance the profitability of energy portfolios while fostering their environmental and financial sustainability through our services: I • Integrated renewable energy projects • Biomass • Wind • Solar • Geothermal • Storage energy technologies (e.g.,pumped storage hydro,battery energy storage) • Advanced energy technologies Renewable energy consulting services include all aspects of development, from the selection of the most suitable technology for a given application to resource evaluation, installed cost estimates,and conceptual designs. Black&Veatch professionals address technical concerns of developers and financial institutions through an independent evaluation and assessment of such projects as co-firing,biomass gasification, coal/ petroleum coke gasification,wind, solar, and hybrid technologies. Distribution and Power Flow Analysis At Black&Veatch,we have a seasoned team of experts with significant power system analysis and planning experience. Our capabilities, effective communication skills and cutting edge analytical tools allow us to smoothly integrate your project into the complex grid system. Our services include the following: Generation Siting • Support • Plant Fatal Flaw Analysis • Consulting on NERC Procedures • Interconnection and Impact Study • Failure Analysis • Load Flow • Ferroresonance Avoidance and Mitigation • Cable Ampacity Calculation and Sizing • Interconnection Agreement Consulting • Economic Conductor Selection • Load Forecasting • Grounding Analysis and Mitigation • Power Factor Improvement • Insulation Coordination • Reactive Power Support and Compensation • Lightning Protection • Short Circuit (Fault) Analysis • Reliability Assessment • Stability Study • RI, TVI Interference Identification and • System Design and Operational Audit Mitigation • Transient Analysis BV.COM BLACK&VEATCH I DISTRIBUTION AND POWER FLOW ANALYSIS 16 CITY OF VERNON I INTEGRATED RESOURCE PLAN Software Programs Experience • PSS/E (Load, Fault, Stability) • EMTP,ATP (Time Dependent Analyses, Switching) • PSCAD (AC and HVDC Analyses) • PSLF (GE Equivalent to PSS/E for WECC Reliability Area) e MUST (FCITC Calculations) • ASPEN One Liner, CAPE (Fault and Relay Setting) • ETAP (Commercial and Light Industrial Conceptual Designs) I e Corridor(AC Mitigation) • Power World Simulator • CYMDIST # Recent System Study Projects I Los Angeles Department of Water and Power(LADWP), California Distributed Generation Penetration Study Black&Veatch is performing a technical analysis to estimate the amount of Distributed Generation such as roof-top photo voltaic systems can be accommodated in LADWP's distribution system.These studies will be completed in 2016. U.S. Virgin Islands Water and Power Authority(VIWAPA) Distributed Generation Interconnection Studies Black&Veatch is performing Distributed Generation (DG) interconnection studies for several photovoltaic power plants in US Virgin Islands.These studies will be completed in 2016. Maui Electric Company (MEC®), Hawaii Interconnection Studies for Distribution Generators(PV) Black&Veatch performed Interconnection Studies for PV plants connected to 12 kV distribution circuits. The analysis included evaluation of voltage regulation, flicker,power flow, anti-islanding,protection and harmonics. The studies were performed in 2013-14. Metropolitan Energy Center, Kansas City, MCI Plug-in Electric Vehicle(PEV) Penetration Study Black&Veatch performed an analysis to assess the impact of PEV growth on the distribution system. The studies were completed in 2013. BV.COM BLACK&VEATCH I DISTRIBUTION AND POWER FLOW ANALYSIS 17 CITY OF VERNON I INTEGRATED RESOURCE PLAN Hawaiian Electric Company, Hawaii Interconnection Requirement Studies for Renewables Black&Veatch has performed several Interconnection requirement studies for interconnecting renewable energy sources such as wind and solar energy into the Hawaiian Electric System.The studies have been performed in 2009-2013. Detroit Edison Company, Michigan PV Inverter Saturation Study for a Distribution Circuit Black&Veatch modeled and studied the aggregate effects that several PV Inverters might have on a distribution circuit and among the inverters as well. Specific areas studied were: € 1) anti-islanding scheme interactions/erroneous operations; 2) influence on existing voltage regulation/protection schemes; and, 3) possible equipment degradation due to I aggregate harmonic and/or parallel resonance effects. Load Forecasting Projects Brownsville Public utilities Board,Texas Load Forecast In 2016, Black&Veatch was retained by BPUB to perform a load forecast as input into a subsequent IRP, also performed by Black&Veatch. The load forecast required a projection of peak demand and energy requirement on the system for a 20 year period. The project team developed an econometric load forecast,by customer class, and the total of the loads by customer class was adopted as the load forecast. The econometric load forecast utilized multiple functional equations in which the load by a class of customers was modeled as a function of independent variables that differed by user class. Kauai Island utility Cooperative, Hawaii Load Forecast Black&Veatch developed load forecasts for the KIUC service area on three occasions extending back to 2006,with the most recent forecast updated in 2015. The load forecast required a projection of KIUC load on a class by class basis,with specific consideration of various energy efficiency and demand side measure impacts. The model utilized was an econometric model in which energy requirements and peak load were projected based on appropriate independent variables such as historical price, population, income, number of customers, and island visitors. New Holland, Michigan Load Forecast Black&Veatch developed a load forecast for the city of New Holland, Michigan. The forecast was used in the subsequent system planning study performed and resulted in a projection of long-term peak and energy requirements. The forecast utilized an econometric model with independent variables appropriate for each end user class. I 1 s BV,COM BLACK&VEATCH LOAD FORECASTING PROJECTS 18 4 CITY OF VERNON I INTEGRATED RESOURCE PLAN Work Summary For each of the tasks outlined in the proposal,the following deliverables will be produced: • Task 1: Demand Forecasting. • An Excel file outlining electric load demand throughout the IRP period • All assumptions used in generation of the load profile • Assumptions for expected DER growth which may impact net load • Task 2: Existing System Description. k, ® Review and comments for if any current system assumptions or forecasts should be modified for the IRP analysis • Task 3: Review of Interconnection and Distribution Work. ® Review and comments for if any current system assumptions or forecasts should be modified for the IRP analysis • Task 4: Resource Options and RPS Compliance. g • An Excel file with the net short analysis I g • An Excel file with renewable energy cost and performance options • Task 5: Scenario Development. 0 Base case scenario assumptions for use in IRP modeling • 5 sensitivity case scenarios assumptions • Task 6: IRP Modeling. • An Excel file with scorecard results from the IRP modeling • A final written report with all assumptions, methodology,scenario definitions and modeling results. o l i I BV.COM BLACK&VEATCH WORK SUMMARY 19 l a CITY OF VERNON I INTEGRATED RESOURCE PLAN Work Plan and Project Schedule While the nature of the IRP process makes it difficult to predict a firm project schedule, Black&Veatch will endeavor to complete the IRP analysis in the 4 months desired by the City of Vernon. However,typical IRP engagements take 6 to 12 months, and the Black& Veatch team feels that a more comprehensive work product will be possible if the project timeline is extended into this window. A summary of the labor projected to be needed by task is outlined below: I : PROJECTED 1 (Load) 82 2 (System Description) 70 3 (Distribution Review) 110 4(RPS Compliance) 80 5 (Scenarios) 50 6(Modeling) 220 Project Management and Meetings 56 The Black&Veatch team is ready to begin this project as soon as requested by the City and once the contract is in place. Once the project begins,we understand that it is important for the communication and work flow process to be efficient. Under the proposed staffing arrangement,the project manager will be responsible for responding to any requests for support and will work with the City Project Manager to schedule the kickoff meeting and discussion throughout the course of the project. Prior to the start of the work, a kickoff meeting will be held as defined in Task 0. Following that meeting, regular check-in calls will be scheduled with the City's team as desired. As outlined in the scope, each task will be performed collaboratively with the City staff,with review and confirmation before Task completion. It is understood that, upon notification of your award of the project to Black&Veatch,both parties agree to use reasonable diligence,to negotiate a mutually acceptable definitive written contract with respect to the work described in this proposal. Based on our experience we are reasonably confident that the contract terms can be negotiated quickly and without any effect on the project schedule. However, until we receive a fully executed, mutually acceptable definitive written contract, Black&Veatch will not perform any work on behalf of the City of Vernon related to the scope of work proposed herein. i I 9 BV.COM BLACK&VEATCH WORK PLAN AND PROJECTSCHEDULE 20 I „I z CITY OF VERNON I INTEGRATED RESOURCE PLAN City Furnished Documentation As outlined in the proposed work scope,the following types of documents will be requested from f the City.This could change based on discussions with City staff. I • All existing bilateral contracts,including duration and$/MWh • All existing renewable PPA's • Customers count by rate class • Load profile • Generation unit data,including: • Equipment description and ratings • Operating data (Operating hours, fuel usage and consumption,heat rate, forced and scheduled outages) • Maintenance history (Inspection reports,previous overhauls, equipment replacement) • Historical maintenance costs • Maintenance and capital budgets • Fuel quality I f Emissions reports • Environmental permits Staffing • DER growth projections and current DER programs • System-level peak data for last 3-5 years • Gas and Electric price forecasts, if developed • Current RA compliance information and forecasts for future needs • T&D system data, including available transmission,wheeling charges,transmission access charges • Any past IRP data and reports that City staff would like Black&Veatch to review • Distribution analysis and ETAP data files BV.COM BLACK&VEATCH I CITY FURNISHED DOCUMENTATION 21 CITY OF VERNON I INTEGRATED RESOURCE PLAN Appendix A Company Overview Black&Veatch Holding Company(www.bv.com) is an employee-owned,global company that delivers sustainable infrastructure solutions across the Power, Oil&Gas,Water, Telecommunications and Federal markets. Since 1915,we help clients improve the lives of people in communities worldwide through consulting, engineering, construction, operations and program management services. Our revenues in 2016 were U.S. $3 billion. We work side-by-side with leaders THE RESULT IS A ENR at municipal water,wastewater, POSITION OF stormwater and combined utilities INDUSTRY LEADERSHIP Engineering News-Record to develop sustainable solutions to complex challenges associated 1 j Top20 in Telecommunications 10k Top 30 in Co-Generation with aging infrastructure,water 1_.. Top in Fossil Fuel ueducts 12 ._ Top 15 iWater Treatment,Desallnatlo^Plants._ g g2 To 20-in Transmssion Lines andA 11 To 200 Environmental- • _ Firms r 1 Top'10 in Towers end Antennae q 10 To 20 m i, resources and environmental Dams and Reservoirs -- — regulations. Our experience and 3 Tnp20 inN dear Plants 12 Tap mzs Govemmen 9ffices -- - - - - 4 Top 20 in Power 13 I Top100 Construction Management-For-Fee Firms expertise is demonstrated by our 4 Top5 Green Design Firms to Go ernment Offices 13 Top 50 Designersin Int ern atonal Markets _. .__ 4 To 25 in Transmission and Distribution Plants 14 I Top25 in Refineries and Petrochemical Plants I continuous Top 10 ranking as a 4 p _. _ _I p _ _ 5 44 Top20 in Water Supply 15 Tup500 Design Firms F design company for Water Supply, 6 TOP-10 mHydroplanes Water Transmission, Sanitary and 6 I Top25 in Sanitary and Storm Sewers 7 Top 100 Design guild Firms Storm Sewers,Wastewater 7 Top25 in WastewaterTreatmentPlaMs Treatment Plants and Water g Top20 in Sewerage and Solid Waste Treatment and Desalination Plants,among other areas. Black & Veatch Management Consulting Black&Veatch Management Consulting brings together more than 200 professionals, including experienced industry executives,senior analysts and technology experts from across the electric,water, oil,natural gas and technology industries. This experience, combined with seamless access to the company's professional engineering,procurement, construction and operations capabilities, experienced senior executives, economists, senior policy experts and regulatory officials, engineers and internationally respected subject- matter experts, makes Black&Veatch particularly qualified to assist clients with their most complex challenges. Black&Veatch's diverse consulting service offerings span financial, process, and ' technology solutions, and many of our experienced professionals possess cross functional skills including asset management, cost of service/rate design,business process/workflow analysis,and implementation services. I Our Management Consulting team is able to draw vast electrical industry technical experience and skills from Black&Veatch's engineering division and effectively integrates this knowledge transfer into our resource planning engagements. Our knowledge of electrical system operations and power plant operations is unparalleled among our competitors and provides a demonstrable advantage in our ability to capture and evaluate the technical aspects of resource planning that informs economic analysis and decision making. i i BV.COM BLACK&VEATCH I APPENDIX A COMPANY OVERVIEW 22 1 i CITY OF VERNON I INTEGRATED RESOURCE PLAN Appendix B References All references and work product examples below are for IRP work performed for SCPPA members. Los Angeles Department of Water and Power (LADWP) Michael Webster Former Director at LADWP,now General Manager,Southern California Public Power Authority 1160 Nicole Court y Glendora,CA 91740 626-793-9364 mwebsteL2sSp a.org Azusa Light&Water Yarek Lehr,P.E. : Assistant Director of Resource Management 729 N.Azusa Ave. Azusa,CA 91702 626-812-5214 ylehrOdazusa_ca.us { Pasadena Water and Power I Steve Endo Manager of Resource Planning 150 S.Los Robles,Suite 200 Pasadena,CA 91101 626-744-7599 I sendo@citvof-oasadena.net An example of a similar work product to what is requested by the City of Vernon is the IRP performed for Azusa Light and Water in 2015.A public version of this report is available here: 1 http:llazusa.granicus.com/MetaViewer.12hp?view id=5&clip id=813&meta id=61367 I i s : 4 i 4 a s BV.COM BLACK&VEATCH APPENDIX B REFERENCES 23 `r CITY OF VERNON I INTEGRATED RESOURCE PLAN Appendix C Resumes I I i BV.COM BLACK&VEATCH I APPENDIX C RESUMES 24 CITY OF VERNON I INTEGRATED RESOURCE PLAN Julie D Way, P.E., MBA Julie Way is a principal consultant and project manager responsible for PROJECT MANAGER leading diligence efforts to support project financing and acquisitions. During her 30 years in the energy sector,she has held technical and Expertise: leadership roles in project development,project/portfolio optimization Decision & Risk Analysis; Due and value enhancement for combined cycle and cogeneration,solid fuel Diligence; Performance plants,and solar and wind technologies and also has diverse project Optimization; Project experience in activities ranging from development and design to Development; Risk operation.Specific areas of experience include creating direction and Management; Strategic establishing strategies to guide successful project development,which Planning;Value u encompasses economic analysis,market forecasting,transmission and Enhancement � environmental planning,and construction and operational strategies. I Earlier in her career,Ms.Way worked in Black&Veatch's Energy Masters,Business Administration, business,participating in performance optimization studies for thermal University of Kansas,1995, United States I and cogeneration facilities,and managing gas turbine procurement Bachelor of Science,Mechanical activities for oil company clients.After obtaining an MBA,she pursued Engineering,Kansas State various roles to broaden her commercial skills,and has used a solid University,1984,United States foundation of technical knowledge to identify creative strategies to Professional Registration enhance value in a variety of project development and sales License,Professional Engineer, opportunities. Mechanical,11481,Kansas, United States,1989 Key recent assignments have included: Total Years of Experience I 27 3 o Project Manager for portfolio due diligence fora 2000 megawatt Black&Veatch Years of (MW)portfolio of operating coal and natural-gas fired assets in Arizona. Experience 11 I o Project Manager for technical due diligence of a 600 MW existing coal fired unit and 150 MW expansion in northern Chile. t o Project Manager for portfolio diligence of a 2500 MW portfolio of steam units and peaking units in California. g o Project Manager for project financing/construction monitoring for four solar photovoltaic projects in Ontario,Canada. g o Project Manager for project financing/construction monitoring for a combined 25 MW alternating current solar photovoltaic project in Guam. i o Technical Lead for a Mechanical Life Assessment project for a portfolio of a coal fired unit,three small