DRAFT MINUTES OF THE REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD MEETING. September 19, 2016

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1 1. ROLL CALL DRAFT MINUTES OF THE REGULAR MEETING CITY OF ALAMEDA PUBLIC UTILITIES BOARD MEETING September 19, 2016 President Sutter called the meeting to order at 7:01 p.m. On roll call, the following commissioners were present: Deaton, Sutter, Giuntini and Keimach. Commissioner Ann McCormick joined the meeting at 7:07 p.m. 2. ORAL COMMUNICATIONS NON AGENDA (Public Comment) Alameda resident Ken Peterson said that the electric utility industry has misperceptions that wind and solar are not reliable sources of energy. In light of climate change, the industry needs to use more renewable energy, he said. 3. CONSENT CALENDAR A. Minutes - Regular Meeting July 2016 B1. Listing of Bills Paid July 2016 B2. Listing of Bills Paid August 2016 C1. Financial Report June 2016 C2. Financial Report July 2016 D1. Treasurer s Report July 2016 D2. Treasurer s Report August 2016 E. By Motion, Authorize the Sale of 12 Megawatts of Non-Flexible Excess Bay Area Local Resource Adequacy Capacity to Exelon Generation Company LLC F. By Resolution, Approve Supplement No. 1 To The Amended And Restated Northern California Power Agency Joint Powers Agreement Adding The City Of Shasta Lake As A Party To The Agreement, Recommend City Council Approval Of The Agreement, And Authorize Alameda s Utility Director, Interim General Manager Elizabeth Warmerdam To Execute Supplement No.1 Documents G. By Resolution, Authorize the Interim General Manager for a One Time Purchase of 20,800 Feet of 1000 KCMIL Underground Distribution 15 Kilo-Volt Power Cable from The Okonite Company in an Amount Not to Exceed $291,000 (Material Specification No. MS )

2 H. By Motion, Application of the Economic Development Incentive Rate to Concreteworks Cladding Company I. By Motion, Authorize the Interim General Manager to Award a Labor, Materials, and Equipment Contract to Osmose Utilities Services, Inc. to Inspect, Test, and Treat Wood Poles in the City of Alameda, in an Amount Not to Exceed $345,975 with at 10 Percent Contingency of $34,598 for a Total Not to Exceed $380,573 Per Specification No. CS President Sutter pulled item 4E, and the Board moved it to October s Board meeting. Commissioner McCormick pulled item 4H. The balance of the consent calendar was unanimously approved after a voice vote. Commissioner McCormick asked clarifying questions about the application from Concreteworks Cladding for the economic development incentive. The company had begun applying for the incentive rate prior to the incentive's elimination in April 2015; however, site remediation delayed the company from moving to Alameda and completing the application. Staff requested that the company be grandfathered to receive the incentive rate. City Manager Keimach suggested that AMP look at offering the program again, but with stricter guidelines to qualify. Item H was unanimously approved after a voice vote, with a motion from Commissioner McCormick and a second from President Sutter. 5. AGENDA ITEMS A. For Information Only, Public Power Week 2016 Activities Staff updated the Board on the many activities that AMP will hold to celebrate Public Power Week 2016 (October 2-8). The item was informational and no action was required from the Board. B. Motion, Authorize the General Manager to Award Service and Material Contracts to Landis+Gyr Technology Inc. (Advanced Metering Infrastructure) in an Amount of $5,351,521 with a Contingency of $802,728 for a Total Not to Exceed $6,154,249, Harris Utilities (Meter Data Management System) in an Amount of $614,183 with a Contingency of $92,127 for a Total Not to Exceed $706,310, Smart Utility Systems LLC (Customer Web Portal) in an Amount of $133,145 with a Contingency of $19,972 for a Total Not to Exceed $153,117, and UtiliWorks Consulting, LLC (Project Implementation Management) in an Amount of $974,250 with a Contingency of $170,850 for a Total Not to Exceed $1,145,100, for the Equipment, Software, and Services Required for a Full Deployment of an Advanced Metering Infrastructure in Alameda.

