1. No category

COPIES OF THIS AGENDA
ARE AVAILABLE FROM THE
NEIGHBORHOOD
INFORMATION SERVICE AT
THE CENTRAL AND ALL
BRANCH LIBRARIES.
AGENDA
MUNICIPAL SERVICES COMMITTEE
January 27, 2015
MEMBERS
Margaret McAustin, Chair, District 2
Bill Bogaard, Mayor
Terry Tornek, District 7
STAFF
Phyllis Currie, General Manager
Valerie Flores, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services,
responsive to our entire community and consistent
with our history, culture and unique character.
Public meeting begins at 4:00 p.m.
Agendas and supporting documents are available on the Internet at
http://www.cityofpasadena.net/commissions
Materials related to an item on this Agenda submitted to the Municipal Services Committee after
distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 100 N.
Garfield Avenue, Room S-228,
Pasadena, during normal business hours.
REGULAR MEETING OF THE
MUNICIPAL SERVICES COMMITTEE
Tuesday, January 27, 2015, 4:00 P.M.
100 North Garfield Avenue, Pasadena, Council Chambers
AGENDA
1. CALL TO ORDER/ROLL CALL
2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA
3. APPROVAL OF MINUTES – October 14, 2014 and October 28, 2014 – Regular Meetings*
November 11, 2014 and November 25, 2014 – Canceled Meetings*
4.
INFORMATION ITEMS
A. IPA Contract Amendment and Renewal Offers*
B. Water Shortage and Conservation Update
C. Purchased Water Rate Adjustment for Increased MWD Water Costs
D. GT-5 Repowering Project Update*
5. ADJOURNMENT
* Attachment
NEXT REGULAR MEETING
February 10, 2015
Margaret McAustin, Chair
Municipal Service Committee
POSTING STATEMENT:
I HEREBY CERTIFY that this Agenda, in its entirety, was posted on the Council Chamber Bulletin Board S249, the bulletin board in the rotunda area at City Hall, 100 North
Garfield Avenue, the City Clerk’s Office, and a copy was distributed to the Central Library for posting on the 22nd day of January, 2015 by 4:00 p.m.
Sharon Stovall
DISTRIBUTION:
MSC Committee Members
City Council
City Manager
City Attorney
Central Library
City Clerk
Director of Public Works
Public Information Officer
General Manager
Director of Planning and Permitting
Los Angeles Times
La Opiñion
Pasadena Weekly
Pasadena Star-News
Neighborhood Connections
Pasadena Journal
In compliance with the Disabilities Act of 1990, listening assistive devices are available from the City Clerk’s Office with a 24-hour advance notice. Please call (626) 7447062 or (626) 744-4785 to request use of a listening device. Language translation services are available for this meeting by calling (626) 744-4386 at least 24 hours in
advance. Habra servicio de interpretactión disponible para éstas juntas llamando al (626) 744-4386 por lo menos con 24 horas de anticipactión. Items on the agenda may
not be called in the order listed.
CITY OF PASADENA
REGULAR MEETING OF THE CITY COUNCIL
MUNICIPAL SERVICES COMMITTEE
OCTOBER 14, 2014
COUNCIL CHAMBERS
100 N. GARFIELD AVENUE (2ND FLOOR)
OPENING
The Chair called the regular meeting of the Municipal Services
Committee to order 4:02 p.m.
ROLL CALL:
Councilmember Margaret McAustin, Chair
Mayor Bill Bogaard
Councilmember Terry Tornek
Staff:
Michael Beck, City Manager
Julie Gutierrez, Assistant City Manager
Brad Fuller, Assistant City Attorney
Phyllis Currie, General Manager, Water and Power
Tunji Adedeji, Energy Risk Manager
Shari Thomas, Assistant General Manager, Water and Power
Fred Dock, Director of Transportation
Mark Yamarone, Transportation Administrator
Valerie Flores, Recording Secretary
PUBLIC COMMENT
No one appeared for public comment.
NEW BUSINESS
AMENDED ENERGY PORTFOLIO RISK MANAGEMENT POLICY
Tunji Adedeji, Energy Risk Manager provided a PowerPoint presentation
summarizing the agenda report and responded to questions.
Michael Beck, City Manager, responded to questions regarding the
independent audit review process.
Phyllis Currie, General Manager, Water and Power, responded to
questions regarding the responsibilities of the Energy and Credit Risk
Management Committee.
Following discussion, it was moved by Mayor Bogaard, seconded by
Councilmember Tornek, to approve staff’s recommendation, and forward
the item to the City Council for consideration. (Motion unanimously
carried) (Absent: none)
NEW TRANSPORTATION PERFORMANCE MEASURES FOR
TRANSPORTATION IMPACT ANALYSIS AND THRESHOLDS OF
SIGNIFICANCE FOR CEQA (TRANSPORTATION)
Mark Yamarone, Transportation Administrator, provided a PowerPoint
presentation summarizing the agenda item and responded to questions.
