Loading...
Public Utilities 2018/03/28CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES MARCH 28, 2018 The agenda having been posted on Thursday, March 22, 2018, the Public Hearings / Regular Meeting of the Public Utilities Board (Board) were called to order by Chairperson E. Medrano at 5:00 p.m. on Wednesday, March 28, 2018, in the 2 Floor Gordon Hoyt Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Chairperson E. Medrano, Vice -Chairperson J. Seymour, A. Abdulrahman, R. Nelson, J. Showalter, V. Ramirez Board Members Absent: V. Baroldi City Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott, G. Bowen, J. Lehman, P. Oviedo, Y. Gaytan, M. Seifen, P. Bogdanoff, J. McBride, T. Mardikian, D. Ballin, M. Jouhari, A. Nguyen, Y. Saldivar, C. Pereyra, H. Mendoza, A. Muniz Guest(s) Present: Richard Duncan, Resident; Earl Kelso, Resident; Kaitlyn Kim, Student; Joanne Kim, Parent; Carissa Kuan, Student; Doris Kuan, Parent; Jesus Villasenor, Orange County Translation & Interpretation; Barbara Niles, Certified Court Reporter #13542 AGENDAITEM ACTION TAKEN 1. RECOGNITION OF THE METROPOLITAN WATER DISTRICT (MWD) POSTER CONTEST WINNERS. The Board welcomed Kaitlyn Kim and Carissa Kuan and recognized them on the selection of their posters as part of the Metropolitan Water District (MWD) 2018 Water Conservation Poster Contest. 2. PUBLIC COMMENTS. There being no public comments, Chairperson E. E. Medrano invited the public to speak on matters other than the Medrano closed the public public hearing items. comments portion of the meeting. 2018- 18 ITEM NO. 01 3. APPROVE THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD MEETING OF FEBRUARY 28, 2018. 4. PRESENTATION: UTILITIES SUCCESS INDICATORS AND DATA ANALYTIC. A. Nguyen, Utilities Budget Administrator, provided an update on the Public Utilities Department's (Department) Utilities Success Indicators (USI) for the reporting period of July through December 2017. A. Nguyen presented an overview of data analytics and explained how the data collection, analysis, and reporting conducted for the USI report was an example of the Department's data analytic efforts. In addition, A. Nguyen mentioned the Department's data analytic efforts contributed to shorter call wait times for customers. A. Nguyen made the Board aware of the Department's continued focus on providing customer value through initiatives like expanded hours on Saturday, a new monthly billing option, and providing customers the ability to receive a call back as oppose to waiting on hold using virtual hold technology callback service. A. Nguyen discussed the Department's repair efforts for street lights, electric service reliability, and high credit ratings which he noted was obtained without holding excessive amounts of cash in reserve. A. Nguyen mentioned that the Department's water maintenance goal was not met during the reporting period. He noted that limited staffing can cause monthly maintenance numbers to fluctuate when other priorities arise, but mentioned how this maintenance goal is anticipated to be met during the next reporting period. The Board asked if call wait times in the report incorporated those who dialed into the City's 311 call service. D. Lee indicated to the Board that this metric excludes 311 calls because it is a Citywide service and not specific to the Department. However, D. Lee noted that 311 call statistics could be incorporated in future USI versions. 5. PRESENTATION: WATER SUPPLY PORTFOLIO. P. Bogdanoff, Water Planning and Resources Manager, gave a presentation on the Department's Water Supply Portfolio. The Department's goal over the years has been to decrease reliance on 2018-19 J. Seymour moved approval of the Minutes of the Regular Public Utilities Board Meeting of February 28, 2018. A. Abdulrahman seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1 (V. Baroldi). imported water and increase the use of local sources, including groundwater, potable reuse, and recycled water. P. Bogdanoff indicated that as Southern California continues to grow, the Department and its regional partners have identified the need for additional water resources during dry year or emergency conditions. P. Bogdanoff mentioned that the Department continues to track various potential water supply projects throughout the state that would increase water supply reliability. Lastly, P. Bogdanoff indicated that the Department continues to engage in water conservation efforts as a means of demand management during normal and dry year conditions. The Board asked if the Department gets penalized for using recycled water that would otherwise go to Fountain Valley. Staff indicated there are no penalties for recycling the water. 