Public Utilities 2016/02/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
February 24, 2016
The agenda having been posted on Thursday, February 18, 2016, the Regular Meeting of the Public Utilities Board
(Board) was called to order by Vice Chairperson S.E. Faessel at 5:00 p.m. on Wednesday, February 24, 2016, in
the l 1`h Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Vice Chairperson S.E. Faessel, L. Cahill, B. Hernandez, D. Wain, E. Medrano
Board Members Absent: Chairperson J. Machiavema, A. Abdulrahman
Staff Present: D. Lee, B. Beelner, J. Lonneker, M. Moore, G. Bowen, J. Lehman, A. Kott,
P. Oviedo, M. Seifen, M. Robledo, A. Nguyen, G. Kline, D. Algarme, H. Garcia,
C. Horner, T. Hewitt, S. Santos, R. Hernandez, P. Hayes
Guest(s) Present: None
AGENDA ITEM
1. PUBLIC COMMENTS.
No Public Comments.
2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC
UTILITIES BOARD MEETING OF JANUARY 27, 2016. *
3. PRESENTATION ON ELECTRIC OUTAGE RESPONSE.
J. Lonneker, AGM - Electric Services, presented the Board with an
overview of the field personnel involved and their role in restoring
power during an outage. D. Algarme introduced Troubleshooter
Supervisors, and G. Kline introduced Electric Crew Supervisors to the
Board.
4. PRESENTATION ON EMERGING ELECTRIC GENERATION
TECHNOLOGIES.
M. Robledo, Integrated Resources Manager, provided the Board with
a presentation on new and emerging power generation technologies,
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ACTION TAKEN
There being no public
comments, Vice Chairperson
S.E. Faessel closed the public
comments portion of the
regular meeting.
Subject to correction of an
omitted word, B. Hernandez
moved approval of the Minutes
of the Regular Public Utilities
Board Meeting of January 27,
2016. E. Medrano seconded
the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 1 (L. Cahill).
ABSENT: 2 (J. Machiaverna,
A. Abdulrahman).
AGENDA ITEM ACTION TAKEN
which has the potential to shape the future of energy delivery in
Anaheim and support sustainability goals. The technologies
presented included large-scale battery energy storage, hydrogen/fuel
cell energy storage of renewable energy, wave energy technology,
tethered wind energy, wind trees, transparent photovoltaic generation,
and biodiesel generated from building algae panels.
5. APPROVAL OF THE AGREEMENT FOR UTILITY
L. Cahill moved approval of
CONSERVATION SCHOOL EDUCATION BETWEEN THE
the Agreement for Utility
ORANGE COUNTY SUPERINTENDENT OF SCHOOLS
Conservation School Education
OPERATING THE INSIDE THE OUTDOORS PROGRAM AND
between the Orange County
THE CITY OF ANAHEIM (ANAHEIM) AND THE
Superintendent of Schools
AGREEMENT FOR UTILITY CONSERVATION SCHOOL
Operating the Inside the
EDUCATION BETWEEN THE ENERGY COALITION AND
Outdoors Program and
ANAHEIM. *
Anaheim and the Agreement
for Utility Conservation School
G. Bowen, AGM - Power Supply, discussed with the Board that the
Education between The Energy
Public Utilities Department (Department) was seeking approval of
Coalition and Anaheim. B.
two agreements, one with the Orange County Superintendent of
Hernandez seconded the
Schools operating the Inside the Outdoors (ITO) Program and the
motion.
other with The Energy Coalition. He stated that both agencies
MOTION CARRIED: 5-0.
responded to a request or proposals to provide educational
ABSTAINED: 0.
opportunities for students to learn about the importance of energy
ABSENT: 2 (J. Machiaverna,
efficiency, water conservation, and environmental sustainability.
A. Abdulrahman).
G. Bowen also stated that the Department chose to have two
contracts, one with ITO and the other with The Energy Coalition
based on each firm's respective expertise and experience. ITO will
provide water conservation and outdoor learning opportunities, and
The Energy Coalition will provide energy-related curriculum. He
pointed out that the educational program also helps the Department
meet the sustainability goals identified in its Greenhouse Gas
Reduction Plan.