The following individuals spoke in support of staff’s recommendation:
Rob Tyler, Pasadena resident
Jonathan Edewards, Downtown
Associations
Wes Reutimann, Day One
01
Pasadena
Neighborhood
10/14/2014
Greg Gunther, Pasadena resident
Following extensive discussion, the Committee directed staff to develop
a process by which Auto Level of Services (LOS) and Street Segment
Analysis would be applied to large development projects through
standardized conditions of approval in order to address identified effects,
with the understanding that this will replace environmental analysis
conducted under California Environmental Quality Act (CEQA) studies of
such projects.
It was moved by Mayor Bogaard, seconded by Councilmember Tornek,
to approve staff’s recommendation, and forward the item to the City
Council for consideration with the requested information to be included in
the staff report. (Motion unanimously carried) (Absent: none)
ADJOURNMENT
On the order of the Chair, the regular meeting of the Municipal Services
Committee was adjourned at 5:58 p.m.
____________________________
MARGARET McAUSTIN, Chair
Municipal Services Committee
ATTEST:
____________________
Valerie Flores
Recording Secretary
02
10/14/2014
CITY OF PASADENA
REGULAR MEETING OF THE CITY COUNCIL
MUNICIPAL SERVICES COMMITTEE
OCTOBER 28, 2014
COUNCIL CHAMBERS
100 N. GARFIELD AVENUE (2ND FLOOR)
OPENING
The Chair called the regular meeting of the Municipal Services
Committee to order 4:04 p.m.
ROLL CALL:
Councilmember Margaret McAustin, Chair
Mayor Bill Bogaard
Councilmember Terry Tornek
Staff:
Michael Beck, City Manager
Julie Gutierrez, Assistant City Manager
Lisa Hosey, Deputy City Attorney
Phyllis Currie, General Manager, Water and Power
Eric Klinker, Assistant General Manager, Water and Power
Wendy De Leon, Customer Relations Manager
Gurcharan Bawa, Assistant General Manager, Water and Power
Mark Yamarone, Transportation Administrator
Richard Dilluvio, Senior Planner, Transportation
Shari Thomas, Assistant General Manager, Water and Power
Valerie Flores, Recording Secretary
PUBLIC COMMENT
No one appeared for public comment.
Minutes
It was moved by Mayor Bogaard, seconded by Councilmember Tornek,
to approve the minutes of September 23, 2014 (regular meeting) as
submitted. (Motion unanimously carried) (Absent: None)
NEW BUSINESS
AUTHORIZATION TO ENTER INTO A MASTER INTER-UTILITY
AGREEMENT BETWEEN THE CITY OF PASADENA AND SOUTHERN
CALIFORNIA GAS COMPANY
Wendy De Leon, Customer Relations Manager, provided a PowerPoint
presentation summarizing the agenda report, and responded to
questions.
Phyllis Currie, General Manager of Water and Power, responded to
concerns from Committee members regarding the need to safeguard
Pasadena Water and Power (PWP) customers, stating that staff will
return to the Committee with additional information about the marketing
strategies for each specific “Program Order.”
Following discussion, it was moved by Councilmember Tornek,
seconded by Mayor Bogaard, to approve staff’s recommendation, and
forward the item to the City Council for consideration. (Motion
unanimously carried) (Absent: none)
AUTHORIZATION TO ENTER INTO A CONTRACT WITH SOUTHERN
CALIFORNIA GAS COMPANY ION THE AMOUNT OF $1,417,400 FOR
THE NATURE GAS PIPELINE/METER UPGRADE FOR THE
GLENARM REPOWERING PROJECT
01
10/28/2014
Gurcharan Bawa, Assistant General Manager, Water and Power,
provided a PowerPoint presentation summarizing the agenda report and
responded to questions.
Following brief discussion, it was moved by Councilmember Tornek,
seconded by Mayor Bogaard, to approve staff’s recommendation, and
forward the item to the City Council for consideration. (Motion
unanimously carried) (Absent: none)
BICYCLE TRANSPORTATION PLAN (TRANSPORTATION)
Mark Yamarone, Transportation Administrator, provided a brief overview
of the Bicycle Transportation Plan priorities and responded to questions.
Richard Dilluvio, Senior Transportation Planner, provided a PowerPoint
presentation summarizing the agenda item and responded questions.
The Chair suggested that staff work with Department of Public Works to
paint the designated bikeways green. The Chair also suggested that staff
simplify the branding of the planned network in order to convey the
message of calm, pedestrian/bicycle friendly streets.
Following discussion, on the order of the Chair, and by consensus of the
Committee, the information was received and filed.
WATER CONSERVATION UPDATE
Eric Klinker, Assistant General Manager, provided a PowerPoint
presentation summarizing the agenda item and responded to questions.
The Committee asked that staff create a marketing strategy that will
promote the Turf Removal Program, including details on a more
simplified removal process.
