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Public Utilities 2017/08/23CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES AUGUST 23, 2017 The agenda having been posted on Thursday, August 17, 2017, the Regular Meeting of the Public Utilities Board (Board) was called to order by Vice -Chairperson J. Seymour at 5:00 p.m. on Wednesday, August 23, 2017, in the 11th Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Vice -Chair J. Seymour, A. Abdulrahman, V. Baroldi, V. Ramirez, R. Nelson Board Members Absent: E. Medrano, J. Showalter Public Utilities Department Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott, G. Bowen, J. Lehman, P. Oviedo, D. Albaugh, A. Kanzler, M. Seifen, L. Nugent, P. Garcia, M. Jouhari, J. McBride, A. Nguyen, Y. Gaytan, F. Barvarz Guest(s) Present: None. AGENDA ITEM 1. PUBLIC COMMENTS. None. 2. APPROVE THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD MEETING OF JULY 26, 2017. * There being no public comments, Vice - Chairperson J. Seymour closed the public comments portion of the meeting. A. Abdulrahman moved approval of the Minutes of the Regular Public Utilities Board Meeting of July 26, 2017. V. Baroldi seconded the motion. MOTION CARRIED: 5-0. ABST ED:O. ABSENT: 2 (E. Medrano and J. Showalter). D. Lee requested and the Vice -Chair agreed to have the Board entertain the approval items ahead of the presentation items because two Board Members had previously indicated they would be leaving before the meeting concluded. 3. PRESENTATION ON STREET LIGHT OVERVIEW. F. Barvarz, Transmission and Distribution Manager, presented an overview of the Street Light Program. F. Barvarz described the different types of street light poles in Anaheim. He listed the Public Utilities Department's (Department) responsibilities including annual funding of $3.7M to maintain, manage, upgrade, and install street lights. F. Barvarz also discussed that an additional $2.7M funding from non -utilities sources pay for street lights' electric service charges and the Matching Fund Program that uses a combination of Community Development's Federal grants and Neighborhood Services funding to install additional street lights to address on-going street light improvement requests by residents. Lastly, F. Barvarz discussed the new LED street lights and their improved visibility for Anaheim's neighborhoods. The Board asked how the funds are being distributed and if there was a way to obtain additional funding for street lights. D. Lee responded that the Department will continue to review requested street light upgrades so that high priority requests are implemented. Additional funding opportunities will also be evaluated as part of future capital improvements. 4. PRESENTATION ON CUSTOMER SERVICE. L. Nugent, Customer Service Manager, reviewed the structure of the Customer Service Division and shared various performance metrics for each of the four sections in the Division. L. Nugent described how the Department Call Center maintains an appropriate balance between the needs of individual customers with the relative cost impacts to the entire customer base, and how Call Center representatives manage the vast majority of situations so that customers are satisfied with the outcome, and only a small percentage require escalation. L. Nugent also mentioned the Department's roll out of monthly billing and how that program is an additional tool that is provided to customers to manage their utility bills. The Board asked why the call volumes increased in Fiscal Year (FY) 2017 compared to FY 2016, and what contingencies has the Department implemented to mitigate long hold times when call volumes spiked. D. Lee responded that customers are calling more often to request assistance with payment options in light of their financial circumstances. B. Beelner indicated that the 2017-61 Department makes use of an external service, CallNet, in the event of spikes in call volume in order to mitigate long hold times. 