Public Utilities 2017/10/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
OCTOBER 25, 2017
The agenda having been posted on Thursday, October 19, 2017, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson E. Medrano at 5:01 p.m. on Wednesday,
October 25, 2017, in the 2nd Floor Gordon Hoyt Conference Center, Anaheim West Tower, 201 S.
Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson E. Medrano, Vice -Chairperson J. Seymour, A. Abdulrahman,
V. Baroldi, R. Nelson, J. Showalter
Board Members Absent: V. Ramirez
Public Utilities Department
Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott,
G. Bowen, J. Lehman, P. Oviedo, D. Ballin, A. Markis, M. Seifen,
A. Nguyen, Y. Saldivar, A. Muniz, S. Marsh, J. McBride
Guest(s) Present: S. Sagert, President of Anaheim Beautiful; A. Trejo, Board of Trustees
Member; J. Root, Assistant Superintended; D. Lujan, Katella High School
Earth Club Advisor; A. Loya, Earth Club Co -President; F. Pacheco, Earth
Club Co -President; N. Zug, Love Anaheim Member; A. Tsarna.s, Love
Anaheim Member; P. Diego, Love Anaheim Member; D. Barr, Love
Anaheim Member; S. Valdez, Love Anaheim Member; L. Walden, Love
Anaheim Member; A. Rosales, Love Anaheim Member; A. Co, Love
Anaheim Member; M. Grisso, Huntington Beach Resident.
AGENDA ITEM
ACTION TAKEN
1. PRESENTATIONS RECOGNIZING KATELLA HIGH
SCHOOL FOR BEING A WATER SMART LANDSCAPE
AWARD WINNER AND LOVE ANAHEIM VOLUNTEERS
FOR FIRE HYDRANT PAINTING.
The Board recognized Katella High School for winning the Water
Smart Landscape Award, in conjunction with Anaheim Beautiful.
S. Sagert, President of Anaheim Beautiful described the award, and
students provided an overview of their sustainability project.
The Board also recognized Love Anaheim volunteers for their
efforts to clean up graffiti by painting fire hydrants. N. Zug spoke
on behalf of Love Anaheim and the volunteers who participated in
the service project.
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2. PRESENTATION RECOGNIZING ANAHEIM PUBLIC
UTILITIES FOR THE ASSOCIATION OF
METROPOLITAN WATER AGENCIES PLATINUM
AWARD.
M. Moore, Assistant General Manager — Water Services, made the
Board aware of the award that was presented to the Public Utilities
Department (Department) by the Association of Metropolitan
Water Agencies. M. Moore recognized A. Nguyen and Y. Saldivar
for their assistance with the rigorous application process.
3. PUBLIC COMMENTS.
None.
4. APPROVE THE MINUTES OF THE REGULAR PUBLIC
UTILITIES BOARD MEETING OF SEPTEMBER 27, 2017.
5. PRESENTATION ON 2016 ELECTRIC SYSTEM
RELIABILITY REPORT.
D. Algarme, Electric Operations Manager, presented the Electric
Reliability Report for 2016 which included the 2016 System
Average Interruption Frequency Index, the System Average
Duration Index, and Customer Average Interruption Index. D.
Algarme then reported on the Electric Utilities' high reliability
statistics as compared to local investor-owned and publicly -
owned utilities in Southern California, and across the nation. He
identified the four programs: Inspection and Maintenance,
Infrastructure Replacement, Workforce Training, and Safety and
Automation that work in an integrated fashion to keep system
reliability high. D. Algarme also referred to the online outage
tools available to keep the Department's customers informed on
the status of restoration.
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There being no public
comments, Chairperson E.
Medrano closed the public
comments portion of the
meeting.
