Public Utilities 2012/07/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
July 25, 2012
The agenda having been posted on Wednesday, July 1$, 2012, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson Jordan Brandman at 5:04 p.m. on Wednesday, July 25,
2012, in the 1 I m FIoor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: J. Brandman, J. Machiaverna, P. Carroll, C. Peltzer, D. Morgan,
B. Hernandez, S.E. Faessel
Board Members Absent: None
Staff Present: M. Edwards, D. Calkins, D. Lee, S. Sciortino, E. Zacherl, D. Shen,
J. Lehman, A. Kott, L. Quiambao, P. Oviedo, D. Cotton, D. Albaugh,
M. Robledo, J. Coe, J. Ross, J. Motsick
Guest(s) Present: D. Wain, Resident; J. Martin, Servite High School Advisor; Mr. & Mrs.
Donovan, M. Donovan, R. Majdali, and A. Majdali, Canyon High School
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS.
D. Wain, Resident, expressed his appreciation to the Board for the J. Brandman closed the public
rehabilitation of the Metropolitan Water District (MWD) building comments portion of the
on Santa Ana Canyon. meeting.
J. Martin, Resident and Servite H.S. Advisor, shared news
regarding a Campaign to renovate Servite H.S, including installing
a solar energy system that will save the school $11,000 annually in
energy costs. Servite is also looking into ways to make the campus
more energy efficient.
2. APPROVAL OF THE REGULAR PUBLIC UTILITIES
BOARD MEETING OF MAY 23,2012.*
P. Carroll moved approval of
the May 23, 2012, Public
Utilities Board Minutes. B.
Hernandez seconded the
motion. MOTION
CARRIED: 7 -0.
ABSTAINED: 0. ABSENT:
0.
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3. APPROVAL OF THE MINUTES OF THE REGULAR
PUBLIC UTILITIES BOARD MEETING HELD ON
JUNE 27, 2012. *
4. PRESENTATION ON SOLAR CUP BOAT RACES.
J. Ross shared a brief summary with the Board acknowledging the
efforts and success of the Canyon High School volunteers and their
participation in the annual Solar Cup Boat Races. Canyon
representatives presented the Board with a photo plaque, to show
their appreciation.
5. PRESENTATION ON ELECTRIC SYSTEM RELIABILITY.
D. Lee, AGM of Electric Services, invited the Boards attention to a
presentation on electric reliability that included how Anaheim
compares to other California utilities with respect to outage
frequency, duration, and response time. He also explained how
reliability metrics reflect large -scale outage events. D. Lee also
compared the reliability between underground and overhead
systems, in which weather and third -party causes have a greater
impact on overhead systems. However, underground outages
typically take longer to restore due to digging or other activities
associated with their restoration.
6. APPROVAL OF FISCAL YEAR 2011/12 WRITE -OFF OF
UNCOLLECTIBLE UTILITY ACCOUNTS.*
The written, publicly available staff report detailing the item was
verbally summarized by staff.
The Board asked a variety of questions which culminated in their
decision to support the approval of the Fiscal Year 2011/2012
Write -off of Uncollectible Utility Accounts.
7. APPROVAL OF THE BACKFLOW PREVENTION DEVICE
CUSTOMER ASSISTANCE PROGRAM AND MASTER
BACKFLOW PREVENTION DEVICE ASSISTANCE
AGREEMENT.*
The written, publicly available staff report detailing the item was
verbally summarized by staff.
The Board asked a variety of questions which culminated in their
decision to support the approval of the Backflow Prevention Device
B. Hernandez moved approval
of the June 27, 2012, Public
Utilities Board Minutes. J.
Machiaverna seconded the
motion. MOTION
CARRIED: 7 -0.
ABSTAINED: 0. ABSENT:
0.
P. Carroll moved approval of
the FY 11/12 Write -Off of
Uncollectible Utility Accounts,
B. Hernandez seconded the
motion. MOTION
CARRIED: 7 -0.
