Public Utilities 2009/12/16CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
DECEMBER 1:6, 2009
The agenda having been posted on Thursday, December 10, 2009, the Public Hearing/Regular Meeting of
the Public Utilities Board was called to order by Chairperson Lon Cahill at 5:00 p.m. on Wednesday,
December 16, 2009, in the Gordon Hoyt Conference Center, 2nd Floor Conference Room, Anaheim West
Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present; L. Cahill, J. Brandman, P. Carroll, J. Machiaverna, D. Morgan,
K. Murray, C. Peltzer
Board Members Absent: None
Staff Present: M. Edwards, A. Kott, M. Ward, D. Calkins, E. Zacherl, M. Long,
M. Gordon, R. Dowell, B. Beelner, T. Mardikian, S. Welch, G. Turner,,, J.
Wei, M. Samra, J. Roosevelt, L. Quiambao, P. Oviedo
Guest(s) Present: Renae Lapez, Court Reporter, CSR# 12142, Atkinson - Baker;
S. Faessel, Resident; P. Bos, Resident; D. Wain, Resident and
Member of East Anaheim Neighborhood Council,
R. Schwenk, Member of the Public; J. Hanes, Member of the Public
AGENDA ITEM
1. PUBLIC HEARING ON THE PROPOSED
MODIFICATIONS TO THE ELECTRIC RATES, RULES
AND REGULATIONS CONCERNING VARIOUS RATE
SCHEDULES.*
The Public Hearing was called to order by Chairperson
L. Cahill at 5:00 p.m.
A verbatim transcript of the entire presentation with all
testimony, exhibits, and public comment that were a part of the
public hearing was prepared by the Court Reporter. The
certified original transcript is on file in the 1 C Floor
Department Records, Public Utilities Department, Anaheim
West Tower. A certified copy of the original transcript is on
file in the City Clerk's Office, 2 d Floor, City Hall.
L. Cahill closed the public hearing on the proposed
modifications to the Electric Rates, Rules and Regulations
concerning various rate schedules at 5:24 p.m.
ACTION TAKEN
The Public Utilities Department
presented one witness, as well as
prepared and oral testimony in
support of its request on the
proposed modifications to the
Electric Rates, Rules and
Regulations concerning various
rate schedules.
A member of the public, S. Faessel, made a statement indicating There being no further testimony
that he approved of the proposed action and recommended that or public comments, Chairperson
the Board and City Council consider approving and adopting L. Cahill received the following
the same. motion from A. Kott, who moved
2009 -68
AGENDA ITEM ACTION TAKEN
that all evidence, oral and written,
submitted by staff, including the
Prepared Testimony with exhibits
of Marcie L. Edwards and the
Affidavits of Publication of the
Notice of Public Hearing filed
with the Secretary of the Board
become part of the record and
moved into evidence.
Chairperson L. Cahill granted
A. Kott's motion.
P. Carroll observed that the language provided on page 2 of L. Cahill moved, as amended, that
Exhibit 2 included the word "and" which did not seem
the PUB recommend to the City
appropriate for the referenced sentence. Where upon L. Cahill
Council that, by motion, it certify
amended his motion to address this such that it should say
that the proposed modifications to
"reopen the economic development business retention rate to
the City of Anaheim Electric
potential customers."
Rates, Rules and Regulations are
statutorily exempt under CEQA
and, by Resolution, approve and
adopt the modified City of
Anaheim Electric Rates, Rules
and Regulations as proposed by
Staff in its Staff Report dated
December 16, 2009, which was
previously submitted as Exhibit 2
to the General Manager's
Prepared Testimony,
J. Brandman /C. Peltzer seconded
the motion. MOTION
CARRIED 7 -0. ABSTAINED:
0. ABSENT: 0.
The regular PUB meeting convened and was called to order at
5:31 p.m.
M. Edwards requested that Items No. 4 and No. 5 of the regular
PUB meeting be heard before Items No. 2 and No. 3 as Items
No. 4 and No. 5 are related to the matters considered during the
public hearing. The Board agreed.
2. PUBLIC COMMENTS. There being no public comments,
L. Cahill closed the general public
comments portion of the meeting.
IM"
AGENDA ITEM ACTION TAKEN
3. APPROVAL OF THE MINUTES OF THE REGULAR
PUBLIC UTILITIES BOARD (PUB) MEETING HELD
NOVEMBER 18, 2009.*
P. Carroll moved approval of the
November 18, 2009, Public
Utilities Board minutes as written.
K. Murray seconded the motion.
MOTION CARRIED: 5 -0.*
*(J. Brandman indicated that he
approved the first twenty minutes
of the minutes as he was not
present for the remainder.)
ABSTAINED: 2 (L. Cahill, C.
Peltzer). ABSENT: 0.