J. Seymour moved approval
of the Minutes of the
Regular Public Utilities
Board Meeting of
September 27, 2017. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
6. PUBLIC HEARING: FORMATION OF UNDERGROUND
DISTRICT NO. 65 (SANTA ANA CANYON / ROYAL OAK)
AND DETERMINE SUCH ACTION IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO SECTIONS 15302(D) AND 15303 OF THE
CALIFORNIA CODE OF REGULATIONS. *
Chairperson E. Medrano explained the public hearing process and
thereafter opened the public hearing.
D. Lee introduced the staff report and its attachments as his report
for purposes of Chapter 17.24 of the Anaheim Municipal Code
(AMC) and introduced F. Barvarz, Transmission and Distribution
Manager, who is the Project Manager for the Underground
Conversion Program. F. Barvarz provided the Board with a
presentation on the district formation and discussed the project
details, including a need to improve electrical capacity and
reliability in the area.
The Board asked where the planned underground facilities will be
installed on Royal Oak. F. Barvarz indicated that one of the
factors driving the undergrounding there is the difficulty to access
electrical facilities for maintenance and outage restoration as they
are currently on a steep slope and away from the roadway.
Therefore, the underground structures will be installed in the
Royal Oak public right-of-way for improved access. He stated
that the communication companies involved will also benefit
from better access to their facilities.
After the presentation, D. Lee mentioned that Notice of Public
Hearing and the City Clerk's Office mailings were conducted in
accordance with Chapter 17.24 and that the Affidavit of
Publication of the Notice of Public Hearing concerning this
District formation was filed with the Secretary of the Board.
There were no public speakers for this item; E. Medrano asked D.
Lee whether the Secretary of the Board received any
correspondence concerning this public hearing. D. Lee informed
the Board that out of 254 mailed notices to affected property
owners, the Department received one written correspondence
from the Gas Company who did not have any conflicts with the
proposed district. E. Medrano moved the written correspondence
into the record and thereafter closed the public hearing.
During Board discussion, the Board stated that Santa Ana Canyon
Road would benefit from the planned undergrounding and street
light improvements.
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A. Abdulrahman moved
approval of the Resolution
for the Formation of
Underground District 65. J.
Seymour seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 (V. Ramirez).
7. PUBLIC HEARING: FORMATION OF UNDERGROUND
DISTRICT NO. 66 (BEACH) AND DETERMINE SUCH
ACTION IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT PURSUANT TO
SECTIONS 15302(D) AND 15303 OF THE CALIFORNIA
CODE OF REGULATIONS; APPROVAL OF LETTER OF
INTENT TO UNDERGROUND SOUTHERN CALIFORNIA
EDISON'S (SCE)12,000 VOLT OVERHEAD FACILITIES
WITHIN THE PROPOSED DISTRICT AND AUTHORIZE
THE PAYMENT OF AN ADVANCE OF $40,000 TO
REIMBURSE SCE FOR PRELIMINARY ENGINEERING
AND DESIGN PLAN COSTS. *
Chairperson E. Medrano opened the public hearing.
D. Lee introduced the staff report and its attachments as his report
for purposes of Chapter 17.24 of the Anaheim Municipal Code
(AMC). F. Barvarz discussed the Project details, including the
City's planned Beach Boulevard Corridor improvements, and the
coordination to underground Southern California Edison's (SCE)
electrical facilities on jointly -owned poles with Anaheim, to allow
removal of the utility poles for the planned roadway
improvements.
The Board asked how the City and SCE will work together
concerning this Project. F. Barvarz indicated that as the Project's
construction plans are developed and coordinated, and those
details will be addressed with SCE, depending on each utility's
specific circumstances.
After the presentation, D. Lee mentioned that Notice of Public
Hearing and the City Clerk's Office sent 1,770 mailings in
accordance with Chapter 17.24, and that the Affidavit of
Publication of the Notice of Public Hearing concerning this
District formation was filed with the Secretary of the Board.
There were no public speakers for this item; E. Medrano asked D.
Lee whether the Secretary of the Board received any
correspondence concerning this public hearing. D. Lee informed
the Board that the Department did not received any
correspondence from residents; however, it did receive written
correspondence from the Gas Company and City of Stanton, who
do not have any conflict with district formation.