ABSTAINED: 0. ABSENT:
0.
D. Morgan moved approval of
Backflow Prevention Device
Assistance and Master
Backflow Prevention
Assistance Agreement.
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Customer Assistance Program and Master Backflow Prevention
Device Assistance Agreement.
8. UPDATE ON WATER SYSTEM ISSUES.
D. Calkins, AGM of Water Services, commented on the annual
Water Quality Report, which was mailed to the Board members and
customers last month. This Report is prepared annually to inform
customers about their tap water quality and how Anaheim water
compares to drinking water standards. It also provides contact
information in case customers would like more information. The
quality of Anaheim's water is consistently superior to that required
by all health and safety standards.
D. Calkins referred to today's announcement by Governor Brown
and Interior Secretary Salazar, on the framework for the Bay Delta
Conservation Plan. This is an important milestone for helping to
advance the development toward a Delta fix. This announcement
identifies the proposed project, which includes habitat restoration
and conveyance. The proposed conveyance facilities include water
intake facilities and two tunnels with a total capacity of 9,000 cubic
feet per second (down from an earlier proposal of 15,000 cfs).
Included in the announcement is a commitment by the Metropolitan
Water District (MWD) and the Santa Clara Valley Water District
(SCVWD) — the two largest urban regional water agencies — to
further reduce the demand for imported water by doing more
conservation and recycling.
9. UPDATE ON ELECTRIC SYSTEM ISSUES.
D. Lee, AGM of Electric Services, referenced the two quarterly
updates available in each Board members packet. The first, a
Capital Improvement Projects report, identifies electric and water
project locations and construction schedules. The second, a Spot
Bid and Pre - qualified contracts report, details the materials,
construction, and consultant awards for the past quarter.
D. Lee shared with the Board information on the Bike Nation
program, which is in the process of being implemented at various
locations throughout the City. He indicated that one future location
is the substation site on Katella Avenue, west of Anaheim
Boulevard. D. Lee further shared that since there are no immediate
plans to build out the substation, the bicycle kiosk will not impact
the site, also noting that the bicycle kiosk is not a permanent fixture,
nor does it not require a utility power source, so it can be relocated
quickly at Utility's direction.
10. UPDATE ON FINANCE SYSTEM ISSUES.
E. Zacherl, AGM of Finance and Administration, invited the
Board's attention to the June Financial Dashboard and shared that
the preliminary total year electric revenues of $369 million are
$14.3 million under budget or approximately 3.7%. Electric
expenses for the year of $381.4 million are $9.8 million under
P. Carroll seconded the motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0. ABSENT:
0.
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budget or approximately 2.5% under budget. He also reported it is
anticipated that a combination of credits from Intermountain Power
Project (IPP) and additional temporary Power Cost Adjustment
(PCA) revenues collected to offset expenses associated with the
extended outage at IPP should improve the yearend results for the
Electric Utility.
E. Zacherl then invited the Board's attention to the Water portion of
the Dashboard, showing the preliminary year -end water revenues of
$57.1 million, this is $400,000 over budget or approximately 0.6 %.
Water expenses for the same period of $54.1 million are $500,000
under budget or approximately 0.9 %. E. Zacherl also shared with
the Board the results of presentations by staff to the Standard and
Poor's and Fitch Rating Agencies, in relation to a proposed
refunding of the 2002A Utility Bonds; an affirmation of the Electric
Utilities' credit rating of AA- with a stable outlook by each agency.
E. Zacherl referred to copies of the notification letter and the
analysis from each of the rating agencies, sharing that the analyses
highlighted the business areas reviewed by each of the agencies and
identifies how each of those areas relate to the final rating. He
concluded by reporting, that it is anticipated that the sale of the
bonds will be completed by the end of August.
