Public Utilities 2010/01/27CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
JANUARY 27, 201.0
The Agenda having been posted on Thursday, January 21, 2010, the Regular Meeting of the Public
Utilities Board was called to order by Chairperson Lon Cahill at 5:05 p.m. on Wednesday, January 27,
2010, in the 11th Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd.,
Anaheim, California.
Board Members Present: L. Cahill, K. Murray, J. Brandman, P. Carroll, J. Machiaverna,
D. Morgan
Board Members Absent: C. Peltzer
Staff Present: M. Edwards, J. Sidicich (Acting Public Utilities General Manager),
D. Calkins, M. Long, A. Kott, E. Zacherl, J. Wei, D. Lee, J. Lehman,
S. Sciortino, R. Dowell, G. Turner, L. Quiambao, P. Oviedo
Guest(s) Present: S. Faessel, Resident; P. Bos, Resident; D. Wain, Resident and Member
of the East Anaheim Neighborhood Council; R. Schwenk, Member of
the Public
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS.
There were no public comments.
2. APPROVAL OF THE MINUTES OF THE PUBLIC
HEARING/REGULAR PUBLIC UTILITIES BOARD
(PUB) MEETING HELD ON DECEMBER 16,2009.*
There being no public comments,
L. Cahill closed the public
comments portion of the meeting.
P. Carroll moved approval of the
December 16, 2009, Public
Hearing/Public Utilities Board
Meeting Minutes as written.
J. Machiaverna seconded the
motion. MOTION CARRIED: 5 -0.
ABSTAINED: 0. ABSENT:2
(C. Peltzer, K. Murray ]arrival
delayed until 5:10 p.m.]).
4
AGENDA ITEM ACTION TAKEN
3. ENTERPRISE RISK MANAGEMENT PROGRAM
PRESENTATION.
M. Edwards indicated that in the past the Board was provided
with information about how Risk is managed particularly with
energy transactions, so this presentation, to be given by J.
Lehman, is designed to explain how the Department manages
Risk beyond that platform on the risk associated with
Enterprise as a unit.
J. Lehman made a presentation indicating that the purpose of
the Enterprise Risk Management Program is to assist the
Department, on a Department -wide basis, to proactively
identify and assess its overall Risk, and strategically manage
these Risks.
Staff discussed and responded to a variety of questions from the
Board such as how particular Risks are managed and processed,
the implementation of managing resources, and the
Department's internal strategic planning meetings regarding
Risk in relation to the Enterprise Risk Management Program,
M. Edwards requested that J. Lehman and S. Sciortino present
information regarding the Department's involvement with
multiple agencies to give a more global picture in relation to
AB32 at a future meeting.
4. APPROVAL OF A RESOLUTION OF INTENT TO
REIMBURSE CERTAIN WATER UTILITY FUND
EXPENDITURES FROM THE PROCEEDS OF BONDS
OR OTHER OBLIGATIONS.*
M. Edwards indicated that this item concerned an Internal
D. Morgan moved approval of a
Revenue Service technicality concerning an intent to reimburse
Resolution of Intent to Reimburse
the Department for Water Utility fund expenditures prior to
certain Water Utility Fund
bond issuance for such items as California Environmental
Expenditures from the Proceeds
Quality Act reporting and consultant work from bond proceeds
of Bonds or other Obligations as
or other obligations.
stated in the staff report.
P. Carroll seconded the motion.
Staff responded to various questions from the Board regarding
MOTION CARRIED: 6 -0.
the approximate amount of funds spent for up -front work from
ABSTAINED: 0. ABSENT: I
the Water Utility funds.
(C. Peltzer).
5. UPDATE ON WATER SYSTEM ISSUES.
Water Supply Conditions Update.
D. Calkins indicated about six inches of rain fell locaily during
the storm this past week, which brings the year -to -date totals to
about ten inches. Normal annual precipitation is thirteen
inches. Currently, the rainfall is at 160 percent of normal for
2010 -2
AGENDA ITEM
this time of year. For Northern California, precipitation is now
105 percent of normal due to rainfall and snow this month.
The Board discussed this item in some detail. D. Calkins
responded to questions such as the impact of local and Sierra
snowpack on water supplies, the allocation on the State Water
Project, Prado Dam storage and releases, and river flows near
the Green River Golf Course.
M. Edwards commended M. Jouhari and the Water Field staff
for their prompt action to repair a recent water main break in
the Resort Area near Gardenwalk. This break occurred just as
the National Association of Music Merchants convention was
about to begin, which is the largest convention held in
Anaheim. The Convention Center and nearby businesses
praised the Department for its effective communication and
diligent work, in cooperation with the Public Works
Department, to complete the pipeline and street repairs in a
timely manner.
6. UPDATE ON ELECTRIC SYSTEM ISSUES.
Power Outages Update
J. Wei, on behalf of M. Ward, gave a brief update on four
power outages, indicating in summary that the electric system
did quite well during the recent rain storms.
The Board commended Staff for maintaining excellent service
with minimal problems during the very difficult weather that
the community has experienced the past couple of weeks.
M. Edwards indicated that the Department's reliability numbers
remain very high, especially when compared to other agencies'
reliability numbers.
7. UPDATE ON FINANCE ISSUES.
Fiscal Year FY 2009/2010 Financial Update
E. Zacherl indicated that the Department is sharing its
unaudited information with the Board in order to provide a
frame of reference as to how the Department did financially
during the first six months of the FY and to assist in explaining
the variances that occurred for Electric and Water Divisions.
