Public Utilities 2013/09/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
SEPTEMBER 25, 2013
The agenda having been posted on Wednesday, September 18, 2013, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Vice - Chairperson John Machiaverna at 5:00 p.m. on
Wednesday, September 25, 2013, in the 11 t ' Floor Large Conference Room, Anaheim West Tower, 201 S.
Anaheim Blvd., Anaheim, California.
Board Members Present: J. Machiaverna, B. Hernandez, S.E. Faessel, D. Singer, D. Wain, C. Monaco,
L. Cahill
Board Members Absent: None
Staff Present: D. Lee, D. Calkins, S. Sciortino, E. Zacherl, J. Lehman, A. Kott, L.
Quiambao, P. Oviedo, R. Shintaku, G. Bowen, M. DeSollar, J. Coe, C.
Thompson, T. Nelson
Guest(s) Present: Mark Drake, SoCal Gas; Mugi Lukito, SoCal Gas; Jennifer Vaughn, SoCal
Gas; Dustin Reilich, HERO
AGENDA ITEM
L PUBLIC COMMENTS.
S. Sciortino introduced Dustin Reilich from the California Home
Energy Renovation Opportunity (HERO) Program in relation to Item
7. S. Sciortino also introduced the individuals representing Southern
California (SoCal) Gas, Jennifer Vaughn, Mugi Lukito, and Mark
Drake, in relation to Item 8, the City of Anaheim's Agreements with
SoCal Gas.
D. Lee introduced and welcomed L. Cahill on his return to the Board
as a member.
2. ELECTIONS OF BOARD CHAIRPERSON AND VICE -
CHAIRPERSON AND UNDERGROUNDING
SUBCOMMITTEE MEMBERS. **
A. Kott reviewed with the Board the different ways the nomination
and election of Chairperson or Vice Chairperson may be facilitated.
She then opened the floor for nominations for Chairperson. S.E.
Faessel nominated J. Machiaverna who accepted the nomination. C.
Monaco moved to close the nominations and L. Cahill seconded the
motion. By voice vote, the Board members elected J. Machiaverna as
the Chairperson of the Public Utilities Board. A. Kott then opened
the floor for nominations for the Vice - Chairperson. S.E. Faessel then
nominated B. Hernandez who respectfully declined the nomination.
J. Machiaverna nominated D. Singer who accepted the nomination.
2013-54
ACTION TAKEN
By voice vote, the Board
elected J. Machiaverna as
Chairperson of the Public
Utilities Board,
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ABSENT: 0.
By voice vote, the Board
elected D. Singer as Vice -
Chairperson of the Public
Utilities Board.
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ITEM NO. 05
AGENDA ITEM ACTION TAKEN
S.E. Faessel nominated L. Cahill, however he respectfully declined ABSENT: 0.
the nomination. C. Monaco moved to close the nominations and L.
Cahill seconded the motion. By a voice vote, the Board members By Voice vote, the Board
elected D. Singer to the position of Vice - Chairperson of the Public elected S.E. Faessel, B.
Utilities Board. Hernandez, and D. Wain to
serve on the Undergrounding
A. Kott shared with the Board that three members of the Public Conversion Subcommittee.
Utilities Board serve as members of the Undergrounding Conversion MOTION CARRIED: 7 -0.
Subcommittee and the nomination and election process was as ABSTAINED: 0.
explained earlier. A. Kott then opened the floor for nominations. J. ABSENT: 0.
Machiaverna nominated S.E. Faessel and re- nominated B. Hernandez
and D. Singer nominated D. Wain. Each accepted the nominations.
C. Monaco moved to close the nominations and J. Machiaverna
seconded the motion. By a voice vote, S.E. Faessel, B. Hernandez,
and D. Wain were elected to serve on the Undergrounding
Conversion Subcommittee.
3. APPOINTMENTS OF MEMBERS OF THE PUBLIC UTILITIES J. Machiaverna appointed L.
HEARING BOARD. ** Cahill, B. Hernandez, and D.