The Board inquired about multi-lingual services. D. Lee stated that
the consultants have multi-lingual capabilities, and will coordinate
with schools.
6. DISCUSSION ON THE UTILITIES SUCCESS INDICATORS
A. Nguyen, Utilities Budget Administrator, provided the Board with a
brief summary of the Utilities Success Indicators (USI) Report for the
reporting period July 1, 20I5 through December 31, 2015. He
highlighted three items: (1) a new indicator was added to monitor the
Utilities progress in meeting the State's Renewable Portfolio Standard
(RPS); (2) tests for lead were performed on City pipelines and
customer plumbing systems, with all tests passing with no results
above the State's allowable Iimits; and (3) the Electric Utility's credit
rating was upgraded from AI to Aa3.
7. UPDATE ON WATER SYSTEM ISSUES.
M. Moore, AGM — Water Services, discussed with the Board that
water storage levels remain low locally and regionally. Local
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AGENDA ITEM
ACTION TAKEN
groundwater recharge has increased this year due to the Phase 2
expansion of the Groundwater Replenishment System (GWRS).
Precipitation in Southern California and regionally looks to be slightly
above normal. El Nirio storms are stuck over the Pacific ocean this
winter. Forecasts still indicate California should have above normal
rain over the next several months.
He also shared that Water Services distributed approximately 400 rain
barrels at the second distribution on February 13, 2016. Altogether,
the Department distributed over 1,000 rain barrels in the past month to
customers. Customers are placing these rain barrels at residences to
capture rainfall runoff.
Water wholesalers are indicating plans to make large increases in their
rates to cover fixed costs due to lower water sales. The Department
has been meeting with Metropolitan Water District (MWD) and
Orange County Water District (OCWD) to discuss potential upcoming
rate increases.
8. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, AGM — Electric Services, discussed with the Board the
annual Los Angeles Linemen Rodeo which will be held on Saturday,
April 30, 2016 and indicated if any Board members are interested in
attending, it can be arranged as the date gets closer. Anaheim will
have one team and two apprentices competing, and a crew supervisor
is on the judging panel.
9. UPDATE ON FINANCE ISSUES.
B. Beelner, AGM — Finance and Administration, reviewed the
monthly dashboard with the Board members. He discussed how the
Electric revenues were in line with the budget for the fiscal year-to-
date while expenses were 7.7% below budget causing a net positive
budget variance of $17.7 million. He then mentioned that year-to-
date Water revenues have come in 13.4% below budget while
expenses were 13.1 % below budget - causing a year-to-date negative
net revenue variance of $700,000.
B. Beelner then discussed the upcoming refunding of Southern
California Public Power Authority's (SCPPA) Canyon 2010-A bonds.
These bonds were originally issued for construction related to the
Canyon Power Plant. SCPPA is planning to refund these bonds as
interest rates for ten-year bonds have dropped to 1.8% potentially
savings to the Department approximately $8 million - $9 million over
the next ten years.
10. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen, AGM — Power Supply, discussed with the Board the
Department's purchase of renewable energy for the month of April,
2016 from Pacific Corp which would provide the Department with
approximately $4 million in savings. He also discussed with the
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AGENDA ITEM
Board that the Department is limited in the amount of certain types of
Renewable Energy Credits (REQ it can purchase because it can only
offset 25% of its overall Renewable Portfolio by using this type of
renewable energy product and this transaction would result in the
Department reaching approximately 20% of its allowable limit. G.
Bowen indicated the Department will continue to monitor its
Renewable Portfolio and if possible it will seek to purchase up to its
allowable limit of 25% towards the end of the year depending on the
performance of its existing Renewable Portfolio.
G. Bowen provided an update on the Intermountain Power Plant (IPP)
repowering, stating that by the end of 2027 the coal fired generation
contract will end so the Department will no longer be a part of IPP,
but will participate in the new gas fired transition project slated to be
online in 2025 until divestiture in 2027. G. Bowen stated that in order
for Intermountain Power Agency (IPA) to replace IPP with a gas fired
facility, planning, permitting, and related activities will begin. To that
end, the participants remaining in IPP are considering a 900 MW gas
fired facility.
