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Public Utilities 2016/12/14CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES December 14, 2016 The agenda having been posted on Thursday, December 8, 2016, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson J. Machiavema at 5:00 p.m. on Wednesday, December 14, 2016, in the I 1 'h Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Chairperson J. Machiavema, Vice Chair S.E. Faessel, B. Hernandez, D. Wain, A. Abdulrahman, E. Medrano, L. Cahill Board Members Absent: None Staff Present: D. Lee, M. Moore, L. Quiambao, J. Lehman, A. Kott, B. Beelner, G. Bowen, J. Lonneker, P. Oviedo, M. Seifen, A. Fiero Guest(s) Present: Stephen Faessel, Council Member AGENDA ITEM ACTION TAKEN 1. PUBLIC COMMENTS. There being no public comments, Chairperson J. None. Machiavema closed the public comments portion of the meeting. D. Lee, Public Utilities General Manager, introduced the Interim City Attorney, A. Fierro. Board members welcomed A. Fierro. D. Lee recognized Vice Chairperson S. E. Faessel for her years of service on the Board and presented her with a proclamation. 2. APPROVAL OF THE MINUTES OF THE REGULAR B. Hernandez moved PUBLIC UTILITIES BOARD MEETING OF NOVEMBER approval of the Minutes of 16, 2016. * the Regular Public Utilities Board Meeting of November 16, 2016. E. Medrano seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1. [S. E. Faessel (left the Meeting at 5:15 p.m.)]. AGENDA ITEM ACTION TAKEN 3. PRESENTATION ON SOLAR FOR SCHOOLS PROGRAM. M. Brownrigg, Product Development Specialist, presented the Board with an update on the Solar for Schools Program and discussed the differences between the current Sun Power for Schools Program and upcoming Solar for Schools Program. M. Brownrigg pointed out that under the current program the solar facilities are owned and operated by the schools; however, due to the recession and school board budget priorities, only nine schools have participated in the Sun Power program since its inception in 2003. M. Brownrigg then discussed the status of the new Solar for Schools Program highlighting the benefits where the Public Utilities Department (Department) will install, own, and maintain solar carport/shade systems, starting with the options for each of the seven public school districts to participate and recommend school sites. To date, fourteen campuses have been evaluated based on layout, cost, geographic diversity, and feasibility of construction. Solar system sizes range from 80 kilowatts (kW) to 350 kW. To date, the Department has received letters of intent from two schools expressing interest in having a solar facility on their campus. School districts will have to approve and execute license agreements with the City in order to proceed with design and construction. The Board asked about student engagement opportunities with solar panel systems, and staff responded that one of the selection criteria was to see how schools would provide learning opportunities with the data they would be provided from the solar panels. The Board asked why there are differences in the amount of energy production between schools, and staff responded that it is based on the amount of space, where the elementary schools have much smaller parking, and other space available for solar. 4. APPROVE THE FIRST AMENDMENT (AMENDMENT) TO L. Cahill moved approval of THE MWD (METROPOLITAN WATER DISTRICT) the First Amendment to the HYDROELECTRIC PROJECT POWER SALES MWD Hydroelectric Project AGREEMENT BETWEEN SOUTHERN CALIFORNIA Power Sales Agreement PUBLIC POWER AUTHORITY (SCPPA) AND THE CITY between SCPPA and the OF ANAHEIM (AGREEMENT) AND DETERMINE THAT City of Anaheim. B. THE FIRST AMENDMENT TO THE AGREEMENT IS Hernandez seconded the CATEGORICALLY EXEMPT FROM THE CALIFORNIA motion. ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT MOTION CARRIED: 6-0. TO SECTIONS 15061(B)(3) AND 15301(B) OF THE TITLE 14 ABSTAINED: 0. OF THE CALIFORNIA CODE OF REGULATIONS. * ABSENT. 1 (S. E. FAESSEL). G. Bowen, AGM — Power Supply, provided the Board with an 2016-78 AGENDA ITEM ACTION TAKEN overview of the First Amendment (Amendment) to the MWD Hydro Electric Power Sales Agreement with SCPPA. The Department has an Agreement for 9.7 megawatts of renewable power from hydroelectric power plants owned and operated by the Metropolitan Water District (MWD). He indicated that the Amendment provides a reduction in price from the original agreement saving the Department over $4.5 million dollars over the remaining term of the Agreement. In order to achieve the price reduction, the Amendment removes the two-year termination clause in the original Agreement allowing the Agreement to reach its planned termination date of 2023 without early termination. S. UPDATE ON WATER SYSTEMS. M. Moore, AGM — Water Services, provided the Board with an update on water supply. M. Moore indicated Northern California has seen significant rainfall this winter which has helped add much needed water to reservoirs that are part of the State Water Project. However, local rainfall has been insignificant so far this year. The local groundwater basin is still only at 18% of usable capacity and the Colorado River storage is slowly declining. M. Moore indicated there is no drought on the Colorado River basin; however the over -prescription of the Colorado River rights has caused a slow decline over the past decade. M. Moore mentioned that a recent newspaper article reported a possible mismanagement of MWD's turf rebate program. MWD provided more information about the audit to their Board. The auditor reported that an insufficient number of applicants were verified with a site inspection. MWD staff corrected the auditor's report by specifying that a higher number of applicants were inspected but the inspections were outside the period of the audit. Changes are being made to the management of the rebate program and MWD has an outstanding solicitation for a new contractor to assist in the administration. Lastly, M. Moore mentioned that on December 8, 2016 a driver swerved off the road and knocked over a fire hydrant across the street from Anaheim High School. The car dragged the hydrant across a parking lot and into a mechanic bay. The water from the hydrant flooded the street and made it difficult to shutoff the hydrant. A second water employee had to be called to assist with the shutdown. 