Public Utilities 2013/03/27CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
MARCH 27, 2013
The agenda having been posted on Friday, March 22, 2013, the Regular Meeting of the Public Utilities Board
(Board) was called to order by Chairperson David Morgan at 5:04 p.m. on Wednesday, March 27, 2013, in
the l I' Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: D. Morgan, J. Machiaverna, C. Peltzer, P. Carroll, B. Hernandez, S.E.
Faessel, D. Singer
Board Members Absent: None
Staff Present: M. Edwards, D. Calkins, D. Lee, E. Zacherl, S. Sciortino, J. Lehman,
A. Kott, L. Quiambao, P. Oviedo, L. Johnson, D. Albaugh, M. Houston, P.
Hayes, J. Coe
Guest(s) Present: D. Wain, Resident & Chairperson of the East District Neighborhood Council;
S. Faessel, Resident & Chairperson of the Underground Conversion
Subcommittee.
AGENDA ITEM
1. PUBLIC COMMENTS.
None.
M. Houston, Interim City Attorney, introduced himself to the Board
and shared a brief summary of his background.
2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC
UTILITIES BOARD MEETING OF FEBRUARY 27, 2013.
PRESENTATION ON ANAHEIM RAPID CONNECTION (ARC)
BY PUBLIC WORKS.
L. Johnson, Principal Planner of the Public Works Department, gave a
presentation on the Anaheim Rapid Connection (ARC) project.
ACTION TAKEN
The Board welcomed M.
Houston.
B. Hernandez moved approval
of the February 27, 2013,
Public Utilities Board Minutes.
S.E. Faessel seconded the
motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ABSENT: 0.
2013- 15
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. WATER UTILITY OVERVIEW.
The Board requested that staff
assemble and email a cursory
D. Calkins, AGM of Water Services, gave an overview on the Water
review comparing the number
Utility. This presentation is planned to be made at a later City
of Anaheim Public Utility
Council workshop. This will be an informational presentation; no
Electric and Water employees
action will be requested of City Council.
to employees of other local
utility companies, for the
The presentation focused on the City of Anaheim's water supplies and
Board and City Council
efforts to ensure reliability, the quality of Anaheim's tap water, water
Members. The Board asked to
system infrastructure and the capital program to invest in that
include this information on the
infrastructure, and the cost of water for Anaheim customers.
website.
5. PRESENTATION ON BUSINESS AND COMMUNITY
PROGRAMS ANNUAL REPORT ON ENERGY EFFICIENCY
ACCOMPLISHMENTS.
P. Hayes, Resource Program Specialist, and J. Coe, Economic
Development Manager, gave a presentation on the Business and
Community programs Annual Report on the Energy Efficiency
Accomplishments. The data itself is required to be submitted to the
California Energy Commission and is available for public review
upon request.
6. UPDATE ON WATER SYSTEMS ISSUES.
D. Calkins, AGM of Water Services, invited the Board's attention to
the Water Supply Conditions Update in the agenda package. He
shared that this winter has been very dry since the first of January;
however, water supplies remain adequate for the coming year as a
result of water in storage.
7. UPDATE ON ELECTRIC SYSTEM ISSUES.
D. Lee, AGM of Electric Services, shared a copy of a letter received
from the State of New York's Governor's Office, expressing gratitude
for the assistance provided in the aftermath of Superstorm Sandy.
Anaheim sent a five- person crew to assist Long Island Power
Authority with their power restoration efforts, for two weeks in
November 2012.
8. UPDATE ON FINANCE ISSUES.
E. Zacherl, AGM of Finance and Administrative Services, invited the
Board's attention to the Utilities Dashboard contained in their
information packet. He shared that revenues for both Electric and
Water were slightly over budget year -to -date through February.
Electric's revenues of $288.6 million were $16 million or 5.9% over
budget with corresponding expenditures of $260.6 million over
budget by $2.7 million or 1 % over budget. The primary reason for
the favorable revenue variance continues to be the unseasonably
warm summer months earlier in the fiscal year. Expenditures,
however, were unfavorable primarily due to the increased cost of
purchased power, resulting from increased demand, which itself was
partially offset by reductions in costs associated with labor and
supplies resulting from continuing cost containment efforts. E.
2013- 16
AGENDA ITEM
Zacherl also reported to the Board that Water's revenues of $40.4
million were $2.4 million or 6.4% above budget with corresponding
expenditures of $34.1 million falling under budget by $1.4 million or
3.9 %. As with Electric, warm weather earlier in the fiscal year is
responsible for increased water demand resulting in the favorable
revenue variance. The primary reasons for the favorable variance for
operating costs was lower than budgeted water supply costs, and
continued cost containment efforts in labor and operating supplies.
9. UPDATE ON JOINT SERVICES ISSUES.
S. Sciortino, AGM of Joint Services, reminded the Board that during
Water Awareness Month there are two events to calendar. The first is
the May 15, 2013, recognition of the students winning the Water
Awareness Poster contests; they will receive their trophies and be
treated to the Angel Baseball game, which follows after the award
ceremony. The second is the Solar Boat Cup race event will take
place the weekend of May 17 thru 19.
10. UPDATE ON ENERGY RISK & LEGISLATIVE 1
REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, briefly highlighted a few recent
legislative activities that could potentially impact Anaheim Public
Utilities operations, and mentioned that next month the PUB
Legislative Working Group will be meeting, and the Quarterly
internal compliance report will be provided to the PUB.
1 •+ ► � . 1
. 1 lk:09030F.14 W ►
Fiscal Year 2013/14 Budget Presentation.
Approval of Public Hearing date of May 22, 2013 for
proposed modifications to Water and Electric Rates, Rules
and Regulations.*
Approval of proposed modifications to Rule Nos. 6 and 7 of
the Water and Electric Rates, Rules and Regulations.*
12. ITEM(S) BY SECRETARY.
M. Edwards invited the Board to read the Cap and Trade Program
Management Update that is at their place setting and available on the
Anaheim website.
M. Edwards shared that Anaheim General Hospital has announced its
closing and staff is seeking to legally disconnect its service, due to the
continuous and significant amount in arrears.
13. ITEM(S) BY BOARD MEMBERS.
S.E. Faessel said the presentation on the Anaheim Rapid Connection
(ARC) was exciting and interesting, and shared that it will be given
again at the Kiwanis Club of Greater Anaheim.
2013-17
AGENDA ITEM ACTION TAKEN
D. Singer shared that she is always impressed by how smart staff is,
and feels that the Board is in good hands.
J. Machiaverna shared that he is impressed with how the staff goes
above and beyond when it comes to customer service, which is
important, because it is one of the only things that businesses really
have to offer. Also, this is the only business where money is spent on
ways to have people spend less money, which is also a mandate by
the government.
D. Morgan shared the importance of spending time on issues and
giving staff their moment in the sun. He also thanked staff for having
L. Johnson present the Board with information on ARC.
14. ADJOURNMENT: (TO THE REGULAR MEETING ON APRIL
D. Singer moved to adjourn the
24, 2013, AT 5:00 P.M., IN THE 11` FLOOR LARGE
Regular Meeting at 7:30 p.m.
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
to the Board's next Regular
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
Meeting date of April 24, 2013
at 5:00 p.m. P. Carroll
seconded the motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ABSENT: 0.
* 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.