Public Utilities 2016/01/27CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
January 27, 2016
The agenda having been posted on Thursday, January 21, 2016, the Regular Meeting of the Public Utilities Board
(Board) was called to order by Chairperson J. Machiaverna at 5:01 p.m. on Wednesday, January 27, 2016, in the
I Ph Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Machiaverna, Vice Chairperson S.E. FaesseI, B. Hernandez, D. Wain,
E. Medrano, A. Abdulrahman
Board Members Absent: L. Cahill
Staff Present: D. Lee, B. Beelner, J. Lonneker, M. Moore, G. Bowen, J. Lehman, A. Kott,
L. Quiambao, P. Oviedo, M. Seifen, J. Wei, J. Pellegrino, D. BalIin, M. Lopez,
R. Watkins, M. Robledo
Guest(s) Present: None
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS. There being no public
comments, Chairperson J.
No Public Comments. Machiaverna closed the public
comments portion of the
regular meeting.
2. APPROVAL OF THE MINUTES OF THE PUBLIC HEARING I E. Medrano moved approval of
REGULAR PUBLIC UTILITIES BOARD MEETING OF the Minutes of the Public
DECEMBER 16, 2015. Hearing I Regular Public
Utilities Board Meeting of
December 16, 2015. D. Wain
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 (L. Cahill).
3. PRESENTATION ON SMART GRID IMPLEMENTATION.
J. Wei, Electric System Planning Manager, shared a presentation with
the Board regarding Smart Grid Implementation. He explained how
automated equipment and enhanced electronic devices work and how
they have improved electric service reliability. The Public Utilities
Department's (Department) efforts to automate grid operations started
over twenty years ago. The award from the Department of Energy's
Smart Grid Investment Grant helped accelerate the expansion of
advanced grid applications that will benefit Anaheim businesses and
residences by further improving electric system reliability. The Board Staff will provide cost savings
requested information on the cost savings associated with reliability information at a future
improvements in Anaheim. meeting.
2016-1
AGENDA ITEM ACTION TAKEN
4. DISCUSSION ON PROPOSED HUNTINGTON BEACH
DESALINATION PROJECT.
M. Moore, AGM - Water Services, provided an update on the
Huntington Beach Desalination Project (Project). He provided a
comparison to the Carlsbad Desalination project, which recently came
online. The proposed Project is estimated to provide 50 million
gallons of drinking water per day to the Orange County Water District
(OCWD). The Project has all the permits and environmental
clearances, except for the State Coastal Commission, who has
scheduled a hearing in May 2016. OCWD completed a study to
evaluate alternatives to distribute the water. The study will be
presented at a series of workshops starting on February 3, 2016 at
OCWD. The Board requested information regarding a survey of a Staff will provide a copy of the
potential property tax to help offset the cost of the desalination survey to the Board.
project.
5. APPROVAL OF AN ELECTRONIC BILL PAYMENT
Subject to correction of the
AGREEMENT BETWEEN THE CITY OF ANAHEIM AND
typographical error, B.
INVOICE CLOUD, INC. *
Hernandez moved approval of
(PROCUREMENT PLAN). *
an Electronic Bill Payment
M. Lopez, Business Information Systems Manager, explained that
agreement between the City of
roughly 30,000 customers use online bill payment. Because the
Anaheim and Invoice Cloud,
agreement with the current service provider is set to expire in
Inc. S.E. Faessel seconded the
February 2017, a Request for Proposal (RFP) was issued to review the
motion, as amended.
latest technologies and services. He indicated that thirteen vendors
MOTION CARRIED: 6-0.
received the RFP, and only two proposals were received — one from
ABSTAINED. 0.
our current service provider, Kubra, and one from Invoice Cloud. He
ABSENT: 1 (L. Cahill).
further explained that product demonstrations were conducted to
ABSENT: I (L. Cahill).
evaluate software and kiosk functionality. He explained that
installing kiosks is a new feature that will allow the Department to
extend business hours for walk-in customers.
Prior to approval, a typographical error in the Agreement was
identified and is to be remedied prior to submitting the Agreement to
City Council for its consideration.