Singer as the standing
A. Kott shared that the Chairperson appoints the members of the members of the Public Utilities
Public Utilities Hearing Board, which include three standing members Heading Board and C. Monaco
plus an alternate, that serve a one year term at the pleasure of the as the alternate.
Chairperson. J. Machiaverna appointed L. Cahill, B. Hernandez, and
D. Singer, as the standing members and C. Monaco as the alternate.
4. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC D. Singer moved approval of
UTILITIES BOARD MEETING OF AUGUST 28, 2013. * the Minutes of the Regular
Public Utilities Board Meeting
of August 28, 2013. B.
Hernandez seconded the
motion.
MOTION CARRIED: 6 -0.
ABSTAINED: 1 (L. Cahill).
ABSENT: 0.
5. PRESENTATION ON STREET LIGHT INITIATIVES.
J. Wei, Electric System Planning Manager, gave a presentation on the
latest updates and rollout strategies for Anaheim Public Utilities
Department's street light monitoring and Light - Emitting Diode (LED)
programs. The staff also gave an update on the community - requested
street light match funds program.
6. UPDATE ON INTEGRATED RESOURCES PLANNING.
C. Thompson, Principal Integrated Resource Planner, provided an
update on Integrated Resource planning. As part of the presentation,
she discussed a series of contracts that Anaheim Public Utilities will
be bringing to the Board Members, at the October Board meeting,
which will amend the existing Power Sales Agreement with
Intermountain Power Project (IPP) to allow for conversion of the
facility to natural gas, replacing the existing coal units.
2013-55
AGENDA ITEM
ACTION TAKEN
7. AUTHORIZATION TO ALLOW THE CALIFORNIA HERO
C. Monaco moved approval of
PROGRAM AND THE FIGTREE PACE PROGRAM IN THE
the Authorization to allow the
CITY OF ANAHEIM TO PROVIDE PROPERTY ASSESSED
California HERO Program and
CLEAN ENERGY (PACE) FINANCING; AND APPROVAL OF
the FIGTREE PACE Program
(A) AN AMENDMENT TO THE JOINT POWERS
in the City of Anaheim to
AGREEMENT OF THE WESTERN RIVERSIDE COUNCIL OF
provide Property Assessed
GOVERNMENTS AND (B) THE PARTICIPATION
Clean Energy (PACE)
AGREEMENT WITH THE CALIFORNIA ENTERPRISE
Financing; and Approval of
DEVELOPMENT AUTHORITY AND FIGTREE ENERGY
(A) An Amendment to the
FINANCING. *
Joint Powers Agreement of the
Gas Efficiency Programs.
Western Riverside Council of
The written, publicly available staff report detailing the item was
Governments and (B) The
verbally summarized by staff.
Participation Agreement with
California Enterprise
The Board asked a variety of questions which resulted in their
Development Authority and
decision to support the approval of the Authorization to allow the
Figtree Energy Financing. B.
California HERO Program and the FIGTREE PACE Program in the
Hernandez seconded the
City of Anaheim to provide Property Assessed Clean Energy (PACE)
motion.
Financing; and Approval of (A) An Amendment to the Joint Powers
MOTION CARRIED: 7 -0.
Agreement of the Western Riverside Council of Governments and (B)
ABSTAINED: 0.
The Participation Agreement with California Enterprise Development
ABSENT: 0.
Authority and Figtree Energy Financing.
8. APPROVAL OF AGREEMENT WITH THE SOUTHERN
L. Cahill moved approval of
CALIFORNIA GAS COMPANY TO CONDUCT JOINT
the Agreement with the
ELECTRIC, WATER AND NATURAL GAS EFFICIENCY
Southern California Gas
PROGRAMS. *
Company to Conduct Joint
Electric, Water and Natural
The written, publicly available staff report detailing the item was
Gas Efficiency Programs. D.
verbally summarized by staff.
Singer seconded the motion.
MOTION CARRIED: 7 -0.
The Board asked a variety of questions which resulted in their
ABSTAINED: 0.
decision to support the approval of the Agreement with the Southern
ABSENT: 0.