6. PUBLIC HEARING: PROPOSED INCREASES TO THE The Public Utilities WATER COMMODITY ADJUSTMENT (W -CA) AND Department presented WATER SYSTEM RELIABILITY ADJUSTMENT (W -SRA) prepared testimony and oral RATES AND CORRESPONDING REVISIONS TO testimony in support of its SCHEDULES W -CA AND W -SRA OF THE WATER RATES, proposed water rate increase RULESAND REGULATIONS. to the Water Commodity B. Beelner indicated that a portion of the rate increase from the W- Adjustment (W -CA) and The Public Hearing was called to order by Chairperson E. Water System Reliability Medrano. Adjustment (W -SRA). B. Beelner, Assistant General Manager — Finance and Upon the completion of the Administration, presented oral testimony explaining that the testimony and public Department is proposing to increase the Water Commodity comment, Chairperson E. Adjustment (W -CA) and Water System Reliability Adjustment Medrano entertained the (W -SRA) of the Water Rates, Rules and Regulations. following motion from A. Kott, who moved that all B. Beelner indicated that a portion of the rate increase from the W- evidence, oral and written, SRA will be used to fund water system infrastructure submitted by staff, including improvements for example, replacing aged pipes, since many of the Prepared Testimony with the water mains were installed in the 1950s and 60s and are getting exhibits from B. Beelner; closer to the end of their useful life. B. Beelner mentioned none of the Affidavits of Publication the revenue would be used to fund salaries, or administrative of the Notice of Public pension costs. Hearing; the Certificate of Mailing; and the written During his oral testimony, D. Lee shared that approximately protests and the returned 85,425 Notices of Public Hearing were mailed to customers; sixty- notices filed with the one customer phone calls were received by customer service Secretary of the Board related to the Department's water rate proposals, and seven written become part of the record protests were received (six via email and one letter). and moved into evidence. Chairperson E. Medrano During the public comment portion of the hearing one member of granted A. Kott's motion. the public spoke. Mr. Richard Duncan expressed his concern regarding the high costs of living in California, but that he better 2018-20 Understood flie need for tlw rate action based on the presentatioins Chairperson E. Medraino made duiring the heari.ng, Ile than.1c.ed the lloard,,.-Uldstiff fior next entetlained,k Kott's allowing mernbers of the public to express their concerns. No request to close the record of additional members of theublic spoke. the public liearing because P there were no furtheir A verbatirn transcript of the Public Heating with afltestimony, witnesses or evidence to be exhibits, and public comments that were as jxart of the pulflic sutnnitted by the hearings was prepared by the Court Reporter, "171le ceirtifled Department Bor th.e Board's origin,al transcript is on. file in the I 11h :noor Departi.,-Y.i.eii:it.R.(,;coi.-(Is,, consideration. Since no Public Utilities De�,,)aj.-ti-n.er�.t,,A.ri.a,heinii, Wes -t 1. 1 ower, A. certified. objections to Staff's request copy oftlie original. trwiscript is on file in the CityClerk.'s office, were interposed, 2 d �l.00r, City Hall. Cliairperson. E. ll edrano Closed the Public hearing, The Board provided carr n.ments,. Afterwhich, Chairperson E. Medralio siji.nrirriarized the prior, testirri.orry of D. Lee, concluding that 1u11:ne nuni.ber of protests received. did not conStitUte as rriajority protest to the 1proposed increases to tlie W...CA and W SRA. 7. E11.1.11,1C HE., PROPOSI...M 1 10DIFICATIONS'"IF01 K' REDULE D (DOMEsuc SllA.RVICE), SCHYDIJIX 14`1' (,I.�°EED IN "FARIFIT), AN].) III)III VELOP1' .EN'"I'A.111L, SCIIEDUIX D - NEM (DEVIRLOPMENTA.I., NE'r fKNERGY M.1,`YERING) RATES AND RULE NO. 29 (SOL,A.R.. POWER. 1.41(.)GRA,M) OF11.111',E7..,E(.'T1?1CRA 7EV,.R1JLES AND ;G1:,A MOM. PROPOSED A.DDITION OF DEVE'L(YI?MIIFNTA.1, S(..'I11KDU1X R EV 2 NON ..D1' ME, ELEc,r111 .111I.0 VE1.11.0.1,S) TO111.11 RULR9,A.ArD, R1VULA 170MV; AND DKIERARNATION 1 RA111" T1.11" MODIFICATIONS To 1. IH]IFSE 1IR.AJ.'ES AND RVI E AND,rtn '. A11M."110N OF A. i.11:, RATE .:.1U", EXEMPTUNIII)ER THE CALIFORNIA ENVIRONMENI' A.1, QUAL11. Y ACT ((.IEQA,)i P"EJR.St..J'AN'rtt i.',(.)'PtJBI,,[C REKSOURCE S ( IODE, SECTION 21.080(fl)(8), AND SECTIONS 1.5061..(B)(3) AND 1.5273(A) OFTITIX -1.4 OF THE CAI.A.11FORNIA CODE OF11111.e,GIA...,ATIONS. 1"he PUblic licaririg was calledto order by Chairperson E. I'lie Public Lftilities Medrano. Department presented prepared testimony and. oral 13. Beeiner piresente-d oiral testimony explaining that the testin.