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Public Utilities 2016/11/14CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES November 16, 2016 The agenda having been posted on Thursday, November 10, 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, November 16, 2016, in the I Vh Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Chairperson J. Machiaverna, Vice Chair S.E. Faessel, B. Hernandez, D. Wain, A. Abdulrahman, E. Medrano, L. Cahill Board Members Absent: None Staff Present: D. Lee, M. Moore, L. Quiambao, J. Lehman, A. Kott, B. Beelner, G. Bowen, J. Lonneker, D. Bailin, P. Oviedo, M. Seifen, A. Shaikh, L. Nugent Guest(s) Present: Stephen Faessel, Anaheim Resident and Council Member Elect AGENDA ITEM 1. PUBLIC COMMENTS. No Public Continents. 2. PUBLIC HEARING: ADOPTION OF AMENDMENTS TO THE 2015 URBAN WATER MANAGEMENT PLAN. * The public hearing was called to order by Chairperson J. Machiaverna for the purpose of approving the adoption of amendments to the 2015 Urban Water Management Plan. M. Moore stated that after the adoption of Anaheim's 2015 Urban Water Management Plan (Water Plan) in June 2016, the State issued an advisory letter indicating that the Water Plan needed to be amended with further clarifications. According to M. Moore, the additional information requested by the State was primarily related to the water shortage contingency plan chapter of the Water Plan, particularly the sections defining the shortage and the specific actions taken during those stages. M. Moore also mentioned a data table error was corrected in the document. This table related to the average baseline water use and was correct in the online submission, requiring the written report version to be 2016-70 ACTION TAKEN There being no public comments, Chairperson J. Machiaverna closed the public comments portion of the meeting. B. Hernandez moved approval of the adoption of amendments to the 2015 Urban Water Management Plan. D. Wain seconded the motion. MOTION CARRIED: 7-0. ABSTAINED: 0 ABSENT: 0. AGENDA ITEM ACTION TAKEN corrected to match the online version. A copy of the letter from the State was attached to the staff report. The Board did not have additional questions regarding Staff's presentation and no public comments were received. J. Machiaverna closed the public hearing. 3. APPROVAL OF THE MINUTES OF THE REGULAR E. Medrano moved approval PUBLIC UTILITIES BOARD MEETING OF OCTOBER 26, of the Minutes of the 2016. * Regular Public Utilities Board Meeting of October 26, 2016. S.E. Faessel seconded the motion. MOTION CARRIED: 7-0. ABSTAINED: 0. ABSENT: 0. 4. ADOPTION OF THE PROPOSED 2017 PUBLIC UTILITIES B. Hernandez moved BOARD MEETING SCHEDULE. ** approval of the adoption of the Proposed 2017 Public Utilities Board Meeting schedule. E. Medrano seconded the motion. MOTION CARRIED: 7-0. ABSTAINED: 0. ABSENT: 0. 5. PRESENTATION ON THE UTILITY FRAUD AWARENESS. L. Nugent, Customer Service Manager, gave a presentation on the Public Utilities Department's (Department) Fraud Awareness efforts. L. Nugent shared data showing that consumer reporting of fraudulent activity is rising rapidly in the U.S. and customers in the City of Anaheim (Anaheim) are reporting similar levels of fraudulent attempts. Examples of fraud that have been reported include: phony sales attempts of fabricated utility equipment, impersonating utility workers, and the most frequently reported, fraudulent threats of disconnection with demands of immediate payment via a prepaid debit card. L. Nugent discussed the Department's efforts, in conjunction with the Anaheim Police Department, to track reported fraudulent activity. She also stated the Department's involvement in the national coalition; `Utilities United Against Scamming' in which the Department is working with similar agencies to develop training materials for retailers, the community, and utilize social media as a communication platform to warn residents about fraudulent scams. 2016-71 AGENDA ITEM ACTION TAKEN L. Nugent also mentioned that the fraud prevention activities are having a positive impact. More customers are reporting fraud attempts and retailers are stopping the purchase of gift cards used in fraudulent activities at the register. In addition, statistically the number of Anaheim customers that report fraudulent activity is below the national statistics. The Board asked a series of questions related to compliance and cyber security, which were addressed by staff. 6. UPDATE ON WATER SYSTEM ISSUES. M. Moore, AGM — Water Services, provided an update of the water supply dashboard which showed that between the months of November through April, Southern California received little precipitation, and there are mixed predictions on whether this will be another dry year. However, Northern California has received significant precipitation over the past month and future rainfall looks very promising. M. Moore also shared that local groundwater basin remains at about 400,000 acre-feet of overdraft even though there has been very little local rainfall. The Board inquired if groundwater supply could be lost if the overdraft increases. M. Moore responded it is unlikely the groundwater basin would be completely depleted, because it is managed very carefully by injecting imported water to make up for the low rainfall and river flows. M. Moore indicated water conservation for the month of October was 17% lower compared to 2013 and year-to-date conservation for Anaheim is 20%. Lastly, he mentioned the Department has started implementing the low income turf removal program. Information is provided online and three applications have been received and are being evaluated. The program will replace landscaping for income qualified homeowners through a state grant with enough funding for approximately 40 homes. 7. UPDATE ON ELECTRIC SYSTEM ISSUES. J. Lonneker, AGM — Electric Services, updated the Board on a recent incident on a high voltage 69kV line resulting in a voltage fluctuation on a portion of the system. This fluctuation caused some customer's equipment to shut -down causing a delay on a portion of their operations for approximately 30 minutes, although the electric system returned to normal operation in less than five minutes. Utility operators performed switching to isolate the affected line, and troubleshooters patrolled the overhead portion of the electrical lines, but no cause was found at that time. The 2016-72 AGENDA ITEM ACTION TAKEN line was kept de -energized until crews completed the inspection of the underground portion, scheduled for the following day, which also had no findings for cause. J. Lonneker explained to the Board that redundant high voltage lines allowed for restoration of the electric system to normal operations within minutes of the event. Further testing to infrared at specific locations for elevated temperatures will be conducted. Lastly, she stated that in preparation for the upcoming holidays, there would be changes to staffing levels to support timely outage response with stand-by personnel available. 