The Chair asked that staff create and make available lawn signs to
display the one day watering restriction beginning on November 1st,
2014.
Shari Thomas, Assistant General Manager of Water and Power,
continued the PowerPoint presentation, summarizing the current water
rate structure and briefly discussed the impacts of Assembly Bill 218, and
responded to questions.
Following brief discussion, on the order of the Chair, and by consensus
of the Committee, the information was received and filed.
GT-5 REPOWERING PROJECT UPDATE
As noted by the Chair, this item was pulled from the agenda and not
discussed.
Council Comments
02
The Chair asked that staff review the letter and information submitted by
Hugh Bowles at the October 27, 2014 City Council meeting regarding the
Arroyo Seco Canyon Project, and provide information, if necessary, to
the Committee at a future meeting.
10/28/2014
In response to the Committee’s request for a future agenda item on the
Sediment Removal Project in Hahamongna Watershed, Julie Gutierrez,
Assistant City Manager, stated that an update is already scheduled for
the November 3, 2014 City Council meeting.
ADJOURNMENT
On the order of the Chair, the regular meeting of the Municipal Services
Committee was adjourned at 5:52 p.m.
____________________________
MARGARET McAUSTIN, Chair
Municipal Services Committee
ATTEST:
____________________
Valerie Flores
Recording Secretary
03
10/28/2014
CITY OF PASADENA
REGULAR MEETING OF THE CITY COUNCIL
MUNICIPAL SERVICES COMMITTEE
NOVEMBER 11, 2014
COUNCIL CHAMBERS – ROOM S-249
100 N. GARFIELD AVENUE (2ND FLOOR)
The regular meeting of the Municipal Services Committee,
scheduled for Tuesday, November 11, 2014 at 4:00 p.m.,
was cancelled as ordered on November 6, 2014, and posted
as required by law.
____________________________________
Margaret McAustin, Chair
Municipal Services Committee
ATTEST:
Valerie Flores
Recording Secretary
11/11/2014
CITY OF PASADENA
REGULAR MEETING OF THE CITY COUNCIL
MUNICIPAL SERVICES COMMITTEE
NOVEMBER 25, 2014
COUNCIL CHAMBERS – ROOM S-249
100 N. GARFIELD AVENUE (2ND FLOOR)
The regular meeting of the Municipal Services Committee,
scheduled for Tuesday, November 25, 2014 at 4:00 p.m.,
was cancelled as ordered on November 20, 2014, and
posted as required by law.
____________________________________
Margaret McAustin, Chair
Municipal Services Committee
ATTEST:
Valerie Flores
Recording Secretary
11/25/2014
4.A
IPP Coal Contract Renewal Offers
January 27, 2015
Page 2
Recognizing that California utilities are unable to renew their participation in the coal-fueled
power plant under California law, IPA successfully sponsored a Utah state legislation (Senate
Bill 94) to enable a repowering of the coal-fired project to additional fuel options, including
natural gas, in order to facilitate a renewal offer for fuels other than coal for new power
generation. LADWP, as Operating Agent and the majority purchaser, in coordination with IPA
took the lead in developing a future IPP natural gas repowering proposal (embodied in the draft
Second Amendatory Power Sales Contract and the draft Renewal Power Sales Contract) that
would potentially replace the coal-fired IPP generation by January, 2025, when the current
bonds would have been substantially paid off. Though not explicit, it is expected that coal units
will be inoperative after the gas generation commences.
Because the new gas plant is expected to replace the coal fired plant during the term of the
existing agreements, all purchasers must approve an amendment to the existing Power Sales
Contract, referred to as the “Second Amendatory Power Sales Contract,” for the proposed
natural gas repowering to go forward. All of the IPP purchasers except Pasadena, Riverside,
Burbank, Glendale and one Utah entity have agreed to sign the proposed Second Amendatory
Power Sales Contract. Due to the increased risk, loss of existing rights and value, and
increased cost anticipated under the natural gas repowering proposal, PWP and these three
other California cities have not yet committed to signing the Second Amendatory Power Sales
Contract and Renewal Power Sales Contract (commitment to new generation) as written.
Despite hearing concerns raised for a long time, IPA has thus far been unwilling to modify the
terms of these contracts to address these concerns.
On November 21, 2014, IPA met its contractual obligation by formally offering a 50 year
extension of the existing Power Sales Contracts for coal-fired generation. Pasadena and other
IPA participants in California cannot accept the Coal Renewal offer under California law.
IPA has expressed strong desire for the current purchasers to either accept the coal renewal
offer or preferably execute Second Amendatory Power Sales Agreement with the option to
participate in the future generation. If these renewal offers are rejected, IPA believes it does not
have any contractual obligation to the existing purchasers to utilize its facilities (i.e. land, water
rights, generation and transmission) after the Existing Power Sales Contracts expire. Either
outcome would allow IPA to plan for its future after the current contracts expire.
