Public Utilities 2018/05/23CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
MAY 23, 2018
The agenda having been posted on Thursday, May 17, 2018, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Vice -Chairperson J. Seymour at 5:00 p.m. on Wednesday, May 23,
2018, in the I Ph Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: Vice -Chairperson J. Seymour, A. Abdulrahman, R. Nelson, V. Baroldi
Board Members Absent: Chairperson E. Medrano, V. Ramirez, J. Showalter
City Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, B. Beelner, A. Kott,
G. Bowen, J. Lehman, P. Oviedo, M. Seifen, M. Walker, A. Nguyen,
Y. Saldivar, C. Pereyra, M. Robledo, Y. Gaytan, L. Tsoi
Guest(s) Present: Logan Eldridge, Student Scholarship Recipient; Janet and Richard Eldridge,
Parents; Yasmine Yu, Friend; Angelica Loya, Student Scholarship
Recipient; Alma Loya, Parent
AGENDA ITEM ACTION TAKEN
1. RECOGNITION: ANAHEIM PUBLIC UTILITIES
SCHOLARSHIP RECIPIENTS.
The Board recognized L. Eldridge, and A. Loya as recipients of
Anaheim Public Utilities High School Scholarships.
2. PUBLIC COMMENTS.
Vice -Chairperson J. Seymour invited the public to address the
Board.
3. APPROVE THE MINUTES OF THE PUBLIC UTILITIES
BOARD MEETING OF APRIL 25, 2018. *
2018-36
There being no public
comments, Vice- .
Chairperson J. Seymour
closed the public comments
portion of the meeting.
R. Nelson moved approval
of the Minutes of the Public
Utilities Board Meeting of
April 25, 2018. V. Baroldi
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 (E. Medrano,
V. Ramirez, and J.
Showalter).
4. DISCUSSION: FAIR POLITICAL PRACTICES
COMMISSION CONSIDERATIONS RELATING TO
APPROVAL ITEMS.
D. Lee, Public Utilities General Manager, provided the Board with
background information indicating that the Department would, on
a going forward basis, be providing additional information
pertaining to approval items so Board members can evaluate
whether a potential voting conflict exists. D. Lee asked A. Kott,
Assistant City Attorney, to discuss Fair Political Practices
Commission (FPPC) considerations relating to approval items.
A. Kott explained that in 1974 California adopted Proposition 9,
which is better known as the Political Reform Act, and created the
FPPC to administer and enforce ethics laws.
5. PRESENTATION: PUBLIC UTILITIES STUDENT
ENGAGEMENT PROGRAMS.
M. Walker, Utilities Analyst I, gave a presentation on the
Department's student engagement programs. M. Walker discussed
the progression of the programs, which begins with student
education, transitions to student engagement, and concludes with
career exploration. M. Walker indicated that over 20,000 students
benefit from the Department's student engagement activities,
including field trips, conservation education, and career
symposiums.
The Board asked about the cost impact on the Department and how
the students are selected to participate. M. Walker indicated that
she works closely with the Anaheim School District office and
with the Anaheim's Innovative Mentoring Experience (AIME)
coordinator, who provides a list of student candidates to the
Department. Staff indicated that most of the activities with student
mentoring involves staff time and therefore does not materially
affect the Department's budget.
6. PRESENTATION: 2018 POWER SUPPLY SUMMER
M. Robledo, Integrated Resources Manager, gave a presentation on
how the Department and the California Independent System
Operator (CAISO) prepare for summer peak electricity loads to
serve customer demands. M. Robledo also discussed the elements
contributing to summer peak demands, which include prolonged
heat waves that increase air conditioning loads. M. Robledo
indicated that extreme heat and local natural gas shortages are risks
that could require controlled rotating power outages to preserve
system integrity in emergency conditions; however, no such
rotating power outages are expected this summer because the
Department and the CAISO both have adequate resources to serve
customer needs, including operating reserves. Lastly, M. Robledo
2018-37
discussed the interdepartmental emergency preparedness exercise,
which was conducted on May 15, 2018 in preparation for rotating
power outages should they be needed.
7. PRESENTATION: GROUNDWATER SUPPLY COST
OUTLOOK.
M. Moore, Assistant General Manager — Water Services, provided
a presentation on the history of Orange County Water District
(OCWD) and its water rates. OCWD has developed a diverse
water supply portfolio that represents about 75% of the
Department's water supply through groundwater. M. Moore
indicated that this source of supply allows the Department to offer
lower rates than agencies that do not have access to groundwater.
M. Moore mentioned that the Department works closely with other
OCWD agencies to protect Anaheim's interest in land use and
potential impacts to rates. Lastly, M. Moore mentioned that the
Mayors of the cities of Anaheim, Fullerton, and Santa Ana recently
submitted a joint letter, which included their respective OCWD
Directors, to request a reduction to the proposed OCWD rates. In
response, the OCWD Board reduced its planned water rate
increase.
