AGENDA MUNICIPAL SERVICES COMMITTEE

October 27, 2015

MEMBERS Margaret McAustin, Chair, District 2

Terry Tornek, Mayor Andy Wilson, District 7

STAFF Eric Klinkner, Interim 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.

COPIES OF THIS AGENDA ARE AVAILABLE FROM THE

NEIGHBORHOOD INFORMATION SERVICE AT

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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 23rd day of October, 2015 by 4:00 p.m.

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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) 744-7062 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.

REGULAR MEETING OF THE MUNICIPAL SERVICES COMMITTEE Tuesday, October 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. NEW BUSINESS A. Amend the Light and Power Rate Ordinance to Establish an Economic Development Rate

Schedule* B. Recommendation to set the date of January 11, 2016 to Conduct a Public Hearing to

implement the Water System Capital Improvements Charge Formula Pursuant to Pasadena Municipal Code Chapter 13.20.035*

5. INFORMATION ITEMS

A. Water Conservation Update B. GT-5 Repowering Project Update*

6. ADJOURNMENT

*Attachment

NEXT SPECIAL MEETING November 17, 2015 Margaret McAustin, Chair Municipal Service Committee

3.A

3.B

5.B

P A S A D E N A W A T E R A N D P O W E R

MEMORANDUM

October 27, 2015

To: Municipal Services Committee From: Erik Klinkner Interim 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:

Status Report October 2015

Glenarm Repowering Project Combined Cycle Power Plant (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

Attachment 1 – Glenarm Repowering Project Status Report

Glenarm Plant Mid-1950s

Rendering of GT-5

Gas Compressor and STG Pipe Rack

Glenarm Plant Mid-1950s

City of Pasadena Water and Power Department Glenarm GT5 Repowering Project Status Report

October 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 City Council granted the City Manager authority to use 4 million dollars as contingency for

the six major repowering contracts. o At this time, PWP anticipates completing the project within the revised budget.

Balance of the Plant contract (“BOP”) – Contractor: ARB, Inc. o Equipment procurement is on schedule. o Engineering is at 88% complete. o Foundation work continues.

Fuel gas compressors (2). Auxiliary transformers (4). Steam turbine enclosure.

o Setting of equipment on foundation continued. Auxiliary transformers. Auxiliary cooling water and Circulating water pump motors.

o Cooling tower erection was completed. o Pre-cast piping trench was installed. o Exterior of control building was completed. o Electrical cable continued to be pulled. o Below and above grade piping continued. o Distilled tank erection continued. o Waste tank erection continued. o Change Order #9 is routing for approval:

OTSG sound attenuation $60,188.38 SRV acoustic enclosure $19,000.00 Fuel gas isolation valve for GT-1 & 2 $30,084.64 Steam Turbine Enclosure $512,856.72 Alternate manufacturer instrument transmitters ($124,266.29) Temperature transmitters for OTSG $41,290.29 Change in T&M rates N/A Credit for permit fees ($30,101.94) Engineering for 50 loop diagrams for OTSG $13,220.90 Total $522,272.70

Power Island Contract (“PIE”) – Contractor: General Electric o Engineering and procurement have been completed. o All GE equipment has been delivered with the exception of the Steam Turbine Enclosure

and the GSU sound wall. o GE techs completed a zero blade change-out on the gas turbine. o GE instructors taught 2 sessions of Gas Turbine Basics and Familiarization Course.

Site Operations o 17 kV lines for auxiliary power feed were pulled and terminated by PWP staff. o Work continued on commissioning preparation activities o Work continued on ISO interconnection o Gas company work has been moved to start in December

Other Project Activities o Hosted site tours for PWP personnel.