steam units,and three peaking facilities in Nebraska. PROJECT EXPERIENCE ' Development Services; United States; 2012-2013 Principal-JE3 Energy.As Principal Consultant,Ms.Way providing development services for solar photovoltaic projects in Missouri and Kansas including identification of siting options,researching r transmission interconnection policies,obtaining equipment and y y BV.COM BLACK&VEATCH APPENDIX C RESUMES 25 3 i I 3 CITY OF VERNON I INTEGRATED RESOURCE PLAN performance quotes,and preparing project proformas for responses to requests for proposals.Ms.Way also provided technical analyses and provided strategic input for a California Energy Commission permit amendment process for 2-250 MW solar tower projects in California. Portfolio Management; Overland Park, Kansas, United States; 2011-2012 Vice President-Tyr Energy,Inc.As Vice President of Portfolio Management,Ms.Way managed a diverse portfolio of operating assets consisting of peaking units in the California Independent System Operator and PJM deregulated market areas,combined-cycle units in PJM,Southwest Power Pool and Midwest Independent System Operator,and wind and biomass projects in development and r operations.Ms.Way's responsibilities also included identifying value I enhancement opportunities,managing sale responsibilities for two portfolio assets,performing due diligence for potential project acquisitions,and managing partnership relations. E Company Development; Santa Monica, California, United States; 2008-2010 Director-SolarReserve,LLC.As Director of Development,Ms.Way g played a key role in managing and progressing development activities for a solar startup company founded to promote the use of a proprietary concentrated solar technology with molten salt thermal ¢ storage.Ms.Way managed preparation of responses to competitive I bid solicitations in California,Nevada and Arizona,managed feasibility studies for project siting,prepared environmental permit documents, and engaged in strategic positioning analyses for project development and technology marketing. Her duties also included leading power purchase agreement negotiations,obtaining water rights,and initiating transmission planning and interconnection studies. Project Development; Long Beach, California, United States; 2004- 2008 Project Director-The AES Corporation.As project director,Ms. Way directed all development activities for a$225 million, 300 MW gas turbine peaking project in Southern California. In this capacity, she managed a small team of consultants conducting environmental and air quality permitting efforts,and natural gas supply routing studies.She led negotiations for interconnection and land exchange agreements,handled public relations strategies and worked with local officials to identify beneficial strategies for water/wastewater alternatives.Her duties also included site management activities for a mothballed steam plant including managing a Resource Conservation and Recovery Act environmental cleanup process for the site.She also participated in regulatory proceedings,influencing positive change in proposed air district rules and prepared a successful sales strategy for the project,which resulted in a multimillion net capital gain for company. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 26 CITY OF VERNON I INTEGRATED RESOURCE PLAN Scott J. Olson Scott Olson is a Principal Consultant in Black&Veatch's Management RENEWABLES LEAD Consulting practice based in San Francisco,California.He has been engaged in all facets of the energy industry during his 19 years of Expertise: I private,public,academic,and consulting experience.Scott's current Bid Evaluations; Biofuels; focus is on renewable energy integration studies,integrated resource Biogas; Biomass; Due planning assessments,and distributed resource impact evaluation. Diligence Assessments; Examples of recent project engagements include assessment of solar Financial Analysis; Renewable and wind integration costs,renewable energy RFP development and Energy; Solar Photovoltaic; bid reviews,modeling impacts of 50 percent renewable power in Strategic Planning California,and independent engineering reviews of emerging Education _r, � technologies. Masters,Public Policy,Energy and Environment,University of PROJECT EXPERIENCE California,2003,United States Bachelors,Chemical Engineering, CleanPowerSF; Integrated Resource Plan; California, United Chemical Engineering,University States; 2017-In-Progress of Minnesota,1996,United Project Manager-Black&Veatch.Developed a novel approach to states the development of an IRP for California's Community Choice Total Years of Experience 20 Aggregators,and applied it for CleanPowerSF Black&Veatch Years of Silicon Valley Power; Integrated Resource Plan; California, United Experience 9 States; 2017-In-Progress Language Capabilities Project Manager-Black&Veatch.Led the 2017 IRP for Silicon English Valley Power Spanish San Francisco Public Utilities Commission (SFPUC); Integrated Resource Plan; San Francisco, California, United States; 2016-In- Progress Project Manager-Black&Veatch.Performed a complete IRP for the SFPUC,including work on cost allocation for major assets,scenario development,policy obligations,distributed generation,and production cost modeling.Developed and presented briefings to SFPUC management. Roseville Electric; Integrated Resource Plan; Roseville, California, United States; 2016-In-Progress Technical Advisor-Black&Veatch.Reviewed scenarios and key results for IRP work performed for Roseville Electric as part of SB 350 compliance obligations.Provided input on renewable energy assumptions and policy requirements. USAID Jordan; Energy Storage Needs Assessment; Amman, Jordan; 2016 Technical Advisor-Black&Veatch.Supported efforts in Jordan to integrate new wind and solar resources into the Jordanian electric sector.Reviewed past analysis and developed an action plan to evaluate the best approaches for wind and solar integration,including BV.COM BLACK&VEATCH I APPENDIX C RESUMES 27 CITY OF VERNON I INTEGRATED RESOURCE PLAN energy storage. Gave presentations to senior Jordanian officials, transmission and distribution companies,and international aid agencies. California Energy Commission;Transportation Sector PATHWAYS Modeling; San Francisco, California, United States; 2016 Project Manager-Black&Veatch.As a subcontractor to E3, a° provided technical input to the PATHWAYS model for performance and cost assumptions for transportation fuels and usage.Reviewed results modeling GHG reduction targets through 2050. California Public Utilities Commission; Renewable Energy Transmission Initiative (RETI) 2.0; San Francisco, California, United States; 2016 Project Manager-Black&Veatch.Provided technical,modeling, and GIS support for the RETI 2.0 process,centered around locational viability for renewable energy projects and transmission availability. i Southern California Gas;Anaerobic Digestion and Gasification to RNG; Los Angeles, California, United States; 2015-2016 Project Manager-Black&Veatch.Provided technology information, cost detail,economic analysis,and R&D impact projections for the production of Renewable Natural Gas (RNG) from anaerobic digestion and woody biomass gasification. Black Hills Colorado Electric; Solar and Wind Integration Study f and Capacity Impacts; Pueblo,Colorado, United States; 2015 Project Manager-Black&Veatch.Developed a comprehensive scope assessing the costs of integrating future solar and wind projects in the Black Hills Colorado Electric system,along with an estimate of v the Effective Load Carrying Capacity(ELCC) of each. r Sacramento Municipal Utility District; Integrated Distributed I Energy Resource Analysis; Sacramento, California, United States; 2015 Project Manager-Black&Veatch.Lead a team performing an integrated assessment of the potential and impacts of distributed energy technologies (solar PV,energy efficiency,demand response, r electric vehicles,combined heat and power,and energy storage) for long term planning purposes.Evaluated both bulk and distribution system impacts through detailed modeling and cost analysis. California Public Utilities Commission; RPS and DG Planning; San a Francisco, California, United States; 2014-2015 Project Manager-Black&Veatch.Project manager on a team supporting the CPUC with major renewable and distributed energy `j planning analysis.Work includes RPS Calculator updates and stakeholder comment reviews,policy impact analysis for meeting 50 percent renewables,and transmission cost updates. a a BV.COM BLACK&VEATCH APPENDIX C RESUMES 28 1 i CITY OF VERNON I INTEGRATED RESOURCE PLAN San Francisco Public Utilities Commission; Rooftop PV Potential and Incentive Evaluation; San Francisco, California, United States; 2014-2015 Project Manager-Black&Veatch.Analyzed the potential for rooftop PV deployment throughout San Francisco and what adjustments to the incentive program (GoSolarSF) may be warranted given the recent changes in PV pricing and performance. Presented to J key stakeholders working to achieve city wide solar goals. Western Interstate Energy Board; Western Utility Integration Survey; California, United States; 2014-2015 Project Manager-Black&Veatch.Performed an assessment of the wind and solar integration cost approach between 19 different Western utilities. Identified differences in approaches and provided recommendations for common approaches that should be used in future analysis. i Southern California Gas; Biogas to Pipeline Quality Technology Assessment; California, United States; 2014-2015 I; Project Manager-Black&Veatch.Evaluated a broad range of technologies available for cleaning gas to pipeline quality,and made recommendations based on size and gas compositions likely to be encountered in the service territory of Southern California Gas.Based on recommendations,performed conceptual design of gas cleaning facilities,with detail on capital and operating costs California Public Utilities Commission; RPS and DG Planning; I California, United States; 2014-2015 Project Manager-Black&Veatch.Project manager on a team supporting the CPUC with major renewable and distributed energy I planning analysis.Work includes RPS Calculator updates and stakeholder comment reviews,policy impact analysis for meeting SO percent renewables,and transmission cost updates. I I San Francisco Public Utilities Commission (SFPUC); Renewable I Energy Resource Planning; California, United States; 2012-2015 s Project Manager-Black&Veatch.Project Manager on a variety of I tasks assisting the SFPUC with new renewable energy development, I including a resource assessment,solar PV development on local rooftops,and improvements to the GoSolarSF program. Developed financial models and performed policy analysis to help define the I most attractive resources. I I I ti �I BV.COM BLACK&VEATCH APPENDIX C RESUMES 29 I I a CITY OF VERNON I INTEGRATED RESOURCE PLAN Stanford University and UC Davis; Solar PV RFP Development; California, United States; 2012-2014 Assistant Study Manager and RFP Developer-Black&Veatch. Assisted Stanford University and UC Davis in the analysis for potential of solar PV installations on and off campus.Developed technical and financial approach,interviewed stakeholders,and provided recommendations. Columbia Biogas; Food Waste Digester Independent Engineering Review; Oregon, United States; 2011-2014 Senior Consultant Black&Veatch.Performed a review of biogas utilization technology and costs,as well as feedstock assessment for the Black&Veatch team providing an independent engineering I review for project finance. 3 Sacramento Municipal Utility District (SMUD); Biomass Gasification Resource and Technology Assessment; California, United States; 2012-2013 Senior Consultant-Black&Veatch.Provided data for SMUD on the most attractive technologies,locations,and feedstocks that could be utilized for small scale distributed biopower and large scale biomass to natural gas projects. California Public Utilities Commission (CPUC); Bioenergy Feed-In Tariff Resource, Cost, and Implementation Analysis; California, United States; 2012-2013 Senior Consultant/Assistance Project Manager-Black&Veatch. Lead author on a study for the CPUC evaluating the impacts of a bioenergy feed-in tariff(SB 1122) for projects under 3 MW. Evaluated the costs and resource potential for biogas from WWTPs,food waste, and dairy manure digestion in California,along with determining the policy implementation issues that need to be taken into account. Arizona Public Service (APS); Solar Integration Analysis; United States; 2012 Solar Resource Analyst-Black&Veatch.Performed a detailed assessment of the net costs for future integration of solar PV on the system for Arizona Public Service. Developed 10 minute solar resource data using existing utility information and proxy data for inclusion into detailed models that estimate violations of NERC performance requirements. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 30 6 CITY OF VERNON I INTEGRATED RESOURCE PLAN Los Angeles Department of Water and Power(LADWP); Renewable Energy Integration Analysis; California, United States; 2011-2012 Solar and Wind Resource Analyst-Black&Veatch.Developed a novel approach to evaluating future capacity and energy costs for integration of new wind and solar resources on the LADWP system. Developed 10 minute resource data for solar and wind facilities which incorporated the expected level of variation,as well as evaluating sensitivities. Hawaiian Electric Company (HECO); Supply Side IRP Data Development; California, United States; 2011-2012 Assistant Study Manager and Technical Lead-Black&Veatch. s Part of the Black&Veatch team that developed Unit Data Sheets and Unit Information Forms for renewable and fossil technologies in support of HECO IRP-5.Data provided on cost,performance,risk,and grid services. Los Angeles Department of Water and Power; Feed-In Tariff(FIT) j Development; California, United States; 2011 Senior Consultant-Black&Veatch.Provided technical and analytic support for a major California utility's development of a renewable energy FIT to comply with the requirements of SB 32.Assisted in development of the FIT structure,program documents,outreach,and acceptance. California Energy Commission (CEC); Identification of Renewable Energy Cost Challenges; California, United States; 2011 Senior Consultant-Black&Veatch.Reviewed and provided input to CEC Integrated Energy Policy Report(IEPR)sections on renewable energy cost challenges. Gathered expert opinions and proposed a range of actions over different timescales. Irvine Ranch Water District; Feedstock Review and Biogas Use Assessment; California, United States; 2010-2011 Technical Review and Financial Analyst-Black&Veatch. Provided pro forma analysis of the cost/benefit to incorporate the use of food waste and FOG as a codigestion substrate at the Michelson Water Recycling Plant.Also provided technical input,financial analysis,and presentations to board members and senior staff for biogas use options. BC Hydro; State RPS Projections and REC Price Forecasts; United States; 2010-2011 Senior Consultant-Black&Veatch.Developed a comprehensive US federal and state renewable energy policy overview in support of BC Hydro's Integrated Resource Plan(IRP).Reviewed methodology and results developed for forecasting the future value of Renewable Energy Credits (RECs). BV.COM BLACK&VEATCH APPENDIX C RESUMES 31 CITY OF VERNON I INTEGRATED RESOURCE PLAN Los Angeles Bureau of Sanitation (BOS); Hyperion Request for Proposal (RFP) Development; Hyperion Wastewater Treatment Plant; California, United States; 2010-2011 Senior Consultant-Black&Veatch.Served as part of the Black& Veatch team assisting the BOS in the development of a new RFP for use of digester gas produced at the plant.Served as the lead in developing the evaluation criteria and performing the bid reviews. Confidential Client; Clean Energy Systems (CES)Technical and Economic Due Diligence; California, United States; 2009-2011 Senior Consultant-Black&Veatch.Served as a study manager and economic analyst for a client considering the application of CES oxygen-fired gas generator technology in California.Determined the technical and business capability of CES to meet claims,along with the I potential economic benefits of future applications. rt Sacramento Municipal Utility District (SMUD); Western US Biogas Market Survey; California, United States; 2010 Assistant Project Manager-Black&Veatch.Performing an evaluation of the biogas supply potential from wastewater treatment plants,landfills,and animal manure digesters to pipeline quality I' natural gas in 12 Western states.Also performed a policy review of issues pertinent to biogas cleaning and transport,as well as a r recommendation of ownership options. NV Energy; Renewable Support Projects; Nevada, United States; 2010 Assistant Project Manager-Black&Veatch. Performed various renewable energy support tasks for NV Energy,including solar glare studies,development and evaluation of the 2010 Renewable Energy Credit RFP,and support with Public Utilities Commission of Nevada (PUCN) filings. Y Scottish Enterprise; Carbon Capture Technology Assessment; Global; 2010 Senior Consultant-Black&Veatch.Performed a detailed review of € existing carbon capture technologies,along with projections for future improvements and identification of major emerging technology types. Was a lead researcher in technology investigations and projections of future project improvements. GreenHunter; Woody Biomass Power Plant Independent Engineering; California, United States; 2010 Senior Consultant-Black&Veatch.Provided an independent review of technical documents for the repowering of a biomass power plant in the Imperial Valley of California. Performed reviews and validation of the feedstock plan. I BV.COM BLACK&VEATCH APPENDIX C RESUMES 32 CITY OF VERNON I INTEGRATED RESOURCE PLAN Los Angeles Department of Water and Power (LADWP); Integrated Resource Plan; California, United States; 2009-2010 Senior Consultant-Black&Veatch.Part of the Black&Veatch team assisting LADWP with system planning through 2010.Main tasks included renewable resource assessments,policy reviews, environmental impact analysis,and report writing. NV Energy; Duke Ohio; SMUD; Renewable Energy Bid Reviews; United States; 2008-2010 Senior Consultant-Black&Veatch.Part of a large company team evaluating bids to utility renewable procurement requests.Project lead and client management since late 2009.Focused on financial assessment,biomass and anaerobic digestion bids,with secondary support on geothermal,solar,and wind. Sacramento Municipal Utilities District; California Biogas Market Assessment; California, United States; 2009 Senior Consultant-Black&Veatch.Served as the task manager investigating the gross,technical,and economic potential of biogas from wastewater treatment plants,landfills,and manure digesters for cleaning to pipeline quality.Determined the economics of all candidate sites. Confidential Client; Wind Energy Policy and Market Analysis; United States; 2009 Senior Consultant-Black&Veatch.Performed policy and economic analysis for how future US regulatory actions may impact the use of wind energy in the United States.Evaluated the overall renewable energy potential of the country and mapped expected development plans. Made recommendations for the types of policies that may be necessary to meet defined wind penetration targets. Confidential Client; Landfill Gas to Pipeline Quality Methane Due Diligence; United States; 2009 Senior Consultant- Black&Veatch.Reviewed technical documents and performed a site visit at a landfill gas cleaning project for a financial client.Provided expert opinion on design and performance issues. Community Foundation for the Alleghenies; Pennsylvania RPS Acceleration Analysis; Pennsylvania, United States; 2009 Assistant Manager-Black&Veatch.Performed a study to determine the lowest cost renewable resources that could be used to meet 20 percent renewable energy in Pennsylvania by 2020. Developed supply curves for bioenergy,coal mine methane,and coal with carbon capture,as well as providing overall methodology input and analysis of job and economic impacts. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 33 CITY OF VERNON I INTEGRATED RESOURCE PLAN Sempra; 91st Avenue (Phoenix)Wastewater Treatment Plant Biogas Utilization; United States; 2009 Senior Consultant-Black&Veatch.Part of the Black&Veatch and Sempra team that was awarded the rights to utilize the biogas produced at the 91st Avenue wastewater Treatment Plant.Performed technical and economic analysis of the gas utilization options,and prepared presentation materials. Hawaiian Electric Light Company; Future Big Island Renewable I� RFP Strategy; Hawaii, United States; 2009 Senior Consultant-Black&Veatch.Developed a strategy roadmap for tasks to be performed to increase penetration of renewable energy on the Big Island of Hawaii.Provided input regarding when future RFPs should be released for additional renewables and how the RFP f should be structured. UK Carbon Trust; Biomass Pyrolysis Proposal Review; United I Kingdom; 2008 Senior Consultant-Black&Veatch.Served as the lead project analyst for review of the proposals submitted to the UK Carbon Trust for research funding to commercialize biomass pyrolysis technology for the production of transportation fuels. Focused on technical risk, financial performance,and performance relative to existing pyrolysis and second generation biofuels. { Confidential Client; Western US Digester Gas Utilization Options; United States; 2008 Senior Consultant-Black&Veatch.Served as an economic and site analyst helping a confidential client determine the potential to better utilize digester gas in the western United States.Evaluated onsite and digester gas cleaning options. SMUD; Renewable Resource Planning and Policy Analysis; California, United States; 2008 Senior Consultant-Black&Veatch.Assisted in development of renewable energy options available to meet targets for the SMUD. Lead analyst in estimating the impact that California Proposition 7 (50 percent renewable energy)would have on SMUD and what renewable resources would be most economic. Department of Energy(DOE) and Lawrence Berkeley Laboratory; Western Renewable Energy Zones (WREZ); California, United States; 2008 Senior Consultant-Black&Veatch.Helped perform a major Black& Veatch initiative for the DOE and Lawrence Berkeley Laboratory evaluating the renewable energy potential of the western United States.Performed research on biomass power potential and costs. BV.COM BLACK&VEATCH APPENDIX C RESUMES 34 CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client; Digester Gas Cleaning to Pipeline Quality; California, United States; 2008 Assistant Study Manager-Black&Veatch.Evaluated anaerobic digestion design and gas cleaning for pipeline injection in California and the Southwestern United States.Performed technology and cost analysis for gas cleaning options.Project also included evaluation of biomass gasification technologies for the production of power and SNG. Confidential Client; Biomass Technical and Economic Due r; Diligence; California, United States; 2008 Study Manager-Black&Veatch.Performed a technical and I' economic assessment of biomass combustion steam generation technology for Enhanced Oil Recovery in California.Deliverables included assessment of biomass resource assessment,combustion E technology assessment,review of capital cost estimate,and economic I analysis of proposed project,included several sensitivity cases. i f California Public Utilities Commission (CPUC)/CEC Renewable Energy Transmission Initiative (RETI); California, United States; f 2008 Senior Consultant-Black&Veatch.Helped perform a major Black& } Veatch initiative for the CEC and CPUC focusing on identifying ! Competitive Renewable Energy Zones to meet the state's renewable generation goals.The focus was on biomass resources and the cost of emissions reduction credits in California for estimating appropriate biomass project locations and energy costs. I DOE Regional Carbon Sequestration Partnerships; California, United States; 2006-2008 Senior Consultant-Nexant.Part of the Nexant team that worked with both the West Coast Regional Carbon Sequestration Partnership (WESTCARB)and the Plains Carbon Dioxide (CO2) Reduction Partnership (PCOR) as part of the DOE Regional Carbon Sequestration Partnerships.Presentations made at the Capture Working Group and assistance as Nexant's liaison to WESTCARB. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 35 CITY OF VERNON I INTEGRATED RESOURCE PLAN Nexant; California, United States; 2003-2008 Senior Consultant-Nexant.Project experience in gasification technology,coal and gas-to-liquids scoping, carbon capture and sequestration,and biomass to energy.Specific projects included the following: • Project management and technical analysis of biomass to fuels technologies for the DOE. Financial modeling and policy analysis of coal gasification and advanced energy systems for the National Energy Technology Laboratory. • Due diligence assessments for first and second generation biofuel production,as well as conversion of coal to liquid transportation fuels. I COz Capture,Transport, and Sequestration Multiclient Report; California, United States; 2007 Senior Consultant-Nexant.Lead author on a major multiclient report on carbon capture including technology assessments,industry analysis,and policy measures currently in place.Covered pre and post combustion capture options as well as oxy combustion technology in both high level technical and economic assessments. Japan Oil, Gas and Metals National Corporation (JOGMEC); Carbon Capture and Storage Options for the Oil and Gas Industry; California, United States; 2006-2007 Consultant-Nexant.Lead analyst and report writer in the assessment of carbon mitigation options in the oil and gas industry for the Japanese government.Presentation and analysis on major case studies. DOE; Carbon Capture at Coal-to-Liquids Facilities; California, United States; 2006-2007 Consultant-Nexant.Cost estimation and policy analysis of coal gasification with carbon dioxide sequestration facilities for the DOE. Provided financial analysis of the break-even price of carbon to drive carbon capture and storage into the plant design. PRESENTATIONS&PUBLICATIONS ."Review of Western US Variable Energy Resource Integration Charges."Intersolar North America 2015.September 2015 ."Western US Variable Energy Resource Integration Charges."Utility Variable Integration Group 2015 Annual Meeting.April 2015 ."Update on California's Bioenergy Feed-In Tariff(SB 1122)." Biocycle REFOR West 2014.April 2014 ."Update on California's Bioenergy Feed-In Tariff(SB 1122)." Biocycle REFOR West 2014,San Diego,CA.April 2014 BV.COM BLACK&VEATCH APPENDIX C RESUMES 36 CITY OF VERNON I INTEGRATED RESOURCE PLAN r ""Pipeline Biomethane:Worth the Effort?"."San Francisco, California;Anaerobic Digestion Conference and Expo.May 2012 "Biomass Sustainability."Long Beach,California; Renewable Energy World.January 2012 I "Letting the Market Make Your Biogas Utilization Decision: Development and Evaluation of RFPs."Madison,WI; 11th Annual Conference on Renewable Energy from Organic Recycling, Madison, WI.October 2011 Riley,E.."A Study of the Hazardous Glare Potential to Aviators from Utility-Scale Flat-Plate Photovoltaic Systems."ISRN Renewable Energy,vol. 2011,Article ID 651857.January 2011 E. Riley."A Study of the Hazardous Glare Potential to Aviators from Utility-Scale Flat-Plate Photovoltaic Systems." ISRN Renewable Energy,Vol. 2011,Article ID 651857.January 2011 Olson,Scott J."Biogas Cleaning to Pipeline Quality: Opportunities, Pitfalls,and Case Studies."Des Moines,Iowa; 10th Annual Conference on Renewable Energy from Organic Recycling. October 2010 Olson,Scott J."Biogas Cleaning to Pipeline Quality: Opportunities, Pitfalls,and Case Studies."Minneapolis,Minnesota; International Biomass Conference and Expo.May 2010 Olson,Scott J.and R.O'Connell."US Policy Roadmap to 20 Percent Wind."Austin,Texas; Renewable Energy World.February 2010 Olson,Scott J."Anatomy of a Biomass Resource Assessment: Findings from the RETI and WREZ Projects."Sacramento,California; Pacific West Biomass Conference.January 2010 Olson,Scott J."Foreseen: 80 Percent of RPS by 2030, 12 Percent of Generation."Wiley's Natural Gas and Electricity,Volume 26,No.4. November 2009 Olson,Scott J."Anaerobic Digester Gas Cleaning to Pipeline Quality: Technology Options and Economic Decision Points."Portland, Oregon; International Biomass Conference and Expo.April 2009 I Olson,Scott J."REC Pricing Differences in State RPS Programs: I Lessons and Implications for a Federal RPS."Las Vegas,Nevada; I Renewable Energy World.March 2009 Olson,S.and A.Forte."Carbon Capture and Storage:Will It Ever Be Ready for Prime Time?."Baltimore,Maryland; Electric Power Conference. May 2008 Olson,Scott J. (Session Co-Chair)."Carbon Capture Status and s Outlook."Washington,DC; Infocast. December 2007 i BV.COM BLACK&VEATCH APPENDIX C RESUMES 37 i 'u CITY OF VERNON I INTEGRATED RESOURCE PLAN Olson,Scott J.and M.Reed."Impacts of Future US GHG Regulatory Policies on Large-Scale Coal to Liquids Plants."Pittsburgh, Pennsylvania; Sixth Annual Conference on Carbon Capture and Sequestration.May 2007 i I I F 3� {S i f] BV.COM BLACK&VEATCH I APPENDIX C RESUMES 38 CITY OF VERNON I INTEGRATED RESOURCE PLAN Charith Tammineedi Charith Tammineedi is a Renewable Energy Consultant with Black& ENGINEER Veatch.He leads the solar performance services that include performance assessment of operational solar PV projects,production Expertise: estimation and performance testing of solar PV projects.He has Solar Projects provided solar performance modeling services for over 2 GW of solar Educationm PV projects. Master of Science,Engineering, Energy,Pennsylvania State He is also responsible for developing several internal tools and University,2011,United States processes used to model and analyze solar project performance.Prior Bachelor of Technology, 4 to joining Black&Veatch,Charith was a Performance Analyst at First Mechanical Engineering, Solar where his role was to analyze the project performance of a Computational Fluid Dynamics, 2007, portfolio of First Solar projects. Prior to that he was with Solaria vla university, xper India I 9otl Years of Experience Corporation where he had extensive experience with programming and f assembling Data Acquisition Systems (DAS),Tracker System Black&Veatch Years of Commissioning and Performance Modeling. Experience i a I I PROJECT EXPERIENCE Language Capabilities English Solar Developer; Independent Engineering Services for 100 MWac Hindi solar project in Idaho; Idaho, United States; 2016-In-Progress Telugu Solar Performance Specialist-Black&Veatch.Part of the technical Office Location due diligence team.Oversaw production modeling work for the San Francisco,California,USA: United States project. I Confidential Client; Performance Assessment of Concentrated Photovoltaic System; Colorado, United States; 2015-In-Progress Independent Engineer-Black&Veatch.Supported the client with Performance gap analysis of a large scale CPV system I New York Power Authority; Solar Market Acceleration Program Technical Support; New York, United States; 2014-In-Progress Consultant-Black&Veatch.Supported the process development for the roof top PV potential assessment of hundreds of schools across New York. Generated the PV Potential reports for individual schools. First Solar; Independent Assessment of PlantPredict simulation platform;Arizona, United States; 2016-2017 Study lead-Black&Veatch.Lead the study that involved evaluating a new solar modeling platform developed by First Solar. s i i BV.COM BLACK&VEATCH APPENDIX C RESUMES 39 a !a i CITY OF VERNON I INTEGRATED RESOURCE PLAN Elsinore Valley Municipal Water District; Renewable Energy Development and Implementation Plan; Lake Elsinore, California, United States; 2016 Solar PV potential assessment and technical modeling-Black& Veatch.Estimated the potential for solar PV on various rooftops, I parking structures and land area owned by the water district. Performed technical modeling to estimate the overall production from the selected sites. Confidential Client; Solar PV Due Diligence for a 150 MW project in Texas; Texas, United States; 2015 Independent Engineer(IE) -Black&Veatch.Performed due diligence on PV projects including Production Estimate generation, design reviews,equipment reviews and contract reviews Confidential Client; Solar PV Due Diligence for a 100 MW project in Texas; Texas, United States; 2015 Independent Engineer(IE) -Black&Veatch.Performed due diligence on PV projects including Production Estimate generation, design reviews,equipment reviews and contract reviews Confidential Client; Preliminary Production Estimates for 10 prospective project locations in Texas;Texas, United States; 2015 Owners Engineer-Black&Veatch.Generated preliminary productions estimates for several locations in North and South Texas Cogentrix Energy Power Management; Independent Performance Assessment of 30 MW CPV project in Alamosa, Colorado; Colorado, United States; 2015 Independent Engineer(IE) -Black&Veatch.Conducted the performance assessment of the CPV project by comparing the actual plant production to forecasted production.Conducted root cause analysis for gaps in production Dominion Generation; Adams East, Kent South, Kansas and Old River One; California, United States; 2015 Performance Test Reviews-Black&Veatch.Review of Performance Test Procedures and Test calculations Confidential Client; Independent Performance Assessment of 20 MW PV project in Sacramento, CA; California, United States; 2015 Independent Engineer(IE) -Black&Veatch.Conducted the performance assessment of the PV project by comparing the actual plant production to forecasted production.Conducted root cause analysis for gaps in production BV.COM BLACK&VEATCH I APPENDIX C RESUMES 40 CITY Of VERNON I INTEGRATED RESOURCE PLAN LADWP; Energy Storage Cost Effectiveness &Viability; California, United States; 2014-2015 Energy Storage Sizing calculations-Black&Veatch.Performed Ramp Rate control and Frequency Regulation simulations on various battery sizes to determine the Depth of Discharge profiles Confidential Client; PV Performance Modeling for a Portfolio of 46 projects in CA and NY.; United States; 2014 Independent Engineer(IE) -Black&Veatch.Coordinated the generation of PSO Production Estimates for a portfolio of several commercial scale projects. I a Confidential Client; Solar PV Technical Due Diligence; North I Carolina, United States; 2014 Independent Engineer(IE) -Black&Veatch.Performed due diligence on PV projects including power plant modeling,design i reviews,equipment reviews and contract reviews for multiple portfolios in North Carolina. ABW 50 MW; Ontario, Canada; 2012-2013 Project Performance Analysis-First Solar.Conduct daily,weekly and monthly data analytical tests to evaluate key performance metrics Report plant performance metrics to internal and external stake holders Perform root cause analyses for performance gaps and shortfalls Roadrunner 20 MW; New Mexico, United States; 2012-2013 Project Performance Analysis-First Solar.Conduct daily,weekly and monthly data analytical tests to evaluate key performance metrics Report plant performance metrics to internal and external stake holders Perform root cause analyses for performance gaps and shortfalls Topaz 550 MW; California, United States; 2012-2013 Project Performance Analysis-First Solar.Conduct daily,weekly and monthly data analytical tests to evaluate key performance metrics Report plant performance metrics to internal and external stake holders Perform root cause analyses for performance gaps and shortfalls White Sands Solar Project; New