Public Utilities 2012/04/18CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
April l8, 2012
The agenda having been posted on Wednesday, April 11, 2012, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson Jordan Brandman at 5:04 p.m. on Wednesday, April 18,
2012, in the 11` Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: J. Brandman, J. Machiaverna, P. Carroll, S.E. Faessel
Board Members Absent: D. Morgan, C. Peltzer, B. Hernandez
Staff Present: M. Edwards, D. Calkins, D. Lee, S. Sciortino, B. Beelner, D. Wilson, A.
Kott, L. Quiambao, P. Oviedo, S. Welch, M. Pan, G. Turner
Guest(s) Present: Charlene Arellano; Resident, Jose Arellano; Resident Denise Collingsworth;
Resident.
AGENDA ITEM
1. PUBLIC COMMENTS.
ACTION TAKEN
C. Arellano, J. Arellano, and D. Collingsworth, Anaheim Residents, J. Brandman closed the public
discussed their concerns regarding the implementation of Smart comments portion of the
Meters. Copies of their written comments were provided, at their meeting.
request to the PUB members.
2. APPROVAL OF THE MINUTES OF THE REGULAR
PUBLIC UTILITIES BOARD MEETING HELD ON
MARCH 28, 201.2. *
The written, publicly available presentation detailing this item was
summarized by staff.
The Board asked a variety of clarifying questions in preparation of
next month's meeting at which staff will seek the Board's support
of the FY12113 Budget proposal.
J. Machiaverna moved
approval of the March 28,
2012, Public Utilities Board
Minutes. P. Carroll seconded
the motion. MOTION
CARRIED: 4 -0.
ABSTAINED: 0. ABSENT:
3 (D. Morgan, C. Peltzer, B.
Hernandez).
2012 24
4. APPROVAL OF THE ADDITION OF RULE NO. 21 AND
RULE NO. 26 TO THE ELECTRIC & WATER RATES,
RULES AND REGULATIONS ESTABLISHING SMART
METER PROGRAM INSTALLATION REQUIREMENTS
WITH OPT OUT OPTION.*
The written, publicly available staff report detailing the item was J. Machiaverna moved
verbally summarized by staff,
approval of the Addition of
verbally summarized by staff.
Rule No.21 and Rule No.26 to
The Board asked a variety of questions which culminated in their
the Electric & Water Rates
decision to support the approval of the addition of Rule Nos. 21 and
Rules and Regulations
26 for Anaheim City Council's review and consideration,
establishing smart program
City Council's review and consideration.
installation requirements with
an opt out option. S.E. Faesset
seconded the motion.
MOTION CARRIED: 4 -0.
6. UPDATE ON WATER SYSTEM ISSUES.
ABSTAINED: 0. ABSENT:
3 (D. Morgan, C. Peltzer, B.
Hernandez).
5. APPROVAL OF THE MINE RECLAMATION AND TRUST
FUNDS AGREEMENT AMONG THE SAN JUAN PROJECT
PARTICIPANTS AND THE SAN JUAN GENERATING
STATION RECLAMATION TRUST AGREEMENT WITH
US BANK. *
The written, publicly available staff report detailing the item was
P. Carroll moved approval of
verbally summarized by staff.
the Mine Reclamation and
Trust Funds Agreement and the
The Board asked a variety of questions which culminated in their
San Juan Generating Station
decision to support the approval of the Agreements for Anaheim
Reclamation Trust Agreement
City Council's review and consideration.
with U.S. Bank. S.E. Faessel
seconded the motion.
MOTION CARRIED: 4 -0.
ABSTAINED: 0. ABSENT:
6. UPDATE ON WATER SYSTEM ISSUES.
3 (D. Morgan, C. Peltzer, B.
Hernandez).