Major Potential Issues

On Going Issues

o UPDATED: ARB requested a thirteen week delay to commercial operation due to a delayed PDC delivery. ARB has been able to partially mitigate the impact of the late delivery. Collaborative efforts continue to bring the commercial operation date back to the original date. Delivery of the PDC is scheduled to start on October 24, 2015.

o UPDATED: There is a scope gap issue concerning the design and supply of the piping from the Ammonia Flow Control Unit to the injection points on the OTSG. An agreement in principle has been reached to split the cost of the ammonia piping design and materials with ARB.

o The cost of erecting the steam turbine enclosure has increased. The building in the bid documents was sized at 65’L X 45’W X 20’H. Due to an increase in the size of the Steam Turbine, Condenser and Steam Turbine Generator by GE the building is now 78’L X 51’W X34’9”H. ARB change order #9 includes the estimated amount of $512,856.72 for the erection of the steam turbine enclosure. Work will be done on a time and material basis.

o The variable bypass valve exhaust stack was designed with a sound wall. Work has been completed. The cost will be well below the estimated cost of $167,000. A credit will be included in ARB Change Order #10.

o GE’s sound engineer has recommended the erection of one single sound wall on the west side of the GSU. The estimate for the sound wall is $99,975; the estimate for the bracing is $32,235 and installation is being re-evaluated due to the need for suitable bracing.

o 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. Water mist has been determined to not be a viable option. A deluge system will be installed with containment for each skid. Staff will seek to recover partial costs from GE. Estimated cost of $465,560.29 is included in ARB Change Order #7.

o GE sound engineer has recommended a sound wall be erected around the base of the Once Through Steam Generator. ARB has submitted a change order request with a cost estimate for installation of $60,188.38. That amount is included in Change Order #9. Work will be done on Time & Material basis.

o 95.5% 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.

Resolved Issues o On April 2, 2015 in response to a claim for approximately $100,000 staff offered the

remaining contract amount of $5,370 as the full and final payment to the EIR consultant, on the basis that the City’s approval was not obtained for the claimed services. The consultant has submitted an invoice in the amount of $5,369.50 along with a statement that this invoice is the last and final invoice associated with this contract.

o ARB was unable to come to terms with IST, Canada (manufacturer of OTSG to perform proprietary boiler tube welding.) The City opened a purchase order with IST to perform this work. IST technicians have completed the welding work. Non-destructive testing verified 100% integrity of the welds.

Schedule o ARB has submitted a schedule with a target for May 16, 2016 for Substantial Completion.

Safety o As of Mid-May ARB reports over 113,000 hours worked with zero lost time accidents and

one reportable health and safety related injury.

Reporting Through September 30, 2015 Approved BudgetRevised Budget

(9/29/14)

Commitment

With

Contingencies

A B C D E F G H I K L M N

Description Approved Budget

Revised Budget

(9/29/14)

Increased by $5 M

Base Contract

Amounts

Approved

Revisions to Base

Contract

Contractual

Contingency

Total Awarded

Contract Amount

(C + D + E)

Potential

Changes

Total Awarded &

Potential Changes

(F + G)

Contractual

Contingency

Total of Contractual

and Project

Contingency Used

(I + J)

Total Awarded,

Potential Changes

& Contingency

(H + J)

Savings

Available at

Closure of

Contracts/PO's

Positive If Approved

Budget Amount Higher

Than Potential Contract

Amount and Project

Contingency

(B - L + M)

Major Contracts $1,000,000

$1,500,000

(To be used after

$1 M is

committed)

$1,500,000

(To be used after

$2.5 M is

committed)

PIE Contract - GE Packaged Power 65,843,230$ 65,843,230$ 60,494,529$ 0$ 1,376,000$ 61,870,529$ 61,870,529$ 302,726$ 0$ 0$ 302,726$ 61,870,529$ 3,972,701$

PM/CM Contract - PROU 3,325,800$ 3,325,800$ 3,004,000$ 300,000$ 3,304,000$ 3,304,000$ 0$ 0$ 0$ 0$ 3,304,000$ 21,800$

Air Permit -Worley Parsons 400,000$ 400,000$ 235,000$ 75,500$ 20,000$ 330,500$ 330,500$ 0$ 0$ 0$ 0$ 330,500$ 69,500$

CEQA/EIR - PCR Services 400,000$ 400,000$ 61,590$ 150,407$ 21,110$ 233,107$ 233,107$ 15,740$ 0$ 0$ 15,740$ 233,107$ 166,893$

BOP Contract - ARB 45,232,388$ 45,232,388$ 55,661,973$ 0$ 0$ 55,661,973$ 662,053$ 56,324,026$ 0$ 1,000,000$ 986,685$ 0$ 1,986,685$ 58,310,711$ (13,078,323)$

