Public Utilities 2012/03/28CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
March 28, 2012
The agenda having been posted on Wednesday, March 21, 2012, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson Jordan Brandman at 5:05 p.m. on Wednesday, March 28,
2012, in the 11` Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: J. Brandman, D. Morgan, B. Hernandez, C. Peltzer, J. Machiaverna, P.
Carroll
Board Members Absent: S.E. Faessel
Staff Present: M. Edwards, D. Calkins, J. Wei, S. Sciortino, E. Zacherl, J. Lehman,
A. Kott, G. Bowen, D. Albaugh, D. Shen, R. Shintaku, P. Hayes, J. Coe,
L. Quiambao, P. Oviedo
Guest(s) Present: David Wain, Resident
AGENDA ITEM
1. PUBLIC COMMENTS.
D. Wain, Anaheim Resident, discussed the upcoming East District
Neighborhood Council meeting on April 19` at 7 p.m. and shared
that it was his understanding that M. Edwards and staff plan to
attend this meeting.
2. APPROVAL OF THE MINUTES OF THE REGULAR
PUBLIC UTILITIES BOARD MEETING HELD ON
FEBRUARY 22, 2012. *
3. PRESENTATION ON BUSINESS AND COMMUNITY
PROGRAMS ANNUAL REPORT.
P. Hayes, Resource Program Specialist, gave a presentation on the
Business and Community Programs Annual Report. Through a
series of slides, he shared the Divisions accomplishments for the
fiscal year, specifically, the Public Benefits Programs.
ACTION TAKEN
J. Brandman closed the public
comments portion of the
meeting.
CARRIED: 6 -0.
ABSTAINED: 0. ABSENT:
1 (S.E. Faessel).
B. Hernandez moved approval
of the February 22, 2012,
Public Utilities Board Minutes.
J. Brandman seconded the
motion. MOTION
2012- 18
Anaheim provided Utility customers with an overall ongoing bill
saving of $1.5 mullion and rebates of $2.5 million in Fiscal Year
2010111.
4. PRESENTATION ON WATER CAPITAL PROGRAM.
D. Shen, Water Engineering and Design Manager, gave an
overview presentation of the Water Capital Program.
He shared that last month, a nationwide study was completed by the
American Water Works Association that quantifies the
infrastructure challenge facing water utilities. It concluded that
U.S. Water Utilities need to invest at least $1 trillion over the next
25 years in aging infrastructure in order to maintain the current
levels of service. In addition, it concluded that delaying this
investment can result in degrading water service, increasing service
disruptions, and increasing expenditures for emergency repairs.
The main goal of Anaheim's Water Capital Program is to protect
the City's $400 million investment in its water infrastructure. The
Program will also help reduce emergency repairs and reduce
customer outages, and insure that customers will continue to receive
a reliable supply of high quality water at the lowest possible cost.
Anaheim's Water Capital Program is designed to achieve four key
initiatives: enhance water supply reliability, improve service levels,
improve supply and delivery reliability in the east end of the City,
and rehabilitate and replace the aging infrastructure.
Through a series of slides, he reviewed each initiative beginning
with the enhanced water supply reliability. He mentioned that the
aging shallow wells are being replaced with high capacity deep
wells. Over the last decade, eight new wells have been added to the
water system bringing Anaheim to a total of 18 wells. As part of
this program, the newest well, Well 58, will be constructed adjacent
to Anaheim Lake and will be followed by five additional wells over
the next 10 years. Another project as part of this initiative is the
Water Recycling Demonstration Project, which is currently under
construction and is scheduled to be operational by October, 2012.
The second initiative, improving service levels, includes additions
and upsizing of water mains, upgrading the pressure regulating
stations to provide better monitoring and reliability, improving
communication and instrumentation system, and enhance the
security system with cameras and recording devices.
The third initiative is improving supply and delivery reliability to
the east end of Anaheim. He explained that it is included as a key
initiative because the east end has only two primary sources of
supply: the Lenain Treatment Plant and Metropolitan Water
District's Diemer Plant.
The fourth initiative is the rehabilitation and replacement of aging
infrastructure. Part of the initiative includes improvements of the
water storage facilities, such as the new four million gallon tank at
2012- 19
the Linda Vista complex. It also includes replacing the old
reservoirs and water mains.