Mexico, United States; 2011-2012 Tracker Commissioning lead-Solaria Corporation.Train and coordinate a team of subcontractors with Azimuth axis tracker commissioning PRESENTATIONS&PUBLICATIONS Yosoon Choi,Jeffrey Rayl."PV Analyst: coupling ArcGIS with TRNSYS to assess distributed photovoltaic potential in urban areas."Solar Energy.January 2011 BV.COM BLACK&VEATCH APPENDIX C RESUMES 41 CITY OF VERNON I INTEGRATED RESOURCE PLAN Jeffrey Brownson and Kevin L."Modeling Improved behavior of stand-alone PV system using Battery-Ultracapacito r hybrid system." Proceedings of American Solar Energy Society Conference;American Solar Energy Society Conference.January 2010 u I Y t 4 (3 1 f BV.COM BLACK&VEATCH APPENDIX C RESUMES 42 CITY OF VERNON I INTEGRATED RESOURCE PLAN Steven C. Block Steven C.Block specializes in wind energy development and owner's WIND SME engineering support within Black&Veatch's power business.He is ------ active in wind energy project siting,development,Request for Proposal Expertise: (RFP) development for procurement of wind turbines and construction Due Diligence; Independent contractors,bid reviews,and technical due diligence. He has over ten Engineering; Renewables& years'experience with wind resource studies,wind turbine technology Energy Efficiency; Utility assessment,project siting,project feasibility studies,conceptual design, Wind Development Support; integrated resource planning,and graphical presentation of resource Wind Project Siting and analysis throughout the world. He is skilled with numerical and Development;Wind graphical analysis tools,and with geographical information systems Resource Assessment (GIS) tools and analysis. �r.._ � �� ------------ Education Block's recent Independent and Owner's Engineering projects include Bachelors,Mechanical Engineering, project site identification,project development support including Iowa State University,2003, United States turbine siting,conceptual design,review and assessment of wind Professional Registration turbine technologies,large-scale wind energy development potential Certification,Engineer-In-Training, and cost of energy reviews,development of wind turbine technical Iowa,United States,2003 specifications for bid,capital and operating expense assumptions for Total Years of Experience wind energy projects,and review of wind energy project bids for 17 utilities.His Owner's Engineering focus is support for large scale self slack&Veatch Years of build and build-transfer wind projects for the utility sector. Experience 12 Language Capabilities PROJECT EXPERIENCE English PacifiCorp; Wyoming Wind Energy Development Support; Wyoming, United States; 2017-In-Progress Engineering Manager-Black&Veatch.Leading a team providing broad wind project development support for 750 MW of potential wind development at three sites in Wyoming.Scope includes independent wind resource and energy production assessments,wind turbine layout review and development,turbine site suitability review and procurement support,and conceptual substation designs. PacifiCorp; Repowering Study; United States; 2017-In-Progress Engineering Manager-Black&Veatch.Led a team performing a review of partial repowering opportunities at multiple operating wind projects in the western United States.Team reviewed existing turbine foundations,expected project energy production increases,and turbine suitability. Alliant Energy (Iowa Power & Light, Wisconsin Power& Light); Wind Program Management; Iowa, United States; 2016-In- Progress Wind Development Support-Black&Veatch.Provided support for a large wind development program including potential wind generation stations in Iowa and Minnesota. Provided technical review and negotiation support for wind turbine and wind project procurement. Provided technical support for BOP contractor BV.COM BLACK&VEATCH APPENDIX C RESUMES 43 CITY OF VERNON I INTEGRATED RESOURCE PLAN i a i procurement.Provided technical due diligence reviews for third party assets. DTE Energy; Michigan Wind Development Study; Michigan, United States; 2013-In-Progress Wind Project Siting Specialist-Black&Veatch.Led technical portions of a review of wind development potential in the state of Michigan.Included identifying potential development zones based on land use,wind resource,and estimated cost of energy.Work continued to project identification within development zones,and scoring and ranking technical aspects of each project area in collaboration with environmental experts,DTE,and land acquisition personnel. Development work also included preparing draft wind project layouts for three potential projects to support estimates of project size, performance,and permitting difficulty. DTE Energy; Meade Wind Park; Michigan, United States; 2012-In- Progress Wind Project Siting Specialist-Black&Veatch.Developed a project layout for a 100 MW wind project in Michigan.Reviewed layouts in light of wind resource,environmental and permitting restrictions,and landowner preferences.Performed detailed in-field project micrositing of project layouts,and participated in ongoing project development activities.Managed project layout revisions and supported permitting activities. PacifiCorp; Montana Wind Project Review; Montana, United States; 2017 Engineering Manager-Black&Veatch.Led a technical review for potential wind project acquisition.Scope included a review of a third party energy production assessment,layout review and revision,an independent energy production assessment,site constructability review,and balance of plant conceptual design. Sacramento Municipal Utility District (SMUD); Solano Wind Study; California, United States; 2017 Wind Energy Specialist-Black&Veatch.Provided technical guidance,quality review,and cost estimate support for a study of new development and repowering opportunities at the Solano Wind Project. BV.COM BLACK&VEATCH APPENDIX C RESUMES 44 CITY OF VERNON I INTEGRATED RESOURCE PLAN DTE Electric Company; Filion Wind Park; Michigan, United States; 2016-2017 Engineering Manager-Black&Veatch.Leading a small team of wind energy experts and engineers in an Owner's Engineering role to support the technical aspects of wind project development for the Filion Wind Park,including developing setback and siting restrictions, turbine layouts,conceptual design including access roads,collection system,crane walk paths,and substation sizing. Challenges include land constraints,environmental,permitting,and zoning restrictions, and a large project footprint. 4 4 PacifiCorp; 2017 Wind IRP Support; United States; 2016 Wind Technical Lead-Black&Veatch.Led a small team to develop estimated wind project characteristics to support an Integrated Resource Planning analysis for PacifiCorp.Included developing estimated project energy production,capital cost,and operating cost for projects in five states. CITE Electric Company; Pinnebog Wind Park; Elkton, Michigan, United States; 2015-2016 Engineering Manager-Black&Veatch.Managed team of wind energy specialists to develop layout and conceptual project design for a 50 MW wind project in Huron County,Michigan.Project challenges included adding new turbine locations within the footprint of an existing wind project,a highly constrained footprint,and permitting challenges. FloDesign Wind Turbine(Ogin); Wind Turbine Technology Review; Massachusetts, United States; 2013-2016 Wind Turbine Technical Specialist-Black&Veatch.Led technical review of a new wind turbine technology. Review focused on technology viability,expected reliability,performance,and safety. Technology is currently in demonstration/testing phase. California Public Utilities Commission; RPS Calculator Update; California, United States; 2015 Wind Energy Specialist-Black&Veatch.Led development of a nationwide map of estimated wind project capacity factor and levelized cost of energy.Used technology,project cost,and capacity factor data to prepare updated project assumptions for possible future large-scale regional renewable energy and transmission development. Confidential Client; Confidential Project; New Mexico, United States; 2014 Wind Energy Specialist-Black&Veatch.Reviewed turbine technology and turbine storage and maintenance reports in support of project acquisition due diligence.Reviewed construction progress including a site visit,and evaluated the project developer's ability to complete a quality wind project on schedule. BV.COM BLACK&VEATCH APPENDIX C RESUMES 45 CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client; Confidential Project; Nuevo Leon, Mexico; 2013-2014 Wind Turbine Technical Specialist-Black&Veatch.Developed a set of technical specifications to support procurement of wind turbine generators and engineering,procurement,and construction services for a 250+MW project in Mexico.Supported bid process including technical review of bids through contract signing.Provided technical support during contract negotiations with major turbine vendors. Ameren Missouri; Integrated Resource Planning; Missouri, United States; 2013-2014 Wind Energy Specialist-Black&Veatch.Developed a large scale I wind resource,energy production,project cost,and levelized cost of energy GIS model covering the Midcontinent ISO footprint.Using this model,identified focus areas for potential wind development in several states based on predicted cost of energy and proximity to transmission resources,and summarized expected project cost and energy production for input into the utility IRP model. San Francisco PUC; Renewable Resources Study; California, United I States; 2013 Wind Energy Specialist-Black&Veatch.Led review of potential wind energy resources for SFPUC. Specific resources investigated J included repowering opportunities in the Altamont Pass,new development opportunities in the Montezuma Hills,and small scale development on SFPUC owned land.Developed estimates of project cost and performance for each investigated option. California PUC; Renewable Energy Transmission Initiative (RETI) Update; California, United States; 2013 Wind Energy Specialist-Black&Veatch.Updated the 2008 Renewable Energy Transmission Initiative (RETI)study for California. Updated study included technology developments between 2008 and 2013 such as turbines designed for low wind resources.Study also included revised cost estimates based on recent market data. Identified a number of potential wind project development areas, including new areas with viable development opportunities. Confidential Client; Wind Project RFP Development; United States; 2012 Wind Energy Specialist-Black&Veatch.Developed technical specifications for procurement of large wind turbine generators as part of larger engineering procurement,and construction(EPC) RFP specification development.Collaborated on additional general technical specifications for the project. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 46 9 CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client; Wind Project Cost Estimate; United States; 2012 Wind Energy Specialist-Black&Veatch.Worked with a team that developed a baseline cost estimate for a ridgeline wind project in the eastern United States.Cost estimate included wind turbines,roads, collection system,interconnection facilities,and other aspects of a complete wind energy project. s Confidential Client; Confidential Project; Canada; 2012 Technical Due Diligence-Black&Veatch.Reviewed technical aspects of multiple large wind projects across several provinces. Review included wind and operating data,project condition,staffing and operating experience,availability and icing losses,and operating costs.Review also included several site visits. DTE Energy; Wind Project Layout Development and Micrositing; Michigan, United States; 2012 Wind Project Siting Specialist-Black&Veatch.Developed a project layout for a single 110 MW wind project.Reviewed layouts in light of wind resource,environmental and permitting restrictions,and landowner preferences.Performed detailed in-field project micrositing of project layouts,and participated in ongoing project development activities,including layout revisions. Hawaiian Electric Company(HECO); Integrated Resource Planning (IRP) Support; Hawaii, United States; 2012 Wind Energy Specialist-Black&Veatch.Developed set of project data sheets for onshore and offshore wind projects,including estimated performance and cost,to support IRP. Eskom; Wind Project RFP Development; Western Cape,South Africa; 2011 Wind Turbine Technical Specialist-Black&Veatch.Developed technical specifications for procurement of large wind turbine generators for an approximately 100 MW project in South Africa. Developed and reviewed additional general project technical specifications for the project. Confidential Client; Wind Turbine Technology Review; Global; 2011 Wind Turbine Technical Specialist-Black&Veatch.Reviewed technology of two wind turbine generator models. Review included historical performance,installation history,design capabilities, supplier strength,and relative risk for a project investor.Issued memo report on turbine technology and risks. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 47 CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client; Wind Project Layout Development and Pro Forma Analysis; Global; 2011 Wind Energy Specialist-Black&Veatch.Developed initial project layouts for a 200 MW project in early development.Worked with a team that also developed electrical and civil conceptual designs,and developed project cost estimates.Developed project pro forma model including baseline inputs of energy production,project cost,operating cost,and financial assumptions. DTE Energy; Wind Project Layout Development and Micrositing; Michigan, United States; 2011 Wind Project Siting Specialist-Black&Veatch.Developed initial project layouts for three projects totaling 110 MW.Reviewed layouts in light of wind resources,environmental and permitting restrictions, and landowner preferences.Performed detailed in-field project micrositing of project layouts,and participated in ongoing project development activities,including layout revisions until projects moved to construction. Dallas Water Utilities; On-site Wind Turbine Screening Study; Texas, United States; 2010 Wind Energy Specialist-Black&Veatch.Developed scenarios, including project arrangement and cost,for on-site wind energy } generation at a water treatment plant as part of a larger study. I Confidential Client; Wind Turbine Procurement Support; Global; 2010 Wind Turbine Technical Specialist-Black&Veatch.Developed technical specifications for procurement of large wind turbine I generators for an approximately 30 MW project.Led technical evaluation of turbine bids and developed indicative performance comparisons for the project. Confidential Client; Wind Resource Assessment; Independent Engineer; Global; 2010 Wind Energy Specialist-Black&Veatch.Coordinated a team preparing an independent assessment of project performance for the lender for a wind energy project under development. i Minnesota Power; Wind Turbine Technology Review; Minnesota, United States; 2010 Wind Turbine Technical Specialist-Black&Veatch. Reviewed technology of new direct-drive wind turbine technology. Review included similarities and differences with previous generator gear- drive turbine,including overall design,turbine rotor,and components including pitch and yaw systems and electrical converter.Issued short due diligence report on technology risk. BV.COM BLACK&VEATCH APPENDIX C RESUMES 48 G I CITY OF VERNON I INTEGRATED RESOURCE PLAN DTE Energy; Wind Resource Assessment; Michigan, United States; 2010 Wind Energy Specialist-Black&Veatch.Coordinated a team performing a detailed wind resource assessment for a large wind project under development. Included energy production and uncertainty analyses. t NV Energy; Renewable Energy Bid Review; Nevada, United States; I 2009 Wind Energy Specialist-Black&Veatch.Led the review and evaluation of wind energy project Power Purchase Agreement(PPA) bids as part of a larger team reviewing bids for all renewable energy technologies.Review scope included developer experience,project readiness,land control,wind resource,interconnection feasibility, price,and related project aspects. I Confidential Client; Wind Turbine Technical Due Diligence; Global; 2009 Wind Turbine Technical Specialist-Black&Veatch.Reviewed and evaluated the technology and quality of a large wind turbine manufacturer's product.Included a review of technical reports from other consultants and manufacturers,root cause analyses,a ? comparison of the technology to industry leaders,and a factory site f visit. I { Confidential Client;Wind Project Technical Due Diligence; Global; ( 2009 Wind Turbine Technical Specialist-Black&Veatch.Evaluated the I technical aspects of multiple wind energy projects operating and under construction.Reviewed operational reports,budgets,and operations and maintenance plans. Developed project assessments and key questions. Confidential Client;Technical Due Diligence; Global; 2009 Wind Energy Technical Specialist-Black&Veatch.Reviewed the technical aspects of four operating wind projects for a potential investor. Included a review of energy production to preconstruction estimates,wind resource measurement campaign,and capital and operating expenses. Confidential Client;Technical Due Diligence; Global; 2009 Wind Energy Technical Specialist-Black&Veatch.Reviewed the technical aspects of a large wind project portfolio.The review focused on project condition and quality of project operations team.The review also included investigation of a project under performance (preconstruction to operation). i i 8 I ti BV.COM BLACK&VEATCH APPENDIX C RESUMES 49 i i CITY OF VERNON I INTEGRATED RESOURCE PLAN City of Midwest City; Onsite Wind Turbine Screening Study; United States; 2009 Wind Energy Specialist-Black&Veatch.Reviewed the feasibility of siting a single large wind turbine in an on-site behind-the-meter application in