Public Utilities 2018/01/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
JANUARY 24, 2018
The agenda having been posted on Thursday, January 18, 2018, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson E. Medrano at 5:00 p.m. on Wednesday, January 24, 2018,
in the 11"' Floor Large Conference Room, 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, V. Ramirez
Board Members Absent: None
Public Utilities Department
Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott,
G. Bowen, J. Lehman, P. Oviedo, P. Hayes, M. Robledo, A. Kanzler,
A. Markus, Y. Gaytan, M. Seifen, D. Albaugh
Guest(s) Present: Anaheim Police Officers: K. Jung, R. LaRochelle, J. Carey, S. Davis,
M. Lillemoen, B. Starke, D. Heffner, R. Crosby, D. Depriest
JC. Rodriguez, and K. Florendo; S. Chiha, General Manager of DBW Metals
and K. Kelly, Retail Manager of DBW Metals; and M. Franco, Anaheim
Resident.
AGENDA ITEM ACTION TAKEN
1. PRESENTATION RECOGNIZING MEMBERS OF THE
PUBLIC AND ANAHEIM POLICE DEPARTMENT
PERSONNEL FOR ASSISTANCE IN THE PROTECTION OF
WATER FACILITIES.
The Public Utilities Department (Department) recognized two members
of the public as well as two Patrol Officers and two Detectives from the
Anaheim Police Department for their assistance in the protection of
water facilities which resulted in the arrest of two suspects charged
with 14 felony counts of grand theft of water meters.
2. PUBLIC COMMENTS. There being no public
comments, Chairperson E.
None. Medrano closed the public
comments portion of the
meeting.
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3. APPROVE THE MINUTES OF THE REGULAR PUBLIC J. Seymour moved approval
UTILITIES BOARD MEETING OF DECEMBER 13, 2017. * of the Minutes of the Regular
Public Utilities Board
Meeting of December 13,
2017. V. Baroldi seconded
the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
4. PRESENTATION ON COMMUNITY ENGAGEMENT
PROGRAMS FY2016-17 ANNUAL REPORT.
P. Hayes, Business & Community Programs Manager, provided the
Board with an annual update on the Department's ongoing
community engagement and energy efficiency efforts throughout
Anaheim. During the fiscal year, over 6,000 residents and 500
businesses were assisted resulting in $2.7 million in utility bill
savings for Anaheim customers. Other programs emphasized student
education, income qualified services, sustainable resources, and
electric transportation charging stations. P. Hayes informed the
Board that community outreach will be conducted in March to help
customers with energy and water conservation, free shade trees, and
signups for monthly billing.
5. PRESENTATION ON THE DECOMMISSIONING UPDATE OF
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS).
M. Robledo, Integrated Resources Manager, gave a presentation on
the ongoing decommissioning efforts at the San Onofre Nuclear
Generating Station (SONGS) after cessation of operations on June 12,
2013.
M. Robledo discussed the decommissioning scope of work, the
moving of spent fuel into Dry Cask Storage, and what could be
anticipated upon full restoration of the SONGS site after demolition.
M. Robledo also provided a summary of the decommissioning costs,
risks, and mitigations. He reported that the decommissioning trust
fund was adequate to cover the decommissioning costs.
6. APPROVAL OF THE CORRECTION LOWERING THE
A. Abdulrahman moved
INCOME QUALIFICATION THRESHOLD AMOUNT
approval of the correction
IDENTIFIED IN THE DECEMBER 13, 2017 BOARD
which lowered the income
APPROVAL WHICH AUTHORIZED A FIRST AMENDMENT
qualification threshold
TO MEMORANDUM OF UNDERSTANDING WITH SANTA
amount identified in the
ANA WATERSHED PROJECT AUTHORITY (SAWPA) TO
December 13, 2017 Board
PROVIDE ADDITIONAL TURF REMOVAL GRANTS TO
approval. R. Nelson
INCOME -QUALIFIED CUSTOMERS. *
seconded the motion.
MOTION CARRIED: 7-0.
