Loading...
Public Utilities 2017/04/26CITY OF ANAHEIM IMANWanuff K ".1 r® 26, 2017 The agenda having been posted on Frid.y, April 21, 2017, the Regular Meeting of the Public Utilities Board (Board) was called toorder by Vice Chairperson D. Wain at 5:00 p.m. on Wednesd.y, April 26, 2017, in the I 11h Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, C,zlif17stia. 'T,oard Members Present: Vice Chair D. Wain, A. Abdulrahman, E. Medrano, B. Hernandez, L. Cahill Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott, G. Bowen, J. Lehman, P. Oviedo, P. Hayes, E. Lasley, A. Kanzler, M. Seifen, D. Albaugh, A. Nguyen, M. Walker, C. Pereyra, Y. Saldivar, J. S Guest(s) Present: None. AGENDAITEM ACTION TAKEN 1. PUBLIC COMMENTS. There being no public comments, Vice Chair D. Wain closed the public comments portion oft e meeting. 2. APPROVAL OF THE MINUTES OF THE PUBLIC B. Hernandez moved HEARINGS/REGULAR PUBLIC UTILITES BOARD approval of the Minutes of MEETING OF MARCH 22, 2017. the Public Hearings/Regular Public Utilities Board Meeting of March 22, 2017. A. Abdulralunan seconded the motion. MOTION CARRIED: 4-0. ABSTAINED: 1 (L. Cahill). ABSENT. 1 (Chairperson J. Machiaverna). EFFICIENCY PROGRAMS. P. Hayes, Business and Community Programs Manager, presented the Fiscal Year 2015-16 Annual Update on the Business and Community Division's energy and water efficiency programs. ' o, r oard aware that the Anaheim Public Utilities Department (Department) met all of its energy and water savings goals as mandated by current state legislation. .. . . . . . r tafflnXy no prlgr-7 and services provided to residents, as well as the over ninety :"[rJrrMr* *i -&-- Specifically, the Department was able to reach over 10,000 residents and 1,000 businesses through the rebates, audits, and income qualified programs. Moving forward, the Department [rrerr sed the expansion of the joint Department and Southern California Gas Company program that provides gas, water, and electrical savings through residential home weatherization upgrades; the partnership with schools in the City of Anaheim am student fundraising, conservation pilot projects and educational programs that teach students about the importance of long term sustainability. FW101*1my K-ly I COXNE01121 W [*Y97!1ILIA W.111 tyksg A. Nguyen, Ufflities Budget Administrator, gave a presentation to the Board on the Fiscal Year 2017 (FYI 7) Projected Budget and the Fiscal Year 2018 (FYI 8) Proposed budget and provided a brief overview of the budget process, explaining key budget terminology and how the process worked. In comparing the FYI 7 Projected budget to the FYI 7 Amended budget, A. Nguyen explained that total expenditures for the Electric Utility and Water Utility were likely to be 17% and 3 1% below budget, respectively — due to multi-year capital infrastructure projects that were still under design or construction. Regarding revenue, A. Nguyen noted that electric retail sales were forecasted to be approximately 3% higher due to warmer than expected summer temperatures, but water sales were forecasted to 'ce nearIgi 0 ' Ltwer due to c*n oservation and Calihimia h ving *ir. f the wettest winter periods on record. fiscal year, noting that the Department had been continuing to engage with students, schools, and the local community; providing regulatory relief or customer service enhancements through reduced fees and more service options; and continuing ltn_g invest in improvements to support a reliable electric and water system, Comparing the FYI 8 Proposed budget to the FYI 7 Adopted budget, A. Nguyen noted that total expenditures for the Electric Utility were proposed to decrease by approximately I I% since a f�lanned substation was budgeted last fiscal year; and total expenditures for the Water Utility were proposed to increase by approximately 7% due to higher wholesale water supply costs and investment in capital infrastructure. A. Nguyen also indicated that electric sales revenue was forecasted to decrease because of lower wholesale sales, as the Electric Utility will divest from the San Juan Coal Generating Station by the end of 2017; and the Water Utility's sales revenue was forecasted to increase because of an approved rate change that keeps pace with increasing wholesale water