6. UPDATE ON ELECTRIC SYSTEM ISSUES. J. Lonneker, AGM -- Electric Services, discussed with the Board an increase in the number of vehicle hit power pole incidents 2016-79 AGENDA ITEM during the month of December. Managers and crews have been reminded to maintain good safety practices of proper job site lighting, safety barriers, and awareness of their surroundings when working at night restoring power during outages. J. Lonneker also discussed with the Board of an upcoming lighting exhibition to be held at the Anaheim Convention Center beginning Tuesday, February 28, 2017. The exhibition will feature new technologies and products available for both internal and external lighting as well as street lighting. She indicated that Board members wishing to attend the exhibition will be escorted by an engineering staff member. 7. UPDATE ON FINANCE ISSUES. B. Beelner, AGM — Finance and Administration, discussed the ongoing fraud activity in the City and the steps the Department is taking to protect its customers. These steps include public outreach via social media, working with local newspapers to highlight how the various perpetuators attempt to defraud Anaheim customers, using bilingual staff to canvas various neighborhoods with large populations of non-English speakers, and developing reverse 911 alerts to customers in the various neighborhoods with increased fraudulent activity. The Board and D. Lee discussed the potential use of public service announcements and various other methods of communicating the dangers of these fraudulent activities to customers. B. Beelner then discussed the monthly dashboard, indicating that due to the continued warm weather through the summer and fall seasons electric revenue was 5.9% higher than budget ($11.7M) with costs coming in below budget by 10.5% ($17.6M). He then mentioned that water revenue was 8.5% ($2.9M) below budget due to continued conservation, however costs were 18.0% below budget ($5.2M) causing a positive net budget variance. 8. UPDATE ON POWER SUPPLY ISSUES. G. Bowen, AGM — Power Supply, discussed with the Board that the MWD Student Art Recognition Event was held at MWD Headquarters on Thursday, December 8th, and that two students from Anaheim Fairmont School were award winners. Those students were Victoria Asad, 3rd grade, and Kaitlyn Kim, 7th grade. He also indicated that their artwork is featured in MWD's 2017 "Water is Life" Calendar, which was at their place settings. 2016-80 ACTION TAKEN Staff will email reminder to the Board. AGENDA ITEM ACTION TAKEN G. Bowen also provided an update on the power supply portfolio performance over the last 30 -days. He discussed with the Board that the Canyon Power Plant was offline in a planned outage for routine maintenance on the generators voltage regulators and that the Kraemer facility was also in an unplanned outage due to a boiler tube leak. G. Bowen also indicated that despite these outages, the Canyon Power Plant operated for nearly 400 hours and Kraemer for 100 hours. 9. UPDATE ON ENTERPRISE RISK, COMPLIANCE, AND LEGISLATIVE & REGULATORY AFFAIRS ISSUES. J. Lehman, Chief Risk Officer, provided the Board with an update on the grid regionalization efforts. She indicated there has not been any draft language circulated to date on the legislation that is expected to be introduced at the first of the year. In fact, some legislators were expressing concern over regionalizing efforts, as it could potentially invite federal intervention of the California markets. J. Lehman also reported that the expected changes to the water system permit would require upon request, the testing of water at schools for lead, which would be performed at no cost by the Department. 10. AGENDA ITEMS) FOR THE PUBLIC UTILITIES BOARD MEETING ON JANUARY 25, 2017. D. Lee stated the following items are planned for the following Board meeting: • Election of New PUB Vice Chairperson and one UGC Subcommittee Member * * • Harbor Substation Design Build Contract Award + 2017 Update to Renewables Portfolio Standard Policy • Customer Service Virtual Hold Software * 11. ITEM(S) BY SECRETARY, D. Lee provided a copy of a DVD entitled "Beyond the Mirage: The Future of Water in the West" to each Board member, as it provided a useful overview of water issues affecting the Southwest states. D. Lee provided an update and showed photos of students from Loara High School who participated in the Department's mentoring program. D. Lee then stated that Bill Carnahan, Executive Director of 2016-81 AGENDA ITEM SCPPA will be retiring, and he thanked him for his service. Mike Webster has been selected to be the new Executive Director. 12. ITEM(S) BY BOARD MEMBERS. L. Cahill thanked staff for the information provided at the meeting. B. Hernandez shared that it was an informative meeting and expressed that he does have some concerns with the changes in government potentially affecting California's efforts in renewable resources. A. Abdulrahman thanked staff for the presentation provided. D. Wain stated that he attended the mentoring presentations and appreciated the efforts made by the high school students. E. Medrano welcomed A. Fierro, Interim City Attorney. J. Machiaverna thanked staff for the productive meeting. 13. ADJOURNMENT: (WORKSHOP CONCERNING AN OVERVIEW OF CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO) SCHEDULING TRANSMISSION ON JANUARY 25, 201.7 AT 3:00 P.M. IN THE 11TH FLOOR LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA AND THEREAFTER THE REGULAR MEETING AT 5:00 P.M. ON JANUARY 25, 2017 IN THE SAME LOCATION). Rs sLmitted, Dukku Lee Public Utilities General Manager ACTION TAKEN E. Medrano moved to adjourn the Regular Meeting at 6:14 p.m., to the Workshop concerning an overview of CAISO scheduling transmission on January 25, 2017 at 3:00 p.m. and following thereafter the Board's Regular Meeting date of January 25, 2017 at 5:00 p.m. B. Hernandez seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: 0. ABSENT: 1 (S. E. FAESSEL). * 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. 2016-82