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Public Utilities 2013/03/27CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES MARCH 27, 2013 The agenda having been posted on Friday, March 22, 2013, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson David Morgan at 5:04 p.m. on Wednesday, March 27, 2013, in the l I' Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: D. Morgan, J. Machiaverna, C. Peltzer, P. Carroll, B. Hernandez, S.E. Faessel, D. Singer Board Members Absent: None Staff Present: M. Edwards, D. Calkins, D. Lee, E. Zacherl, S. Sciortino, J. Lehman, A. Kott, L. Quiambao, P. Oviedo, L. Johnson, D. Albaugh, M. Houston, P. Hayes, J. Coe Guest(s) Present: D. Wain, Resident & Chairperson of the East District Neighborhood Council; S. Faessel, Resident & Chairperson of the Underground Conversion Subcommittee. AGENDA ITEM 1. PUBLIC COMMENTS. None. M. Houston, Interim City Attorney, introduced himself to the Board and shared a brief summary of his background. 2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD MEETING OF FEBRUARY 27, 2013. PRESENTATION ON ANAHEIM RAPID CONNECTION (ARC) BY PUBLIC WORKS. L. Johnson, Principal Planner of the Public Works Department, gave a presentation on the Anaheim Rapid Connection (ARC) project. ACTION TAKEN The Board welcomed M. Houston. B. Hernandez moved approval of the February 27, 2013, Public Utilities Board Minutes. S.E. Faessel seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0. 2013- 15 umuclummmow . WATER UTILITY OVERVIEW. The Board requested that staff assemble and email a cursory D. Calkins, AGM of Water Services, gave an overview on the Water review comparing the number Utility. This presentation is planned to be made at a later City of Anaheim Public Utility Council workshop. This will be an informational presentation; no Electric and Water employees action will be requested of City Council. to employees of other local utility companies, for the The presentation focused on the City of Anaheim's water supplies and Board and City Council efforts to ensure reliability, the quality of Anaheim's tap water, water Members. The Board asked to system infrastructure and the capital program to invest in that include this information on the infrastructure, and the cost of water for Anaheim customers. website. 5. PRESENTATION ON BUSINESS AND COMMUNITY PROGRAMS ANNUAL REPORT ON ENERGY EFFICIENCY ACCOMPLISHMENTS. P. Hayes, Resource Program Specialist, and J. Coe, Economic Development Manager, gave a presentation on the Business and Community programs Annual Report on the Energy Efficiency Accomplishments. The data itself is required to be submitted to the California Energy Commission and is available for public review upon request. 6. UPDATE ON WATER SYSTEMS ISSUES. D. Calkins, AGM of Water Services, invited the Board's attention to the Water Supply Conditions Update in the agenda package. He shared that this winter has been very dry since the first of January; however, water supplies remain adequate for the coming year as a result of water in storage. 7. UPDATE ON ELECTRIC SYSTEM ISSUES. D. Lee, AGM of Electric Services, shared a copy of a letter received from the State of New York's Governor's Office, expressing gratitude for the assistance provided in the aftermath of Superstorm Sandy. Anaheim sent a five- person crew to assist Long Island Power Authority with their power restoration efforts, for two weeks in November 2012. 8. UPDATE ON FINANCE ISSUES. E. Zacherl, AGM of Finance and Administrative Services, invited the Board's attention to the Utilities Dashboard contained in their information packet. He shared that revenues for both Electric and Water were slightly over budget year -to -date through February. Electric's revenues of $288.6 million were $16 million or 5.9% over budget with corresponding expenditures of $260.6 million over budget by $2.7 million or 1 % over budget. The primary reason for the favorable revenue variance continues to be the unseasonably warm summer months earlier in the fiscal year. Expenditures, however, were unfavorable primarily due to the increased cost of purchased power, resulting from increased demand, which itself was partially offset by reductions in costs associated with labor and supplies resulting from continuing cost containment efforts. E. 2013- 16 AGENDA ITEM Zacherl also reported to the Board that Water's revenues of $40.4 million were $2.4 million or 6.4% above budget with corresponding expenditures of $34.1 million falling under budget by $1.4 million or 3.9 %. As with Electric, warm weather earlier in the fiscal year is responsible for increased water demand resulting in the favorable revenue variance. The primary reasons for the favorable variance for operating costs was lower than budgeted water supply costs, and continued cost containment efforts in labor and operating supplies. 9. UPDATE ON JOINT SERVICES ISSUES. S. Sciortino, AGM of Joint Services, reminded the Board that during Water Awareness Month there are two events to calendar. The first is the May 15, 2013, recognition of the students winning the Water Awareness Poster contests; they will receive their trophies and be treated to the Angel Baseball game, which follows after the award ceremony. The second is the Solar Boat Cup race event will take place the weekend of May 17 thru 19. 10. UPDATE ON ENERGY RISK & LEGISLATIVE 1 REGULATORY AFFAIRS ISSUES. J. Lehman, Chief Risk Officer, briefly highlighted a few recent legislative activities that could potentially impact Anaheim Public Utilities operations, and mentioned that next month the PUB Legislative Working Group will be meeting, and the Quarterly internal compliance report will be provided to the PUB. 1 •+ ► � . 1 . 1 lk:09030F.14 W ► Fiscal Year 2013/14 Budget Presentation. Approval of Public Hearing date of May 22, 2013 for proposed modifications to Water and Electric Rates, Rules and Regulations.* Approval of proposed modifications to Rule Nos. 6 and 7 of the Water and Electric Rates, Rules and Regulations.* 12. ITEM(S) BY SECRETARY. M. Edwards invited the Board to read the Cap and Trade Program Management Update that is at their place setting and available on the Anaheim website. M. Edwards shared that Anaheim General Hospital has announced its closing and staff is seeking to legally disconnect its service, due to the continuous and significant amount in arrears. 13. ITEM(S) BY BOARD MEMBERS. S.E. Faessel said the presentation on the Anaheim Rapid Connection (ARC) was exciting and interesting, and shared that it will be given again at the Kiwanis Club of Greater Anaheim. 2013-17 AGENDA ITEM ACTION TAKEN D. Singer shared that she is always impressed by how smart staff is, and feels that the Board is in good hands. J. Machiaverna shared that he is impressed with how the staff goes above and beyond when it comes to customer service, which is important, because it is one of the only things that businesses really have to offer. Also, this is the only business where money is spent on ways to have people spend less money, which is also a mandate by the government. D. Morgan shared the importance of spending time on issues and giving staff their moment in the sun. He also thanked staff for having L. Johnson present the Board with information on ARC. 14. ADJOURNMENT: (TO THE REGULAR MEETING ON APRIL D. Singer moved to adjourn the 24, 2013, AT 5:00 P.M., IN THE 11` FLOOR LARGE Regular Meeting at 7:30 p.m. CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. to the Board's next Regular ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). Meeting date of April 24, 2013 at 5:00 p.m. P. Carroll 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.