D. Shen concluded the presentation by sharing that in total there is
$62 million budgeted for the Water Capital Program over the next
live years. The mechanism for funding the Water Capital Program
is the Water System Reliability Adjustment (WSRA), which is
based on the City Council approved Capital Budget and may be
adjusted annually following a public rate hearing.
5. APPROVAL OF AN AGREEMENT FOR PROFESSIONAL
SERVICES WITH MADDAUS WATER MANAGEMENT TO
DEVELOP A WATER USE EFFICIENCY MASTER PLAN
FOR ANAHEIM. *
D. Calkins, AGM of Water Services, indicated to the Board that this
item is for approval of an Agreement with Maddaus Water
Management to develop a Water Use Efficiency Master Plan. The
purpose of the Master Plan is to guide compliance with the
statewide mandate to reduce urban per capita water use 20% by the
year 2020. Fifty percent of the project cost will be funded by a
federal grant from the Bureau of Reclamation. The project
administrator will be R. Shintaku, Water Resources and Planning
Manager.
6. APPROVAL OF AN ENERGY STORAGE SYSTEM PLAN. *
M. Edwards shared that AB 2514 requires utilities to develop an
energy storage plan to ensure that utilities are evaluating the
feasibility of a variety of storage technologies with the intent of
developing long -range objectives.
M. Edwards mentioned that the approval of the Energy Storage
System Plan is being presented to the Board for their approval and
recommendation to proceed to City Council for their authorization
to evaluate the Plan and provide a report on researched
recommendations in 2014.
7. UPDATE ON WATER SYSTEM ISSUES.
Monthly Water Supply Conditions Update
D. Calkins shared that the Northern California received double the
normal amount of precipitation for March, but year to date they are
only at 75% of normal. Locally, the recent storms brought about
1.5 to 2 inches of rain, but Southern California is still low year to
date with precipitation at 57% of normal. As stated last month,
water supplies for Anaheim and the Southland remain strong due to
last winter's wet weather.
Orange County Water Summit
D. Calkins indicated to the Board that the Fifth Annual Orange
County Water Summit will be held on May 18' in Anaheim. The
Department has reserved a table so he asked the Board to please
notify P. Oviedo if they can attend.
D. Morgan moved approval of
the Agreement for Consulting
Services to Develop a Water
use Efficiency Master Plan for
Anaheim. P. Carroll seconded
the motion. MOTION
CARRIED: 6 -0.
ABSTAINED: 0. ABSENT:
1 (S.E. Faessel).
B. Hernandez moved approval
of the Energy Storage System
Plan. J. Machiaverna seconded
the motion. MOTION
CARRIED: 6 -0.
ABSTAINED: 0. ABSENT:
1 (S.E. Faessel).
2012-20
MWD Rate Increase
Metropolitan Water District (MWD) will make a decision at their
April board meeting regarding a rate increase for next calendar year.
MWD staff has recommended a 7.5% rate increase; however, a
number of agencies are pushing MWD to do more cost cutting to
reduce the proposed increase to 5 %n.
8. UPDATE ON ELECTRIC SYSTEM ISSUES.
L Wei, Electric Systems Planning Manager, reported that Anaheim
Public Utilities Department was notified it was to receive the
Reliable Public Power Provider Platinum award designation from
the American Public Power Association (APPA). Of the nation's
more than 2,000 public power utilities, only 154 have been
recognized for this award, six in California, with Anaheim being
one of the six. The categories considered for this award are safety,
reliability, system improvement, and workforce development. Once
formally notified, a press release will be issued in mid April.
Canyon Power Plant Dedication
J. Wei thanked the Board members for attending the Canyon Power
Plant Dedication and presented a slide show of the event. Board
members were also provided with a CD of images taken from the
Dedication.
He also shared with the Board that the Communications team uses
the square Quick Response (QR) code located on the label of the
Anaheim bottled water as a way to highlight new and exciting
things that are happening in the City. Canyon video is currently
being shown and it will run for another week before returning to a
video on "Hi Neighbor ".