E. Medrano moved the written correspondence into the record and
thereafter closed the public hearing.
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R. Nelson moved approval
of the resolution for the
formation of Underground
District 66 and the approval
of Letter of Intent to
underground Southern
California Edison's
overhead facilities and
authorization for payment.
V. Baroldi seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
8. PRESENTATION ON ELECTRIC AND WATER SYSTEM
OPERATIONS DURING CANYON FIRE 2.
D. Lee provided an overview of how the electric and water
systems were operated and performed during Canyon Fire 2.
Water pressure was maintained throughout the event, with
operators continuously monitoring the system. City staff between
various departments closely coordinated activities through the
Emergency Operations Center (EOC) and the Department
Operations Centers (DOCs) for both electric and water that were
activated quickly in response to Canyon Fire 2. Additionally,
Walnut Canyon Reservoir was used extensively throughout the
event to support aircraft with water drops. Electric circuits were
not affected during the event; however, Southern California
Edison experienced an outage to one of their transmission lines,
which resulted in a voltage dip. The Board requested further
information on the transmission system.
9. ANNUAL REPORT ON EMERGENCY PLANNING
ACTIVITIES.
J. Lehman, Chief Risk Officer, provided the Annual Report on the
Department's emergency response planning and preparedness
activities. The Department's Emergency Response Planning
Program (Program) provides staff vital information and guidance
on actions to be taken before, during, and after major emergencies
and it supplements City-wide efforts to prepare for, and respond
to emergencies. As part of this Program, annual updates are
provided to the Board on key events.
J. Lehman indicated that during the past year, there had been no
major outages on either the electric or water services systems that
triggered the activation of the Department's Emergency Response
Plan. However, the Department participated in responding to
three emergencies in the City that required the activation of the
City-wide EOC: the winter storm in January 2017, and the two
recent Canyon Fires in September and October. She then
highlighted the training and drills, including the annual exercise
that had taken place in August.
10. DISCUSSION ON THE QUARTERLY STATUS REPORTS
ON CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVICE AGREEMENTS,
AND SPOT BID AWARDS.
D. Lee provided an overview of the quarterly reports that
documents work performed by consultants and contractors, as well
as material purchases through the City's Finance Department. In
addition, maps of electric and water capital projects were provided
to show the activity throughout the City. He noted that street light
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The Department will
provide an overview on the
transmission grid at a future
meeting.
projects to replace fixtures with new LEDs are ongoing as indicated
in the electric map.
11. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, Assistant General Manager — Electric Services,
shared that during the week of high temperatures in mid-October
2017, there were several small area power outages, but they were
not related to the elevated temperatures. In order to avoid
significant inconvenience to customers during the hot weather, the
Department cancelled all planned outages for the three day period.
J. Lonneker showed the Board a collage of pictures which
included staff and the public wearing their pink hard hats to show
support for Breast Cancer Awareness Month. At previous
community and Department hosted events, participants won a
pink hard hat and wore them to show their support throughout the
month of October.
12. UPDATE ON WATER SYSTEM ISSUES.
M. Moore provided an update on the California Water Fix
Program proposed by the State of California to improve the
reliability of water deliveries in the State Water project which was
approved by the Board of the Metropolitan Water District of
Southern California. Their approval, along with other State Water
Project contractors is one step towards moving forward with the
Program project. M. Moore indicated that some Federal
contractors in the central valley of the State have not approved the
project as proposed by the State, and will need to work out cost
sharing plans with the United States Bureau of Reclamation.
13. UPDATE ON FINANCE ISSUES.
B. Beelner, Assistant General Manager — Finance and
Administration, discussed the mitigating measures the
Department has taken during the October heat storm to protect
customers and staff. These measures included suspending
customer disconnections for customer safety and providing those
staff that primarily work outside with cooling towels and
"Camelbak" backpacks that store approximately 3 quarts of
drinking water to ensure employees stayed hydrated.