M. Moore, Assistant General Manager — Water Services, stated that
ABSTAINED: 0.
on December 13, 2017 the Board approved an amendment to an
ABSENT: 0.
agreement with the Santa Ana Watershed Project Authority
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(SAWPA) for a Turf Removal Program (Program) for income
qualified customers. M. Moore indicated that the previous staff report
incorrectly stated the household income level needed to qualify for
the Program and presented the corrected staff report to the Board for
approval.
7. APPROVAL OF RENEWABLE SOLAR ENERGY POWER
SALES AGREEMENT WITH THE SOUTHERN CALIFORNIA
PUBLIC POWER AUTHORITY FOR APPROXIMATELY $1.8
MILLION ANNUALLY OVER TWENTY-FIVE YEARS WITH
NO ESCALATION. *
G. Bowen, Assistant General Manager — Power Supply, discussed the
procurement of 36 Megawatt (MW) of renewable solar energy from
Southern California Public Power Authority (SCPPA) based on a
twenty-five year Renewable Solar Power Sales Agreement (Sales
Agreement). The solar energy will come from one of two facilities
located near the town of Desert Center in Riverside County,
California. Energy deliveries are to start in December 2020. Staff
explained that the recent action by the federal government to apply
tariffs to foreign -made solar panels will not impact this specific Sales
Agreement, but that future pricing for similar projects could increase.
The Board inquired about how this Sales Agreement affects the
renewable requirements. Staff indicated that it will provide flexibility
in meeting the 50% renewable requirement by 2030 since it already
has sufficient baseload resources.
The Board requested a presentation on the Department's current
progress in reaching the 50% renewable targets by 2030.
8. APPROVAL OF A RESOLUTION AUTHORIZING THE
SUBMISSION OF AN APPLICATION TO THE MOBILE
SOURCE AIR POLLUTION REDUCTION COMMITTEE
(MSRC) FOR A 2017 LOCAL GOVERNMENT PARTNERSHIP
PROGRAM GRANT FOR INSTALLATION OF ELECTRIC
VEHICLE CHARGING STATIONS AND ACQUISITION OF
ELECTRIC VEHICLES, TO ACCEPT UP TO $221,500 AS
AWARDED, AND TO TAKE SUCH ACTIONS IN
FURTHERANCE OF THE GRANT PROGRAM;
AUTHORIZING THE ALLOCATION OF MATCHING FUNDS;
AND DETERMINING THE ELECTRIC VEHICLE PROJECTS
ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) PURSUANT TO SECTIONS 15301,
15303, AND 15304(F) OF TITLE 14 OF THE CALIFORNIA
CODE OF REGULATIONS. *
G. Bowen, requested the Board's approval for the Department to
submit a grant application to the Mobile Source Air Pollution
Reduction Review Committee (MSRC) for $221,500. The
Department would be responsible to provide $212,000 in matching
funds for the grant. G. Bowen indicated the grant would fund several
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J. Seymour moved approval
of a Renewable Solar Energy
Power Sales Agreement with
the Southern California
Public Power Authority for
approximately $1.8 million
annually over twenty-five
years with no escalation. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
Staff will provide a
presentation on the renewable
portfolio at a future meeting.
A. Abdulrahman moved
approval of a resolution
authorizing the submission of
an application to the Mobile
Source Air Pollution
Reduction Committee for a
2017 Local Government
Partnership Program Grant
for installation of electric
vehicle charging stations and
acquisition of electric
vehicles. V. Baroldi
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
programs in an effort to reduce vehicle emissions in Anaheim
including adding eight electric vehicle (EV) chargers at Community
Centers in Anaheim, sixteen chargers at City Facilities including City
Hall, Harbor Police Station, and Fleet Services, and five Chevy Bolts
for personnel who interact directly with customers in the field.
The Board asked how the Department selected the locations for EV
charging stations to assure the public that the chargers will be utilized.
Staff indicated that Community Services Department requested
charging stations be placed at two local parks, and that the location
was to encourage the use of EVs for all demographics. G. Bowen
further explained that there are aftermarket vehicles now available at
reduced lease rates, making EVs more affordable. The Board also
inquired if the Department will be able to track usage of the charging
stations and if the plugs are standard for all EVs. Staff explained that
plugs have been standardized with the exception of Tesla, and the
Department will be able to track usage.