Water Supply Conditions Update
D. Calkins, AGM of Water Services, commented on the Water
Supply Conditions Update in the agenda package. Over the last
month, twice the normal amount of precipitation occurred in the
Northern Sierras. As a result, on April 16, the State Department of
Water Resources increased the allocation on the State Water Project
from 50% to 60 %, which will increase the amount of water the
Metropolitan Water District (MWD) can import from Northern
California by 200,000 acre feet. This means MWD will be able to
meet the water needs of all its Member Agencies this year and still
put some water into storage.
Wholesale Water Rate Increases
D. Calkins shared with the Board that last week, the MWD Board of
Directors adopted a two -year budget and rate increases of 5% for
each of following two years: CY 2013 and 2014. MWD staff had
recommended a 7.5% rate increase for the first year, but the Board
approved a lower 5% increase and directed staff to make
commensurate cuts in proposed expenditures.
2012-25
Also, this evening (April 18), the Orange County Water District
(OCWD) Board of Directors established the groundwater pumping
percentage and cost of groundwater for next fiscal year. They
adopted an increase in the Basin Pumping Percentage from 65% to
68% of total water demands, and an increase in the Replenishment
Assessment from $254 per acre -foot to $266 per acre -foot.
Taken together, the rate actions by MWD and OCWD will result in
the water supply cost impact for the coming fiscal year to Anaheim
customers of an approximate 2% increase.
Orange County Water Summit
D. Calkins referred to last month's invitation to the Board to attend
the upcoming annual Orange County Water Summit, which will be
held on Friday, May 18` at the Grand Californian Hotel. The
Board was provided with a program for the event and was reminded
to contact P. Oviedo or D. Calkins if they would like to attend.
May is Water Awareness Month
D. Calkins referred to the memorandum on Water Awareness
Month, which will be in May. The goals of Water Awareness
Month are to promote water conservation, educate customers on
water - saving measures, and help customers lower their utility bills
by reducing consumption.
Gift of History Proclamation
D. Calkins indicated to the Board that last week, the Utilities
Department was given a proclamation from the Orange County
Department of Education for being a sponsor of last November's
"Gift of History" event at Angel Stadium. Councilmember Eastman
was very involved in this event and was on hand to present the
proclamations.
7. UPDATE ON ELECTRIC SYSTEM ISSUES.
D. Lee, AGM of Electric Services, shared a slide of Southwest
Substation and explained that residents in the area contacted the
Utility concerned about the dark parkway. Staff identified locations
around the perimeter and had 18 wall - mounted lights installed. The
"after" photos showed the improvement to the area lighting, which
was also a security improvement to the substation. The residents
were very pleased with the result.
D. Lee highlighted the two quarterly reports provided to the Board
for their review, including one on the capital improvement projects,
and one on the spot bids for equipment purchases and pre - qualified
contracts for consulting and construction. The reports include
activities for both water and electric divisions.
8. UPDATE ON FINANCE ISSUES.
B. Beelner, Financial Planning Manager, representing E. Zacherl,
AGM of Finance and Administration, provided the Finance
Division update. B. Beelner discussed the monthly financial
dashboard that is distributed each month to the Board. In this
2012-26
presentation B. Beelner discussed the budget variances for the
month of March, 2012 for both the Electric and Water Divisions. In
particular the discussion focused on the $3 million electric revenue
shortfall for March, partially caused by the prolonged Intermountain
Power Plant (IPP) outage coupled with continued softening of retail
demand, and the steps taken by the Department to mitigate this
shortfall. These steps included additional cuts to the budget, and a
temporary increase to the Power Cost Adjustment to recover the
costs associated with the IPP outage. B. Beelner then discussed the
financial results of the water division and mentioned that water
revenue is 3% or $1.2 million higher than budget, coupled with
$400k in budget savings. There were no other finance updates.