3 In a presentation to the Board, staff provided information on four proposed contracts for AMP s Advanced Metering Infrastructure project. Staff said that AMP s first invitation for bids for meter installation services, which was published in June, didn't generate any responses. Since then, AMP has refined its requirements and reached out to prospective vendors. Staff noted that AMP republished its invitation for bids on Sept. 8 with an Oct. 10 deadline. AMP staff may bring a proposal for a meter installation services contract to the November Board meeting. Commissioner Deaton asked how renewable energy credits (REC) would be committed to the project. Staff responded that plans on how the REC funding would be spent were part of the pro-forma presentation in March. Commissioner Ann McCormick asked if bond funding was needed for the project. Staff responded that AMP has sufficient reserves for the project. Commissioner Ann McCormick asked about the AMI pilot project. Staff responded that the smart meters that were installed during the pilot would need to be replaced. The pilot meters have scrap value, staff said. City Manager Keimach asked whether price was considered when AMP staff evaluated its short list of prospective vendors. Staff responded that price was one of the variables that was used to short list the vendors. Staff also said that AMP selected its short list based on the best fit. For example, the meter data management system drew prospective vendors that were priced lower than Harris Utilities, but they did not have the features AMP needed. City Manager Keimach asked whether the fees proposed by Harris Utilities and Landis+Gyr Technology Inc. were the most expensive of those submitted for the respective services. Staff responded that they were in the middle of the range. City Manager Keimach and President Sutter asked staff to describe the costs after the fifth year of the contracts. Staff responded that AMP built in the ability to extend the agreement after five years, if the Board desired. President Sutter noted that the text of the proposed contract for Harris Utilities was not in the Board s packet. Commissioner Ann McCormick said that she had expected representatives from prospective vendors to attend the meeting in person. Commissioner Giuntini asked whether staff negotiated the price of the contract with UtiliWorks Consulting, LLC. Staff confirmed.

4 Commissioner Giuntini asked whether the meters had a warranty. Staff responded that there was an 18-month warranty. President Sutter asked whether AMP would pay Harris Utilities, a Canadian company, in Canadian or American dollars. Staff responded that AMP would pay the company in U.S. dollars. City Manager Keimach asked about the type of contract AMP would enter into with UtiliWorks Consulting. She asked if the UtiliWorks had gone through a competitive bid process at one point. Assistant City Attorney Alan Cohen confirmed. He added that the UtiliWorks Consulting, LLC contract is a service contract, not a public works project. It does not need to be subject to competitive bidding. Commissioner Deaton said she wanted to ensure that customer service would be taken into account during the installation of the meters. Staff responded that one of the requirements for the meter-installation vendor would be to provide a call center. Commissioner Giuntini said that she was concerned about damage to residents homes during installation. Staff responded that AMP staff will be monitoring the installation process. Since the Harris Utilities contract was not attached to the Board s agenda packets, Assistant City Attorney Cohen said the Board could amend the motion regarding the Harris Utilies agreement. The Board unanimously approved the contracts with Landis+Gyr Technology Inc., Smart Utility Systems LLC, and UtiliWorks Consulting, LLC. In a second action, President Sutter then moved to provide Interim General Manager Warmerdam with the ability to negotiate and execute the Harris Utilities agreement identified in the administrative report, along with the terms and conditions identified in the report. The motion was seconded by City Manager Keimach and then unanimously approved by the Board. 6. GENERAL MANAGER S REPORT Interim General Manager Warmerdam told the Board that AMP completed an important phase of its Coast Guard Island 2nd electrical conduit crossing project. On the topic of the utility s load, she said that AMP s actual load in July and August was less than what had been forecasted. AMP had forecasted a declining load, and it was lower than expected. She also noted that the Northern California Power Agency (NCPA) is refunding geothermal bonds. AMP may sign agreements related to the funds, she said.

5 7. COUNCIL COMMUNICATIONS City Manager Keimach told the Board about the city s new Love Our Island social media campaign. She also told the Board that she would be engaging in a conversation in the community on what kind of businesses should come to Alameda. She said she would like AMP to be a key part of that conversation. 8. BOARD COMMUNICATIONS Commissioner Deaton said that it would make good financial sense to approve NCPA s proposal to refund a portion of the geothermal bond as it would reduce the overall cost and length of debt. 9. ORAL COMMUNICATIONS NON AGENDA ITEMS None. 10. ADJOURNMENT President Sutter adjourned the meeting at 8:27 p.m.