OE Contract - Power Engineers 3,000,000$ 3,000,000$ 3,000,000$ 0$ 3,000,000$ 3,000,000$ 0$ 0$ 0$ 0$ 3,000,000$ 0$

Subtotal: Major Contracts 118,201,418$ 118,201,418$ 122,457,092$ 225,907$ 1,717,110$ 124,400,109$ 662,053$ 125,062,162$ 318,466$ 1,000,000$ 986,685$ 0$ 2,305,151$ 127,048,847$ 0$ (8,847,429)$

Project Contingency balance after subtracting

approved + potential change orders(1,351,262)$

Other Contracts and Miscellaneous

PWP & Other Dept. PO's 0$ 0$ 1,297,471$ 71,897$ 1,369,368$ 1,369,368$ 1,369,368$ 587,571$ (781,797)$

Legal Expenses 826,247$ 826,247$ 826,247$ 826,247$ 0$ (826,247)$

Natural Gas Pipeline/Meter Upgrades -

Southern Caliornia Gas Company1,288,545$ 128,855$ 1,417,400$ 1,417,400$ 1,417,400$ (1,417,400)$

Art Funding 885,407$ 885,407$ 80,000$ 80,000$ 80,000$ 80,000$ 805,407$

Local Hire/Buy Local - CBA 0$ 0$ 10,000$ 74,999$ 84,999$ 84,999$ 84,999$ 1,520$ (83,479)$

AQMD Fees 1,500,000$ 1,500,000$ 87,790$ 87,790$ 87,790$ 87,790$ 1,412,210$

PWP Labor and Materials 1,892,400$ 1,892,400$ 1,892,400$ 1,892,400$ 1,892,400$ 1,892,400$ 0$

Subtotal: Other Contracts and Miscellaneous 4,277,807$ 4,277,807$ 5,482,453$ 146,896$ 128,855$ 5,758,204$ 0$ 5,758,204$ 5,758,204$ 589,091$ (891,306)$

Project Subtotal 122,479,225$ 122,479,225$ 127,939,545$ 372,803$ 1,845,965$ 130,158,313$ 662,053$ 130,820,366$ 318,466$ 1,000,000$ 986,685$ 2,305,151$ 132,807,051$ 589,091$ (11,089,997)$

Contingency 9,424,958$ 14,424,958$ 3,334,961$

Totals 131,904,183$ 136,904,183$ 127,939,545$ 372,803$ 1,845,965$ 130,158,313$ 662,053$ 130,820,366$ 318,466$ 1,000,000$ 986,685$ 2,305,151$ 132,807,051$ 589,091$ 0$

Contingency Reconciliation Approved

Budget Used Potential Remaining

Budget Contingency 9,424,958$ 11,089,997$ 3,334,961$

Project Contingency 1,986,685$ 662,053$ 1,351,262$

14,424,958$

4,000,000$

Revised Budget

(9/29/14)

J

Comments

Reflects legal expenses.

Reflects ARB Change Order #9 amount of $522,272.70 and potential

expected change order of $139,780.00.

Committed Project Contingency,

$4,000,000

Council Approved June 1, 2015

Table 1 - Repowering Project Budget Summary

EXHIBIT - 1: Financial Summary

Glenarm Repowering Project (GT-5) Status Report For MSC on October 27, 2015

Updated: October 22, 2015

Contracted CommitmentsPotential Contract

Commitments

Variance Between Budget and

Potential Contract Amount &

Project Contingency Used

How Much Contingency Has Been Used?

Reporting Through September 30, 2015

Remaining

Commitments

With

Contingencies

O P Q R S

Description

Total Awarded,

Potential Changes

& Project

Contingency

Applied minus

Savings realized

(L - M)

Spent through

9/30/15

Amount Spent

Between Last Report

Period (8/15/15

and 9/30/15)

% Of Total

Awarded and

Approved Contract

Amount

(P ÷ F)

Pending

Invoices Reporting Through September 30, 2015 Contracted Used

Remaining

(T - U)

Approved

Committed

Change Orders

UsedRemaining

(W - X)

Contracted

and Allotted

(T + W)

Used

(U + X)