Oklahoma.The review included available land,setback requirements,energy use,wind resource,and potential impacts on military and radar facilities. I Detroit Edison Company; Wind Turbine Procurement Support; Michigan, United States; 2009 Wind Turbine Technical Specialist-Black&Veatch.Prepared a detailed technical specification for the procurement of wind turbines for multiple wind projects in Michigan. Massachusetts Technology Collaborative; Community Wind Study; Massachusetts, United States; 2009 Wind Energy Specialist-Black&Veatch.Prepared a site description,land ownership maps,a wind resource assessment, production estimates,and an economic assessment for a community- scale wind project in Massachusetts. Eskom; Wind Project Siting Study; Eastern Cape, South Africa; 2009 Wind Energy Siting Specialist-Black&Veatch.Developed a geographic information system (GIS)based wind energy siting model of the country for Eskom. Identified potential wind projects based on best expected wind resources,energy production,environmental restrictions,and project construction cost.Following on-site visits, developed preliminary project boundaries and expected capacities and evaluated and ranked sites. Selected locations for installation of monitoring equipment and developed conceptual project layouts. Confidential Client; Confidential Project; Alberta, Canada; 2009 Wind Energy Specialist-Black&Veatch.Review of several operating wind projects in Alberta for a potential buyer.Included review of turbine technology and condition,0&M facility,facility manager and technicians,and wind and production data. Dominion Resources, Inc.; Wind Turbine Procurement Support; Virginia, United States; 2008 Wind Turbine Technical Specialist-Black&Veatch.Provided technical support during the RFP procurement process for more than 200 MW of wind turbines for two potential wind projects in the United States.Prepared a technical and commercial assessment of current wind turbine offerings from 12 wind turbine manufacturers. Assisted in the preparation of a detailed technical specification for wind turbines and related equipment.Reviewed detailed proposals from four major wind turbine manufacturers,including turbine pricing,exceptions to the technical specification,and turbine suitability for the project sites. Provided feedback to the client on BV.COM BLACK&VEATCH I APPENDIX C RESUMES 50 r i t CITY OF VERNON I INTEGRATED RESOURCE PLAN 1 1 3 1 commercial terms offered by turbine vendors. Confidential Client; Mind Project Feasibility Study; Texas, United States; 2008 Wind Energy Specialist-Black&Veatch.Evaluated the feasibility of building several utility-scale wind projects on a large project site in the Texas panhandle.Included the evaluation of wind resources, available land,existing land use,potential environmental issues, production estimates,and economic evaluation. Western Farmers Electric Cooperative; Wind Energy Proposal Evaluation; Oklahoma, United States; 2008 Wind Energy Specialist-Black&Veatch.Developed a scoring methodology for the technical evaluation of wind energy proposals. Reviewed wind energy project bids and made shortlist recommendations. Led technical discussions during developer and turbine manufacturer interviews. Duke Energy; Renewable Energy Proposal Evaluation; Ohio, United States; 2008 Wind Energy Specialist-Black&Veatch.Reviewed proposals for the sale of wind and other renewable energy or for the sale of renewable energy credits.Participated in developer interviews. Massachusetts Water Resources Authority(MWRA); Deer Island Onsite Wind Energy Project; Massachusetts, United States; 2008 Wind Energy Specialist-Black&Veatch.Developed the wind turbine specification for the RFP/Request for Bid (RFB) process. Provided technical guidance for all aspects of the RFP/RFB process, including estimated energy production,turbine lighting requirements, noise,and potential safety issues. Coordinated the Owner's engineering work for the project construction phase. CPUC; Renewable Energy Transmission Initiative; California, United States; 2008 Wind Energy Specialist-Black&Veatch.Provided input for the modeling of potential wind energy projects,including capital and operating expenses,production based on wind power class,project density,and siting guidelines. Confidential Client; Wind Manufacturer Site Visit; Iowa, United States; 2007 Wind Energy Specialist-Black&Veatch.Visited the site of a new North American wind turbine manufacturer.Evaluated turbine technology and licensing agreements.Visited the manufacturing facility under construction.Estimated the manufacturer risk and time to startup for a potential investor. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 51 CITY OF VERNON I INTEGRATED RESOURCE PLAN E MWRA; Wind Turbine Feasibility Study; Massachusetts, United States; 2007 Wind Energy Specialist-Black&Veatch.Evaluated 15 MWRA facilities in the Boston area for a potential on-site wind energy project development.Examined the wind resources,electrical demand, available space,and other factors to determine which sites were feasible to install a single wind turbine.Prepared a feasibility study document for the top four sites,including potential turbine locations, I production estimates,cost estimates,and economic evaluation. AmerenUE; Wind Energy RFP Development and Proposal Review; Illinois, United States; 2007 Wind Energy Specialist-Black&Veatch.Developed RFPs for wind energy projects in Missouri and Illinois.Developed project evaluation criteria and scoring methodology,and coordinated project evaluation team.Evaluated bid responses,made shortlist recommendations,and participated in developer interviews. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 52 i CITY OF VERNON I INTEGRATED RESOURCE PLAN 1 I John M. Wynne John Wynne is an Economist involved with integrated resource plan LOAD FORECASTING (IRP) development and strategic planning issues.He has worked on five continents and traveled to more than 30 countries since joining Black& Expertise: Veatch in 1990.He is the most experienced analyst with Black&Veatch Desalination; Economic and in terms of international studies.A financial specialist,Mr.Wynne has Financial Evaluation; performed and directed numerous studies in the areas of system Integrated Resource planning,IRP studies,capacity solicitation RFPs,renewable energy Planning; Project projects,load forecasting,pro forma analysis,socioeconomic impact Agreements; Project analyses,desalination studies,and he has developed power purchase Development; Pro Forma; agreements. He has trained many utility and Black&Veatch analysts in Regulatory Structure; areas related to least-cost planning,pro forma analysis and Request for Proposal socioeconomics. Development; Mr.Wynne has performed extensive analysis in the areas of production Socioeconomics; Strategic costing evaluations,risk assessments,the development of capacity Advising solicitations,socioeconomics and in the identification of sources of Education project financing.Prior to joining Black&Veatch,he was a Senior Master of Science,Economics, Economist at the Indiana Utility Regulatory Commission,an Economist Bowling Green State University, for the Indiana Department of Commerce,and also has taught college 1984,United States Bachelor of Science,Economics, economics. Northwest Missouri State University,1983,Global Total Years of Experience PROJECT EXPERIENCE 27 DesalinationBlack&Veatch Years of and Power Optimization Studies; Hong Fong, China; Experience 2016 27 Lead Economist-Black&Veatch.Led the Black&Veatch team in the study of the optimization of a combined desalination and power plan to be located in Hong Kong.The study involved evaluating a stand-alone desalination facility that purchased power from the grid and multiple alternatives that combined a desalination facility with a power plant that would sell power to the water facility. TVA; Hydro Modification Study;Tennessee, United States; 2016 Lead Economist-Black&Veatch.Led the Black&Veatch team in the study of multiple proposed modifications to a number of TVA hydro facilities.The analysis involved developing a number of economic models that compared the present worth cost of modifications with the alternative of providing power from a new hydro facility.The analysis was a long-term analysis that considered capital costs and 0&M costs for the proposed modifications,and developed NPV and IRR calculations for each plant and proposed projects. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 53 y{I { CITY OF VERNON I INTEGRATED RESOURCE PLAN U.S. Department of State; Power System Expansion Study; Angola; 2015-2016 Project Manager and Lead Economist-Black&Veatch.Led the Black&Veatch team in the study of the expansion of the generation and transmission systems in Angola.The project involved the long- term interconnection of the three primary grids in Angola and the identification of the optimum timing,location,transmission size,and generation capacity for the country,consistent with least cost planning principles.The project involved multiple trips to Angola and hosting the local counterparts in the U.S.,where extensive training was conducted. Power Supply Options Study, Phase 1 and Phase 2; Ghana; 2015- 2016 Project Manager and Lead Economist-Black&Veatch.Led the Black&Veatch team in the study of power supply options for a large mining company with operations in Ghana,Africa.The phase 1 study identified more than 30 power supply options and evaluated these options from a cost and risk standpoint,ultimately identifying a handful of options to study further in Phase 2 studies.The study involved multiple trips to Ghana and a detailed optimization model developed in Excel that would allow the calculation of cost of energy and unserved energy for any power supply plan chosen.Based on the results of the phase 1 study,the phase 2 work was begun in 2016 and structured to further refine the short-listed power supply options, with the aim to recommend the best power supply option for the mining client considering cost,risks,and uncertainties. EEHC; Pro Forma and PPA Support Studies and Training; Egypt; 2015-2016 Project Manager and Lead Economist- Black&Veatch.Led the Black&Veatch team in the development of a detailed pro forma to be used as a standard evaluation tool by EEHC staff when evaluating IPP projects.Provided training in Egypt on the pro forma and also provided evaluation of two PPAs being negotiated.Also provided training on pricing structures of power supply agreements. U.S. Department of State; Chile-Peru Interconnection Study; Global; 2014-2015 Project Manager and Lead Economist-Black&Veatch.Led the Black&Veatch team in the study of the interconnection of the Chile and Peru power systems.The study involves the estimate of economic benefits from interconnection and joint operation,as well as a technical analysis that includes load flow and stability studies,as well as preliminary design of the interconnection. Project execution involves multiple in-country visits for data collection and collaboration with the grid operators and Ministries of Energy in Chile and Peru.The study is the outgrowth of the Connecting the Americas 2022 initiative unveiled at the Sixth Summit of the Americas in April BV.COM BLACK&VEATCH I APPENDIX C RESUMES 54 6 CITY OF VERNON I INTEGRATED RESOURCE PLAN 2012. USTDA; Economic Analysis and Financing Plan, Hydro and Biomass Feasibility Study; Chile; 2014 Lead Economist-Black&Veatch.Supervised the economic pro forma analysis and financing plan development for two USTDA I studies in Chile.The analysis evaluated power market prices that the projects would earn by selling into the spot market and evaluated PPA sales prices needed to make the projects viable.Evaluated multiple financing options including local bank funding,multi-lateral financing, and possible additional sources of equity. I LP&L; System Planning Studies; United States; 2014 RFP&Modeling Specialist-Black&Veatch.Developed a capacity solicitation for LP&L to determine if the self-build option is the preferred alternative vs.a power purchase option.The comparison I involved the modeling of options in the contact of the SPP market and involved the use of PROMOD.Participated in the evaluation of bids and helped evaluate modeling results that involved the expansion of the SPP capacity and transmission market over the planning period. Competing plans were compared on a present value cost basis using the PROMOD results,and the economic results were combined with technical and risk assessments of the competing options. WFEC; System Planning Studies with CO2 Compliance Focus; United States; 2014 Project Manager-Black&Veatch.Led expansion planning studies that evaluated the least cost additions for WFEC,with consideration of the impact of the proposed CO2 rules by the PEA announced in 2014. Used Strategist and PROMOD to develop present worth cost projections of competing plans.Evaluations considered meeting WFEC load and also selling and purchasing power to and from the SPP market.Results used to make resource selection decisions to fill future WFEC. El Paso Energy; Siting Study, Economic Evaluation and Economic Forecast; Texas, United States; 2013 Lead Economist-Black&Veatch.Mr.Wynne led the socioeconomic and economic analysis for a siting study performed for El Paso Energy. In this role he supervised and reviewed the bus-bar evaluations of competing technology options at several difference sites,performed a socioeconomic profile analysis of the sites,and performed an econometric population forecast of the sites as part of the studies. BV.COM BLACK&VEATCH APPENDIX C RESUMES 55 CITY OF VERNON I INTEGRATED RESOURCE PLAN Pro Forma Valuation of Power Plants and Coal Mine; Bosnia and Herzegovina; 2013 Lead Economist-Black&Veatch.Valuation of two power projects and a coal mine in Bosnia.The valuation involved developing a pro forma model of each project,and determining the fair value price of the asset given the assumptions regarding revenue streams,operating costs and financing characteristics.The valuation also investigated potential funding sources for the projects and how to structure the projects to enable successful financing. Confidential Client; Economic Impact of Transmission and I Distribution (T&D) Expenditures; United States; 2013 Project Manager-Black&Veatch.Performed an economic impact analysis regarding a confidential electricity utility client's more than $1 billion, 10-year expenditures for T&D investments during the c 2014-2023 period.Black&Veatch utilized the IMPLAN impact tanalysis model and developed estimates for the utility's service area I state and the US. Economic impacts estimates were developed for employment,income,value added,output,plus federal,state,and local taxes.The report was used to support the utility with proposed I legislation regarding automatic cost recovery. United States Trade and Development Agency(USTDA); Funding and Pro Forma Analysis for Two Cogeneration Projects; China; I 2012 Lead Economist-Black&Veatch.Mr.Wynne led the discounted cash flow pro forma development for two cogeneration projects that were being studied as part of an award from the USTDA.The pro forma captured multiple revenue streams and reflected local conditions expected during the project period.He also led the evaluation of potential financing sources for the projects.This analysis considered bank,equity funds,corporate funds,bi-lateral and multi- lateral institutions as possible sources for project funding and resulted in a recommended funding plan that was reflected in the financial pro forma. Kauai Island Utility Cooperative (KIUC); Avoided Cost Methodology for Renewable Buy-Back Rate; Hawaii, United E States; 2012 Project Manager-Black&Veatch.Assignment with Kauai Island Utility Cooperative (KIUC) involving the development of an alternative avoided cost standard offer payment methodology for renewable energy facilities of less than 100 kW.The scope of work involved developing the new methodology,projecting the cost '( impacts to the utility,presenting the proposed method to the KIUC Board,and filing the methodology before the Hawaii Public Utility Commission.The assignment involved detailed production costing I g p g and the development of cost profiles of various renewable technologies. w S '{ BV.COM BLACK&VEATCH APPENDIX C RESUMES 56 I� y CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client; Economic Impact Analysis of New Project Investments; United States; 2012 Project Manager-Black&Veatch.Economic impact analysis studying the impact of more than$2 billion in expenditures for water and wastewater upgrades for a large,Midwest utility.The analysis was prepared in response to a request from the utility's regulatory commission,and involved estimates for the company's 10-year expenditure profile.To develop the impact estimates,Black&Veatch a utilized the IMPLAN impact analysis model and developed estimates for the utility's service area state and the US.Economic impacts estimates were developed for employment,income,value added, output,plus federal,state,and local taxes. Brownsville Public Utilities Board; Econometric Load Forecast by Class; Texas, United States; 2012 Lead Economist-Black&Veatch.Mr.Wynne led the 20-year load forecast development for BPUB.In this role,he developed an econometric forecast by end user class that utilized weather conditions and multiple economic indices as independent variables in the forecast equations.The forecast was used in the utility's resource planning activities and as the basis for utility financing. Confidential Client; Economic Impact of Natural Gas Capital Expenditures; United States; 2012 Project Manager-Black&Veatch.Performed an economic impact analysis of a confidential natural gas utility client's$600 million in expenditures for natural gas distribution investments during the 2014-2023 period.To develop estimates,Black&Veatch utilized the IMPLAN impact