5. PRESENTATION ON WATER DISTRIBUTION SYSTEM J. Seymour adjourned the RELIABILITY. regular PUB meeting at 6:41 CALIFORNIA AND MUNICIPAL WATER DISTRICT OF p.m. for lack of a quorum. M. Moore, Assistant General Manager — Water Services, Vice -Chairperson J. introduced P. Garcia, Water Field Superintendent, to present on Seymour, A. Abdulrahman, the Department's Water Reliability. The presentation highlighted and R. Nelson asked to the process on how the Department responds to main breaks in the remain to hear the water system. P. Garcia provided an overview of the different Presentation On Water steps in the Water Outage Management Plan for water main Distribution System breaks, beginning with the initial assessment, how customers are Reliability. notified, restoration of water services, and documenting the cause MOTION CARRIED: 5-0. of the break. ABSTAINED: 0. In addition, P. Garcia indicated that the Department's annual number of main breaks per hundred miles of pipe is about 4.4 miles as compared to the national average of 11 miles. P. Garcia made the Board aware that the Department's number of water main breaks is among the lowest for local water agencies. Lastly, P. Garcia mentioned the Department's future plans to replace water mains by incorporating the latest technology in corrosion protection and seismic resistance. 6. DISCUSSION ON UTILITIES SUCCESS INDICATORS, This item was not discussed JANUARY THROUGH JUNE 2017 UPDATE. due to a lack of a quorum. 7. APPROVAL OF AN AGREEMENT WITH R. Nelson moved approval METROPOLITAN WATER DISTRICT OF SOUTHERN of the Agreement with CALIFORNIA AND MUNICIPAL WATER DISTRICT OF MWD and MWDOC for ORANGE COUNTY FOR FISCAL YEAR 2017/2018 IN -LIEU Fiscal Year 2017/2018 In - TREATED DELIVERIES TO RECEIVE SURPLUS WATER Lieu Treated Deliveries to SUPPLIES THAT HELP RESTORE GROUNDWATER receive Surplus Water LEVELS. * Supplies that help restore Groundwater Levels. V. M. Moore indicated that the Metropolitan Water District (MWD) Baroldi seconded the and Municipal Water District of Orange County (MWDOC) In- motion. Lieu agreement is a one year agreement which helps replenish MOTION CARRIED: 5-0. groundwater levels with excess Northern California water due to ABSTAINED: 0. the heavy snow pack from this past winter. The agreement will ABSENT: 2 (E. Medrano allow the Department to utilize imported water instead of and J. Showalter). pumping groundwater at the same cost. 8. APPROVAL OF GENERAL SERVICES AGREEMENTS A. Abdulrahman moved FOR CIVIL AND ELECTRICAL ENGINEERING approval of the General SERVICES IN A NOT -TO -EXCEED AWARD AMOUNT OF Services Agreements for 2017-62 5400,000 PER WORK ORDER PACKAGE WITH Civil and Electrical AUTHORIZATION FOR UP TO 15% IN EXTRA WORK, Engineering Services in a WITH A LIMIT PER CONSULTANT OF $1 MILLION IN not -to -exceed award amount TOTAL AWARDS DURING EACH FISCAL YEAR OF THE of $400,000 per Work Order AGREEMENT'S THREE-YEAR TERM. (CONTINUED Package with Authorization FROM JULY 26, 201'7) * for up to 15% in Extra Storage Plan for 2017. He indicated that under Assembly Bill Work, with a limit per D. Lee indicated that this item was continued from the previous consultant of $1 million in meeting due to discussions that occurred involving similar total awards during each agreements at City Council. The revisions incorporate City fiscal year. V. Baroldi Council's request for an annual not -to -exceed amount per seconded the motion. individual consultant. MOTION CARRIED: 5-0. Storage Target of 1 Megawatt (MW) at the new Harbor ABSTAINED: 0. Substation by 2021 as a Pilot Project and an additional 10MW at ABSENT: 2 (E. Medrano Canyon Power Plant by 2026 depending on results of the Harbor and J. Showalter). 9. APPROVAL OF UPDATED ENERGY STORAGE SYSTEM R. Nelson moved approval PLAN AND DETERMINATION OF ASSEMBLY BILL 2514 of the updated Energy PROCUREMENT TARGETS. * Storage System Plan and EXPENDITURES AND ASSETS) 335 (TRAVEL, STAFF Determination of Assembly G. Bowen, Assistant General Manager -- Power Supply, provided Bill 2514 Procurement the Board with an overview of the Department's Updated Energy Targets. A. Abdulrahman Storage Plan for 2017. He indicated that under Assembly Bill seconded the motion. 