Remaining

(Z - AA)

Major Contracts Major Contracts T U V W X Y Z AA AB

PIE Contract - GE Packaged Power 61,870,529$ 47,907,622$ (0)$ 77.4% 0$ PIE Contract - GE Packaged Power 1,376,000$ 302,726$ 1,073,274$ 0$ 1,376,000$ 302,726$

PM/CM Contract - PROU 3,304,000$ 1,379,731$ 193,333$ 41.8% 189,124$ PM/CM Contract - PROU 300,000$ 0$ 300,000$ 0$ 300,000$ 0$

Air Permit -Worley Parsons 330,500$ 307,172$ 0$ 92.9% 0$ Air Permit -Worley Parsons 20,000$ 0$ 20,000$ 0$ 20,000$ 0$

CEQA/EIR - PCR Services 233,107$ 227,737$ 0$ 97.7% 5,370$ CEQA/EIR - PCR Services 21,110$ 15,740$ 5,370$ 0$ 21,110$ 15,740$

BOP Contract - ARB 58,310,711$ 37,287,371$ 3,394,920$ 67.0% 1,849,872$ BOP Contract - ARB 1,986,685$ 1,986,685$ 1,986,685$ 1,986,685$

OE Contract - Power Engineers 3,000,000$ 2,865,455$ (0)$ 95.5% 40,890$ OE Contract - Power Engineers 0$ 0$ 0$

Subtotal: Major Contracts 127,048,847$ 89,975,088$ 3,588,253$ 72.3% 2,085,255$ Subtotal: Major Contracts 1,717,110$ 318,466$ 1,398,644$ 1,986,685$ 1,986,685$ 0$ 3,703,795$ 2,305,151$ 1,398,644$

Other Contracts and Miscellaneous

PWP & Other Dept. PO's 781,797$ 769,784$ 0$ 56.2% 0$

Legal Expenses 826,247$ 276,247$ 39,381$

Natural Gas Pipeline/Meter Upgrades -

Southern Caliornia Gas Company1,417,400$ 1,288,545$ 0$ 90.9% 0$

Art Funding 80,000$ 79,466$ 310$ 99.3% 0$

Local Hire/Buy Local - CBA 83,479$ 47,315$ 18,450$ 55.7% 0$

AQMD Fees 87,790$ 87,790$ 0$ 100.0% 0$

PWP Labor and Materials 1,892,400$ 1,154,218$ (212,324)$ 61.0% 0$

Subtotal: Other Contracts and Miscellaneous 5,169,113$ 3,703,365$ (154,183)$ 64.3% -$

Project Subtotal 132,217,959$ 93,678,453$ 3,434,070$ 72.0% 2,085,255$

Totals 132,217,959$ 93,678,453$ 3,434,070$ 72.0% 2,085,255$

Payments

Contract + Project ContingencyContract Contingency Project Contingency ($4 million)

EXHIBIT - 1: Financial Summary

Glenarm Repowering Project (GT-5) Status Report For MSC on October 27, 2015

Table 3 - Repowering Project Contingency

Updated: October 22, 2015

Table 2 - Repowering Project Payments

EXHIBIT - 1: Financial Summary

Glenarm Repowering Project (GT-5) Status Report For MSC on October 27, 2015

Updated: October 22, 2015

City of Pasadena Department of Finance, Purchasing Division

Pasadena First Buy Local

Local Participation Plan Update For the Glenarm Repowering Project (Project)

As of October 21, 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. The Project is reporting $1,907,597.44 or 30.5% 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 ARB (Prime Contractor) and the Project Team on strategies that will enable the Project to meet or exceed the local hiring goal. The Prime Contractor and their

subcontractors are reporting $1,322,982.62 in payroll to Pasadena residents, which represents 29.61% of the total payroll for the Project. A labor wage summary report is attached for review.

3) While the Project is currently exceeding the local hiring goal overall, staff has noticed a gradual decline in the individual monthly local hiring percentages from February to September 2015. Staff has communicated the potential issue of the overall project falling below the local hiring goal if this trend continues through the remaining life cycle of the Project. Staff has strongly advised that efforts are focused in two important areas:

a) Increase our efforts (referrals, and sponsorships) on the remaining primary trades for the Project, which include Pipefitters and Electricians.

b) Require all remaining contractors, regardless of their time on the Project, to request Pasadena residents first from their respective union hall.