4. APPROVAL OF MODIFICATIONS TO RULE NO.9
(RENDERING AND PAYMENT OF BILLS) OF THE
ELECTRIC RATES, RULES AND REGULATIONS.*
During the preceding Public Hearing, M. Edwards explained D. Morgan moved that the PUB
why this item was included in the staff report, which was
recommend to the City Council
attached to her Prepared Testimony as Exhibit 2, noting that at
that, by Motion, it certify that the
the conclusion of the Public Hearing, staff would seek the
modification of Rule No. 9 is
Board's consideration and action on the proposed modification
statutorily exempt under CEQA
of Rule No. 9 of the Electric Rates, Rules concerning a late
and, by Resolution, modify Rule
charge.
No. 9 of the Electric Rates, Rules
and Regulations as proposed by
staff in its staff report dated
December 16, 2009. P. Carroll
seconded the motion. MOTION
CARRIED: 7 -0. ABSTAINED:
0. ABSENT: 0.
5. APPROVAL OF MODIFICATIONS TO RULE NO.9
(RENDERING AND PAYMENT OF BILLS) OF THE
WATER RATES, RULES AND REGULATIONS.*
During the preceding Public Hearing, M. Edwards explained D. Morgan moved that the PUB
why this item was included in the staff report, which was
recommend to the City Council
attached to her Prepared Testimony as Exhibit 2, noting that at
that, by Motion, it certify that the
the conclusion of the Public Hearing, staff would seek the
modification of Rule No. 9 is
Board's consideration and action on the proposed modification
statutorily exempt under CEQA
of Rule No. 9 of the Water Rates, Rules and Regulations
and, by Resolution, modify Rule
concerning a late charge.
No. 9 of the Water Rates, Rules
and Regulations as proposed by
staff in its staff report dated
December 16, 2009. K. Murray
seconded the motion. MOTION
CARRIED: 7 -0. ABSTAINED:
0. ABSENT: 0.
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AGENDA ITEM
6. APPROVAL OF AN AGREEMENT BETWEEN THE
ORANGE COUNTY WATER DISTRICT AND THE CITY
OF ANAHEIM FOR THE DISTRIBUTION AND SALE
OF GROUNDWATER REPLENISHMENT SYSTEM
WATER SUPPLIES.*
D. Calkins made a presentation, indicating that this Agreement
with the Orange County Water District (OCWD) is to purchase
Groundwater Replenishment System water, which is recycled
water, for the Canyon Power Plant (Plant). The California
Energy Commission (CEC) requires all power plants of this
type to use recycled water instead of potable water from a
municipal water system. This water will be from the
Groundwater Replenishment System which is the largest water
recycling plant in the world and is located in Fountain Valley.
This Agreement was approved by the OCWD Water Issues
Committee the preceding week and is before the entire Board
the evening of December 16' for approval.
After D. Calkins responded to a variety of questions, the Board
indicated that this Agreement is a positive step forward for the
Canyon Power Plant.
The Board and M. Edwards commended Staff for their hard
work in negotiating this Agreement.
7. UPDATE ON WATER SYSTEM ISSUES.
Water Supply Conditions Update
D. Calkins indicated that although there have been several
storms over the last month or so, the drought is not over. The
monthly water supply conditions update will be provided to the
Board starting next month. Year -to -date, Orange County has
received about four inches of rain, which is a little bit above
normal. Northern California is a little below normal, year -to-
date, with about seven inches of precipitation.
Water Quality Ranking Informational Memo
D. Calkins indicated that the Environmental Working Group
just released results of a somewhat unscientific study where it
ranked the water quality of the nation's 100 largest cities.
According to the study, Anaheim was ranked 79th. D. Calkins
commented that regardless of this somewhat unscientific study,
or the purported ranking, Anaheim's water quality consistently
meets all health based drinking water standards. Staff takes
water quality very seriously, testing Anaheim's water thousands
of times per month to ensure consistently high quality. Water
quality results are provided to all customers annually and are
posted on the Utilities' website.
ACTION TAKEN
P. Carroll moved approval of the
Agreement between the Orange
County Water District and the
City of Anaheim for the
Distribution and Sale of
Groundwater Replenishment
System Water Supplies.
J. Brandman seconded the motion.
MOTION CARRIED: 7 -0.
ABSTAINED: 0. ABSENT: 0.
2009 -71
AGENDA ITEM
Passing of Wes Bannister
D. Calkins noted that Wes Bannister, former Metropolitan
Water District Board Chairman and Orange County Water
District Director from the Huntington Beach area, passed away
last week. Mr. Bannister will be greatly missed.
8. UPDATE ON ELECTRIC SYSTEM ISSUES.
Direct Buried Cable Informational Memo
M. Ward stated that the memo highlights the current status of
the program and some of the criteria used in selecting projects.