B. Beelner then discussed the monthly dashboard with the Board
indicating that electric revenue for the year-to-date September 30,
2017 was 8.2% higher than budget ($10.1 M) with costs coming in
below budget by 2.6% ($2.7M). B. Beelner then mentioned that
the year-to-date September 30, 2017 water revenue was 4.4%
($1.OM) below budget however, costs for the year were 6.4%
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below budget ($1.1 M) causing a positive net budget variance of
$01M.
14. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen, Assistant General Manager — Power Supply, provided
an update on the Department's power supply portfolio for
September, noting that the portfolio power production was within
budget for the month. G. Bowen indicated that there were two
small unit outages in September, one at the Magnolia Power Plant
and the other at the San Juan Generation Station, and that the two
outages did not have a large impact on overall power production
for the month.
G. Bowen also made the Board aware that the Kraemer Power
Plant suffered a cracked drain pipe that, if left untreated would
impact operations. The indicative bids to fix the piping for the
drain were approximately $27,000. The Generation technicians
determined that the work could be performed in-house at a cost
savings, and the repairs were made for $3.500 saving
approximately $24,000 and reducing the extended outage of the
facility.
Lastly, G. Bowen provided the Board with an update on the
heatwave seen in October. He indicated that the heatwave was
the longest prolonged heatwave in October that the Department
has seen on record going back over 25 -years with the City usage
of over 500 megawatts for three days in a row. G. Bowen also
stated that the Canyon and Kraemer Power Plants were running
for extended periods during this time.
15. UPDATE ON ENTERPRISE RISK MANAGEMENT.
J. Lehman provided the Internal Compliance Report, and shared
that the compliance efforts made by Department staff were
effective. J. Lehman highlighted that the Department's water
system had been inspected by the State Water Resource Control
Board, and had passed the inspection with only a few minor
corrections being required, such as the replacement of worn vent
screen on one of the reservoirs.
J. Lehman then provided the Board with the Legislative Report
for 2017, which highlighted significant legislative outcomes from
the past year. She then mentioned the bills that passed which
were likely to have the most impact on operations, as well as
discussed potential new bills likely to be addressed next year.
Lastly, J. Lehman thanked the Public Utilities Board ad hoc
Legislative Working Group for their time to address and provide
guidance on a variety of bills that had the potential to impact
customers.
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16. ITEM(S) BY SECRETARY:
D. Lee discussed the High School mentoring program being
conducted in partnership with the Anaheim Union High School
District and Oxford Academy. The Board will be invited to the
final presentations on December 6.
He stated that the Solar for Schools program is continuing with a
design -build solicitation that is being evaluated to select a
contractor to design and install the solar panels at schools. The
agreement will be brought forward for Board consideration at a
future meeting.
He stated that the Department is collaborating with other City
departments to develop a program that allows civic engagement
banners to be installed on street light poles in a limited fashion. A
rule change will be required to accommodate the request, which
will be presented to the Board for consideration at a future
meeting.
D. Lee shared several photos from Public Power Week, in which
200 students from local elementary schools participated in
learning about electric safety and how power is delivered to their
homes.
17. ITEM(S) BY BOARD MEMBERS:
A. Abdulrahman thanked staff for an informative meeting and the
update that was provided in regards to the Canyon Fire 2.
R. Nelson acknowledged the Department for their efforts during
Canyon Fire 2.
18. ADJOURNMENT: (REGULAR MEETING ON NOVEMBER
15, 2017, AT 5:00 P.M., IN THE 111 FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
Dukku Lee
Public Utilities General Manager
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J. Seymour moved approval
to adjourn the Regular
Meeting at 6:56 p.m., to the
Board's Regular Meeting
date of November 15, 2017
at 5:00 p.m. A.
Abdulrahman seconded
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 (V. Ramirez).
* 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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