The Board asked if there is a risk of earthquakes occurring within
the aquifer and if so, would it have an impact on the Department's
water supply. M. Moore indicated that if an earthquake occurred,
there is a known fault that could potentially impact the
groundwater basin by seawater intrusion into the fresh
groundwater. The Board inquired about dams located in Anaheim,
specifically regarding Prado Dam and OCWD's involvement with
getting permission to raise the amount of storage in the dam. M.
Moore indicated that the U.S. Army Corps of Engineers is
currently conducting a study to evaluate if raising the levels of
storage for Prado Dam is feasible.
8. APPROVAL OF AN AGREEMENT WITH WESTERN AN
FOR AUDIOVISUAL SYSTEM UPGRADES IN FOUR
CONFERENCE ROOMS AT ANAHEIM WEST TOWER IN
THE AMOUNT OF $186,815.67 PLUS AN ADDITIONAL 15%
FOR AS -NEEDED EXTRA SERVICES. *
D. Lee requested the Board's approval for replacement of audio
and visual (AV) equipment in four conference rooms at Anaheim
West Tower. D. Lee indicated that the existing AV technology is
outdated and replacement parts are difficult to find. D. Lee
mentioned that while the Department has over twenty conference
rooms, the recommendation to replace equipment is for the four
rooms that are used most for public meetings and by other City
departments. The conference rooms include the Gordon Hoyt on
the 2nd floor and large conference rooms on the 7d', 9d', and l ld`
floors that are used extensively for conducting City business
2018-38
R. Nelson moved approval
of an agreement with
Western A/V for audio and
visual system upgrades at
Anaheim West Tower. V.
Baroldi seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 (E. Medrano,
V. Ramirez, and J.
Showalter).
including meetings subject to the Brown Act requiring modern
recording equipment.
The Board asked how long the current AV technology has been in
place, the impact on the Department's budget, and the timeframe
for upgrades to be completed. Staff indicated that the current AV
technology is twenty years old, therefore making it difficult to find
replacement parts. Staff explained the timeframe for upgrades
would take approximately several weeks per conference room, and
that the Department has allocated sufficient funds in the budget for
the upgrades.
9. APPROVAL OF AN AGREEMENT WITH P2S INC. FOR AN
ARC FLASH HAZARD STUDY AT SELECTED WATER
UTILITY FACILITIES IN THE AMOUNT OF $29,160, PLUS
AN ADDITIONAL 10% FOR AS -NEEDED EXTRA
SERVICES. *
J. Lehman, Chief Risk Officer, provided the Board with an
overview of the proposed Arc Flash Study Agreement, which will
evaluate the electrical arc flash risks posed by electrical equipment
at water facilities and will identify the level of personal protective
equipment that an employee is required to wear. In addition, the
study will identify measures that can be taken to lower the
exposure to high-energy arc flashes.
10. APPROVAL TO RECOMMEND ADOPTION OF FISCAL
YEAR 2018-2019 PROPOSED BUDGET. *
B. Beelner, Assistant General Manager — Finance and
Administration, requested the Board's approval for
recommendation to the City Council of the Department's Fiscal
year 2018/2019 (FY 2019) $584.3 million budget proposal. The
Department's proposed FY 2019 budget is a $10.5 million (1.8%)
increase over the Fiscal Year 2017/2018 budget. This increase is
primarily due to a $14.2 million increase in capital spending as the
Department proactively replaces aging infrastructure throughout its
water and electrical systems. B. Beelner explained the proposed
increase in capital spending is offset with a $3.7 million decrease
in operating in operating expenses primarily due to the divestiture
of the San Juan Generating Station from the Department's power
supply portfolio.
The Board discussed the budget as well as the Rate Stabilization
Adjustment and how the Department uses it to stabilize rates and
smooth out rate changes over the long run and keep utility bills
affordable for customers.
2018-39
V. Baroldi moved approval
of an agreement with P2S
Inc. for an arc flash hazard
study at selected water
utility facilities. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 (E. Medrano,
V. Ramirez, and J.
Showalter).
A. Abdulrahman moved
approval to recommend the
adoption of Fiscal Year
2018-2019 proposed budget.
V. Baroldi seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 (E. Medrano,
V. Ramirez, and J.
Showalter).
11. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, Assistant General Manger — Electric Services, made
the Board aware of a power outage that occurred on May 16, 2018
where a high voltage cable failure damaged additional cable and
equipment within an underground electrical vault, resulting in an
outage lasting over 12 hours. J. Lonneker reported the long outage
period affected several mid-size hotels throughout the evening. As
a result, J. Lonneker indicated that the Department would be
evaluating ways to separate equipment and reconfigure the cable
installation within the electric vaults to minimize multiple
equipment damage in the future.