11. UPDATE ON JOINT SERVICES ISSUES.
S. Sciortino, AGM of Joint Services, shared with the Board that the
Summer Assessment information provided at the May meeting, is
now available on the Department's website under the heading
PowerWatch. The information includes details regarding the
various levels of alerts and emergency declarations by the
California Independent System Operator (CAISO), energy saving
tips for conservation, electricity outage information, potential
rotating outage conditions as well as the ability to sign up for outage
alert information, when conditions leading up to emergency
declarations occur. He also shared information regarding block
numbers on bills that allow customers to see if they could be
affected if rotating outages were to be ordered by the CAISO.
S. Sciortino explained to the Board that the regulations and
mechanics for the Cap- and -Trade auction process were rapidly
developing in more detail. He indicated that staff is working
towards changes to accommodate Anaheim's participation in the
auction. A status update will be provided, via staff report, including
additional authorization requests that have been deemed necessary
since the earlier request in January.
12. UPDATE ON ENERGY RISK & LEGISLATIVE/
REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, invited the Board's attention to the
Department's quarterly report on compliance activities which was
provided to the Board and is publicly available. She highlighted
that, as reported last month, because the Canyon Power Plant (CPP)
had an early start up, there were insufficient credits to cover air
emissions for that period. However, on an annual basis there were
sufficient credits. She stated that the Air Quality Management
District (AQMD) issued a notice of violation for this in May,
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however it is unclear if there will be an associated monetary
penalty. Referencing a positive note, she mentioned that the AQMD
did grant the modification to the air permits at CPP that APU was
seeking, as mentioned previously.
J. Lehman shared, that the legislative session is starting to wind
down and many bills have died, or have been significantly amended
so that they are no longer of concern. However, there are still
several bills that would create special rates for certain renewable
resources, and we are working with other utilities to actively oppose
these bills. The investor owned utilities oppose these bills as well,
so Anaheim is looking at joining with them on efforts to stop these
bills. The State Legislature returns from recess on August 6th, and
August 31st is the last day for a bill to pass. The Governor has until
September 30th to either sign or veto a bill.
13. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES
BOARD MEETING ON AUGUST 22, 2012.
• Informal update on Pole Lease Agreement.
• Utilities Success Indicators.
• Supplemental Approval to the 2010 Urban Water Management
Plan.
• Changes to Regulatory Relief and other Administrative
Measures. *
• Declaration of intent to reimburse water expenditures from
Bond proceeds. *
14. ITEM(S) BY SECRETARY.
• New City Manager Bob Wingenroth, plans to attend the August
22, PUB meeting.
• Introduction of Jason Motsick, Employee Relations Manager.
• Update on recent Latino Utility Coalition meeting.
(P. Carroll left at 7:10pm)
15. ITEM(S) BY BOARD MEMBERS:
J. Machiaverna thanked everyone for the Canyon Power Plant book.
B. Hernandez commented on the need for the Utilities Department
to be more nimble regarding decision making and taking action
without being unduly delayed with existing approval processes.
D. Morgan expressed his appreciation for the book.
S.E. Faessel referred to the June issue of Public Power magazine,
and the July /August issue referencing the Smart Meter article.
C. Peltzer shared his appreciation for the Canyon Power Plant book.
He also referred to B. Hernandez and D. Morgan's comments on
insuring that the decision making process is agile, and his desire to
see that concept move forward.
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J. Brandman mentioned Mr. Faessel, the former PUB Chairman,
and extending credit to him for his part in the early stages of the
Canyon Power Plant project. He thanked M. Edwards for the
Latino Utility Coalition Report and thanked staff for the work on
the ACNET article.
16. ADJOURNMENT: (REGULAR MEETING ON AUGUST 22,
2012 AT 5:00 P.M., IN THE 11' FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
C. Peltzer moved to adjourn
the Regular Meeting at 7:30
p.m. to the Board's next
meeting date of August 22,
2012 at 5:00 p.m. D. Morgan
seconded the motion.
MOTION CARRIED: 6 -0.
ABSTAINED: 0. ABSENT:
1 (P. Carroll).
* 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.
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