Therefore, if the City declines to accept the current renewal offers and is unable to negotiate an
alternative contract structure with an acceptable balance of cost, benefits, and risks, there is a
possibility that Pasadena could be left with no contractual rights to any of the IPA-owned
generation or transmission facilities after the current contracts expire in June 2027. Negotiations
to address these concerns are ongoing.
BACKGROUND:
This report involves six contracts (two existing and four proposed) related to IPA and IPP:
•
The Existing Power Sales Contract, as amended on August 1, 1980 and
February 1, 1983, expires June 15, 2027.This contract also includes the obligation to pay
IPP Coal Contract Renewal Offers
January 27, 2015
Page 3
for, and rights to utilize, associated transmission from IPP to the LADWP system in
California during the term of the agreement. Under the Existing Power Sales Contract,
PWP has a 4.409 % share of IPP (79 MW) and 5.875% share of STS (141 MW).
•
The Excess Power Sales Agreement, dated December 1, 1980, under which the Utah
purchasers assigned their IPP generation and transmission obligations and entitlements
to specific California IPP purchasers, including the City of Pasadena. Each year, the
Utah purchasers have a right to recall some or all of the capacity assigned to the
California Purchasers. This contract expires on June 15, 2027. Under the Excess Power
Sales Agreement, PWP has up to a 1.591 % share of IPP (29 MW) and 7.556% share of
NTS (98 MW). Historically, the Utah participants have recalled little or none of the
capacity assigned to the California IPP purchasers.
•
The proposed Second Amendatory Power Sales Contract (also known as the natural gas
Repowering Amendment) would modify the Existing Power Sales Contract to facilitate
replacement of the 1,800 MW coal-fired generating units with an estimated 600-1,200
MW natural gas-fired generating unit or units by 2025, and assure payment of coal-fired
facility decommissioning and retirement costs. All existing purchasers must sign it for the
new gas generation project to move forward prior to June 15, 2027.
•
The natural gas Renewal Power Sales Contract would extend the IPP power purchase
term beyond June 15, 2027, and replace the coal-fired generation with reduced capacity
from the natural gas-fired generation once the new generating units are on line
(approximately 2025). Existing purchasers are not obligated to participate in the Renewal
Power Sales Contract; however, participation is required for California purchasers to
retain any rights to use the STS.
•
The Renewal Excess Power Sales Agreement with Utah entities and IPA, is similar to the
existing Excess Power Sales Contracts and would provide an option for the Utah entities
to assign their contractual obligations to the signing California Entities. Existing California
purchasers are not obligated to participate in the new generation; however, participation
is required for California purchasers to retain any rights to use the NTS.
•
The Renewal Power Sales Contract (Coal-Fueled Generation), also known as the Coal
Renewal Offer, is an alternative to the original natural gas Renewal Power Sales
Contract, which would extend, on substantially the same terms and conditions, the
Existing Power Sales Contract for coal-fueled generation from June 15, 2027 through
2077. IPA would deem any existing purchaser’s lack of a response by March 21, 2015 to
mean the renewal offer has been declined.
In addition to the City of Pasadena, the other California purchasers under the Existing Power
Sales Contract include the Cities of Anaheim, Burbank, Glendale, Riverside and LADWP. The
remaining 30 purchasers are from Utah. Each of the purchasers pays a share of project costs
proportionate to its allocation of generation and associated transmission, including debt service.
IPP Coal Contract Renewal Offers
January 27, 2015
Page 4
The Excess Power Sales Agreement provides a mechanism for the Utah purchasers to lay off
to willing California purchasers IPP power and associated transmission that is surplus to the
needs of the Utah purchasers’ respective power systems.
The proposed Second Amendatory and Renewal Power Sales Contracts developed by IPA and
LADWP to meet IPA’s contractual obligation to offer a renewal option are complex documents,
and there are many issues of concern to PWP. The following are some of the critical unresolved
issues:
Concerns with the Second Amendatory Power Sales Contract
•
Forced participation in gas plant: Whether or not Pasadena chooses to participate in the
new gas-fired plant, the Second Amendatory Power Sales Contract requires Pasadena to
take a pro-rata share (based on our current contract share) of the new gas plant from the
time it commences operation (in 2025 or earlier) until the original June 15, 2027
expiration date (“Transitional Period”). Pasadena would incur the full debt service,
operating costs, and amortized decommissioning costs associated with the new gas
plant during the Transitional Period.
•
Loss of Capacity: During the Transitional Period, Pasadena’s capacity entitlement in
megawatts is expected to be about two-thirds or less than it would be under the Existing
Power Sales Contract. In addition, there is some possibility that none of the capacity
from the new gas plant will be accepted by the CAISO as qualifying to meet PWP’s
Resource Adequacy Requirement, as the existing grandfathered capacity does.