2514 that every 3 -years all utilities must initiate a process to MOTION CARRIED: 5-0. determine appropriate energy storage targets and report findings ABSTAINED: 0. and recommendations to the California Energy Commission ABSENT: 2 (E. Medrano (CEC) by October 2017. G. Bowen indicated the Department was and J. Showalter). recommending that the Board and City Council adopt an Energy Storage Target of 1 Megawatt (MW) at the new Harbor Substation by 2021 as a Pilot Project and an additional 10MW at Canyon Power Plant by 2026 depending on results of the Harbor Substation Pilot Project. The recommendations do not authorize future expenditures, which will be subject to Board review and City Council approval. The Board asked if other types of ownership arrangements are being considered, and staff responded that they are open to looking at third -party ownership, similar to power purchase agreements currently used to procure energy. 10. APPROVAL OF PUBLIC UTILITIES DEPARTMENT A. Abdulrahman moved ORDERS 236 (RECRUITMENTS, SELECTIONS, AND approval of the Public PROMOTIONS), 311 (CAPITALIZATION OF Utilities Department Orders EXPENDITURES AND ASSETS) 335 (TRAVEL, STAFF 236, 311, 335, and 340. V. DEVELOPMENT, AND MEETING EXPENSE), AND 340 Ramirez seconded the (PETTY CASH FUNDS). * motion. MOTION CARRIED: 5-0. D. Albaugh, Administrative Services Manager, provided the ABSTAINED: 0. Board with an introduction to Department Orders (DOs) 236, 311, ABSENT: 2 (E. Medrano 335, and 340. He discussed how DOs are consistent with the and L Showalter). 2017-63 MANUMMIM I Illyi�,�Xt�;-,�VI&I�Wl'YK~@W,4w-i�ll)wl@r-I VIVIVIV" I to the Department's operation. D. Albaugh provided an overview of four DOs: (1) Department Order 236 — Recruitments, Selections and Promotions, which establishes the Department's policy and procedures for initiating the recruitment process and filling. OL promotion; (2) Department Order 311 — Capitalization of Expenditures and Assets, which establishes the Department's accounting policies and recommended accounting treatment for the appropriate classification of the Utility expenditures and assets; (3) Department Order 3 3 5 — Travel, Staff Development, and Meeting Expense, which establishes the Department's procedure for differentiating between and obtaining approval for travel, meeting expenses, staff development, industry education, seminars, conference, and training; and (4) Department Order 340 — Petty Cash Funds, which establishes the Department's procedure for administration, accounting, and replenishing of petty cash funds. The Board concurred with the need for DOs to provide necessary guidance for Department personnel. The Board asked how the Department determines the amount needed for travel expense reimbursements. Staff indicated that the amount is based on the based on geographic area. 11. UPDATE ON ELECTRIC SYSTEM ISSUES. This item was not discussed due to a lack of a quorum. 12. UPDATE ON WATER SYSTEM ISSUES. This item was not discussed due to a lack of a quorum. 13. UPDATE ON FINANCE ISSUES. This item was not discussed due to a lack of a quorum. 14. UPDATE ON POWER SUPPLY ISSUES. This item was not discussed due to a lack of a quorum. 15. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND This item was not discussed LEGISLATIEVE & REGULATORY AFFAIRS ISSUES. due to a lack of a quorum. 16. ITE (S) BY SECRETARY: This item was not discussed due to a lack of a quorum. 17. ITEM(S) BY BOARD MEMBERS: This item was not discussed due to a lack of a quorum. 2017-64 18, ADJOURNMENT: (REGULAR MEEETING ON J., Seymour adjourned the SEPTEMBER 27,2017, AT 5:00 P.M., IN THE I ITR FLOOR regular PUB meeting at 6:41 LARGE CONFERENCE ROOM, ANAHEIM WEST p . rn. for lack of a quorum. TOWER, 201 S. ANAJ-IEIM[ BOULEVARD, ANAHEIM, CALIFORNIA). D 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.