9. UPDATE ON FINANCE ISSUES.
E. Zacherl, AGM of Financial Services, invited the Board's
attention to the February Financial Dashboard and shared that
electric revenue is approximately $10 million under budget (3.7 %)
partially offset by a favorable operating cost variance of $3.8
million. The unfavorable revenue variance is attributable to
continued soft demand in retail revenues and a significant decline in
wholesale sales as a result of the Intermountain Power Project (IPP)
outage. The impact of the outage, which is anticipated to last until
the end of May, is estimated to be $5.5 million. On March 15` the
Power Cost Adjustment (PCA) was increased to mitigate the impact
of the extended outage. Residential customers were increased .9
cents per Kwh and commercial customers were increased .45 cents
per Kwh. The increase is projected to continue through August,
long enough to offset the costs associated with the outage which
will be tracked separately. City Council members were sent a
memorandum outlining the action. Water is tracking well through
the end of February, with revenue greater than budget by
approximately $500,000 and operating costs under budget by
approximately $500,000.
2012-21
10. UPDATE ON JOINT SERVICE ISSUES.
S. Sciortino, AGM of Joint Services, shared that as a part of Earth
Day, there will be a Trash -Art exhibit at the Muzeo on April 22
This led to the idea of presenting some of the renewable projects in
an exhibit that will display how trash from landfills is turned into
energy, and how sewer water is treated and becomes water to be
used for toilet flushing and irrigation.
11. UPDATE ON ENERGY RISK & LEGISLATIVE/
REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, provided the Board with an update
on the status of the quarterly compliance report for the Wholesale
Energy Management Program and shared there were no violations.
There will be filing in April with Independent System Operator
(ISO) to certify that APU meets certain provisions necessary to
transact as required by the Federal Energy Regulatory Commission
(FERC).
She also shared that she met with Elected Officials last month in
Washington D.C. to discuss key issues, and the Environmental
Protection Agency to introduce San Juan and new cost benefits
arguments. Thank you letters are to be sent to Legislators that
helped facilitate improvements to the Frank Dodd Act. She also
mentioned that the Anaheim Utilities web page is currently being
revised to add more content concerning legislative bills impacting
the Department.
12. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES
BOARD MEETING ON APRIL 18, 2012.
FY2012 -2013 Budget Presentation
Modifications to the Electric & Water Rates, Rules and
Regulations concerning the Smart Meter Opt Out Option
Master Agreement to offer assistance to customers on
backflow device installation *
13. ITEM(S) BY SECRETARY:
M. Edwards shared that due to constant changes in technology and
capabilities, Anaheim's meter change out to Smart Meters will be
deferred for a short time with the technology is further validated.
With respect to allowing customers to opt out of Smart Meters
altogether, a proposal will be going forward to the Anaheim City
Council to that effect.
14. ITEM(S) BY BOARD MEMBERS:
J. Brandman and D. Morgan shared that they will be unable to
attend the April 25` Board meeting and requested that the meeting
be moved to the alternative meeting date of April 18 "h . The Board
discussed this and note Item 15 of this document where thev
determined to adjourn the meeting to April 18' which is the
previously established alternative meeting date.
2012 22
P. Carroll congratulated everyone on the Canyon Power Plant and
liked the Muzeo exhibition idea as way to get information out to
public.
C. Peltzer shared his congratulations to everyone on the Canyon
Power Plant dedication.
D. Morgan asked about the possibility of having a Board meeting at
Canyon Power Plant.
B. Hernandez felt the grand opening of the Canyon Power Plant was
great, and the personal tour very gratifying. He also mentioned a
great article in the Public Power magazine on charging stations for
electric vehicles.
J. Machiaverna will be taking a third tour of Canyon Power Plant in
two weeks with Council Member G. Eastman and Police Chief J.
Welter.
J. Brandman echoed the other Board members regarding their
sentiments about the Canyon Power Plant. Without minimizing
other great accomplishments of the Utilities Department, he shared
that the Plant represents the progressive attitude which Anaheim
Public Utilities stands for.
15. ADJOURNMENT: (TO THE ALTERNATE MEETING DATE
OF APRIL 18, 2012, AT 5:00 P.M., IN THE 11' FLOOR
LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER,
201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
P. Carroll moved to adjourn the
Regular Meeting at 7:26 p.m.
to the Board's next Alternate
Meeting date of April 18, 2012
at 5:00 p.m. J. Machiaverna
seconded the motion.
MOTION CARRIED: 6 -0.
ABSTAINED: 0. ABSENT:
1 (S.E. Faessel).
Respectfully submitted,
Marcie L. Edwards
Secretary, Public Utilities Board
* Indicates item(s) that will be forwarded to City Council for action upon recommendation by the Board.
Indicates item(s) that will be forwarded to City Clerk and City Council for informational purposes.
2012-23