•
Gas-Repowering Cost: The capital, operating, and fuel costs of the proposed gas plant
are unknown, but expected to be substantially higher than the existing coal plant, which
will have no remaining financing costs during the Transitional Period. Although future
costs and market conditions are highly uncertain, PWP estimates that ratepayers may be
exposed to additional costs totaling $30 to 80 million during the Transitional Period as a
result of replacing the existing IPP coal plant with the proposed natural gas plant.
Concerns with the Natural Gas Renewal Power Sales Contract
•
Undefined Project: The proposed Renewal Power Sales Contract requires the City to
make a long-term commitment to gas-fired generation that has not been defined in terms
of scope, size, technology, estimated cost, or any of a number of critical contractual
variables that one would expect to be required prior to making a binding financial
commitment.
•
No Off-ramp: As written, the Renewal Power Sales Contract requires the City to make a
commitment today with no meaningful opportunity to adjust that decision in response to
updated market conditions and individual utility needs once the project variables and
financing needs have been defined (expected to be no earlier than 2019). The Renewal
provides for reducing generation commitment by either (a) 20% or (b) to zero, by
providing written notice no later than April 2, 2015. The exit provision will have expired
before Pasadena signs the Renewal Power Sales Contract. Without a meaningful offramp provision, it may not be prudent to commit to a specific amount of base-load
IPP Coal Contract Renewal Offers
January 27, 2015
Page 5
natural gas-fired generation in Utah at this point in time when there are other
alternatives, including preferred resources (e.g., demand response and renewables), and
local gas-fired generation that could also provide flexible/local resource adequacy and
reliability benefits.
•
Transmission: The California IPP participants have financed and paid for the valuable
STS and NTS transmission associated with the IPP project, and wish to preserve rights
to the transmission in order to access potential renewables, energy storage and other
generation in the area, regardless of future participation in IPP. The proposed Renewal
Power Sales Contract ties the City’s future transmission rights to its long-term
commitment to IPP generation renewal. Some of the IPP participants believe national
energy policy has evolved to a different standard since the original contracts were
executed in the early 1980’s.
Coal Renewal Offer
The Coal Renewal Offer period is open for 120 days (until March 21, 2015), after which IPA
believes it has met its renewal offer obligation under the Existing Power Sales Contracts, and
can offer the IPP assets, including transmission capacity, to any party it wishes for delivery
beginning at the end of the Existing Power Sales Contract term.
The Emission Performance Standard regulations pursuant to California Senate Bill 1368 (2006),
the Greenhouse Gas (“GHG”) Emission Performance Standard, effectively prohibit Pasadena
and the other California utilities from accepting the Coal Renewal Offer. Senate Bill 1368
prohibits any load serving entity and any publicly owned utility from entering into a contract or
financial commitment with a term of five years or longer unless the base load generation
complied with the GHG emissions standard to be approved by the California Public Utilities
Commission and California Energy Commission. Subsequently, these Commissions set the
GHG emissions standard at 1,100 pounds of carbon dioxide per megawatt which cannot be met
by any currently available coal electric generation technology.
Declining the Coal Renewal Offer is also consistent with PWP’s greenhouse gas emission
reduction efforts.
Current Options
Unless other alternative terms or arrangements can be negotiated, then the choices and their
consequences are as follows:
•
Do nothing: PWP would retain existing rights and obligations through June 2027, and
the proposed gas plant could not proceed prior to then. There is a possibility that Pasadena could be left with no contractual rights to any of the IPA-owned generation or
transmission facilities after the current contracts expire.
•
Approve and sign the Second Amendatory Power Sales Contract: The IPP coal
would likely shut down when new gas plant is operational, and PWP would be committed
to taking energy from the new gas plant at full cost through June 2027. This could increase PWP’s costs by $30-80 million over a two-and-a-half year period. PWP would
have the option to participate in the gas renewal, but otherwise would be left with no con-
IPP Coal Contract Renewal Offers
January 27, 2015
Page 6
tractual rights to any of the IPA-owned generation or transmission facilities after the current contracts expire.
•
Sign the Renewal Power Sales Agreement: Requires approval of the Second
Amendatory Power Sales Contract. This would provide PWP with a share of the gas
plant and associated rights to the STS for fifty years.
•
Sign the Excess Renewal Power Sales Agreement: Requires approval of the Second
Amendatory Power Sales Contract. This would provide PWP with a share of the gas
plant and associated rights to the NTS, both subject to annual recall by the Utah participants, for fifty years.
Ongoing Negotiations
PWP and other California cities 1 have been engaged with IPA and LADWP regarding
alternative arrangements that might potentially address some of the myriad concerns with
respect to IPP renewal. There are many parties involved in these negotiations, and many of the
issues are outside of the City of Pasadena’s control. Some of the issues are not clear to any of
the involved parties and are being clarified with authors of these agreements and IPA. It is the
intention of PWP staff to continue to explore with IPA and other IPP purchasers the feasibility of
alternative(s) to these proposed agreements that would retain or enhance the overall value of
the IPP facilities and assets for the City of Pasadena upon expiration of the Existing Power
Sales Contract. Any such alternative(s) involving PWP must be approved by the City of
Pasadena City Council in order to become effective.
