Public Utilities 2019/05/22CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
MAY22,2019
The agenda having been posted on Thursday, May 16, 2019, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson E. Medrano at 5:00 p.m. on Wednesday, May 22, 2019,
in the 11th Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: Chairperson E. Medrano, Vice-Chairperson J. Seymour, R. Bhalla,
A.Abdulrahman, V. Baroldi
Board Members Absent: R.Gaona, J. Showalter
City Staff Present: D.Lee, L. Quiambao, M. Moore, B. Beelner, A. Kott, G. Bowen,
J.Lehman, J. Lonneker, D. Albaugh, J. Sanks, M. Seifen, P. Oviedo,
A.Markis, B. Zimmerman, C. Thompson, A. Nguyen, A. Lozano
Guest(s) Present: Maria Navarat, WaterSmart Landscape Awardee; Kalaya Navarat, Resident;
Pawee Mahinthiphalehan, Resident; Mark Dickinson, Anaheim Beautiful;
Martin Cazarez, WaterSmart Landscape Awardee; Sandra Jones,
WaterSmart Landscape Awardee
AGENDA ITEM
1.RECOGNITION: WATERSMART LANDSCAPE AWARD
PROGRAM WINNERS.
A.Markis, Resource Program Specialist III, introduced the
WaterSmart Landscape Award winners for 2019, which included
Martin Cazarez, StoreQuest; Sandra Jones, Resident; and Maria
Navarat, Resident. Each winner was recognized by the Board and
presented with a plaque commemorating the transformation of
their outdoor spaces with drought tolerant landscaping that saves
water and beautifies their neighborhoods.
2.PUBLIC COMMENTS.
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ACTION TAKEN
There being no public
comments, Chairperson E.
Medrano closed the public
comments portion of the
meeting.
ITEM # 01
3.APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEE TING OF APRIL 24,
2019.*
4.APPROVAL TO SET A PUBLIC HEARING DATE OF JUNE
26, 2019 FOR THE 2019 PUBLIC HEAL TH GOALS
REPORT.
J.Lehman, Chief Risk Officer, shared that last month the Board
was presented with Anaheim's Annual Water Quality Report that
confirmed that the water served by the Public Utilities Department
(Department) met all State and Federal Drinking Water Standards,
and she was requesting approval to set a public hearing for the
June meeting regarding the 2019 Public Health Goals Report.
As way of background, J. Lehman indicated that every three years
since 1998 California water utilities servicing more than 10,000
customers are required to compare their water quality to the State's
Public Health Goals and the Federal Government's Maximum
Contaminant Level Goals and hold a public hearing to allow for
comments on the results. J. Lehman noted that Public Health
Goals are set at the level at which there is essentially no health risk
to the most sensitive populations and they are not enforceable
limits, but water agencies must report on these results, as
described.
J.Lehman made the Board aware that the Department met 81 of
the 87 Public Health Goals. The Public Health Goals that were not
met, with two exceptions, were all from naturally occurring
elements. The exceptions were Trichloroethylene (TCE) and
Bromate. J. Lehman clarified that TCE is a commonly used
degreasing agent which was detected in one well at very low levels
and Bromate is a by-product of ozone disinfection of water that has
naturally occurring Bromine.
J.Lehman then requested the Board's approval to set the public
hearing to receive public comments on the 2019 Public Health
Goals report for June 26, 2019. She indicated that a hearing notice
would be published in the newspaper the week of June 13 th and the
2019 Public Health Goals Report would be posted on the
Department's website.
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A.Abdulrahman moved
approval of the Minutes of
the Public Utilities Board
Regular Meeting of April
24, 2019. V. Baroldi
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [R. Bhalla, R.
Gaona, J. Showalter].
J.Seymour moved approval
to set a Public Hearing date
of June 26, 2019 for the
2019 Public Health Goals
Report. A. Abdulrahman
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [R. Bhalla, R.
Gaona, J. Showalter].
5.PRESENTATION: CAP AND TRADE GREENHOUSE GAS
REDUCTION PROGRAM OVERVIEW AND COMPLIANCE
UPDATE.
C.Thompson, Principal Integrated Resources Planner, provided
the Board with an Overview of the State's Cap and Trade Program,
how the Department participates and its compliance with the
Program. C. Thompson explained what activities the Department
has, and continues to undertake, toward achieving reductions in
greenhouse gas emissions associated with the electricity it supplies
to customers. C. Thompson affirmed that the Department is fully
compliant with the Program for the second compliance period,
which covers the years 2015-2017.