analysis model and developed estimates for the utility's service area state and the US. Economic impacts estimates were developed for employment,income,value added,output,plus federal,state,and local taxes.The report was used to support the utility with proposed legislation regarding automatic cost recovery. Excelerate Liquefaction Solutions; Liquefied Natural Gas (LNG) Export Facility Economic Impact Assessment;Texas, United States; 2012 Project Manager-Black&Veatch.Mr.Wynne led the analysis of a study for Excelerate that estimated the economic impacts of a proposed LNG export facility to be located in Texas.The analysis included the economic impacts during construction and operation and estimated impacts on the local project area,the state of Texas,and the US.The results were used to support Excelerate's application for an export license before the FERC.The analysis utilized the IMPLAN economic impact analysis model and an internally-developed evaluation methodology. BV.COM BLACK&VEATCH APPENDIX C RESUMES 57 CITY OF VERNON I INTEGRATED RESOURCE PLAN KIUC; Load Forecast with Demand Side Management and Energy Efficiency Programs Integration; Hawaii, United States; 2011 Project Manager-Black&Veatch.Mr.Wynne led the load forecast development for Kaua'i Island Utility Cooperative. In this role he x developed an econometric forecast,incorporated the impact of DSM and EE programs adopted by the utility,and helped prepare load forecast documentation to be filed with the RUS.The DSM and EE programs were developed with the intent of meeting the state I commission renewable energy and DSM goals and the load forecast will be used as the basis for the follow-on KIUC IRP work,which Mr. I Wynne helped lead. Interstate Natural Gas Association of America (INGAA); Economic Impact Assessment of Mid-Stream Natural Gas Investments; United States; 2011 Lead Economist-Black&Veatch.Mr.Wynne led the analysis of a study for INGAA that estimated the economic impacts of projected investment in more than 14,000 new natural gas pipeline projects in the lower 48 states between 2012 and 203S.The analysis utilized the IMPLAN model and projected US and regional impacts in the areas of employment,income,payroll,value added,and local,state,and federal taxes generated.The results of the analysis were presented to the INGAA Board and at a national press briefing in Washington D.C. Electricity Supply Commission (Eskom);Tariff Model and Pro Forma; South Africa; 2011 Lead Economist-Black&Veatch.Mr.Wynne developed a detailed tariff and pro forma model for an industrial client considering the construction of a coal fired power plant to deliver power to its industrial users on the Eskom grid.The model included a pro forma cost model of the power plant,a module to calculate wheeling costs under Eskom's proposed wheeling structure,and a tariff model that compared continued Eskom-only power purchases by the end users with the option to purchase wheeled power from the new plant.The model is a long-term model showing the nominal and NPV savings of the project over time. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 58 CITY OF VERNON I INTEGRATED RESOURCE PLAN MERALCO; Tariff Development and Power Purchase Agreement (PPA) Assistance; Philippines; 2010 Lead Analyst-Black&Veatch.Mr.Wynne supported MERALCO of the Philippines with pro forma development of power tariffs and PPA development in support of a capacity bidding solicitation program undertaken by MERALCO.The assignment involved creating 1 discounted cash flow pro formal for a number of plants expected to submit bids,and to develop an estimate of the cost structure and tariff structure that would be anticipated.The PPA support involved developing standard tariff formulas appropriate for the bidding utilities.Additional PPA support was provided in technical areas such as maintenance scheduling,plant testing,and determination of project availability. Golden Valley Electric Association (GVEA); Integrated Resource Plan; Alaska, United States; 2010 Project Manager-Black&Veatch.Integrated resource planning study that evaluated several self-build,power purchase,demand-side and renewable capacity options in order to determine the least-cost plan for the utility.The project involved a conditions assessment and retirement analysis of existing units,a detailed production costing model of the GVEA system,evaluation of power purchase alternatives and fuel price forecasting.Results were presented to the GVEA Capacity Expansion Committee and the GVEA Board.The project utilized PROMOD and Strategist expansion and production costing models. Confidential Client; Solar Project Due Diligence; United States; 2010 Analyst-Black&Veatch.Mr.Wynne performed due diligence review of the project agreements and financial pro forma for a private investor considering an equity investment in a large concentrated solar power project to be located in the U.S.This assignment involved reviewing all the major project agreements for proper risk allocation and the review of the financial pro forma to determine if the model correctly reflected reasonably expected performance and other project parameters. European Bank for Reconstruction and Development (EBRD); I Financial and Commercial Analysis of Geothermal Projects; I Turkey; 2010 Lead Analyst-Black&Veatch.Mr.Wynne developed a financial pro forma analysis of potential geothermal power plant resources for an EBRD study looking at the Turkey geothermal market.In this study he compiled capital,0&M,tax,and feed-in tariff information to determine the rate of return on a geothermal option developed as part of the study.He also evaluated the commercial risks under the current renewable energy laws in Turkey and developed recommendations that would help spur investment in geothermal projects. 3' a r BV.COM BLACK&VEATCH APPENDIX C RESUMES 59 a j I a 9 CITY OF VERNON I INTEGRATED RESOURCE PLAN State of Alaska; Tariff Development for Hydroelectric Socioeconomic Analysis Project; Alaska, United States; 2010 Lead Economist-Black&Veatch.Mr.Wynne developed a tariff model that estimated the power sales rate of a small hydroelectric facility to be built and sold back to multiple utilities in Southeast Alaska.The tariff was determine through a pro forma model that determined the optimal payback structure that would help minimize s the initial capacity charge and make the project more affordable to off-taking utilities during the initial operating period.He also was responsible for developing a socioeconomic analysis of the Southeast Alaska region that discussed obstacles to long-term economic growth and possible mitigation actions that could help sustain the region. Detroit Edison Company; Socioeconomic and Economic Impact Analysis, Nuclear Licensing; Michigan, United States; 2007-2010 Lead Economist-Black&Veatch.As lead economist for socioeconomic and economic impact analysis related to the NRC's COLA process,Mr.Wynne evaluated the impacts of construction and operation on economic areas that included employment,income and demand for the local community and services.In this capacity,he was responsible for writing significant portions of the COLA that was subsequently approved by the NRC. Rentech Energy Midwest Corporation; Biomass Pro Forma Review; Colorado, United States; 2009 Lead Analyst-Black&Veatch.Mr.Wynne performed a detailed review of a financial pro forma for a developer in the process of closing on a first-of-a-kind biomass facility that would utilize waste wood as a feedstock.The review involved a line item review of the discounted cash flow pro forma and the construction of a check pro forma to independently confirm the results of the client pro forma. The model was also reviewed to confirm that it was consistent with the primary terms of the EPC and PPA agreements. Republic of Guyana; Project Development and PPA Negotiations; Guyana; 2009 Analyst-Black&Veatch.Mr.Wynne performed a cost and risk assessment of a proposed 150 MW hydro project to be built,owned, and operated by a private developer in Guyana. Subsequent to the PPA review,he was asked to participate in final PPA negotiations with the developer and traveled to Guyana for this assignment.In this role, he also coordinated with other Black&Veatch specialists during the negotiations who advised on various engineering aspects of the facility including expected outages,transmission losses,and expected capacity factor. BV.COM BLACK&VEATCH APPENDIX C RESUMES 60 CITY OF VERNON I INTEGRATED RESOURCE PLAN Arizona Electric Power Cooperative (AEPC)/Southwest Public Power Resources Group LLC (SPPRG); Capacity Solicitation RFP System Planning; United States; 2009 Project Manager-Black&Veatch.Mr.Wynne wrote the capacity solicitation document for the Arizona Electric Power Cooperative and the SPPR Group.In this role,he is also charged with evaluating the I bids received.He was also the project manager for an expansion planning study for AEPCO in which a number of self-build alternatives were evaluated using Strategist and PROMOD IV.He was involved in the follow-on short-list negotiations and provided review and comment on the term sheet and power purchase agreement developed for the project. Tenaga Nasional Berhad (TNB); Pro Forma Development Coal Project; Malaysia; 2009 Lead Economist-Black&Veatch.Mr.Wynne developed a detailed pro forma model for a two unit coal project to be developed in Malaysia and owned by TNB.The model is an Excel based model detailed enough for all of the feasibility studies and design decisions, and also detailed enough for submittal to financing agencies.The project involved travel to Malaysia and interface with the client planning and finance staff. SPPRG; PPA Review; United States; 2009 Lead Analyst-Black&Veatch.Mr.Wynne performed a risk allocation and economic review of a draft PPA between the SPPR Group and an IPP combined cycle project that was proposing to sell firm power under a long-term agreement.Specific areas of comment were the pricing and penalty formulas and sections of the PPA,the technical appendices,and other clauses related to long-term incentives for the seller to deliver reliable,low cost power and to maximize availability. General Electric (GE) (Joint Venture Partner); Economic Evaluation of Independent Water and Power Project (IWPP) Plant; Oman; 2009 Lead Economist-Black&Veatch.Detailed economic analysis associated with the potential construction and operation of a future independent water and power plant in Oman.In this role,he developed a detailed production cost model comparison between the proposed IWPP and an alternative configuration.The analysis was performed for a consortium including GE and Black&Veatch,and the results were presented to regulators in Oman. BV.COM BLACK&VEATCH APPENDIX C RESUMES 61 CITY OF VERNON I INTEGRATED RESOURCE PLAN Western Farmers Electric Cooperative (WFEC); Coal Plant PPA Evaluation; United States; 2009 Technical Advisor-Black&Veatch.Black&Veatch was the technical advisor for Western Farmers Electric Cooperative and evaluated a draft power purchase agreement governing a proposed power sale from an existing coal-fired power plant in Texas.The PPA was evaluated from a risk allocation and pricing standpoint to determine if the pricing components were in line with industry r� standards and the proper allocation of project risks to the party best able to assume them. I: £ WFEC/Grand River Dam Authority; PPA Evaluation; United States; 2009 I Technical Advisor-Black&Veatch. Black&Veatch evaluated a F draft power purchase agreement for Western Farmers Electric Cooperative governing a proposed sale of power from the Grand River Dam Authority.The PPA was for a cost-based sale of power to WFEC I on a long-term basis.The contract was reviewed from a project risk I and pricing standpoint.. I WFEC; Landfill Gas PPA Evaluation; United States; 2009 Technical Advisor-Black&Veatch.Black&Veatch evaluated a I draft power purchase agreement for Western Farmers Electric Cooperative proposed for a small landfill gas project on the WFEC system.The project would have sold firm power to WFEC under a long-term contract that was reviewed from a risk allocation and pricing standpoint to determine if the pricing components were in line with industry standards and the proper allocation of project risks to the party best able to assume them. State of Alaska; Socioeconomic Analysis, Potential Natural Gas Pipeline; Alaska, United States; 2009 Lead Economist-Black&Veatch.Detailed socioeconomic analysis associated with the potential construction and operation of a future natural gas pipeline originating in Alaska.The analysis determined the employment and income benefits arising in the US and Alaska from the project,based on assumed input purchases and spending patterns. The analysis also estimated the economic benefit from the lower natural gas prices resulting from the pipeline project. Confidential Project; Botswana; 2009 Project Economist-Black&Veatch.Mr.Wynne was responsible for the development of the project pro forma for a multi-unit coal project in Botswana.The pro forma involved multiple currencies,multiple tranches of debt and multiple units.A significant amount of interaction with technical,financial and legal advisors was required to develop the pro forma,which was part of a bankable feasibility study produced by Black&Veatch and other consultants. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 62 ti CITY OF VERNON I INTEGRATED RESOURCE PLAN I WFEC; Renewable Energy Capacity Solicitation; Oklahoma, United States; 2008-2009 Project Manager-Black&Veatch.Capacity solicitation RFPs for renewable energy capacity. In this capacity,he was responsible for writing the RFP,responding to questions,evaluating the results and f, I making a recommendation.The result of the solicitation was the signing of a renewable energy purchase agreement by WFEC and the I leading bidder. f WFEC; Conventional Resource Capacity Solicitation RFP; Oklahoma, United States; 2008 Project Manager-Black&Veatch.Capacity solicitation RFPs for conventional resources.In this capacity,he was responsible for writing the RFP,responding to questions,evaluating the results and 1 making a recommendation.The result of the solicitation was a recommendation to WFEC regarding the optimal mix of resources on the system. WFEC; Distributed Generation Capacity Solicitation RFP; Oklahoma, United States; 2008 Project Manager-Black&Veatch.Mr.Wynne was responsible for writing the RFP,responding to questions,evaluating the results and making a recommendation.He also drafted major terms and conditions to be transferred to a power purchase agreement. In addition,he led a market pricing and retirement analysis in which regional market-clearing prices were estimated using a market model. The optimal retirement date of units was evaluated based on economic returns. Socioeconomic Analysis; Nuclear Licensing Project; United States; 2007-2008 Lead Economist-Black&Veatch.Detailed socioeconomic analysis associated with the COLA process for a large utility in the Southern United States. Mr.Wynne was responsible for evaluating the impacts of construction and operation in several economic areas,including employment,income and demand for the local community and services.He also wrote significant portions of the COLA. KIUC; IRP; Hawaii, United States; 2006-2008 Project Manager-Black&Veatch.The IRP had a heavy emphasis on renewable energy options and energy efficiency measures.More than SO supply-side options were evaluated.The study resulted in an IRP filing before the Hawaii Public Utility Commission.The IRP required significant interaction with the KIUC Board and an Advisory Committee,which was comprised of several local citizens and customers. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 63 1 I i CITY OF VERNON I INTEGRATED RESOURCE PLAN 1 i Sacramento Municipal Utility District; Feasibility Study; California, j United States; 2007 Project Manager-Black&Veatch.Feasibility study that evaluated the ownership options of several types of renewable capacity.The study evaluated tax incentives for various renewable technologies; developed pro forma models showing the cost-of-own versus purchase options;and evaluated risks associated with each ownership option. Confidential Client; Pre-feasibility and Feasibility Study; Mexico; 2006-2007 Project Manager-Black&Veatch.As project manager for a pre- feasibility and feasibility study evaluating the technical and economic feasibility of a coal-fired power plant in Mexico,Mr.Wynne was involved in the development of capital cost and performance estimates for a number of coal-fired options.This required an evaluation of the characteristics of the coal and to evaluate design impacts; an evaluation of alternative sites; and the development of a report that was used as part of a future capacity solicitation.The project consisted of a multi-disciplined team of environmental specialists,fuel experts,design engineers and cost estimators. City of Columbia; Supply-Side Planning Study; Columbia, Missouri, United States; 2006-2007 Project Manager-Black&Veatch.Supply-side planning study that evaluated self-build and purchase options.The study required establishing a production costing model for the City,developing a capacity solicitation RFP,evaluating bids and assisting the City during negotiations. Brazos Electric Cooperative; Capacity Solicitation RFP; Texas, United States; 2006-2007 Project Economist-Black&Veatch. Mr.Wynne was responsible for developing a capacity solicitation RFP for long-term power supplies to meet a growing utility demand.He also was responsible for drafting the RFP and coordinating with the utility to evaluate bids. PRESENTATIONS&PUBLICATIONS Wynne,John;S.Qadri."Power Plant Life Cycle Cost Analysis: Reviewing Basic Evaluation Techniques and Why They Matter." PowerGen Asia.September 2013 Wynne,John;Shahid Qadri."Power Plant Life Cycle Cost Analysis: Reviewing Basic Evaluation Techniques and Why They Matter." PowerGen Asia.September 2013 BV.COM BLACK&VEATCH APPENDIX C RESUMES 64 CITY OF VERNON I INTEGRATED RESOURCE PLAN Dr. Sankar Dr. Sankar is an electrical system studies engineer and also the Group DISTRIBUTION SYSTEM Lead for Systems Studies Group in Black&Veatch's Power Delivery ANALYSIS Business.His responsibilities include the analysis of AC/HVDC systems, generator interconnection studies, distribution system analysis, Expertise: � ,._... � harmonic analysis,and transient studies.Dr.Sankar has about 30 years Generator Interconnection of professional experience in the field of power involving system Studies; Harmonic Analysis; studies,construction and commissioning of power plants and Transient Stability and substations.He has also worked in South East Asia,New Zealand and b India on a variety of power projects.He has 16 technical publications in Electromagnetic Transient Program (EMTP) Studies; International Conferences and Journals to his credit. Transmission and Dr.Sankar also teaches Power Systems courses at the University of Distribution System Analysis I Missouri,Kansas City as an Adjunct Professor. Education Doctorate,Electrical Engineering, HVDC Systems,University of PROJECT EXPERIENCE Canterbury,Christchurch,1992, Los Angeles Department of Water and Power(LADWP); Maximum New Zealand 1 Distribution PV Penetration Study; �California United States; 2015- Masters,Electrical Engineering, Indian Institute of Technology, 2016 Bombay,1984,India Lead Engineer- Black&Veatch.Performed maximum PV Bachelors,Electrical and penetration study for LADWP,California.The project involved Electronics Engineering,Madras University,1982,India reviewing the entire distribution system (more than 2,000 feeders) professional Registration and formulate various clusters.One representative feeder from each License,Professional Engineer, cluster was studied in detail for the hosting capacity. Electrical,PE.70867,Ohio, United States,2005 US Virgin Islands Water and Power Authority; Distribution PV Total Years of Experience Study;Virgin Islands; 2015-2016 29 Lead Engineer-Black&Veatch.Performed distribution PV analysis Black&Veatch Years of such as Interconnection Studies and Hosting Capacity analysis. Experience 16 Santee Cooper; Distribution PV Study; South Carolina, United Professional Associations Institute of Electrical and States; 2015 Electronics Engineers(IEEE)- Lead Engineer-Black&Veatch.Performed distribution PV analysis Member such as Interconnection Studies.The analysis was performed using Language Capabilities Synergee,Milsoft and CYME. English Tamil(India) Northern Indiana Public Service Company(NIPSCO); OSHA Transient Voltage Study; Indiana, United States; 2015 Lead Engineer-Black&Veatch.Performed a transient study to calculate the transient overvoltages due to switching and faults,in order to calculate Minimum Access Distance (MAD).The studies were performed for all 345 kV and 138 kV lines; the studies were done using PSCAD. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 65 CITY OF VERNON I INTEGRATED RESOURCE PLAN Orlando Utilities Commission; OSHA Transient Voltage Study; Florida, United States; 2015 Lead Engineer-Black&Veatch.Performed a transient study to calculate the transient overvoltages due to switching and faults,in order to calculate Minimum Access Distance (MAD).The studies were performed for all 230 kV, 115 kV,and 69 kV lines; the studies were done using PSCAD. ITC Holdings; Lake Erie HVDC Interconnector; Michigan, United States; 2015 Lead Engineer-Black&Veatch.Lake Erie HVDC Interconnector is a high voltage DC transmission line between Ontario and PJM territory. Assisted ITC with the interconnection application and process for getting the interconnection studies done by PJM and IESO.Also, f assisted ITC with the technical specification preparation based on the interconnection studies. US Department of State, Bureau of Energy Resources (DOS/ENR); I Technical Assistance for the Power Sector of Angola; United States; 2015 Lead Engineer-Black&Veatch.Provided technical assistance to develop 400 kV transmission backbone in the country.This included review of the existing system performance and recommendation of an I economic planning strategy. 3 4 f US Department of State, Bureau of Energy Resources (DOS/ENR); I Technical Assistance for Interconnecting Chile and Peru; United I States; 2014-2015 Lead Engineer-Black&Veatch.Evaluated various alternatives for interconnecting Peru with Chile and recommended an economically optimal interconnection rating.Also assisted in developing the technical specification of the interconnector,which included an ac/dc E converter station. I US Department of State, Bureau of Energy Resources (DOS/ENR); Technical Assistance for Geothermal Development in Nevis; Saint Kitts and Nevis; 2014-2015 Lead Engineer-Black&Veatch.Provided technical assistance for { the development of geothermal generation in the island of Nevis, especially with regards to interconnecting with the local distribution system and also with the neighboring island of St.Kitts. i Griffith Energy; Arizona, United States; 2014 Lead Engineer-Black&Veatch.Performed transient stability analysis to set generator out-of-step protection relays. q BV.COM BLACK&VEATCH I APPENDIX C RESUMES 66 i t CITY OF VERNON I INTEGRATED RESOURCE PLAN American Transmission Company; Voltage Source Converter (VSC) Back-to-Back HVDC; Wisconsin, United States; 2011-2014 Consulting Engineer-Black&Veatch.Performed the system studies required for a VSC HVDC specification,which comprised power flow,transient stability,and dynamic simulations.Prepared technical specifications,evaluated the bids,reviewed design drawings, witnessed Factory Acceptance Tests,and coordinated the commissioning activities. F GRDA; NERC Compliance Studies; Oklahoma, United States; 2013 Lead Engineer-Black&Veatch.Performed a validation study of GRDA's transmission system black start procedure and transient I stability analysis to verify the compliance against the TPL standards. Public Service Electric and Gas Company(PSE&G); HVDC Converters Feasibility Assessment; New Jersey, United States; 2013 Lead Engineer-Black&Veatch.Performed a feasibility assessment of HVDC converters for limiting fault currents. American Transmission Company;Transient Studies; Wisconsin, United States; 2012-2013 Lead Engineer-Black&Veatch.Performed transient studies for the proposed Badger Coulee and Cardinal Bluff 345 kilovolt(kV) transmission lines and substations,which involved line resonance analysis,switching and lightning studies,and transient recovery voltage (TRV) analysis.The studies were completed in 2013. TransWest Express LLC (TWE);TransWest Express Project; Colorado, United States; 2009-2013 Lead Engineer-Black&Veatch.The TransWest Express project is a high voltage do transmission line between Wyoming and Eldorado Valley in Nevada to transfer 3000 MW.The Western Electricity Coordinating Council (WECC) Phase 2 studies are scheduled to be completed by 2013. American Transmission Company; Voltage Source Converter (VSC) Back-to-Back HVDC; Wisconsin, United States; 2011 Lead Study Engineer-Black&Veatch.Performed the system studies required for a VSC HVDC specification,which comprised power flow,transient stability,and dynamic simulations. PacifiCorp; Technical Studies; Gateway Project; Utah, United States; 2011 Lead Study Engineer-Black&Veatch.Performed studies for series capacitor sizing and locations,static var compensator(SVC) sizing, phase shifting transformer sizing,and a single pole switching analysis for the 500 kV Gateway Transmission System Project. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 67 CITY OF VERNON I INTEGRATED RESOURCE PLAN TWE LLC; WECC Phase 2 Study;TransWest Express Project; Colorado, United States; 2011 Lead Study Engineer-Black&Veatch.TransWest Express project is a high voltage do transmission line between Wyoming and Eldorado Valley in Nevada to transfer 3000 MW.WECC Phase 2 studies are scheduled to be completed by end of 2011. y Hawaiian Electric Company; Interconnection Request Studies (IRS) for Renewables; Hawaii, United States; 2009-2011 Lead Study Engineer-Black&Veatch.Performed IRS for connecting renewable sources such as solar,wind,and biomass generations into the Hawaiian electric system. I s TWE LLC; WECC Phase 1 Study; TransWest Express Project; Nevada, United States; 2010 I Lead Study Engineer-Black&Veatch.The TransWest Express project is a high voltage do transmission line between Wyoming and Eldorado Valley in Nevada to transfer 3000 MW.WECC Phase 1 I studies were completed in 2010. I California Department of Water Resources; California Independent System Operator (CAISO) Interconnection Study; California, United States; 2010 Lead Study Engineer-Black&Veatch.Performed several load interconnection studies for the California Department of Water P Resources in regard to the Bay Delta Conservation Program.The J intended interconnections were within CAISO territory.The study reports were submitted to and approved by CAISO. Georgia Transmission Company(GTQ Generator Interconnection Studies; Georgia, United States; 2009 Lead Study Engineer-Black&Veatch.Completed several generator interconnection and transmission service request studies for GTC. PacifiCorp; WECC Phase 1 Study; Gateway South Project; Utah, United States; 2008-2009 Lead Study Engineer-Black&Veatch.The Gateway South Project is a combination of 500 kV and 345 kV transmission lines to transfer 3000 MW from Wyoming to Southern Utah.Completed the WECC # Phase 1 study for the project and initiated Phase 2. Southern Maryland Electric Cooperative (SMECO); System Impact Study; Maryland, United States; 2007-2008 Lead Electrical Engineer-Black&Veatch. Led a team of engineers and performed a system impact study for a new 230 kV substation. 3 I BV.COM BLACK&VEATCH APPENDIX C RESUMES 68 I 2 p CITY OF VERNON I INTEGRATED RESOURCE PLAN Southwest Power Pool (SPP);Transient Stability Studies; United States; 2003-2008 Lead Electrical Engineer-Black&Veatch.Performed several transient stability studies as part of the generator interconnection studies for SPP.The studies involved the modeling of wind generators using Power Technology Incorporated's (PTI's) PSS/E software. I GTC; Transient Stability Studies; Georgia, United States; 2003- 200B Lead Electrical Engineer-Black&Veatch.Led a team of engineers and performed transient stability studies as part of the generation interconnection studies.The studies were conducted for two different interconnection projects using PTI's PSS/E software. I The United Illuminating Company; Ten Year Transmission Planning; Connecticut, United States; 2006-2007 Lead Electrical Engineer-Black&Veatch.Led a team of planners and performed a 10 year transmission planning study.The studies were in accordance with International Organization for I Standardization-New England (ISO-NE)procedures using Siemens PTI PSS/E software. PRESENTATIONS&PUBLICATIONS Sankar,Soundrapandian."Mackinac Back-to-Back Voltage Source Converter HVDC Interactions with Power Line Carrier and Automatic Meter Reading Communications."CIGRE US National Committee 2015 Grid of the Future Symposium; Chicago,Illinois. October 2015 Sankar,Soundrapandian."Mackinac HVDC Converter Automatic Runback Utilizing Locally Measured Quantities." 2014 CIGRE Canada Conference;Toronto,Ontario.September 2014 Sankar,Soundrapandian."ATC's Mackinac Back-to-Back HVDC Project: Planning and Operation Considerations for Michigan's Eastern Upper and Lower Peninsulas." CIGRE US National Committee 2013 Grid of the Future Symposium.September 2013 BV.COM BLACK&VEATCH I APPENDIX C RESUMES 69 CITY OF VERNON I INTEGRATED RESOURCE PLAN GaryJ. Wilmes Gary Wilmes is a registered Professional Engineer with diverse PROJECT COST experience in many aspects of the electric power industry,including MODELING system planning,production cost modeling,economic analysis, _ electricity market assessments,and conceptual design.He has Expertise: .n.. � conducted several system planning and feasibility studies for domestic Asset Valuation; Electric Price and international clients.His activities have included technology Forecasting; LMP Analysis; screening and selection studies,development of utility generation power Generation System expansion plans,generating system production cost simulation and planning analysis and reliability/availability assessments to predict plant m - m availability and improvements attributable to proposed plant design Education 4 Master of Science,Manufacturing changes.He has been involved in power plant site selection studies Systems Engineering,University where he used geographical information system (GIS) mapping tools of Nebraska,Lincoln,1992, and spatial databases to identify preferred sites for new power plants. united States Mr.Wilmes has evaluated the economics of proposed Demand-Side Bachelor of Science,Agricultural Management(DSM)and Energy Efficiency programs using the DSMore Engineering,University of (Demand-Side Management Option Risk Evaluator) simulator as well as Nebraska,Lincoln,1987,United States detailed hourly chronological production cost models such as ProSym Professional Registration and ProMod to evaluate the economics of peak reductions and energy License,Professional Engineer, zcost savings attributable to DSM and Energy Efficiency programs.He Mechanical,14209,Kansas, has extensive experience in the use of full suite of PowerBase and United States,1996 I EnerPrise products.He is experienced in managing data gathering to Total Years of Experience develop customized databases for input to these models.Mr.Wilmes 25 possesses strong financial analysis skills,supported by thorough Black&Veatch Years of I knowledge of financial,economic and accounting principles.He has a Experience 25 strong technical understanding of the electric utility industry and excellent analytical problem-solving skills,including quantitative analysis and computer modeling techniques. Mr.Wilmes has used his expertise in the areas of linear,mixed-integer, dynamic,and non-linear programming on several projects.Mr.Wilmes co-developed Black&Veatch's PowrPro chronological production costing program.PowrPro contains numerous features to realistically model actual unit commitment and dispatch.Mr.Wilmes authored Black&Veatch's PowrOpt,an optimal generation expansion program. PowrOpt uses a dynamic program in conjunction with the commitment and dispatch algorithms of PowrPro to determine the least-cost expansion plans meeting reliability criteria determined by reserve margin or loss-of-load probability(LOLP). Mr.Wilmes developed a fuel purchase optimization system in support I of a Total Fuel Management system software development project.The optimizer provides the capability to evaluate a large number of fuel purchase options while simultaneously accounting for system-wide and unit-specific constraints,coal delivery options,governmental regulations and inventory levels,as well as fuel purchase cost.On another project,Mr.Wilmes developed an optimizer for use in an integrated fuel strategy study that determined the set of development options that consist of fuel,transportation and capital improvement BV.COM BLACK&VEATCH I APPENDIX C RESUMES 70 i CITY OF VERNON I INTEGRATED RESOURCE PLAN i I strategies that optimizes system profitability. Prior to joining Black&Veatch,Mr.Wilmes was a research engineer at the University of Nebraska at Lincoln.At the university,he performed jresearch to measure crop yield response to timings and quantities of fertilizer and water applications.These experimental results were used to build crop simulation models that were used to develop decision support systems to advise producers on the timing and quantities of water and fertilizer applications to maximize profit under limited water constraints.These models were also used to advise policymakers on the economic impacts of limiting aquifer withdrawals to maintain a sustainable water supply and for limiting fertilizer and chemical applications to maintain water quality. PROJECT EXPERIENCE Confidential Midwest Utility; United States; 2013-In-Progress Consultant-Black&Veatch.Mr.Wilmes is providing ongoing support in detailed financial and production cost analysis of resource replacement and emission retrofit options for coal units owned by a Midwest utility.Resource replacement options include retrofitting air pollution control systems,conversion to natural gas,conversion to combined-cycle facility,and retirement. Various Clients; Independent Engineer; United States; 2011-In- Progress Project Manager-Black&Veatch.Mr.Wilmes has been project manager on,or otherwise supported,numerous independent engineering/due diligence engagements for various clients considering either purchasing or selling individual assets or portfolios of assets.Activities included coordinating the activities of specialists involved in the engagements,communication with clients, developments of reports,and site visits. Slack &Veatch; Energy Market Perspective; Global; 2008-In- Progress Region Expert-Black&Veatch. SPP region expert for the Black& Veatch Midwest Energy Market Perspective and is responsible for developing the Black&Veatch outlook of SPP power markets that is updated every six months.The Energy Market Perspective (EMP) is a 25-year fundamental baseline view of electric,gas,oil and capacity prices across major pricing points across the U.S.power markets.The EMP leverages the ProMod production cost model to forecast hourly electricity prices over a long-term horizon. Prior to his focus on the SPP region,Mr.Wilmes was also the region expert for PJM. 4 BV.COM BLACK&VEATCH I APPENDIX C RESUMES 71 CITY OF VERNON I INTEGRATED RESOURCE PLAN Various Portfolios; Global; 2007-In-Progress Consultant-Black&Veatch.Mr.Wilmes has provided technical due diligence and strategic advisory services to domestic and international clients who