The following are key issues being discussed with LADWP in a good faith effort to resolve major
concerns with the hope that LADWP by itself or in coordination with IPA will be able to address
these concerns in a manner that would allow the gas renewal project to go forward.
1
•
An option to exit the gas renewal project at a later date when costs and operational characteristics are better defined. A City that exits the renewal project at a later date should
have no ongoing obligations;
•
Current purchasers that have paid for these assets should have ongoing rights to STS
and NTS transmission;
•
LADWP should continue to provide unrestricted use of LADWP-owned transmission that
delivers energy from STS to the purchasers city;
•
Address economic losses during the Transitional Period; and,
•
Address operational requirements identified by purchasers, especially those in the California Independent System Operator.
With the exception of Anaheim, which has signed the Second Amendatory Power Sales Contract but has indicated
they do not intend to participate in in the natural gas Renewal Agreement.
4.D
PASADENA W ATER AND POW ER
MEMORANDUM
January 27, 2015
To:
Municipal Services Committee
From:
Phyllis, Currie
General Manager
Subject: Glenarm Repowering Project Status Report
This item is for information only.
The attached report provides an update to the Municipal Services Committee (“MSC”) on the current
activities and status of the Glenarm (“GT-5”) Repowering Project as part of staff efforts to ensure the
project stays on schedule and within the budget. The status report lists current activities, major
issues, concerns, project pictures, schedule, financial summary, health and safety record, local
workforce utilization, and Pasadena First Buy Local activities.
Pasadena Water and Power generally provides status reports to the MSC on the second meeting
each month. The report format continues to evolve and improve based on the feedback from the
MSC, public, and staff.
ATTACHMENTS:
Attachment 1 - Glenarm Repower Project Status Report
Attachment 1 - Exhibit 1 - Financial Summary
Attachment 1 – Exhibit 2 – Project Schedule
Attachment 2 – Local Participation
Attachment 1 – Glenarm Repowering Project Status Report
Status Report
January 2015
Glenarm Repowering Project
Combined Cycle Power Plant (GT-5)
Rendering of GT-5






Greater reliability of Power
Most advanced technology
Most efficient in its class
Least emissions in its class
Help integrate solar and wind power
Preserve historic buildings on site
Glenarm Plant Mid-1950s
Main Condenser and Storm Drain Reroute
City of Pasadena Water and Power Department
Glenarm GT5 Repowering Project Status Report
January 2015
The project continues to move forward towards a May/June 2016 Commercial Operation date. The
following major activities have occurred since the last update.

Budget
o City Council approved increase of the project budget by $5 million from $131.9 million to
$136.9 million on September 30, 2014 to provide allowance for potential contingencies.
o At this time, PWP anticipates completing the project within budget.

Balance of the Plant contract (“BOP”) – Contractor: ARB, Inc.
o Excavation, backfill and compaction at the site continued.
o Electrical conduit bank installation continued.
o Equipment procurement is on schedule.
o Foundations for gas turbine and cooling tower have been completed.
o Storm drain rerouting is under progress.
o ARB change order #1 invoice in the amount of $212,110 was submitted.
o Change Order #2: HDPE piping for a $22,000 credit, removal of annubar type of flow meter
from scope for $8,000 credit, firemain repair $1,775.05, pipe trench closure for $5,751.46,
blast and epoxy for $120,000, disposal of excess organic soil in the amount of $112,060.04
and $1,800 for raised floor in the control room. Grand Total of $211,386.55
o ARB has submitted the following change order requests which are being reviewed by the
staff but no decision is made yet.
 Cost to move organic soil to Broadway Plant for $40,677.10
 Over-excavate and re-compact above the base bid quantities for $75,525
 Disposal of concrete foundations, bricks and contaminated rail road ties for
$231,008.

Power Island Contract (“PIE”) – Contractor: General Electric
o Procurement and manufacturing are proceeding on schedule.
o Generator Step-up Transformer testing was completed.
o Change Order # 4 - Change the steam turbine enclosure delivery date, incorporate the
plant general arrangement drawing into the contract, identify the control panel delivery
location, and adjust the plant auxiliary load performance guarantee by 186 kW due to the
absence of Variable Frequency Drives for the boiler feed pumps and 52 kW for the use of
glycol instead of Dynalene® in the plant chill water loop has been approved. The change
order did not result in any cost and was approved.
o Change Order # 5 – GE will perform the PLSF model to meet the SCE interconnection
request for $8,750. Change order has been approved
o Change Order # 6 – GE will modify the GSU transformer mounting base to allow for
welding. GE cooling tower supply will accommodate the change in the cooling tower height.
