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Public UtilitIes 2016/03/23CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES March 23, 2016 The agenda having been posted on Thursday, March 17, 2016, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson J. Machiaverna at 5:00 p.m. on Wednesday, March 23, 2016, in the 11's Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Chairperson J. Machiaverna, L. Cahill, B. Hernandez, D. Wain, E. Medrano, A. Abdulrahman Board Members Absent: Vice Chairperson S.E. Faessel Staff Present: D. Lee, R. Dowell, J. Lonneker, M. Moore, G. Bowen, J. Lehman, A. Kott, L. Quiambao, P. Oviedo, D. Albaugh, M. Seifen, M. Lopez, A. Quintero, D. Nunley Guest(s) Present: None AGENDA ITEM 1. PUBLIC COMMENTS. No Public Comments, 2. APPROVAL OF THE NIINUTES OF THE REGULAR PUBLIC UTILITIES BOARD MEETING OF FEBRUARY 24, 2016. * 3. CUSTOMER SERVICE UPDATE PRESENTATION. M. Lopez, Business Information Systems Manager, provided the Board with an update on the recent accomplishments of the Customer Service division. He shared that since the new Customer Information System (CIS) was implemented in June 2014, improvements have been realized in the billing processes, and also described how the new real time field mobile solution has provided a much more efficient way to complete field work orders. An additional accomplishment he shared was the Call Center's improved call wait times, and he also described the new and improved website used by customers to manage their account and make bill payments. 2016 - 13 ACTION TAKEN There being no public comments, Chairperson J. Machiaverna closed the public comments portion of the regular meeting. B. Hernandez moved approval of the Minutes of the Regular Public Utilities Board Meeting of February 24, 2016. L. Cahill seconded the motion. MOTION CARRIED: 4-0. ABSTAINED: 2 (A. Abdulrahman and J. Machiaverna). ABSENT: 1 (S.E. Faessel). ITEM NO. 01 AGENDA ITEM ACTION TAKEN M. Lopez provided an overview of initiatives within the Customer Service division for 2016, by highlighting the expansion of the Public Utilities Department's (Department) Courtesy Call program. He shared that the new Flex Pay program will help customers manage their bills better by offering optional level payment plans, monthly billing, and paperless credits. He also described the new online services that will be available for smart meter customers. M. Lopez concluded by explaining how the new payment kiosks will benefit cash paying customers and will allow Customer Service to offer flexible hours of operation in the future. The Public Utilities General Manager, D. Lee, presented a plaque to M. Lopez recognizing him for his valuable contributions to the Department and many years of dedicated service. 4. UTILITIES CLAIM PROCESS PRESENTATION. J. Lonneker, AGM - Electric Services, provided a presentation to the Board on the Department's Claims Process, including a summary of the steps necessary once a claim is filed seeking reimbursement for damages from the Utility. D. Nunley, Risk Manager, was present to address questions posed by the Board members. The Board members commented on the low number of claims filed Staff will research claims and requested a comparison of these numbers to other surrounding metrics with other municipal utilities. utilities and report back to the Board. 5. SAFETY PROGRAM OVERVIEW PRESENTATION. D. Albaugh, Administrative Services Manager, presented the Board with an overview of the Department's Safety Program. The overview included common risks to Department employees, the safety system used to mitigate risk and address safety concerns, safety statistics, and an outline of future initiatives. The Board asked about the potential for a safety recognition program. Staff will research other utility D. Lee responded that the Department will look into program options; safety recognition programs however, discouraged programs that may decrease reporting of safety and report back to the Board. incidents. 6. ANAHEIM PUBLIC UTILITIES 2050 SERVICES OUTLOOK PRESENTATION. D. Lee presented an outlook of utility services based on a prior request by the Board. The presentation reviewed the history of Anaheim's utility services, and the anticipated population growth in Orange County compared to other counties. With a projected increase in population of 10% through 2050, the presentation focused on how technology and industry drivers will impact both electric and water services in the coming years. 2016 - 14 AGENDA ITEM 7. APPROVAL OF 2016 LEGISLATIVE GUIDING PRINCIPLES FOR THE DEVELOPMENT OF LEGISLATIVE POSITIONS. ** J. Lehman, Chief Risk Officer, explained that the 2016 Legislative Guiding Principles were developed by the Board Legislative Working Group. Because of the thousands of bills that are introduced each year at both the State and Federal level, these bills can move very quickly and it's important to be able to develop positions on the bills potentially impacting utility operations. The Guiding Principles are utilized by the Department to amend bills that have negative impacts, or support bills that assist customers and operations. This year the Working Group revised the principles to enhance the principle that maintaining infrastructure is important, as is a diversified water supply in order to maintain cost and quality. The Guiding Principles were provided to the City Manager's office, which included them as part of the City's overall Legislative Platforms. S. UPDATE ON WATER SYSTEM ISSUES. M. Moore, AGM — Water Services, shared with the Board, that although El Nino has not significantly increased precipitation in Southern California, it has resulted in above normal snowpack and precipitation in Northern California. As a result, the State Department of Water Resources has increased the allocation of the State Water Project to the Metropolitan Water District of Southern California (MWD) to 45% of their contract amount. This will result in more water being available to Southern California in 2016. M. Moore referenced a recent article in the Orange County Register published on March 9, 2016, stating that the Colorado River is over- subscribed and will face a long-term shortage starting in 2017. The subscribed water rights for the Colorado River are based on river flows in 1922, which was a year with high precipitation. The reservoirs on the Colorado River have been declining over the past decade, and the article stated that will likely trigger a shortage emergency starting in 2017 or 2018. MWD is monitoring the water levels in Lake Mead carefully and purchasing water rights from other states as a contingency. These purchases are more expensive and will drive up imported water rates over the next couple years. M. Moore reported that a waterline broke in Oak Canyon Nature Park on March 5, 2016. The main break was on a trail near the entrance to the Park. The Park was closed for about a week for the repairs to be completed. Department staff worked with Community Services to ensure that impacts to their operation were minimized. 