California Gas Company to Conduct Joint Electric, Water and Natural
Gas Efficiency Programs.
9. APPROVAL OF REIMBURSEMENT AGREEMENT WITH
THE IRVINE COMMUNITY DEVELOPMENT COMPANY,
LLC AND THE IRVINE LAND COMPANY, LLC FOR THE
ANNEXATION OF MOUNTAIN PARK DEVELOPMENT
INTO ORANGE COUNTY WATER DISTRICT. *
The written, publicly available staff report detailing the item was
verbally summarized by staff.
The Board asked a variety of questions which resulted in their
decision to support the approval of the Reimbursement Agreement
with the Irvine Community Development Company, LLC and the
Irvine Land Company, LLC for the Annexation of Mountain Park
Development into Orange County Water District.
D. Singer moved approval of
Reimbursement Agreement
with the Irvine Community
Development Company, LLC
and the Irvine Land Company,
LLC for the Annexation of
Mountain Park Development
into Orange County Water
District. D. Wain seconded the
motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ABSENT: 0.
2013-56
AGENDA ITEM
ACTION TAKEN
10. APPROVAL OF THE RENEWABLE POWER PURCHASE
S.E. Faessel moved approval of
AND SALE AGREEMENT BETWEEN SAN GORGONIO
the Renewable Power Purchase
FARM, INC. AND THE CITY OF ANAHEIM. *
and Sale Agreement Between
San Gorgonio Farm, Inc. and
The written, publicly available staff report detailing the item was
the City of Anaheim. L. Cahill
verbally summarized by staff.
seconded the motion.
MOTION CARRIED: 7 -0.
The Board asked a variety of questions which resulted in their
ABSTAINED: 0.
decision to support the approval of the Renewable Power Purchase
ABSENT: 0.
and Sale Agreement between San Gorgonio Farm, Inc. and the City of
Anaheim.
D. Singer moved approval of
11. APPROVAL OF THE WESTERN SYSTEM POWER POOL
the Western System Power
(WSPP) AGREEMENT, SCHEDULE R, RESOURCE
Pool (WSPP) Agreement,
CONTINGENT BUNDLED RENEWABLE ENERGY CREDIT
Schedule R, Resource
(REC) CONFIRMATION BETWEEN NOBLE AMERICAS
Contingent Bundled
GAS & POWER CORPORATION AND THE CITY OF
Renewable Energy Credit
ANAHEIM. *
(REC) Confirmation between
Noble Americas Gas & Power
The written, publicly available staff report detailing the item was
Corporation and the City of
verbally summarized by staff.
Anaheim. S.E. Faessel
seconded the motion.
The Board asked a variety of questions which resulted in their
MOTION CARRIED: 7 -0.
decision to support the approval of the Western System Power Pool
ABSTAINED: 0.
(WSPP) Agreement, Schedule R, Resource Contingent Bundled
ABSENT: 0.
Renewable Energy Credit (REC) Confirmation between Noble
Americas Gas & Power Corporation and the City of Anaheim.
12. UPDATE ON THE ORANGE COUNTY WATER DISTRICT'S
BALL ROAD BASIN PROPERTY.
D. Calkins presented the Board with an update on the Orange County
Water District's (OCWD) Ball Road Basin Property, which included
information about a private company Competitive Power Ventures
Holdings, LLC (CPV) that recently obtained an Exclusive Due
Diligence Agreement with OCWD to develop a power plant on
OCWD's Ball Road Basin property. Anaheim has made it clear to
OCWD that this property, located in Anaheim, is not a good location
for a power plant because staff believes this space would be better
suited for a large park and sports complex with multiple sports fields
to serve the demand for league play in Anaheim and the surrounding
communities. CPV has a deadline of early December to submit a
proposal to Southern California Edison for a power plant at this
location. A position statement dated September 20th was provided to
the Board, which includes information on the status of this issue and
Anaheim's perspective.
13. UPDATE ON WATER SYSTEM ISSUES.
D. Calkins, AGM of Water Services, followed up with the Board to
ask if there was any interest by the Board members in attending a
Colorado River Aqueduct inspection trip with the City of Fullerton,
from October 4th through the 6th.