Total cost of change order will be $11,117. There is a $3,000 offset by a credit to the City
by ARB. Change order has been approved
o Change Order # 7 – reschedules the catalyst delivery dates. The change order does not
change the contract amount.

Site Operations
o State street closure is expected the first week of February
o Coordination with Power Delivery for installation of 34 kV and 17 kV lines continued

Other Project Activities
o Hosted site tours for PWP personnel and Executive Leadership group.

Major Potential Issues
On Going Issues
o Updated: California Clean Energy Committee filed an appeal and petitioned for a stay
order for the GT-5 Repowering project. The judge denied the petition for the stay order.
Oral argument has been set for April 9, 2015.
o Updated: Gas Compressor Fire Protection
The gas compressor sound attenuation enclosure has been redesigned to have 3 walls and
a partial roof. Pasadena Fire Department has indicated they will require a fire protection
system for the enclosures. Staff has proposed a fire-eye type of system tied to the main
gas trip as an option.
o GE’s sound engineer has indicated there may be a need to install sound walls around the
generator step-up transformer. The estimate for the sound wall including installation is
$200,000.
o EIR consultant is claiming approx. $100,000 in costs in excess of the contracted amount.
o 89.2% percent of the Power Engineers’ contract amount is expended. Power Engineers
has provided a detailed task and cost estimate for their expected remaining involvement.
Staff will contain the scope of work to remain within the contracted amount.

Schedule
o ARB has submitted a schedule with a target for May 16, 2016 for Substantial Completion.

Safety
o There has been no reportable health and safety related incident or injury.
EXHIBIT - 1: Financial Summary
EXHIBIT - 1: Financial Summary
Glenarm Repowering Project (GT-5) Status Report For MSC on January 27, 2015
Glenarm Repowering Project (GT-5) Status Report For MSC on January 27, 2015
Table 2 - Repowering Project Payments
Table 3 - Repowering Project Contingency
Updated: January 21, 2015
Reporting Through December 22, 2014
Description
Remaining
Commitments
With
Contingencies
Payments
Updated: January 21, 2015
O
P
Q
Total Awarded,
Potential Changes
& Project
Contingency
Applied minus
Savings realized
(L - M)
Spent through
12/22/14
R
S
% Of Total
Amount Spent
Awarded and
Between Last Report
Approved Contract
Period (11/13/14)
Amount
and 12/22/14
(O ÷ E)
Contract Contingency
Pending
Invoices
Reporting Through December 22, 2014
Major Contracts
Major Contracts
PIE Contract - GE Packaged Power
$
61,870,529
$
36,342,567
$
0
58.7%
$
2,729,638
PM/CM Contract - PROU
$
3,304,000
$
636,023
$
108,566
19.3%
$
138,803
Air Permit -Worley Parsons
$
330,500
$
307,172
$
0
92.9%
$
CEQA/EIR - PCR Services
$
333,107
$
227,737
$
0
97.7%
$
BOP Contract - ARB
$
56,432,680
$
8,996,985
$
1,236,989
16.2%
$
1,916,120
OE Contract - Power Engineers
$
3,000,000
$
2,676,642
$
89.2%
$
53,982
Subtotal: Major Contracts
$
125,270,816
$
49,187,125
$
1,345,554
39.5%
$
4,838,543
$
(0)
Contract + Project Contingency
Contracted
Used
Remaining
(T - U)
Approved
Committed
Change Orders
Used
Remaining
(W - X)
Contracted
and Allotted
(T + W)
Used
(U + X)
Remaining
(Z - AA)
T
U
V
W
X
Y
Z
AA
AB
PIE Contract - GE Packaged Power
$
1,376,000
$
19,867
$
1,356,133
$
0
$
1,376,000
$
19,867
PM/CM Contract - PROU
$
300,000
$
0
$
300,000
$
0
$
300,000
$
0
0
Air Permit -Worley Parsons
$
20,000
$
0
$
20,000
$
0
$
20,000
$
0
0
CEQA/EIR - PCR Services
$
21,110
$
15,740
$
5,370
$
0
$
21,110
$
15,740
$
212,110
$
212,110
$
212,110
$
0
$
0
$
0
$
212,110
$
1,929,220
$
247,717
Other Contracts and Miscellaneous
PWP & Other Dept. PO's
Project Contingency ($2.5 million)
951,008
$
938,106
$
1,997
59.6%
$
4,550
Natural Gas Pipeline/Meter Upgrades - Southern Caliornia
$ Gas Company
1,417,400
$
1,288,545
$
1,288,545
90.9%
$
0
Art Funding
$
302,088
$
79,156
$
79,156
26.2%
$
0
Local Hire/Buy Local - CBA
$
83,479
$
14,105
$
4,905
16.6%
$
0
AQMD Fees
$
87,790
$
87,790
$
0
100.0%
$
0
PWP Labor and Materials
$
1,892,400
$
1,409,382
$
1,718
74.5%
$
0
Subtotal: Other Contracts and Miscellaneous
$
4,734,165
$
3,817,084
$
1,376,321
71.2%
$
4,550
Project Subtotal
$
130,004,981
$
53,004,209 $
2,721,876
40.8%
$ 4,843,093
Totals
$
130,004,981
$
53,004,209 $
2,721,876
40.8%
$ 4,843,093
BOP Contract - ARB
$
212,110
OE Contract - Power Engineers
Subtotal: Major Contracts
$
1,717,110
$
35,607
$
1,681,503
$
212,110
$
0
$
1,681,503
City of Pasadena
Department of Finance, Purchasing Division
Pasadena First Buy Local
Local Participation Plan Update
For the Glenarm Repowering Project (Project)
As of January 13, 2015
1) The status of the Local Participation Plan (Plan) is covered in weekly meetings with the
contractors to maintain focus on the Local Participation goals. The Plan calls for 15% local
subcontracting and procurement. As of January 13, 2015 the Project is reporting $500,162.02 or
29.4% of its subcontracting and procurement has been spent with Pasadena businesses.