9. APPROVAL, BY SEPARATE RESOLUTIONS, OF PROPOSED
MODIFICATIONS TO RULE NO.3 OF THE WATER AND
ELECTRIC RULES, RATES AND REGULATIONS, WHICH DO
NOT INCREASE RATES, TO PROVIDE EXPEDITED AND NO -
COST PLAN CHECK REVIEWS AND TEMPORARY UTILITY
SERVICE FOR PROPERTY OWNERS IMPACTED BY
DECLARED EMERGENCY EVENTS; AND DETERMINATION
THAT THE MODIFICATIONS TO RULE NO.3 ARE EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA) IN ACCORDANCE WITH PUBLIC RESOURCES
CODE SECTION 21080(B)(8) AND SECTIONS 15060(C)(3),
15061(B)(3),15273(A), AND 15378(3)(2)(4)(5) OF TITLE 14 OF
THE CALIFORNIA CODE OF REGULATIONS. *
D. Lee explained that this item is consistent with City Council's
adoption of a resolution to help victims of Canyon Fire 2 with
expedited plan reviews and lower costs as they reconstruct their
homes. The Department has similarly recommended rule
modifications to assist the 25 residents who experienced significant
damage from the fire. In addition, the rules are structured such that
any future emergency event declared by the City Council or regional
agency with jurisdiction could expedite similar assistance without
having to modify the rules each time.
10. DISCUSSION ON THE QUARTERLY STATUS REPORTS ON
CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVICE AGREEMENTS, AND
SPOT BID AWARDS.
D. Lee provided a summary of the capital projects throughout the city
as indicated in the maps. The increase of street light replacements
with Light Emitting Diodes (LED) are appreciated by residents where
they are being installed. Additionally, an overview of expenditures
related to small-scale construction, design and material purchases was
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J. Seymour moved approval,
by separate Resolutions, of
proposed modifications to
Rule No. 3 of the Water and
Electric Rules, Rates and
Regulations. V. Baroldi
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
provided, along with detailed information on specific projects and
equipment purchases.
11. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, Assistant General Manager — Electric Services, discussed
with the Board the two power outages that occurred on December 28,
2017, both resulting from 12,000 volt underground cable outages.
The first outage was within the Disney Park property and the second
outage was at the Orange County Register building. Both outages
occurred within the same timeframe; however, they were not related
to each other. The Disney Park outage was on the customer's
equipment, as Disney has high voltage cables, and they proceeded
with repairs with assistance from an advisory and troubleshooting role
by the Department. The Orange County Register electric service
required Department staff to make the necessary repairs. Orange
County Register staff was notified and kept updated on the status of
the repairs.
12. UPDATE ON WATER SYSTEM ISSUES.
M. Moore thanked the Board for their recognition of the civilians and
Anaheim Police Department for their help in addressing large water
meters and backflow valves that were being increasingly stolen
throughout Orange County. The recent arrest of two suspects has
helped reduce the number of thefts in Anaheim. In addition, staff has
been welding meters to the pipe to make it more difficult to steal the
valves. Even with the additional security, there have been 12
backflow devices stolen since October 2017. The Department
continues to work closely with the Police Department to reduce the
frequency of thefts in Anaheim.
M. Moore also mentioned that The California Water Fix is the
proposed project to build two large tunnels across the Bay Delta.
Some of the regional water agencies are supporting the project and
some agencies have stated they are not able to support the
project. Over the next several weeks, the Governor will come out
with a plan for a phased approach for the project to move
forward. Metropolitan Water District (MWD) will subsequently
bring the revised project back to their board for review.
M. Moore indicated that Orange County Water District's North Basin
Groundwater remediation is being evaluated by the Environmental
Protection Agency (EPA) to determine if it should be included on the
National Priority List as a Superfund site. The EPA has released
documents with their findings, which are posted in the Anaheim
Central Library. After the 90 day review period, the EPA will hold
local workshops in March/April 2018 timeframe.
Lastly, M. Moore indicated that an MWD tour to northern California
is scheduled from March 2 to March 3, 2018. The tour will provide
an overview of the State Water Project and how water flows from
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Northern to Southern California. If any of the Board members are
interested in attending, he requested that they contact P. Oviedo.