8. UPDATE ON FINANCE ISSUES. B. Beelner, AGM — Finance and Administration, provided an update on the monthly dashboard. He indicated that due to the continued warm weather through the summer and fall seasons, electric revenue was 6.9% higher than budget ($11.2M) with costs coming in below budget by 11.4% ($15.8M). He then mentioned that water revenue was 8% ($2.3M) below budget, due to continued conservation, however costs were 21.6% below budget ($5.1 M) causing a positive net budget variance. B. Beelner then discussed current market conditions mentioning that interest rates have increased by approximately 0.80% since the October Board meeting. This upward movement in rates will not impact the Department's current obligations since all long term debt owed by the Department has fixed interest rates. He did note that if the recent bond transactions were sold under the current market environment, the savings earned by the Department would have been approximately $15420 million lower. DI1114.311-9-9 fila k3 -11i D10 G. Bowen, AGM — Power Supply, provided the Board an update on the outage that occurred at the Mead Substation in Nevada. He indicated that one of the six Remote Telemetry Units (RTU) failed, causing a brief interruption of load in and out of the sub- station. This outage affected the California Independent System Operator's ability to schedule power from Hoover Dam as well as power flowing from several other areas including Arizona and Nevada transmission lines. He stated that all six RTUs will be replaced over the course of the next eight weeks without any service interruptions. G. Bowen advised the Board that the Canyon Power Plant Unit 2 was in an outage due to mechanical issues in a circuit breaker. He indicated that the breaker has been repaired and is back in service. 2016-73 AGENDA ITEM ACTION TAKEN G. Bowen also indicated that all other breakers were being checked for the same issue and will be corrected. G. Bowen shared with the Board that the Department's renewable portfolio had performed well over the last month with the Brea and Bowerman Landfill Gas projects supplying over half the Department's renewable energy. 10. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND LEGISLATIVE & REGULATORY AFFAIRS ISSUES. J. Lehman, Chief Risk Officer, provided updates on the Wholesale Energy Risk Management (ERM) Program's Quarterly Compliance report. She explained that this report represents an in-depth review and analysis of the transactions and key programs associated with energy resource procurement, including the Greenhouse Gas, and Renewable Portfolio Standard programs. She also indicated that all transactions were in compliance with the ERM program, there were no violations. She provided a legislative update on the failed legislative effort this year to require water providers to test water at schools for lead. She explained that the state was now on the fast track to make this a permit condition under the State's Drinking Water Program, and that it was expected that the State Water Resource Control Board's Division of Drinking Water would be contacting water providers later this month with the pending revised permit conditions addressing this issue. Additionally, if any issues are identified through the testing the schools will be responsible for any remediation actions. It is expected that the State will work with the schools on funding necessary remediation measures. 11. AGENDA ITEM(S) FOR THE PUBLIC UTILITIES BOARD MEETING ON DECEMBER 14, 2016. D. Lee stated the following items are planned for the following Board meeting: Metropolitan Water District Power Purchase Agreement Amendment for Hydroelectric Power Virtual Hold Technology Agreement 12. ITEM(S) BY SECRETARY. D. Lee presented photographs of the San Gorgonio Wind Farm tour attended by several Board members. He stated that a local pastor from a church school attended a City Council meeting and commented that the solar panel system was 2016-74 AGENDA ITEM causing a glare to one of the church's neighbors and requested assistance from the City on permitting costs for possibly relocating the solar panels. D. Lee stated utility staff met with the church and brought a solar consultant who provided technical assistance on relocating the panels. Staff further told the pastor that they have $4,000 remaining on their Sun Power for Schools program application that they could utilize towards the permitting and relocation costs. The pastor was appreciative of the Department's assistance. D. Lee informed the Board that the Loara High School mentoring program was coming to a close and that the students would be making final presentations on November 30 from LOAM to 12PM A reminder will be emailed to the Board. 13, ITEM(S) BY BOARD MEMBERS: L. Cahill thanked staff for the meeting, indicating he was appreciative of all the information that was given. B. Hernandez shared that it was an informative meeting. S.E. Faessel highlighted the Department's success is due to the forward thinking and team -oriented environment. She also thanked staff for keeping the Board informed of issues and upcoming events. E. Medrano indicated he is impressed with the Department's commitment in making customer service a priority. D. Wain highly recommended the San Gorgonio Wind Farm tour to other Board members. He found the tour very informative and the wind operator extremely knowledgeable. A. Abdulrahman also thanked the Department for the San Gorgonio Wind Farm tour, he found the information provided very useful. J. Machiaverna recognized Mr. Faessel, Council Member Elect for Council District 5. He thanked staff for an informative meeting and wished everyone a Happy Thanksgiving. ACTION TAKEN Staff will send an email to the Board inviting them to the Loara High School mentoring ,presentation session. AGENDA ITEM 14. ADJOURNMENT: (REGULAR MEETING ON DECEMBER 14, 2016, AT S:OOP.M., IN THE 11T11 FLOOR LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). 0 Dukku Lee Public Utilities General Manager ACTION TAKEN E. Medrano moved approval to adjourn the Regular Meeting at 5: 55 p.m., to the Board's Regular Meeting date of December 14, 2016 at 5:00 p.m. S. E. Faessel 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.