-iony in suppoirt of its Departmetit is proposing iniodi-lications to three rate schedules, the proposed ii'llodifications to Schedule D, Schedule 1171', 2018 21 addition of Developmental Schedule D -EV -2, and modification of and Schedule D -NEM as Electric Rule No. 29. well as the addition of Developmental Schedule D- B. Beelner explained that proposed modifications include EV -2, and the modification discontinuing an outdated electric space heating incentive to better to Rule No. 29 of Electric align rate incentives with energy conservation initiatives, adding a Rates, Rules and new rate schedule for commercial electric vehicle charging to Regulations. address customers' evolving needs, replacing the Green Power program with a new Solar Power Program to provide solar energy Upon the completion of the to income -qualified residential customers, and updating formulas testimony and public contained within the Feed -In -Tariff and Developmental Net comment, Chairperson E. Energy Metering rate schedules to help ensure that those who Medrano entertained the generate excess energy and provide it back to the grid are following motion from appropriately compensated for the value of the energy they A. Kott, who moved that all generate locally in Anaheim. evidence, oral and written, submitted by staff, including D. Lee provided oral testimony regarding the Notices of Public the Prepared Testimony with Hearing and other foundational testimony. exhibits from B. Beelner and the Affidavits of The Board considered a motion to recommend to the City Council Publication of the Notice of that it determine that modifications to the Electric Rates, Rules and Public Hearing become part Regulations are exempt under CEQA and approve the proposed of the record and moved into modifications to the rates and rules. evidence. Chairperson E. Medrano granted A. Kott's A verbatim transcript of the Public Hearing with all testimony, motion. exhibits, and public comments that were a part of the public hearings was prepared by the Court Reporter. The certified Chairperson E. Medrano original transcript is on file in the 1 lth floor Department Records, next entertained A. Kott's Public Utilities Department, Anaheim West Tower. A certified request to close the record of copy of the original transcript is on file in the City Clerk's office, the public hearing because 2nd floor, City Hall. there were no further witnesses or evidence to be submitted by the Department for the Board's consideration. Since no objections to Staff's request were interposed, Chairperson E. Medrano closed the Public hearing. A. Abdulrahman moved approval that the Board recommend the City Council by resolution determine that the modifications to the Electric Rates, Rules and Regulations are exempt from CEQA and adopt the proposed modifications to 2018-22 8. UPDATE ON ELECTRIC SYSTEM ISSUES. J. Lonneker, Assistant General Manager — Electric Services, made the Board aware of the impact on the electric system resulting from a bird contacting energized high voltage equipment at the Lewis Substation on March 10, 2018. J. Lonneker indicated that the event caused the electric system voltage to lower momentarily which had minimal effect on most customers; however, a few customers with more sensitive electronic equipment tripped off- line resulting in a more significant impact to them. Department staff was in contact with such customers to inform them of the incident and to see if they required any assistance. 9. UPDATE ON WATER SYSTEM ISSUES. M. Moore provided an update on the MWD inspection tour of the State Water Project that took place on February 2-3. M. Moore indicated that the inspection tour included a visit to the Oroville Dam and Delta area to see some of the improvement projects on the MWD imported water system. M. Moore provided an update on the California Water Fix Project (Project). He indicated that workshops were held with the MWD Board on the proposed Project. M. Moore mentioned that some of the water agencies decided not to participate in the Project at this time. MWD is considering how to move forward with the Project and will be voting on the revised Project in April 2018. Lastly, M. Moore mentioned the Environment Protection Agency (EPA) has extended the public review period for documents that support placing the North Basin Groundwater project on the EPA's National Priority List. The extension was requested by a local business association to allow more time for review. More information on the project can be located on Anaheim's website in the Anaheim Public Utilities page. The Board requested information on student education initiatives 2018-23 Electric Rates, Rules and Regulations. R. Nelson seconded the motion MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1 (V. Baroldi). A future presentation will be provided to the Board on student education initiatives. 