D. Morgan noticed in project Phase 7, Canyon Rim Road is
identified and enquired if the project intended to do the entire
length of Canyon Rim Road from Nohl Ranch Road up to
Serrano.
Monthly Resource Adequacy Plan
M. Ward discussed the Monthly Resource Adequacy Plan for
January 2010. The Utility is fully resourced for the month of
January.
9. UPDATE ON FINANCE ISSUES.
City Audit
E. Zacherl stated that the City Audit has been completed. The
City received an unqualified opinion on both water and electric
statements and it has been presented to the audit committee for
the City as it is ready for publication.
Market Perception of the Utility
The Utility went out for the second short term financing for the
Canyon Power Project. The bond offering became
oversubscribed in the auction.
10. UPDATE ON JOINT SERVICES ISSUES.
Approval of Resolution for Stimulus Funds
M. Long indicated that at the December 15th City Council
Meeting, the Council members approved the Resolution to
apply for stimulus funds under the State Energy Program,
Municipal and Commercial Building Retrofit Program.
Pursuant to the Resolution, the Department requested authority
for $5 million and, if awarded, the Department will implement a
lighting retrofit program targeting the hotel, entertainment, and
recreation business sectors.
Emissions Management Plan
M. Long indicated that City Departments are working on an
Emissions Management Plan which will include everything that
ACTION TAKEN
Staff will find out the intended
length of Phase 7 and let him
know.
2009 -72
AGENDA ITEM ACTION TAKEN
the City has accomplished in the last ten years. The Plan will
look forward to determine what type of target levels and
strategies the City wants to put in place to reduce the City's
greenhouse gasses. This project should be completed in the
April/May 2010 timeframe.
M. Edwards asked M. Long to assemble a report that can be Staff will provide a report.
provided to the PUB and Council with the recent overview of
all the stimulus funds that the Department has requested and
received.
State of the City Luncheon
M. Long invited the Board to attend the Anaheim State of the
City Luncheon featuring Mayor Curt Pringle on Tuesday,
January 26, at the Grove in Anaheim at 11:30 a.m. The Board
was asked to please contact M. Long if they are interested in
attending.
11. AGENDA ITEMS) FOR THE NEXT MEETING ON
JANUARY 27, 2010.
• Enterprise Risk Management Program
• Intent to Incur Debt and Allow for Reimbursement in the
Water Utility Fund*
• Second Amendment to Water Facility Design and
Installation Agreement for the Mountain Park
Development*
• Adoption of Landscape Guidelines*
• Milford Wind Corridor Phase II*
*Items will be forwarded to City Council for action after
presentation to the PUB.
12. ITEM(S) BY SECRETARY.
None.
13. ITEM(S) BY BOARD MEMBERS.
K. Murray indicated that the news from the State on the
allocation of water for next year from the State Water Project
(SWP) is expected to be very low. The allocation, which is 5 %,
is the lowest in the history of the SWP. It was set at this low
level by the Department of Water Resources because of low
storage levels and regulatory legal restrictions on moving water
from Northern California to the Central Valley and Southern
California.
M. Edwards added that staff will keep the Board apprised
month to month as the Department understands more about
allocations, snow pack, and water availability.
2009 -73
AGENDA ITEM
P. Carroll thanked staff for putting together a great presentation
on the electric rates, and wished a Happy Holiday season to the
Board and staff.
D. Morgan wished staff a Happy Holidays as well. He also
expressed his thanks to M. Edwards and staff for spending time
with him to get him up to speed on the issues with a lot of
history. He indicated the recommendations were thoughtful and
strategic, perhaps leaning toward restrain from his point of
view, but as Board members they all understand.
M. Edwards commented that it's exciting to have members of
the public in attendance at the Board Meeting and would like to
say that the Board meets monthly at Anaheim West Tower,
typically on the I P floor. She indicated that Staff is happy to
provide a schedule of the meeting to those interested.
L. Cahill requested a motion to adjourn the meeting.
14. ADJOURNMENT: (TO THE NEXT REGULAR
MEETING DATE OF JANUARY 27, 2010, AT 5:00 P.M.,
IN THE 11 FLOOR PUBLIC UTILITIES
CONFERENCE ROOM, ANAHEIM WEST TOWER,
201 S. ANAHEIM BLVD., ANAHEIM, CALIFORNIA.)
Marcie L. Edwards
Secretary, Public Utilities Board
ACTION TAKEN
J. Brandman moved to adjourn the
public hearing/regular meeting at
6:15 p.m. to the regular meeting
date of January 27, 2010, at 5:00
p.m. D. Morgan seconded the
motion. MOTION CARRIED:
7 -0. ABSTAINED 0. ABSENT:
0.
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