9. UPDATE ON ELECTRIC SYSTEM ISSUES. J. Lonneker, AGM — Electric Services, provided information on additional staffing preparations being made for the college basketball 2016-15 ACTION TAKEN E. Medrano moved approval of the 2016 Legislative Guiding Principles for the Development of Legislative Positions. D. Wain seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1 (S.E. Faessel). AGENDA ITEM ACTION TAKEN tournament event in Anaheim at the Honda Center. She also discussed the additional inspection and testing performed on the electric system to maintain reliability during this event. J. Lonneker also shared that staff will be participating in a locally hosted Microgrid Global Summit to keep informed on new technologies and applications. 10. UPDATE ON FINANCE ISSUES. R. Dowell, acting AGM — Finance and Administration, had no additional updates to provide. 11. UPDATE ON POWER SUPPLY ISSUES. G. Bowen, AGM — Power Supply, provided the Board with an update on the Westlands Solar Project, sharing that the 2 Megawatts (MW) project was scheduled to be commercially operational by June 2016. He shared that the Project was located in Kings County, just north of Bakersfield, and also shared pictures with the Board showing the site before and during construction. 12. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND LEGISLATIVE & REGULATORY AFFAIRS ISSUES. J. Lehman, Chief Risk Officer, provided an update on the Wholesale Energy Risk Management (ERM) Program's Quarterly Compliance report. She shared that this Program sets criteria under which certain energy related transactions can be made providing the framework for transactions to be made in an efficient manner while ensuring that the Department's interests are protected and risks are identified and appropriately managed. J. Lehman reported that all transactions were in compliance with the ERM program, there were no violations. She also mentioned that an audit will be performed to review 2015 transactions. J. Lehman also provided an update of the implementation activities associated with Senate Bill (SB) 350, which passed last year. She indicated that as part of the new law the State must look at expanding the California Independent System Operator (CAISO) to become a regional entity that includes other states as full participants. She mentioned that currently other states participate in the CAISO, but only on a limited basis, not turning over any of their transmission to increase the physical foot print of the CAISO. One of the key issues is how the transmission access to an expanded grid would be priced. Options being explored include a socialized pricing system, where all users pay a pro -rata cost of the system, as well as an option for each entity to continue to pay their own costs and only the costs of new facilities being socialized. There are significant cost implications to California if the transmission cost allocations are not set properly, as this will be a model for other states to join the CAISO in the future. 2016- 16 AGENDA ITEM ACTION TAKEN J. Lehman shared that the Board Legislative Working Group met prior to this meeting and reviewed a number of bills, and that many new bills were recently introduced that are being watched. Bills being watched include those that would increase certain renewable energy subsidy programs (Assembly Bill (AB) 2339 — Irwin -D, NEM), and a bill that would set state goals for the use of desalinated water (AB 1925 — Chang -R). J. Lehman reported that efforts to develop a federal drought bill are continuing, though they continue to move slowly. Earlier in the month, Council Members Kring and Murray met with members of our federal delegation and explained the need for a drought bill. 13. AGENDA ITEM(S) FOR THE PUBLIC UTILITIES BOARD MEETING ON APRIL 27, 2016. D. Lee, Public Utilities General Manager, stated that the following items are scheduled for the upcoming Board meeting: • Quarterly Status Reports • Advantage Services Annual Update • Fiscal Year 2017 Proposed Budget • Oak Canyon Replacement Project Presentation • Design Build Project for Downtown Recycling Water Pumps and Tank * 14. ITEM(S) BY SECRETARY. D. Lee provided an updated organizational chart to the Board. He also provided a memo of upcoming events that the Board is welcome to attend. He reported that Brian Beelner, Assistant General Manager -- Finance and Administration, is currently pricing bonds for refinancing existing debt, and the lower interest rate will save approximately $6M over the life of the bonds. 15. ITEM(S) BY BOARD MEMBERS. L. Cahill thanked staff for the information provided during the presentations. A. Abdulrahman said that he found the customer outreach, flex pay process, and the Public Utilities 2050 Outlook presentations very informative and interesting. D. Wain thanked staff for the presentations, and commented that he had a discussion with someone served by another water agency and that their water rates were much higher than Anaheim's water rates. E. Medrano appreciated the Safety and Health presentation because it is inclusive of employee feedback and participation in their safety. J. Machiaverna expressed that even with the low employee count, the Department is able to meet the needs of the community. 2016- 17 AGENDA ITEM 16. ADJOURNMENT: (REGULAR MEETING ON APRIL 27, 2016, AT 5:00 P.M., IN THE 11TH FLOOR LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). Re full s itt d, Dukku Lee Public Utilities General Manager ACTION TAKEN B. Hernandez moved approval to adjourn the Regular Meeting at 7:30 p.m., to the Board's Regular Meeting date of April 27, 2016 at 5:00 p.m. D. Wain seconded motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1 (S.E. Faessel). * 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- 18