The Board requested an update on the State Cap and Trade program
11. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND
LEGISLATIVE & REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, mentioned that staff has been working
with the Anaheim Fire Department to update the City's Hazard
Mitigation PIan; she explained that the Plan identifies and ranks
potential hazards in the City such as earthquakes, floods, and fires and
identifies appropriate steps to mitigate the potential hazards.
She then indicated that the Legislative Working Group met prior to
the Board meeting and reviewed, added to, and affirmed the 2016
Guiding Principles that are used to evaluate legislation and establish
Anaheim Public Utilities' legislative positions. The 2016 Guiding
Principles will be discussed at the next Board meeting and are to be
included in the City's Legislative Platforms for approval by the City
Council.
The Legislative Working Group also reviewed bills with the potential
to impact utility operations. Last Friday was the last day to formally
introduce new State bills, and over 500 new bills were introduced—
she mentioned that staff will be doing a lot of reading in the next
week to further identify bills that may potentially impact operations.
12. AGENDA ITEMS) FOR THE PUBLIC UTILITIES BOARD
MEETING ON MARCH 23, 2016.
D. Lee, Public Utilities General Manager, mentioned the following
upcoming agenda items:
• Safety Program Overview
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ACTION TAKEN
Staff will provide an update on
the Cap and Trade program at a
future Board meeting.
AGENDA ITEM ACTION TAKEN
• Customer Initiatives Update
• Design Build for the Downtown Recycled Water Pumps and Tanks
at Pearson Park *
• Population Analysis
13. ITEM(S) BY SECRETARY.
D. Lee stated that the revised organization chart requested by the
Board will be provided at a later date due to ongoing recruitments and
a pending retirement.
He stated that Anaheim was represented at a California Municipal
Utilities Association (CMUA) briefing to State legislative staff on
electric and water issues. Along with M. Moore and J. Leman, he
provided Anaheim's perspective on legislative impacts to Anaheim
customers.
M. Seifen provided an update on a recent Partnership for 215" Century
Learning student mentoring program with Loara High School, where
students learned about potential career opportunities in utilities,
received college and career guidance, and had the opportunity to
make presentations.
14. ffEM(S) BY BOARD MEMBERS.
B. Hernandez shared that he was impressed by the student
Staff will provide information
participants in the high school P21 Mentoring Program and their
on the claims process at a
accomplishments. He also requested that staff provide a discussion
future Board meeting.
on the claims procedure at an upcoming Board meeting. B.
Hernandez then inquired about the Department's stand on the
Huntington Beach desalination project, and staff indicated that they
Staff will distribute the article
are waiting for OCWD alternative decisions to be made in May/June
on the Los Angeles
before the Department can further evaluate guidelines. He requested
Department of Water and
that staff re -distribute an article on the Los Angeles Department of
Power to the Board.
Water and Power to the Board.
D. Wain said he was also impressed with the P21 Mentoring Program,
commended the students on the quality of their presentations, and is
looking forward to the Department extending participation to others.
He then mentioned that the MWD State Water Inspection trip was
very informative and thanked staff for setting it up.
E. Medrano requested future updates on the progress of the Utiiity Staff will provide periodic
Conservation School Education program, stating that it is an effective updates on the Utility
way for students to bring conservation information to students' Conservation School Education
homes. He also mentioned that he is interested in seeing progress of program.
the Huntington Beach desalination project.
S.E. Faessel stated she appreciates the work that the electrical field
troubleshooters and crews do to maintain service to Anaheim
customers and thanked them for attending the meeting. She also
commented that the Utility Success Indicators are an effective way to
monitor the Department's performance. Lastly, she thanked staff,
Metropolitan Water District (MWD) Director Faessel and Municipal
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AGENDA ITEM ACTION TAKEN
Water District of Orange County (MWDOC) Director Barbre for the
information presented at the State Water Inspection trip.
15. ADJOURNMENT: (REGULAR MEETING ON MARCH 23, B. Hernandez moved approval
2016, AT 5:00 P.M., IN THE 11TH FLOOR LARGE to adjourn the Regular Meeting
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. to the Board's Regular Meeting
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). date of March 23, 2016 at 5:00
p.m. E. Medrano seconded
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (J. Machiaverna,
A. Abdulrahman).
Respe st bmitted,
Dukku Lee
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.
2016- 12