Public Utilities 2016/12/14CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
December 14, 2016
The agenda having been posted on Thursday, December 8, 2016, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson J. Machiavema at 5:00 p.m. on Wednesday,
December 14, 2016, in the I 1 'h Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim
Blvd., Anaheim, California.
Board Members Present: Chairperson J. Machiavema, 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, P. Oviedo, M. Seifen, A. Fiero
Guest(s) Present: Stephen Faessel, Council Member
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS. There being no public
comments, Chairperson J.
None. Machiavema closed the
public comments portion of
the meeting.
D. Lee, Public Utilities General Manager, introduced the Interim
City Attorney, A. Fierro. Board members welcomed A. Fierro.
D. Lee recognized Vice Chairperson S. E. Faessel for her years of
service on the Board and presented her with a proclamation.
2. APPROVAL OF THE MINUTES OF THE REGULAR B. Hernandez moved
PUBLIC UTILITIES BOARD MEETING OF NOVEMBER approval of the Minutes of
16, 2016. * the Regular Public Utilities
Board Meeting of November
16, 2016. E. Medrano
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [S. E. Faessel
(left the Meeting at 5:15
p.m.)].
AGENDA ITEM ACTION TAKEN
3. PRESENTATION ON SOLAR FOR SCHOOLS PROGRAM.
M. Brownrigg, Product Development Specialist, presented the
Board with an update on the Solar for Schools Program and
discussed the differences between the current Sun Power for
Schools Program and upcoming Solar for Schools Program. M.
Brownrigg pointed out that under the current program the solar
facilities are owned and operated by the schools; however, due to
the recession and school board budget priorities, only nine
schools have participated in the Sun Power program since its
inception in 2003. M. Brownrigg then discussed the status of the
new Solar for Schools Program highlighting the benefits where
the Public Utilities Department (Department) will install, own,
and maintain solar carport/shade systems, starting with the
options for each of the seven public school districts to participate
and recommend school sites.
To date, fourteen campuses have been evaluated based on layout,
cost, geographic diversity, and feasibility of construction. Solar
system sizes range from 80 kilowatts (kW) to 350 kW.
To date, the Department has received letters of intent from two
schools expressing interest in having a solar facility on their
campus. School districts will have to approve and execute license
agreements with the City in order to proceed with design and
construction.
The Board asked about student engagement opportunities with
solar panel systems, and staff responded that one of the selection
criteria was to see how schools would provide learning
opportunities with the data they would be provided from the solar
panels. The Board asked why there are differences in the amount
of energy production between schools, and staff responded that it
is based on the amount of space, where the elementary schools
have much smaller parking, and other space available for solar.
4. APPROVE THE FIRST AMENDMENT (AMENDMENT) TO L. Cahill moved approval of
THE MWD (METROPOLITAN WATER DISTRICT)
the First Amendment to the
HYDROELECTRIC PROJECT POWER SALES
MWD Hydroelectric Project
AGREEMENT BETWEEN SOUTHERN CALIFORNIA
Power Sales Agreement
PUBLIC POWER AUTHORITY (SCPPA) AND THE CITY
between SCPPA and the
OF ANAHEIM (AGREEMENT) AND DETERMINE THAT
City of Anaheim. B.
THE FIRST AMENDMENT TO THE AGREEMENT IS
Hernandez seconded the
CATEGORICALLY EXEMPT FROM THE CALIFORNIA
motion.
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT
MOTION CARRIED: 6-0.
TO SECTIONS 15061(B)(3) AND 15301(B) OF THE TITLE 14
ABSTAINED: 0.
OF THE CALIFORNIA CODE OF REGULATIONS. *
ABSENT. 1 (S. E.
FAESSEL).
G. Bowen, AGM — Power Supply, provided the Board with an
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AGENDA ITEM
ACTION TAKEN
overview of the First Amendment (Amendment) to the MWD
Hydro Electric Power Sales Agreement with SCPPA. The
Department has an Agreement for 9.7 megawatts of renewable
power from hydroelectric power plants owned and operated by
the Metropolitan Water District (MWD). He indicated that the
Amendment provides a reduction in price from the original
agreement saving the Department over $4.5 million dollars over
the remaining term of the Agreement. In order to achieve the
price reduction, the Amendment removes the two-year
termination clause in the original Agreement allowing the
Agreement to reach its planned termination date of 2023 without
early termination.
S. UPDATE ON WATER SYSTEMS.
M. Moore, AGM — Water Services, provided the Board with an
update on water supply. M. Moore indicated Northern California
has seen significant rainfall this winter which has helped add
much needed water to reservoirs that are part of the State Water
Project. However, local rainfall has been insignificant so far this
year. The local groundwater basin is still only at 18% of usable
capacity and the Colorado River storage is slowly declining. M.
Moore indicated there is no drought on the Colorado River basin;
however the over -prescription of the Colorado River rights has
caused a slow decline over the past decade.
M. Moore mentioned that a recent newspaper article reported a
possible mismanagement of MWD's turf rebate program. MWD
provided more information about the audit to their Board. The
auditor reported that an insufficient number of applicants were
verified with a site inspection. MWD staff corrected the auditor's
report by specifying that a higher number of applicants were
inspected but the inspections were outside the period of the
audit. Changes are being made to the management of the rebate
program and MWD has an outstanding solicitation for a new
contractor to assist in the administration.
Lastly, M. Moore mentioned that on December 8, 2016 a driver
swerved off the road and knocked over a fire hydrant across the
street from Anaheim High School. The car dragged the hydrant
across a parking lot and into a mechanic bay. The water from the
hydrant flooded the street and made it difficult to shutoff the
hydrant. A second water employee had to be called to assist with
the shutdown.
6. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, AGM -- Electric Services, discussed with the Board
an increase in the number of vehicle hit power pole incidents
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AGENDA ITEM
during the month of December. Managers and crews have been
reminded to maintain good safety practices of proper job site
lighting, safety barriers, and awareness of their surroundings
when working at night restoring power during outages.
J. Lonneker also discussed with the Board of an upcoming
lighting exhibition to be held at the Anaheim Convention Center
beginning Tuesday, February 28, 2017. The exhibition will
feature new technologies and products available for both internal
and external lighting as well as street lighting. She indicated that
Board members wishing to attend the exhibition will be escorted
by an engineering staff member.
7. UPDATE ON FINANCE ISSUES.
B. Beelner, AGM — Finance and Administration, discussed the
ongoing fraud activity in the City and the steps the Department is
taking to protect its customers. These steps include public
outreach via social media, working with local newspapers to
highlight how the various perpetuators attempt to defraud
Anaheim customers, using bilingual staff to canvas various
neighborhoods with large populations of non-English speakers,
and developing reverse 911 alerts to customers in the various
neighborhoods with increased fraudulent activity.
The Board and D. Lee discussed the potential use of public
service announcements and various other methods of
communicating the dangers of these fraudulent activities to
customers.
B. Beelner then discussed the monthly dashboard, indicating that
due to the continued warm weather through the summer and fall
seasons electric revenue was 5.9% higher than budget ($11.7M)
with costs coming in below budget by 10.5% ($17.6M). He then
mentioned that water revenue was 8.5% ($2.9M) below budget
due to continued conservation, however costs were 18.0% below
budget ($5.2M) causing a positive net budget variance.
8. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen, AGM — Power Supply, discussed with the Board that
the MWD Student Art Recognition Event was held at MWD
Headquarters on Thursday, December 8th, and that two students
from Anaheim Fairmont School were award winners. Those
students were Victoria Asad, 3rd grade, and Kaitlyn Kim, 7th
grade. He also indicated that their artwork is featured in MWD's
2017 "Water is Life" Calendar, which was at their place settings.
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ACTION TAKEN
Staff will email reminder to
the Board.
AGENDA ITEM
ACTION TAKEN
G. Bowen also provided an update on the power supply portfolio
performance over the last 30 -days. He discussed with the Board
that the Canyon Power Plant was offline in a planned outage for
routine maintenance on the generators voltage regulators and that
the Kraemer facility was also in an unplanned outage due to a
boiler tube leak. G. Bowen also indicated that despite these
outages, the Canyon Power Plant operated for nearly 400 hours
and Kraemer for 100 hours.
9. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND
LEGISLATIVE & REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, provided the Board with an update
on the grid regionalization efforts. She indicated there has not
been any draft language circulated to date on the legislation that is
expected to be introduced at the first of the year. In fact, some
legislators were expressing concern over regionalizing efforts, as
it could potentially invite federal intervention of the California
markets.
J. Lehman also reported that the expected changes to the water
system permit would require upon request, the testing of water at
schools for lead, which would be performed at no cost by the
Department.
10. AGENDA ITEMS) FOR THE PUBLIC UTILITIES BOARD
MEETING ON JANUARY 25, 2017.
D. Lee stated the following items are planned for the following
Board meeting:
• Election of New PUB Vice Chairperson and one UGC
Subcommittee Member * *
• Harbor Substation Design Build Contract Award
+ 2017 Update to Renewables Portfolio Standard Policy
• Customer Service Virtual Hold Software *
11. ITEM(S) BY SECRETARY,
D. Lee provided a copy of a DVD entitled "Beyond the Mirage:
The Future of Water in the West" to each Board member, as it
provided a useful overview of water issues affecting the
Southwest states.
D. Lee provided an update and showed photos of students from
Loara High School who participated in the Department's
mentoring program.
D. Lee then stated that Bill Carnahan, Executive Director of
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AGENDA ITEM
SCPPA will be retiring, and he thanked him for his service. Mike
Webster has been selected to be the new Executive Director.
12. ITEM(S) BY BOARD MEMBERS.
L. Cahill thanked staff for the information provided at the
meeting.
B. Hernandez shared that it was an informative meeting and
expressed that he does have some concerns with the changes in
government potentially affecting California's efforts in renewable
resources.
A. Abdulrahman thanked staff for the presentation provided.
D. Wain stated that he attended the mentoring presentations and
appreciated the efforts made by the high school students.
E. Medrano welcomed A. Fierro, Interim City Attorney.
J. Machiaverna thanked staff for the productive meeting.
13. ADJOURNMENT: (WORKSHOP CONCERNING AN
OVERVIEW OF CALIFORNIA INDEPENDENT SYSTEM
OPERATOR (CAISO) SCHEDULING TRANSMISSION ON
JANUARY 25, 201.7 AT 3:00 P.M. IN THE 11TH FLOOR
LARGE CONFERENCE ROOM, ANAHEIM WEST
TOWER, 201 S. ANAHEIM BOULEVARD, ANAHEIM,
CALIFORNIA AND THEREAFTER THE REGULAR
MEETING AT 5:00 P.M. ON JANUARY 25, 2017 IN THE
SAME LOCATION).
Rs sLmitted,
Dukku Lee
Public Utilities General Manager
ACTION TAKEN
E. Medrano moved to
adjourn the Regular Meeting
at 6:14 p.m., to the
Workshop concerning an
overview of CAISO
scheduling transmission on
January 25, 2017 at 3:00
p.m. and following
thereafter the Board's
Regular Meeting date of
January 25, 2017 at 5:00
p.m. B. Hernandez
seconded the 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.
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