2) The Project Labor Agreement calls for 25% of the payroll to be satisfied by Pasadena residents.
Staff has been monitoring the onsite certified payroll on an ongoing basis since the start of the
Project, and advising the Prime and Project Team on strategies that will enable the Project to
meet or exceed the local hiring goal. As of January 13, 2015, ARB and their subcontractors are
reporting $162,939.61 in payroll to Pasadena residents, which represents 37.6% of the total
payroll for the project. A labor wage summary report is attached for review.
3) Staff provided a “late certified payroll” report to the Project Team, the Prime and subcontractors.
The purpose of this report was to inform the team of the contractor’s certified payroll submittals
that were more than 14 days late. Staff has recommended that contractors be required to be
current with their payroll reports prior to processing their Pay Applications.
4) Staff is facilitating ongoing follow up on requests made from ARB and their subcontractors to the
Union halls. At this stage of the Project, there is an adequate Pasadena workforce in unions for
meeting the 25% goal. However, ARB has projected that the required workforce for the Project
could be increased significantly between now and August 2015. Based on the labor projections for
the most utilized trades, it is unlikely that the current supply of Pasadena residents in the unions
will be sufficient to keep the Project above 25% through August 2015. Therefore, to increase the
number of Pasadena residents in the unions, staff has recommended that the contractor(s) begin
to consider Pasadena residents for sponsorship in the most utilized trades.
5) On December 10, 2014 at 8:30AM at City Hall, staff facilitated a “Special Recruitment” for
Pasadena residents to join the Pipefitters.
ARB is projecting this trade to be one of the top
trades for the Project. The pipefitters provided a detailed presentation of their apprenticeship
programs and application processes to the approximately 15 Pasadena residents who attended
the recruitment. The purpose of this effort was to expand the Pasadena workforce with the unions.
The outreach for this effort included direct briefing to various community stakeholders, a posting
on the Project’s web page (http://cityofpasadena.net/waterandpower/gt5/), a mailer to over 120
Pasadena residents in our database, distribution to neighborhood associations, community
centers and the Central Library, and a posting on the City’s Facebook, Twitter accounts and
KPAS.
6) To date, staff has conducted the following outreach efforts to prepare Pasadena residents, and
Pasadena businesses for possible economic opportunities on the Project:
 January 8, 2014, Meet & Greet between Pasadena businesses and pre-qualified prime
contractors
 January 22, 2014, Meet & Greet between Pasadena businesses and pre-qualified prime






contractors
May 21, 2014, Job Development Skills Workshop for Pasadena residents, conducted by
the Foothill Workforce Investment Board
May 28, 2014, Opportunity Fair between Pasadena residents, unions and the prime
contractor and subcontractors
June 14 to 18, 2014, Laborers’ Bootcamp/Special Recruitment for Pasadena residents
August 15, 2014, Special Recruitment, Boilermakers, Electricians and Iron Workers for
Pasadena residents
November 4, 2014, Special Recruitment, Carpenters and Cement Masons for Pasadena
residents
December 10, 2014, Special Recruitment, Pipe Fitters for Pasadena residents
In addition to the targeted outreach facilitated in 2014, a letter that summarizes the individual
requirements, documentation, and contact information of various union apprenticeship programs
will be sent to Pasadena residents.
7) Staff continued its outreach to local organizations to request contact information for potential
Pasadena apprentices to be included in the City’s local hiring database. The purpose of this effort
is to ensure that Pasadena residents seeking apprenticeship and employment opportunities are
included in the recruitment and referral process.
8) Staff continues to meet with community stakeholders to discuss Local Participation. The purpose
of these meetings is to provide information on strategies the City uses to maximize local
participation. The benefit of these meetings are information sharing, and overall communication
with community members interested in the results of the City’s local hiring and procurement
efforts.