August was originally estimated to be the peak workforce for the Project, and based on that estimation staff recommended [in June] that the contractors focus on maintaining Pasadena residents where ever practical and appropriate to give the Project the best opportunity to stay above the local hiring goal of 25%. The purpose of this recommendation was to ensure that the local hiring percentages were maintained even while the Project reduced its workforce.

However, based on the most recent look-ahead reports received from the Prime Contractor, the workforce appears to be increasing through November 2015, given that expected increase, staff is now recommending that the Prime Contractor sponsor more Pasadena residents into the Pipefitters trade. Additionally, staff has begun communicating with the Pipefitters union (local 250 and the local 709) to inquire about the need for dispatching Pasadena residents to the site when requested by the

contractors.

Finally, after some coordination with the Prime Contractor, staff is working to make referrals of potential Pipefitters to the local 250 for potential sponsorship.

4) Staff facilitates ongoing follow up on requests made from Prime Contractor and their subcontractors to the Union halls.

5) 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.

Pasadena

Hours

Total

Certified

Payroll

Pasadena

Certified

Payroll

% of Wages

Paid to

Pasadena

Residents

New Hires

New Hire

Pasadena

Residents

1,090.50 $168,730.72 $35,668.30 21.14 % 14 0

0 $491.52 0 0.00 % 0 0

764.50 $132,395.64 $23,994.74 18.12 % 8 0

0 $6,760.72 0 0.00 % 4 0

48.00 $5,458.36 $3,085.16 56.52 % 0 0

278.00 $23,624.48 $8,588.40 36.35 % 2 0

3,755.00 $544,502.56 $122,119.13 22.43 % 14 0

5,103.50 $636,412.23 $165,385.14 25.99 % 17 3

3,958.50 $487,859.64 $126,858.81 26.00 % 17 2

4,160.00 $484,771.41 $133,548.20 27.55 % 11 2

4,730.50 $516,799.97 $158,279.98 30.63 % 20 5

3,988.00 $405,020.85 $136,150.20 33.62 % 17 3

3,944.00 $400,681.83 $135,411.97 33.80 % 22 6

2,413.50 $207,711.88 $80,051.29 38.54 % 13 5

1,702.50 $151,693.28 $54,522.31 35.94 % 4 1

1,369.00 $114,710.01 $44,919.52 39.16 % 21 5

1,264.00 $103,420.50 $41,563.49 40.19 % 8 3

1,196.00 $81,856.25 $39,106.66 47.77 % 18 3

968.00 $69,288.36 $32,595.14 47.04 % 25 6

496.00 $71,468.53 $14,589.20 20.41 % 8 2

72.00 $23,240.16 $2,213.28 9.52 % 20 1

40,211.00 $4,468,168.18 $1,322,982.62 29.61 % 249 47

40,211.00 $4,468,168.18 $1,322,982.62 29.61 % 249 47Grand Total 116,181.55 34.61 %

Project Totals 116,181.55 34.61 %

July 768.00 9.38 %

August 2,174.50 22.81 %

September 1,853.50 52.23 %

October 2,223.00 53.80 %

November 2,752.00 45.93 %

2014

December 3,077.50 44.48 %

January 4,095.05 41.57 %

February 5,439.00 44.37 %

March 9,984.50 39.50 %

April 10,405.00 38.33 %

May 13,204.50 35.82 %

June 12,581.50 33.06 %

July 12,752.00 31.04 %

August 16,672.50 30.61 %

September 13,902.50 27.01 %

Dynalectric/KDC Systems 630.00 44.13 %

Contra Costa Electric, Inc. 88.00 54.55 %

BRAND SCAFFOLD 215.00 0.00 %

ARB, Inc. 3,347.50 22.84 %

October 4,296.50 25.38 %

AMBER STEEL CO 16.00 0.00 %

Glenarm Repowering Project

2015

LABOR WAGE SUMMARY REPORT

Years: 2014, 2015

Month

ContractorTotal

Hours

% of

Hours to

Pasadena

Residents

Year