10. UPDATE ON FINANCE ISSSUES. B. Beelner, Assistant General Manager — Finance and Administration, discussed the monthly financial dashboard. B. Beelner indicated that the budgeted electric revenues were slightly higher than anticipated due to higher than expected energy prices resulting in higher wholesale sales through February 2018, while water revenues were also at slightly higher than expected due to weather changes. B. Beelner also mentioned that expenses for both the water and electric utilities were on target through the first eight months of the current fiscal year. B. Beelner mentioned that the Department will provide the Board with a presentation on the proposed budget at the April 25, 2018 board meeting with a scheduled vote by the Board to recommend the proposed budget to City Council at the May 23, 2018 board meeting. B. Beelner then offered meetings with each Board member to discuss specific details, policy initiatives, and projects that will be included in the Department's Fiscal Year 2018/19 budget proposal prior to the April 25, 2018 board meeting. 11. UPDATE ON POWER SUPPLY ISSUES. G. Bowen, Assistant General Manager — Power Supply, provided the Board with an update on the Department's Power Supply Portfolio and discussed the Kraemer Power Plant outage. G. Bowen indicated that the Air New Zealand technicians were onsite to conduct repairs to the gas turbine engine. Several Board members attended a field visit to view the gas turbine while it was being repaired. 12. UPDATE ON ENTERPRISE RISK MANAGEMENT. J. Lehman, Chief Risk Officer, discussed the Wholesale Energy Risk Management (ERM) Program's Quarterly Compliance report. J. Lehman explained that this report, while simple in format, represents an in depth review and analysis of the transactions and key programs associated with energy resource procurement. J. Lehman highlighted that the Department has a robust ERM program that provides direction and limits on wholesale energy transactions. J. Lehman also explained that a more comprehensive report is provided each month to the Risk Management Committee that includes key utility managers, the City Attorney's Office and the City Finance Director. J. Lehman reported that all transactions were in compliance with the ERM program, and there were no violations. J. Lehman mentioned that the City's Emergency Operation Center was activated last week in response to the rainstorms and the 2018-24 Budget meetings with individual Board members were offered and will be scheduled by P. Oviedo. concerns for potential landslides related to the Canyon Fire burn areas. J. Lehman indicated that there were no issues. Lastly, J. Lehman mentioned that the Board Legislative Working Group (Group) met just prior to the board meeting and reviewed key bills with the potential to impact the Department's operations. J. Lehman thanked the Group members for their time and dedication on these matters. 13. ITEM(S) BY SECRETARY. D. Lee mentioned that the City Manager's updates and memo of Board members were asked upcoming events was at the Board members' place settings. He to notify P. Oviedo if they asked that any member interested in attending the Latino Utilities are interested in attending Coalition meeting or the tour of the La Palma Water Complex to either the Latino Utilities please notify P. Oviedo. Coalition event or La Palma Complex tour. Agenda items planned for the following month include the budget presentation, the Integrated Resource Plan, and the water quality report. D. Lee shared photos from the community outreach (Spring Greening) events in which over 700 customers attended and received information on ways to save energy, signed up for no -cost shade trees to help lower energy use, and Dusk -to -Dawn security lights that use high efficiency LEDs. D. Lee also informed the Board that a new scholarship program has been developed, and he was seeking the participation of up to three members to serve an evaluation committee to review student essays. Board Chair Medrano sought interest from the Board and appointed V. Ramirez, J. Showalter, and R. Nelson to the committee. 14. ITEM(S) BY BOARD MEMBERS. R. Nelson thanked staff for the Public Hearing presentations which provided clarity as to why rate increases are necessary. In addition, R. Nelson thanked M. Moore and reported that he attended the MWD tour of water facilities. J. Seymour reported that he attended the MWD tour. A. Abdulrahman reported that he attended the MWD tour. J. Lonneker indicated a tour J. Showalter reported that she also attended the MWD tour and of the Department's highlighted that she learned about the environmental conditions in substations will be planned the Delta. J. Showalter expressed her interest in attending a tour of for a future date for electric utility facilities. interested Board members. 2018-25 1 1C 10 1 D1 cl WMI13 , , 1 '' 11 1 T11 itte Dukku Lee Public Utilities General Manager J. Seymour moved approval to adjourn the Public Hearings / Regular Meeting at 7:07 p.m., to the Board's Regular Meeting date of April 25, 2018 at 5:00 p.m. A. Abdulrahman seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1(V. Baroldi). * 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.