2013-57
AGENDA ITEM
14. UPDATE ON ELECTRIC SYSTEM ISSUES.
D. Lee, AGM of Electric Services, provided an update to the Board
about an emergency preparedness drill that was conducted to test a
new concept called Neighborhood Liaisons. The idea came from
staff's evaluation of the San Gabriel Valley wind storm and
Superstorm Sandy events, in which customers felt isolated and were
unable to receive timely updates from their utility companies. The
Neighborhood Liaisons are comprised of engineering staff that are not
directly involved with power restoration, and would set up portable
stations in the affected neighborhoods to prioritize requests and
communicate with operations staff, provide water, emergency kits and
charging stations for portable devices, and provide the latest
information on restoration activities available to the public.
D. Lee informed the Board that a 6 -hour power outage occurred in the
South Bay on Sunday, September 15, 2013, affecting about 115,000
customers, which is equivalent to the entire city of Anaheim.
Torrance, Redondo Beach, and Rancho Palos Verdes were among the
cities affected. The media reports stated that the outage was caused
by downed power lines or possibly a transformer failure in Torrance,
causing a major substation to trip off -line. The media reports
indicated further that there are several legislative efforts aimed at
providing greater transparency in outage reporting and potentially
assigning fines for repeated outages. Anaheim staff has been making
efforts to increase equipment replacements in light of the recent
outage activity related to warm weather, and has been evaluating
utilizing up to $2M in reserves to address additional reliability
improvements that include accelerating transformer and direct buried
cable replacements.
D. Lee informed the Board that an electrocution occurred at the
Honda Center on September 24. The Honda Center worker is
believed to have made contact with live electrical components, and
passed away from his injuries. Although the electrical work was on
the low voltage system, this is a reminder that electricity is dangerous
at any voltage, which is why so much emphasis is placed on safety in
the Public Utilities Department (Department).
15. UPDATE ON FINANCE SYSTEM ISSUES.
E. Zacherl, AGM of Finance and Administrative Services, invited the
Board's attention to the Utilities Dashboard. He shared that year -to-
date revenues for both electric and water remain over budget through
the month of August, both attributable to the warmer than normal
weather. Year -to -Date electric revenues of $75.1 million were $6.5
million or 9.5% over budget. Electric expenses for that period of
$68.6 million were $.9 million over budget or 1.4 %. Power costs
exceeded budget by $1.9 million due to increased demand and were
partially offset by lower expenses in labor, operating and debt.
Electric retail revenues for the month of August of $30.1 million were
slightly under budget by $.2 million or 0.2 %. This was offset by
increases in transmission revenue, gas and wholesale revenues of $5.5
million or $.7 million over budget.
ACTION TAKEN
2013-58
AGENDA ITEM
E. Zacherl also reported to the Board that the year -to -date water
revenues through August were $13 million, $0.7 million or 5.6% over
budget. Year -to -date water expenses through May of $93 million
were $1.4 million or 24.9% under budget primarily due to a greater
portion of the water supply being supplied by pumped ground water.
This favorable variance will decline in the future as the mix of
pumped to purchased water is adjusted to conform to the
Department's Basin Pumping Percentage of 70 %. Water revenues for
the month of August of $6.1 million were also over budget by 2.0%
due to continued warm and dry conditions causing irrigation demands
to remain high.
16. JOINT SERVICES ISSUES.
S. Sciortino, AGM of Joint Services, shared a brief update on the
Customer Information System (CIS) upgrade activities. He indicated
for the last three weeks, the scripted testing of the program has been
going on for several aspects of the program. There were some initial
issues, which have been resolved and the project is still on schedule
and at budget. In addition, he apprised the Board that there will be a
City Council agenda item addressing an amendment to the Systems &
Software Inc. (S & S) contract to allow S & S to make a change in
sub - contractor. This action will not change the cost of the project or
delay activities.