Should the Board want more information, please call E.
Zacherl.
Staff responded to questions by the Board such as are the
current levels comparable to what was anticipated, the status of
San Onofre Nuclear Generating Station in relation to the
ACTION TAKEN
2010 -3
AGENDA ITEM
Decommissioning Trust Fund, and the status of the
Underground Surcharge and the Debt Service Fund.
S. UPDATE ON JOINT SERVICES ISSUES.
SA Recycling Invitation
M. Long indicated that the Board would be mailed an invitation
for the dedication of SA Recycling Solar Array, which is the
largest in Anaheim and scheduled to take place at 11:00 a.m. on
Tuesday, February 9, 2010.
Annual Report Photo Shoot
M. Long indicated that M. Seifen will contact each of the
Board Members to schedule an appointment for the Annual
Report photo shoot.
Unitarian Universalist Church Invitation
M. Long indicated that this is the first church in Anaheim to
install a solar power system. The Unitarian Universalist
Church received $13,000 in assistance from the Department.
The dedication invitation states that "...this was made possible
through the generous financial assistance offered by Anaheim
Public Utilities." Staff will contact the Board seeking a
volunteer to speak at the dedication to be held February 1$ °i at
the Unitarian Universalist Church.
California Energy Commission (CEC) Annual Report
M. Long indicated that the Annual Report to the CEC regarding
SB 1037 was placed in their packets is to show the percentage
that the Department achieved each year in energy savings
which is based on retail energy sales. The goal of one percent
(I%) was achieved, and the Annual Report outlines some of the
programs used to meet that goal.
Electric Monthly Resource Adequacy Plan
M. Long discussed that the Monthly Resource Adequacy for
February 2010, indicating that the Electric Utility is fully
resourced for the month of February.
Canyon Power Project Update
S. Sciortino gave an update on the Canyon Power Project
(Project), providing a brief background on the November 2009
Hearing. Currently the preliminary license is awaiting the
CEC's signature.
S. Sciortino explained the process that occurs once the
preliminary license is signed and released. He continued to
discuss the construction side of the Project as it relates to the
application process. The ground breaking ceremony is
tentatively scheduled for March 9, 2010. The Project remains
in line with the total budget.
ACTION TAKEN
2010 -4
AGENDA ITEM ACTION TAKEN
S. Sciortino will arrange a ten - minute conference call with
C. Peltzer to provide an update about the status of the Project.
9. AGENDA ITEM(S) FOR THE NEXT PUBLIC
UTILITIES BOARD MEETING ON FEBRUARY 24,
2010.
• Water Supply Conditions Update
• Adoption of Landscape Guidelines*
*Items will be forwarded to City Council for action after
presentation to the PUB.
10. ITEMS) BY SECRETARY.
M. Edwards indicated that J. Machiaverna needed to leave the
meeting at 6:25 p.m. due to a previous commitment.
M. Edwards introduced J. Sindicich, Public Works -
Maintenance Division, who was appointed Acting Public
Utilities General Manager for the day since he was the
successful bidder during the recent City Charity event.
J. Sindicich said it was a great experience and he would do it
again.
M. Edwards said that the Orange County Division League of
California Cities is holding a presentation for local legislators
called "Going Orange" on February 18, 2010. Mayor Pringle
will be one of the presenters for the opening remarks, and both
she and M. Long will be part of the workshops.
11. ITEM(S) BY BOARD MEMBERS.
J. Brandman requested that the Board be kept apprised of the Staff will provide periodic e-mail
status of the Canyon Power Project via e-mail. updates to the Board on the status
of the Canyon Power Project.
J. Brandman thanked Staff for inviting him to the State of the
City Luncheon and pre - meeting with Mayor Pringle.
D. Morgan complimented Staff on the meeting.
P. Carroll thanked Staff for the invitation to the State of the
City Luncheon and pre- meeting with the Mayor, indicating that
it is a pleasure and an honor to serve on the Board and work
with Staff.
K. Murray provided an update on the status of the High -Speed
Rail Project for the State of California and thanked Staff for the
invitation to the State of the City Luncheon and pre - meeting
2010-5
AGENDA ITEM
with Mayor Pringle, noting that it is an honor to serve as a
representative of the Board.
K. Murray extended an invitation to everyone to attend an all
day Southern California Transit Forum on February 5, 2010,
noting that Mayor Pringle will be one of the opening speakers.
Should anyone want to attend, please e-mail her.
12. ADJOURNMENT: (TO THE REGULAR MEETING
DATE OF FEBRUARY 24, 2010, AT 5:00 P.M., IN THE
11 FLOOR LARGE CONFERENCE ROOM,
ANAHEIM WEST TOWER, 201 S. ANAHEIM BLVD.,
ANAHEIM, CALIFORNIA.).
Respectfully Submitted,
0
Marcie L. Edwards
Secretary, Public Utilities Board.
ACTION TAKEN
J. Brandman moved to adjourn the
meeting at 6:50 p.m. to the
Regular Meeting date of February
24, 2010, at 5:00 p.m. in the 11"
Floor Large Conference Room of
Anaheim West Tower, 201 S.
Anaheim Blvd, Anaheim,
California. D. Morgan seconded
the motion. MOTION
CARRIED: 5-0. ABSTAINED:
0. ABSENT: 2 (C. Peltzer,
J. Machiaverna).
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