Lastly, J. Lonneker invited members of the Board for a field visit
to an installation of an underground electrical vault.
12. UPDATE ON WATER SYSTEM ISSUES.
M. Moore provided an update on the Department's water supply.
He indicated that the Southern California region is experiencing
very low precipitation this year•, however, the water storage
reservoirs are in good shape.
M. Moore also discussed the Huntington Beach Desalination Plant
project, which will be requesting that the OCWD Board amend its
existing non-binding term sheet on June 5, 2018. M. Moore
mentioned the project is still seeking two permits that will take at
least a year to obtain.
13. UPDATE ON FINANCE ISSUES.
B. Beelner made the Board aware that the Department has recently
hired two temporary employees to augment Call Center staff
during the busy summer months. B. Beelner mentioned that during
the summer, there is an increase in call volumes due to inquiries
about high summer bills, and service calls to connect and
disconnect service as more customers move in or out of their
residences during the summer season.
B. Beelner then discussed the monthly dashboard indicating that
the year to date electric revenue through April 30, 2018 was 3.7%
higher than budget ($13.3M) with costs coming in below budget
by 2.7% ($9.OM) causing a year to date net budget variance of
$22.3M. B. Beelner then mentioned that year to date water
revenue was 4.4% ($2.8M) above budget due to stronger than
anticipated customer demand, and costs were 3.9% below budget
($2.2M) causing a positive net $S.OM budget variance.
2018-40
Staff sent an invitation to the
Board for a field visit to an
installation of an
underground electrical vault.
14. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen, Assistant General Manager — Power Supply, provided
the Board with an update on the Department's resources for the
month of April 2018. G. Bowen indicated that renewable energy
contract which was scheduled for March, was moved to April in
order to make up for the planned outage of the Intermountain
Power Plant that occurred at the same time. G. Bowen also
provided the Board with an update on the Kraemer Power Plant's
repairs noting that repairs were almost complete and that the unit
was due to be added back in service towards the end of the week.
G. Bowen also discussed with the Board that the Solar Boat Cup
Race took place this past weekend and that the Department had
sponsored an all -female team from Anaheim High School. G.
Bowen also shared with the Board that the twenty-four winners of
the Anaheim Water Poster Contest were recognized at Angel
Stadium on May l Oth. Out of the twenty-four winners, five of
them will be picked to go on to the Metropolitan Water District
(MWD) Water Poster Contest for the 2019 Calendar with winners
to be announced in August or September of 2018.
Lastly, G. Bowen updated the Board on the 26th annual Anaheim
Children's Festival at Lincoln Park and the Pitch, Hit, and Run
Competition and Carnival event that took place in May.
15. UPDATE ON ENTERPRISE RISK MANAGEMENT.
J. Lehman shared with the Board that June 1, 2018 would be a key
legislative deadline where all bills must pass out of their house of
origin in order to move forward. J. Lehman mentioned that
approximately half the bills currently monitored by the Department
have yet to meet this milestone. J. Lehman indicated that the bills
that do move forward will be the subject of careful focus to ensure
that the Department's issues are understood and addressed.
Lastly, J. Lehman invited the Board to the Department's
Emergency Response Exercise on August 29, 2018.
16. ITEM(S) BY SECRETARY.
D. Lee informed the Board that upcoming events were outlined in
a memo, and highlighted the Downtown Recycled Water
Extension open house scheduled for June 27 prior to the next
Board meeting.
Items scheduled for the following Board meeting include:
• WaterFix Presentation
• Underground Conversion Program 5 -Year Plan Update
• Master Agreement for Electrical Contractors
2018-41
D. Lee shared a presentation on the Big Give event, in which City
employees donated their time and efforts on community projects.
Utility employees participated in the event and assisted with
painting, furniture assembly, and food shelter organization.
Finally, D. Lee thanked Board members R. Nelson, V. Ramirez,
and J. Showalter for their assistance in making the first scholarship
program successful.
17. ITEM(S) BY BOARD MEMBERS.
R. Nelson thanked the Department for giving students the
opportunity to obtain a scholarship for college expenses.
18. ADJOURNMENT: (REGULAR MEETING ON JUNE 27,
2018, AT 5:00 P.M., IN THE 11TH FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
ectful su miffed,
Dukku Lee
Public Utilities General Manager
V. Baroldi moved approval
to adjourn the Regular
Meeting at 6:55 p.m., to the
Board's Regular Meeting
date of June 27, 2018 at 5:00
p.m. A. Abdulrahman
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 (E. Medrano,
V. Ramirez, and J.
Showalter).
* 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.
2018-42