13. UPDATE ON FINANCE ISSSUES.
B. Beelner, Assistant General Manager — Finance and Administration,
discussed the monthly financial dashboard. B. Beelner indicated that
budgeted electric revenues were slightly higher than anticipated due
to higher than expected energy prices resulting in higher wholesale
sales through December 2017, while water revenues were at expected
levels. Expenses for both the water and electric utilities were on
target through the first six months of the Fiscal Year.
B. Beelner then discussed the rollout of Saturday customer service
hours. He mentioned that call volume and walk in traffic are both
growing steadily as the community becomes more aware of the
expanded Saturday hours.
B. Beelner also discussed the recent $235 million electric revenue
bond issuance that the Board approved in November 2017. B.
Beelner mentioned that the electric utility will save approximately
$19.2 million in future interest costs due to the refunding of older
more expensive bonds. However, B. Beelner did indicate that the
savings were not as high as originally anticipated due to the adverse
impact of the recently passed Tax Cuts and Jobs Act had on the
municipal bond sector.
B. Beelner mentioned the upcoming water and electric rate hearings,
indicating that notices for the water rate change would be mailed the
last week of January 2018. He then mentioned that the Department
will provide the Board with a full presentation on the proposed
changes and their relative impacts to customers at the February 28,
2018 Board meeting.
14. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen, Assistant General Manager — Power Supply, provided an
update on the Department's power supply portfolio for December
2017 noting that there were several planned maintenance outages and
one unplanned outage for the Kraemer Power Plant. G. Bowen noted
that the Kraemer Power Plant would be out of service for the next
month while repairs to the gas turbine engine were being made.
G. Bowen also discussed the article in the Los Angeles Times in
December regarding transmission congestion and how speculators are
profiting off of transmission congestion in the market. G. Bowen
stated that the Department does not speculate in this market and uses
its allocation of Congestion Revenue Rights (CRR) to protect its
generation assets from congestion on transmission paths used to bring
energy home to Anaheim.
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15. UPDATE ON ENTERPRISE RISK MANAGEMENT.
J. Lehman, Chief Risk Officer, invited the Board's attention to the
Internal Compliance Report in the Board packet. She highlighted that
staff is complying with orders and notices by regulatory agencies such
as the South Coast Air Quality Management District as part of their
daily duties in operating and maintaining the electric and water
utilities.
J. Lehman then provided an update on legislative and regulatory
efforts, mentioning that there will likely be significant interest in
wildfire legislation this year, and stated that several of the new bills
on the topic had already been introduced — one dealing with investor
owned utility penalties, and the other regarding legislating potential
prevention policies. She mentioned several of the bills from last year
that would also likely be addressed this session.
She then made the Board aware that she would be in Sacramento the
following week meeting with Anaheim elected representatives and
their staff to discuss Department programs and the upcoming
legislative year.
J. Lehman concluded with a reminder that the Legislative Working
Group would be meeting next month at 4:00 pm, right before the
regularly scheduled PUB meeting.
16. ITEM(S) BY SECRETARY.
D. Lee mentioned that items planned for the following month include:
• Transmission System Overview Presentation
• Water and Electric Rates and Rules Discussion
• Bi -Annual Success Indicators
• SCPPA Expenditures — Annual Report
• Overview of the North Basin
He also shared photos of the Serve Day event hosted by Love
Anaheim and Anaheim Union High School District. Students
participated in many projects, and the Department assisted with
providing supplies to paint fire hydrants and plant materials for a
school cleanup at Magnolia High School.
17. ITEM(S) BY BOARD MEMBERS.
A. Abdulrahman expressed his appreciation for the detailed
information provided by staff.
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18. ADJOURNMENT: (REGULAR MEETING ON FEBRUARY 28,
2018, AT 5:00 P.M., IN THE 11TH FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
1 6 ct�bmitted,
... ..
Dukku Lee
Public Utilities General Manager
J. Seymour moved approval
to adjourn the Regular
Meeting at 7:21 p.m., to the
Board's Regular Meeting date
of February 28, 2018 at 5:00
p.m. V. Baroldi 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.
2018-8