supply costs. The Board inquired about seeing the Department's entire budget in a summary format; A. Nguyen referred to a section in the budget binder showing the Department's total revenue and expenditures. The Board discussed the Windy Ridge project, which has not yet started construction due to issues with the contractor. The Department is currently reviewing alternative elevation area. 5. APPROVAL OF PUBLIC UTILITIES DEPARTMENT ORDERS 110 (PROCESSING AND ADMINISTRATION OF AGREEMENTS) AND 115 (CASH AND FINANCIAL RESERVE POLICY). the City's Administrative Regulations and comply with other jurisdictional requirements such as state law. DOs provide additional specificity to Department employees. D. Albaugh provided an overview of two DOs: DO 110 — Processing and Administration of Agreements, which details the Department's policies and procedures for the administration of agreements, and was revised to be consistent with the City Manager's recently adjusted signature authority amounts as defined by City Council Resolution; and Department Order 115 — Cash and Financial Reserve Policy, which is a new DO establishine the Devartment's i)olicy reeardina financial reserves the financial position of the Department; ensure payment of kill of the Public tilities Department Orders I 10 and 115. A. Abdulrahman seconded the motion. UMT-M;OW%1J a bond ratings. MEMOV. • 1 a lul.` I Mir M 1 0 06 1 0 DRINKING WATER. attention to tM 2017 Annual Water Quality report (Report) detailing that the Department either met or exceeded all federal and state water quality requirements. She acknowledged the work of the Department's water and compliance staff, including J. Sanks, the Envirom-nental. Services Manager who was in attendance at the meeting. J. Lehman requested the Board's approval to post the Report on the City web site and certify to the State Water Resource Control Board when the posting was completed. She mentioned that customers would be informed on their bill inserts that the Report is available. and how to receive a hard col D. Lee reminded the Board that the quarterly reports are providei for their review of activities related to design, construction, and purchases within Council -approved limits. N.1RH 2-17-1w 11111 1 11 1 : 1 11 !"11 � 1 J 1 i M. Moore, Assistant General Manager — Water Services, provided the water supply dashboard to the Board that indicates the imported water reservoirs on the State Water Project and Colorado River Aqueduct are improving. M. Moore also mentions the State Water Project imports from northern California are supplying most of southern California at this t;. -me, because of the high snow melt runoff. M. Moore mentioned that May is Water Awareness Month and the Department has several community events planned. The Ci Council presented the Department with a proclamation for Wat Awareness month at the April 25, 2017 Council meeting. I In addition, M. Moore indicated that the Department's pipefitters participated in the annual American Water Works Association 1ipe tapping contest on April 12, 2017. This was the first time the MOM 7-cm-MOT717 7-1-W-7571MY to post the 2017 Water Quality Report on the City of Anaheim Public Utilities website and provide certification of completion -XIP] 11 ABSTAINED: 0. ABSENT: 1 (Chairperso J. Machiaverna). I four -person team participated in the event, and they are plannin to participate in another friendly competition on May 23, 2017 Huntington Beach. I M. Moore thanked members from the Board who participated in the Metropolitan Water District (MWD) tour of the Hoover Dam and the Colorado River Aqueduct. The tour allowed participants to learn more about local and regional water supplies as well as how Hoover Dam supplies electricity to Anaheim. Lastly, M. Moore indicated that the Department's water conseryatioajmragrarn resulted in 22% conservation of Anaheim's water supply. The Department's successful conservation program was recognized by aMunicipal Utties Association (CMUA) for the Resource Efficiency and Customer Service awarF. The award was presented to the Department at CMUA's annual meeting in April. J. Lonneker, Assistant General Manager — Electric Services, ma& the Board aware of the wide -area power outages in San Francisco, New York, and a power outage at