are involved in various electric facility transactions,refinancing,and development activities of assets located 1 around the world. Florida Municipal Power Association (FMPA); Resource Planning Support; Florida, United States; 2014 Consultant-Black&Veatch.Mr.Wilmes worked with FMPA to provide resource planning support activities for their integrated I resource plan (IRP) efforts.Mr.Wilmes used the Ventyx Strategist model to produce optimal capacity expansion plans to meet FMPA's capacity needs going forward. !Nest Texas Municipal Power Agency; Integrated Resource Plan; i Lubbock,Texas, United States; 2013 Consultant-Black&Veatch.In preparing an IRP for the West Texas i Municipal Power Agency(WTMPA),Mr.Wilmes analyzed power supply alternatives beginning upon expiration of WTMPA's existing i full requirements power purchase from Southwestern Public Service Co. (,a wholly-owned subsidiary of Xcel Energy,Inc..WTMPA is a joint power agency and municipal corporation comprised of four cities in Texas; Lubbock being the largest member.The WTMPA IRP considered various solutions to meeting the power requirements of WTMPA upon expiration of its existing fuel requirements power purchase.The IRP considered self-owned generation in combination with participation in the Southwest Power Pool (SPP) Integrated Marketplace.Mr.Wilmes performed the Strategist capacity expansion optimization modeling the ProMod production cost modeling for the study.As part of the IRP process,Mr.Wilmes help prepare a presentation of the results of the IRP for presentation to both the WTMPA and city of Lubbock Board of Directors. Confidential Nuclear Restart Analysis; United States; 2013 Consultant-Black&Veatch.Mr.Wilmes provided nodal price analysis in support of restart analysis of an existing nuclear power plant.The nuclear power plant was shut down and required major capital and fixed operations and maintenance (0&M) expense before the unit was allowed back online.The analysis included an economic evaluation of restarting the plant compared to alternative resource options. BV.COM BLACK&VEATCH APPENDIX C RESUMES 72 CITY OF VERNON I INTEGRATED RESOURCE PLAN Grand Prairie 400 Megawatt (MW)Wind Economic Analysis; Nebraska, United States; 2013 Consultant-Black&Veatch.Black&Veatch performed an economic analysis of the 400 MW Grand Prairie wind farm located in western Nebraska.A utility was offered an unsolicited power purchase agreement(PPA) for output from the Grand Prairie Wind farm. Black &Veatch provided a recommendation on execution of the PPA to senior management and the utility's Board of Directors.Mr.Wilmes performed short-term security constrained economic dispatch(SCED) analysis for the potential purchase.The SCED analysis examined the future market structure and market demand,and included major e backbone transmission additions that could affect the operation of the asset.Projections of market energy prices,unit production, curtailment,and key congestion facilities for the project node were I provided,as well as performance projections,cost projections and revenue projections. Tyr Energy; Portfolio of Four Gas Units; United States; 2012-2013 Project Manager-Black&Veatch. Project Manager who performed I site visits for two assets for the independent engineering assessment of a four unit,gas fired portfolio including 50117C,7FA,and Wartsila technologies. f Village of Rockville Centre (RVC); Integrated Resource Plan; New York, United States; 2012 Consultant-Black&Veatch.Developed electric load forecast for an IRP study for the Village of Rockville Centre.The IRP included consideration of RVC's existing generating system and strategic planning to satisfy forecasted system requirements.The strategic planning process included consideration of conventional supply-side options,interaction with the purchase power market,demand-side management measures,and possible future environmental impacts. Confidential Client; Granite Ridge; United States; 2012 Consultant-Black&Veatch.Mr.Wilmes was responsible for coordinating the report detailing the independent engineering assessment on behalf of a potential buyer of a 2x1 SW 501G combined cycle project. State Grid International Development; US Wind Portfolio Valuation; Global; 2011-2012 Consultant-Black&Veatch.Mr.Wilmes was part of a large team tasked to work with State Grid International Development located in China and the investment bank of Morgan Stanley evaluating the potential acquisition of a portfolio of wind plants located across the U.S.Black&Veatch provided Morgan Stanley a long-term forecast of energy,capacity,and renewable energy credit(REC) prices that the wind portfolio could earn in each of the U.S.power markets. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 73 CITY OF VERNON I INTEGRATED RESOURCE PLAN Massachusetts Electric Company(MECO); Feasibility Analysis for Pumped Storage Hydroelectric Project; Massachusetts, United States; 2011 Consultant-Black&Veatch.Performed preliminary economic feasibility of using variable speed pumped storage hydroelectric f (PSH)generation to provide storage of intermittent renewable f generation during lower electric demand hours for use during higher demand hours,storage of generation from lower cost thermal generators available when system electric loads are low for use in lieu of more expensive thermal generators when system electric loads are higher,and delay in the need to add new generating capacity to maintain required capacity reserves.The electric system planning models Strategist and PROMOD were used to model the expansion and operation of the MECO system under four separate plans with and without the PSH plant,with a smaller version of the PSH plant,and with the PSH plant but without the 25 MW purchase of power from a new dedicated biomass plant. Delek Infrastructure Ltd.; Next Era Portfolio Valuation; Israel; 2011 Consultant-Black&Veatch.Black&Veatch was retained by an Israeli-based private equity firm looking for buy-side transaction support of the NextEra power plant portfolio up for sale.Mr.Wilmes provided a market-based valuation of combined-cycle assets located in the Midwest Region. ISEPA; Compressed Air Energy Storage Study; United States; 2010 Consultant-Black&Veatch.Performed an analysis of the net systems benefits of adding a Compressed Air Energy Storage (CAES) unit to a Midwest utility's existing generation portfolio.The operation of the CAES unit was modeled using the ProMod production cost modeling software.The total system production cost with and without the CAES unit were compared to determine the net benefit of the CAES unit to the utility. Board of Public Utilities; DSM Planning; Kansas City, Kansas, United States; 2010 Consultant-Black&Veatch.Evaluated the economics of proposed DSM programs using the DSMore (Demand-Side Management Option Risk Evaluator) simulator.Assembled the data needed to develop customized price and load profiles for the DSMore program.Also used the ProSym based Planning and Risk software to evaluate economics of peak reductions attributable to DSM programs. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 74 CITY OF VERNON I INTEGRATED RESOURCE PLAN I SPP; Southwest Power Pool Integrated Transmission Plan (ITP) Year 20 Assessment; Little Rock,Arkansas, United States; 2010 Consultant-Black&Veatch.SPP retained Black&Veatch to provide t assistance in developing 20-year forecasts of resource additions to maintain loads and resources balances throughout SPP.The forecasts I of resource additions were used by SPP in performing the ITP Year 20 Assessment.The ITP process is designed to provide guidance on SPP's near-and long-term transmission infrastructure needs.Black& Veatch developed four,20-year forecasts of load and resource balances throughout SPP based on four future scenarios.The project included the development of a resource plan,GIS location of resources within SPP,and integration of resources into SPP transmission models. Board of Public Utilities (BPU); Power Supply Planning Study; Kansas City, Kansas, United States; 2008 Consultant-Black&Veatch.Performed the system modeling simulations associated with a power supply planning study used to develop a generation expansion plan for the BPU considering future anticipated environmental regulations. Western Farmers Electric Cooperative; Electric Market Price Forecast Study; Oklahoma, United States; 2007 Consultant-Black&Veatch.Developed electric market price forecast for the SPP region by modeling SPP,Midwest Reliability Organization and the Associated Electric Cooperative Inc.and Entergy sub-regions of SERC and relevant connected areas in support of integrated resource planning study. Confidential Client; Electric Waste Coal and Gas Turbine Plants Valuation; United States; 2007 Consultant-Black&Veatch.Developed the electric market price forecast for the West PJM region and the Florida Reliability Coordinating Council (FRCC)and Southeastern Electric Reliability Council (SERC) regions of the southeastern United States by creating and using electric market models of the areas to estimate the value of the plants offered for sale to a group of investors. Confidential Client; Study of Transmission Expansion Alternatives; United States; 2007 Consultant-Black&Veatch.Performed an analysis of three transmission expansion alternatives by developing a detailed nodal transmission ProMod model of the Eastern Interconnect.The benefit to total production cost,locational marginal prices,and net cost to serve load was compared for the three alternatives. BV.COM BLACK&VEATCH I APPENDIX C RESUMES 75 CITY OF VERNON I INTEGRATED RESOURCE PLAN Confidential Client;Asset Valuation of Portfolio of Generation Facilities; United States; 2007 Consultant-Black&Veatch.Developed electric models of the E Western Electricity Coordinating Council system to forecast market b revenue streams of a portfolio of generation assets to evaluate the value of the assets offered for sale.The analysis was used to support the development of a bid for the purchase of the assets. BV.COM BLACK&VEATCH APPENDIX C RESUMES 76 CITY OF VERNON I INTEGRATED RESOURCE PLAN Appendix D Affidavit of Non-Collusion By Contractor I s I I BV.COM BLACK&VEATCH APPENDIX D AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR 77 AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR Kansas SrTAT-E OFOAI:IFORNIA ) Johnson )SS COUNT-Y OF+,OS.ANGE- -ES•- ) L.Shane Clark ,being first duly sworn deposes and says that he/she is Chief Financial Officer (Insert"Sole Owner","Partner","President,"Secretary",or other proper title) of Black&Veatch Managment Consulting,LLC (Insert name of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract;and further That prior to the public opening and reading of bids/proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal,or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penal of perjury that the above information is correct By: Title: Chief Financial Officer Date:8-7-17 March 2013 EXHIBIT C PAYMENT SCHEDULE E Kickoff 15,000 Load Forecast 20,000 Review of Distribution Work 25,000 Development of Resource Options 25,000 Development of Scenarios 25,000 Completion of PROMOD runs 25,000 I Draft Report 20,000 I Final Report 20,000 HOURLY BILLING RATES • • DESCRIPTION Administrative Support $110 Analyst $140 Senior Analyst $170 Consultant $235 Manager $275 Principal $295 Director $350 Managing Director $380 i 21 September 2017 EXHIBIT D LIVING WAGE PROVISIONS I Minimum Living Wages: F A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 22 September 2017 i i EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or j permit any act which is prohibited by law. i i 23 September 2017 v RECEIVED RECEIVED SEP 2 8 2017 L,TO SEP 2 8 2017 CITY CLEWS OFFICE STAFF REPORT CITY ADMINISTRATION PUBLIC UTILITIES DEPARTMENT DATE: October 3, 2017 TO: Honorable Mayor and City Council FROM: Kelly Nguyen, Vernon Public Utilities General Manage RE: Approval of Water Rights License and Agreement for Liberty Utilities Recommendation A. Find that approval of the proposed action is exempt under the California Environmental Quality Act("CEQA"),because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Approve a Water Rights License and Agreement with Liberty Utilities, in substantially the same form as submitted herewith, to lease 1,000 acre feet from the City of Vernon's Allocated Pumping Rights in the Central Basin for a lease unit price per acre foot is S 150.00 for a revenue total of$150,000 to be placed into the Public Utilities Water Fund Revenue Account; and C. Authorize General Manager of Public Utilities to execute the Water Rights License and Agreement with Liberty Utilities. Background The City of Vernon overlies the Central Basin and is party to the Judgment dated October 11, 1965, and entered in Los Angeles County Superior Court Case No. 786656 entitled "Central and West Basin Water Replenishment District v. Charles E. Adams, et al." Asa party to the Judgement, the City was awarded an annual Allocated Pumping Rights(APA)of 7,539 acre feet. The water rights are in perpetuity and have a market value of over S90,000,000. In 1959, the Water Replenishment District (WRD) was created to manage the groundwater basin and to oversee replenishment activities of the basin. In order to increase flexibility in the use of the City's APA, the WRD created the Carryover Program. The program allows the City to place unused water from its APA into a carryover account. For example, if the City uses 6,539 acre feet of its APA in any given year, it is allowed to put the remaining 1,000 acre feet, into its carryover account for later use. The 1,000 acre feet can be used at any time and is saved in the carryover Page 1 of 2 account in perpetuity. The program allows the City to place a maximum of up to 60% or 4,523 acre feet into its carryover account. It is also standard practice in the Central Basin to sell, purchase, lease, and trade unused water rights among parties to the Judgement in Central Basin. Over the last twelve years, a decline in The City's overall water demand fell by approximately 30%. In addition, groundwater well production decreased dramatically due to deferred maintenance_Lastly,water quality issues forced the decommissioning of two wells and curtailment of groundwater well production at two rehabilitated wells by sealing off contaminated aquifers. Due to these factors, the City's carryover account is at its maximum amount of 4,523 and due to recent well failures, staff is estimating that not all this year's water rights will be used. To prevent any loss of water rights, staff is recommending that the City's carryover account be reduced by 3,000 acre feet. Discussion Staff placed 3,000 acre feet of water rights out for lease. Three private water companies responded to the City's water right lease offering: • Liberty Utilities submitted an offer for 1,000 acre feet at$150 per acre foot • Suburban Water submitted an offer for 1,000 acre feet at$25 per acre foot • Golden State Water Company submitted an offer for 2,000 acre feet at$162 per acre foot The total anticipated revenues for the entire 3,000 acre feet leases is $474,000 for FY 2017-18. Benefits of leasing the water rights are as follows: • Increase in Water Division revenues by$474,000 for FY 2017-18 • Relief of the City's carry-over account • Flexibility to placed unused water rights in FY 2017-18 into the City's carry-over account • Elimination of anticipated water rights losses in FY 2017-18 The City Attorney has reviewed and approved the agreement as to form. Fiscal Impact This amount of$150,000 will be placed into the Public Utilities Department Water Fund revenue account for use in the Division's operating and capital improvement budgets for FY 2017-18. Attachments I. Proposed Water Rights License and Agreement with Liberty Utilities Page 2 of 2 WATER RIGHTS LICENSE AND AGREEMENT For valuable consideration,the City of Vemon("Licensor")hereby grants to Liberty Utilities ("Licensee") a license to extract One Thousand (1,000) acre-feet ofLicensor's Allowed Pumping Allocation allocated to Licensor(or its predecessors in interest)under and pursuant to thatoettain Judgment dated October 11, 1965 in the case of Central and West Basin Water Replenishment District v. Charles E. Adams, et al. (Los Angeles County Superior Court, Case No. 786656) (the "Judgment),during the period commencing July 1,2017 and continuing to and including June 30,2018 (the "Term"). Said License is granted subject to the following conditions: 1_ Licensee shall exercise said right and extract the same on behalf of Licensor during the Term and put the same to beneficial use and Licensee shall not by the exercise hereunder of said right acquire any right to extract water independent of the rights of Licensor. 2. Licensee shall pay assessments levied on the pumping of said ground waters by the Water Replenishment District of Southern California. 3. Licensee shall notify the Water Replenishment District of Southern California and the Watermaster that said pumping was done pursuant to this license and provide the Watermaster with a copy ofthis document. 4. Licensee shall note, in any recording of water production during the Term, that said pumping was done pursuant to this license. 5. Licensee's Allowed Pumping Allocation shall be increased by the amount hereby leased when computing carryover or allowable over extraction as provided by Part I II,Subpart A and B of the Judgment. Licensor warrants that it has One Thousand (1,000)acre-feet ofAllowed Pumping Allocation and that it has not pumped and will not pump or permit or license any other person to pump any part of said One Thousand(1,000) acre-feet during the Term. Dated: Oct. 3, 2017 CITY OF VERNON LIBERTY UTILITIES "Licensor" "Licensee" By: By. Kelly Nguyen General Manager of Public Utilities Name: Title: ATTEST: APPROVED AS TO FORM: Maria Ayala, City Clerk Brian Byun, Senior Deputy City Attorney