9. UPDATE ON JOINT SERVICE ISSUES.
S. Sciortino, AGM of Joint Services, invited the PUB members to
the opening of the Muzeo's Trash Art exhibition this weekend
(April 21"), which includes the Department's display for the new
technologies the Department is showcasing for its renewable and
water reclamation projects. The event begins at 11:00 a.m. with the
announcement of Anaheim's exhibit at 3:30 p.m. S. Sciortino also
reminded the members that on May 16th at Angel stadium, the
Department will be presenting the awards to the Water Awareness
poster contest, its annual event that is held on the field prior to that
evening's game with the White Sox. S. Sciortino invited the
members who are interested in attending to let him or P. Oviedo
know of their interest. A follow -up email will be sent with the
details.
For the May meeting, winners of the solar boat race (assuming they
are from high schools here in the City) will be invited to attend the
meeting in honor of their success.
10. UPDATE ON ENERGY RISK & LEGISLATIVE/
REGULATORY AFFAIRS ISSUES.
D. Wilson, Environmental Services Manager, representing J.
Lehman, Chief Risk Officer of Energy Risk and Legislative/
Regulatory Affairs, provided the Board with the Department's
quarterly Internal Compliance Report. As highlighted in the report,
he identified several issues associated with the startup of the
Canyon Power Plant that will be addressed. The first issue is
related to the early commissioning of the plant, and the lack of NOx
emission credits to cover the early start-up. Staff self- reported this
to the AQMD and currently waiting to see how this will be handled.
The second issue was again related to the CO emission during start-
up of the plant for which staff is seeking a permit modification.
J. Lehman reminded the Board of the earlier discussions about the
permit levels being very low and staff seeking to have the permit
conditions modified so that the CO emission limits are in line with
those of other similar unit. Other than these issues, all other areas
are going well. The Department is on target to provide the
California Air Resources Board a comprehensive report on our
Sulfur hexafluoride (SF 6) usage in June. The annual inspection of
the water system by the Department of Public Health went well, and
the annual Hazardous Waste Plans were completed and submitted to
the Anaheim Fire Department.
2012 27
The next PUB Legislative Working Group Meeting will be in June,
by then staff will have a much better idea of which of the more
significant pieces of legislation are viable so that staff can prepare
either our support or opposition strategies.
Next month, the PUB will be provided with the quarterly Wholesale
Energy Risk Management Compliance Report.
11. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES
BOARD MEETING ON MAY 23, 2012.
• Underground Conversion Five Year Plan
• FYI 2/13 Budget *
• Updated Pole Lease Agreement
• Backflow Device Customer Assistance Program
• Authorize Acceptance of Grant for Artificial Turf
12. ITEM(S) BY SECRETARY.
None.
13, ITEM(S) BY BOARD MEMBERS:
J. Machiaverna expressed that he was pleased with the meeting, and
not overly concerned with the potential for any ratings downgrade
on the part of the rating agencies.
S.E. Faessel shared that after reading the article on mutual aid, she
began to brainstorm about its link to emergency preparedness, in
the sense of being part of a team that is ready to go when any issues
occur.
P. Carroll referenced the acronyms list available in the budget book
commenting that it was like a new language. He also discussed a
recent LADWP bill noting the extra fees that are being charged,
which are more than the charges for the electricity charge.
J. Brandman expressed that this was another great meeting, and
even with just four board members present, a lot was accomplished.
He also expressed his pride in the team.
14. ADJOURNMENT: (REGULAR MEETING ON MAY 23, 2012
AT 5:00 P.M., IN THE 11 FLOOR LARGE CONFERENCE
ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM
BOULEVARD, ANAHEIM, CALIFORNIA).
J. Machiaverna moved to
adjourn the Regular Meeting at
7:41 p.m. to the Board's next
meeting date of May 23, 2012
at 5:00 p.m. P. Carroll
seconded the motion.
MOTION CARRIED: 4 -0.
ABSTAINED: 0. ABSENT:
3 (D. Morgan, C. Peltzer, B.
Hernandez).
Respect ally su itt d,
Marcie L. Edwards
Secretary, Public Utilities Board
Indicates item(s) that will be • to City Council for . n upon recommendation by Board.
forwarded Indicates item(s) that will be • City Clerk and City Council for • • purposes,