6. ADOPTION OF THE 2016 UPDATE TO THE RENEWABLES A. Abdulrahman moved
PORTFOLIO STANDARD POLICY FOR THE CITY OF
approval of the adoption of the
ANAHEIM WHICH INCLUDES THE ENFORCEMENT PLAN
2016 Update to the
AND RENEWABLE ENERGY RESOURCES PLAN
Renewables Portfolio Standard
(PROCUREMENT PLAN). *
Policy for the City of Anaheim
which includes the
G. Bowen, AGM - Power Supply, introduced M. Robledo who
Enforcement Plan and
provided a presentation on the 2016 Update on the Renewable
Renewable Energy Resources
Portfolio Standard Policy (RPS Policy). M. Robledo discussed new
Plan (Procurement Plan). E.
legislation signed into law late last year by Governor Brown (SB 350)
Medrano seconded the motion,
which increased the requirement from 33% by 2020 to 50% RPS
MOTION CARRIED: 6-0.
target by 2030 and the requirement to develop an Integrated
ABSTAINED: 0.
Resources Plan for 2014. The Department is on target to meet the
ABSENT: I (L. Cahill).
interim targets, and has been divesting coal assets in preparation for
inclusion of additional renewable resources in the future.
2016-2
AGENDA ITEM
ACTION TAKEN
7. DISCUSSION ON THE QUARTERLY STATUS REPORTS ON
CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVICE AGREEMENTS, AND
SPOT BID AWARDS.
D. Lee, Public Utilities General Manager, provided an update on the
quarterly status reports related to capital projects and consulting,
construction and material purchases. The quarterly report highlights
projects are conducted throughout the city, as depicted in the map
provided, which also shows the status of the various projects.
8. DISCUSSION ON THE SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY (SCPPA) EXPENDITURES BI -ANNUAL
REPORT.
G. Bowen provided an overview of the Southern California Public
Power Authority (SCPPA) Expenditure Report to the Board. He
stated that this is a new informational item that will be provided to the
Board on a semi-annual basis with the purpose of providing a
summary of expenditures in various projects the Department shares
through SCPPA. G. Bowen explained that the primary reason for
using SCPPA is to capitalize on economies of scale since the
Department is a mid-sized utility and would have difficulty obtaining
reduced pricing by itself. G. Bowen indicated that most expenditures
through SCPPA are related to generation and transmission projects —
approximately 97% and the remaining 3% was spread across several
areas including — legislative & regulatory collaboration, legal
services, energy efficiency programs, and working groups that are
designed to provide staff from different agencies to share best
practices. It is estimated that the Department saves approximately 8-
14% in costs through shared SCPPA resources.
9. UPDATE ON WATER SYSTEM ISSUES.
M. Moore stated that water conservation for the City continues to be
on target with the overall State mandated goal of 20% conservation by
the end of February 2016. A water supply dashboard was distributed
to the Board, which shows the status of key water storage facilities, as
well as precipitation and snowpack levels, which are average so far
this year. The State Water Resources Control Board (SWRCB) meet
on February 2, 2016 to vote on whether to continue the State
mandated drought restrictions. Their draft report indicates the
availability of a possible "credit" resulting in a reduction in
Anaheim's conservation requirement due to the Department's
investments in the recycled water through the Groundwater
Replenishment System (GWRS) project.
The Public Utilities Department plans to distribute over 1,000 rain
barrels on January 30`h and February 13'h. For convenience,
customers are able to pre -purchase the rain barrels for only $5, with
the remaining cost being paid through reimbursements of $75 per
barrel from the Metropolitan Water District (MWD) rebate
conservation program.
2016-3
AGENDA ITEM ACTION TAKEN
10. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, AGM - Electric Services, notified the Board that City
Council approved the formation of Underground District (UD) - 64
for Orangewood Avenue at the January 26, 2016 meeting.
The Combustion Turbine Generator (CTG) will be back in service at
the end of January after repairs have been completed.
She then advised the Board of the organizational change of the
Generation staff from the Electric Services division to the Power Staff will provide an updated
Supply division, effective February 1, 20I6. The Board requested an organizational chart.
updated organizational chart.
J. Lonneker noted that facility improvements will be implemented at
the Edwards Utility Complex (EUC) for security purposes. Both
Water and Electric Divisions staff are currently assessing various
measures for improvements planned for this year.
11. UPDATE ON FINANCE ISSUES.
B. Beelner, AGM - Finance and Administration, went over the
monthly dashboard which showed revenue for the electric utility
above budget for the year to date by $7 million (3.3%) primarily due
to a warm and humid summer. However, water revenue is $7 million
below budget (19.4%) with costs below budget by only $5 million
(15.1%) causing a $2.2 million net revenue budget variance.
12. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen provided an update on the Bowerman landfill gas project
(Project) indicating that testing of the engines began over the weekend
Power delivery to the grid is expected in February 2016 once full load
performance testing is complete.
The Board was provided an update on the 2 MW Westlands solar
project in Kings County, California. G. Bowen indicated that initial
construction activities have begun and the facility is anticipated to
come online in June 2016.
13. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND
LEGISLATIVE & REGULATORY AFFAIRS ISSUES.
J. Lehman, Chief Risk Officer, invited the Board's attention to the
Internal Compliance Report. The Department received a $560 penalty
from California Occupational Safety and Health Administration (Cal
OSHA) associated with an injury to a water employee that occurred in
June of last year. The penalty was in regard to a violation received
for failing to properly identify work place hazards, even though a
safety meeting was held on the day of the incident, it just had not
described all of the potential safety issues that could occur, including
the one that happened. Secondly, she mentioned that the South Coast
Air Quality Management District permit for the Canyon Power Plant
was renewed until 2020.
2016-4
AGENDA ITEM ACTION TAKEN
J. Lehman also shared that the legislative session had started and
several bills being watched. In addition, she stated that a number of
ballot initiatives had been introduced, including a "No blank checks"
initiative requiring a vote of the people before the State could issue
any revenue bonds for projects over $2 billion, and an initiative that
would require all investor owned utilities to become a single state run
publically owned utility.
The Board Chairperson requested that the Legislative Work Group - The Legislative Working
B. Hernandez, D. Wain, and himself— get together to discuss 2016 Group will meet periodica'ly to
state and federal legislation that potentially impacts Department costs, discuss potential 2016
customer rates, or services. The Legislative Working Group will also legislation.
review that Department's Guiding Principles and have J. Lehman
report back to the Board at the end of the legislative session or as
needed.
14. AGENDA ITEM(S) FOR THE PUBLIC UTILITIES BOARD
MEETING ON FEBRUARY 24, 2016.
D. Lee mentioned the following upcoming agenda items are currently
scheduled:
• Utilities Success Indicators
• Presentation on Emerging Renewable Technologies
• Schools Energy and Water Education Program *
15. ITEM(S) BY SECRETARY.
D. Lee informed the Board that City Council approved the water rate
modification at its meeting on January 26, 2016. He thanked the
Board and staff for their efforts to maintain reliability and maintain
low water rates in comparison to other Orange County agencies.
He also described several upcoming events that the Board is invited D. Lee will provide a summary
to, and stated a summary of the events will be provided to the Board. of event to Board.
16. ITEM(S) BY BOARD MEMBERS.
A. Abdulrahman thanked staff for the presentations provided, stating
they were informative.
D. Wain thanked staff for the Municipal Water District of Orange
County (MWDOC) 2016 Water Policy & invitation, which features
Felicia Marcus of the State Water Resources Control Board,
E. Medrano stated that he is pleased with how the Department is
staying ahead of services to accommodate customers, such as
providing kiosks to extend business hours, and keeping up with the
State mandate (SB 350), which will help protect the environment.
B. Hernandez requested an analysis of how the projected population Staff will provide a
in Anaheim will impact the Department's ability to provide services presentation on population
to the City's future population. impacts to utility services at a
future Board meeting.
2016-5
AGENDA ITEM ACTION TAKEN
S.E. Faessel stated her appreciation for the continued growth of the
Department through its initiatives. She commented that having
measureable goals is important and looked forward to reviewing the
success indicators.
J. Machiaverna commented that during his six years on the Board
there had been a substantial amount of change in the utility industry,
and how important it is for the Department to make the necessary
adjustments to meet the needs of the community. J. Machiavema
requested that the meeting to be adjourned in the memory of Frank
Cozza, a longtime member of the Anaheim community.
17. ADJOURNMENT: (REGULAR MEETING ON FEBRUARY 24, B. Hernandez moved approval
2016, AT 5:00 P.M., IN THE 11TH FLOOR LARGE to adjourn the Regular Meeting
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. in memory of Frank Cozza at
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA). 7:02 p.m., to the Board's
Regular Meeting date of
February 24, 2016 at 5:00 p.m.
E. Medrano seconded motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 (L. Cahi11).
U
b itted,
Dukku Lee
Public Utilities General Manager
* 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.
2016-6