S. Sciortino reminded the Board that while Anaheim has been out of
the San Onofre Nuclear Generating Station (SONGS) since the end of
2006, the Department retained the obligation for all decommissioning
activities and those respective costs. With the recent shut -down of
SONGS, decommissioning planning activities have already
begun. Those activities will ramp up the Department's re-
involvement in several of the SONGS committee meetings. It is
anticipated that a Decommissioning Agreement will be drafted to
replace the current Operating Agreement to address governance
issues, planning and cost allocations to be agreed upon by the co-
owners and Anaheim. S. Sciortino will be advising the Board as those
activities become more formalized. Monies for Anaheim's
decommissioning activities have been set aside in a trust account, the
current balance of which is $126 million, which provides 100% of the
funding needed for Anaheim's decommissioning obligation.
17. UPDATE ON ENERGY RISK & LEGISLATIVE
REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, shared a brief update indicating that all
was going well in the compliance and risk areas, and reported on the
status of the current legislative session. She also provided a brief
summary of the Public Utilities Board (PUB) Working Group meeting
which was held just prior to the PUB meeting. The PUB Working
Group meeting was moved up from the planned October time frame
to discuss the remaining state legislative bills that have until October
13th to either be approved, or vetoed, by the Governor, as well as to
accommodate the Undergrounding Committee which will now be
meeting in October.
ACTION TAKEN
2013 - - - -- 59
AGENDA ITEM
18. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES
BOARD MEETING ON OCTOBER 23, 2013.
• Presentation on Bay Delta Conservation Plan
• Utility Rates Workshop
• Presentation on Electric Systems Reliability Report
• Second Amendatory Intermountain Power Authority Power Sale
Agreement *
19. ITEM(S) BY SECRETARY.
D. Lee stated that the Utility Success Indicators were provided in the
Board's packets and would be discussed in greater detail at the
November meeting.
D. Lee stated that a resident posted on a local community blog that
her utility bill was very high and she believed the meter read was
estimated incorrectly. The blog gained additional attention over a
weekend, so Utility management provided a response to explain if
there are mistakes; staff will make every effort to correct them. S.
Sciortino and his staff met with the customer and identified that there
was a meter read error due to access issues, and rectified the situation
to the satisfaction of the customer.
D. Lee stated that the General Manager recruitment will close at the
end of September, and during the month of October, S. Sciortino will
be Acting General Manager.
20. ITEM(S) BY BOARD MEMBERS.
D. Singer thanked everyone for a great meeting.
B. Hernandez stated that he is happy to have L. Cahill back on the
Board.
L. Cahill shared that he is glad to be back on the Board and
mentioned appreciation for the very interesting topics discussed in the
meeting. He thanked everyone for welcoming him back and
appreciates being on the Board.
C. Monaco thanked D. Lee and staff for taking him and D. Wain on a
tour of the electric facilities, indicating that it was very impressive.
D. Wain thanked D. Lee and D. Calkins for the tours of the electric
and water facilities, sharing that they were both informative and
valuable.
S. E. Faessel congratulated all appointments and welcomed L. Cahill.
She indicated that she gave credit to the Public Utilities Department
for the diverse knowledge of staff, adding that staff is planning ahead
and using the best information possible.
ACTION TAKEN
2013-60
AGENDA ITEM ACTION TAKEN
J. Machiaverna shared that it is nice to have L. Cahill back on the
Board and that it is important for organizations to have new
perspectives, but not to forget their history. He expressed his
appreciation to L. Cahill for being a critical part of the organization
and his influence with the Canyon Power Plant project. Lastly, he
thanked the Board for the vote of confidence as the newly appointed
Chairperson.
21. ADJOURNMENT: (TO THE REGULAR MEETING ON
B. Hernandez moved to
OCTOBER 23, 2013, AT 5:00 P.M., IN THE 11" FLOOR
adjourn the Regular Meeting at
LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER,
7:08 p.m. to the Board's next
201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
Regular Meeting date of
October 23, 2013 at 5:00 p.m.
D. Wain seconded the motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0.
ABSENT: 0.
Respectfully sub itted,
Dukku Lee
Acting Public Utilities General Manager
* 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.
maim*