the Los Angeles International Airport (LAX) that occurred within the same eight hour window on Friday, April 1 the outages were unrelated to each other. J. Lonneker acknowledged the importance the Department places on investigating causes of regional and local power outages. Although still under investigation, preliminary findings indicated the three outages resulted from aging equipment that faulted a substation transformer in the San Francisco area affectin 90 000 customers.. an underground cable failure in New York affected half of the downtown area, and a substation transformer at LAX. The outages were prolonged because there were ted capacity and redundancy to re-route power in these high urban density areas. J. Lonneker indicated that the Department's annual budget presented to the Board earlier in the meeting included capital investments that will replace aging infrastructure and also maintain the operational flexibility to re-route power when outages occur. J. Lonneker discussed with the Board that Electric Services performed preventative testing on electrical equipment and will increase standby field staffing levels in preparation for the upcoming Stanley Cup playoffs at the Honda Center. Lastly, J. Lonneker made the Board aware that on April 18, 2017 the Electric Services division celebrated National Lineman Appreciation Day to acknowledge the Department's linemen for 901vim 2016. J. Lehman mentioned that a pre -hearing conference had been set for July 17, 2017, and that she would keep the Board iiifo-ffted on the matter. Additionally, J. Lehman indicated that there were two minor air emission exceedances both pertaining to nitrogen oxide; one at the Canyon Power Plant due to a valve issue and the other at the Kraemer Power Plant due to operator error, which may result in a violation. She made the Board aware that each of the issues had been addressed rough either repairs or additional staff training, as appropriate. Lastly, J. Lehman brought to the Board's attention a letter that was received on March 23, 2017 from the Board chairs and L4uwi*otf lyi PyMiAy '*",Tj7jr_-dWV-W �'_ � *W,)-Pntartg in California, including the Board's Chair John Machiaverna. The letter was in regards to the Integrated Resource Plans (IRP) that P must n., iAmit (CEC) in 2018 reminding them that these IRP documents should not be used as a tool for state oversight for local planning activities. J. Lehman indicated that the letter also included the March 30, 2017 response from the CEC Chair Weisenmiller assuring the POUs that they will have flexibility to choose the most feasible cost effective solutions for meeting the state's Greenhouse Gas reduction requirements. 13. AGENDA ITEM(S) FOR THE PUBLIC UTILITIES BOARD MEETING ON MAY 24,2017. D. Lee indicated the following items are planned for the following Board meeting: • Fiscal Year 2017/18 Budget • New Board Members Orientation • IW -0- WWWAVA on May 24h and that Chair Machiavema may request members to participate in hearing a discussion on a customer billing issue. D. Lee thanked the Board members who would not be returning next month for their service to the Anaheim community, their leaders i and their "id' r%11PPQ And MUM Al A. Abdulrahman mentioned it has been a pleasure working with the Board members and staff, and that he has learned from the discussions with other Board members. E. Medrano stated the MWD tour, shared with the City of Fullerton, was informative and he appreciated the learning opportunity he had to see the resources that are talked about at Board meetings. He thanked the Board members for their years -dr -rw -tcre -�-szTvk-L—ni ika&rg d&&ic m #frd wo� i-4ydr&tm has been a great experience. - Tpldru =Teri=MyT-�l �?TNM cusI. omers. He stated that all the staff members are very professional and have made his years on the Board a gratifyinV experience that he will miss. 1, 01, 0V I I lea, NITA IFEVVIZ111 �S U Zc%tful s Lbmitted, Dukku Lee Public Utilities General Va-t.q-ger B. Hernandez moved approval to adjourn the Regular Meeting at 6:57 p.m., to the Board's Regular Meeting date of May 24, 2017 at 5:00 p.m. E. Medrano seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: I (Chairperson J. Machinverna). 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.