6.RECOMMEND ADOPTION OF THE PUBLIC UTILITIES
DEPARTMENT'S FISCAL YEAR 2019/20 PROPOSED
BUDGET.*
B.Beelner, Assistant General Manager -Finance and
Administration, requested the Board's approval to recommend to
the City Council the Department's Fiscal year 2019/20 (FY 2020)
$601.6 million budget proposal. The Department's proposed FY
2020 budget is a $14.8 Million (2.5%) increase over the prior
Fiscal Year budget. This increase is primarily due to a $6.1
Million increase in power supply costs coupled with a $6.4 Million
proposed increase in debt service costs. The Department forecasts
that power supply costs will increase as it moves away from fossil
fuel based resources and incorporates more renewable power
supplies into its portfolio of generation resources. The Department
also forecasts an increase in its debt service costs as it forecasts the
issuance of $90 Million in new bonds to partially fund its capital
investment needs
The Board discussed the budget and the Department's long and
short run capital needs to maintain reliability. The Board asked
questions regarding additional investments, and staff responded
that there could be additional water quality regulatory requirements
that require capital projects, and building financial flexibility is
vital to address future needs.
7.APPROVAL OF DEPARTMENT ORDERS 105
(PROCESSING OF PUBLIC UTILITIES BOARD AND CITY
COUNCIL AGENDA ITEMS), 115 (CASH AND FINANCIAL
RESERVE POLICY), AND 512 (NEW) (ENVIRONMENTAL
REPORTING).
D.Albaugh, Enterprise Administrative Services Manager,
provided the Board with an introduction to Department Orders
(DOs) 105, 115 and 512 and discussed how DOs are consistent
with the City's Administrative Regulations. DOs are distinguished
2019 - 38
A.Abdulrahman moved to
recommend adoption of the
Public Utilities
Department's Fiscal Year
2019/20 Proposed Budget.
V.Baroldi seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [R. Bhalla, R.
Gaona, J. Showalter].
J.Seymour moved approval
of Department Orders 105,
115, and 512. V. Baroldi
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [R. Bhalla, R.
Gaona, J. Showalter].
from Rates, Rules, and Regulations in that they provide additional
specificity to Department employees.
D.Albaugh provided an overview of the three DOs: DO 105 -
Processing of City Council and Public Utilities Board Agenda
Items, which details the Department's policies and procedures for
submitting items for policy body consideration, and was revised to
be consistent with the City Clerk's revised policies; Department
Order 115 -Cash and Financial Reserve Policy, which establishes
the Department's policy regarding financial reserves to meet the
needs of the Department to manage financial and operational risks,
and was revised to incorporate a Water Capital Reserve Fund; and
DO 512-Environmental Review, which is a newly proposed DO
establishing environmental review procedures for Department staff
to follow prior to approving a capital project to ensure
environmental regulatory compliance.
8.DISCUSSION: QUARTERLY STATUS REPORTS ON
CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVIES AGREEMENTS, AND
SPOT BID A WARDS.
M.Moore provided an overview of a new dashboard format for the
capital improvement program update. Previously, the report
provided a map and list of projects with very basic financial
information. Staff has created a dashboard with enhanced analytics
to dive deeper into how projects are progressing during the fiscal
year.
The Board asked about utilizing more granular expenditure data by
district. Staff commented that because electric and water facilities
are not equally distributed between districts, showing the
distribution by project activity by program area would be more
informative and recommended trying the format for several
iterations. Should the Board seek to change the format in the future,
staff will incorporate such changes.
9.UPDATE ON ELECTRIC SYSTEM ISSUES.
J.Lonneker, Assistant General Manager-Electric Services, shared
with the Board the Department's participation in the annual
Lineman Rodeo held in Los Angeles on May 3, 2019. J. Lonneker
indicated that the Los Angeles Department of Water and Power
(LADWP) along with the International Brotherhood of Electrical
Workers (IBEW) Local 18 hosted the Rodeo. The events included
pole-top rescue, insulator/wire replacement, cross-arm
replacement, and speed pole climbing. The team included linemen
Dave Aguon, Mel Woodson, and Don Otrambo.
J.Lonneker made the Board aware of several outages resulting
from the lighting storm passing through the area on May 22,
2019 -39
2019. There were approximately six weather related outages,
affecting a small number of customers. Operators, troubleshooters,
and field crews worked to mitigate impacts to customers during the
storm.
10.UPDATE ON WATER SYSTEM ISSUES.
M.Moore, Assistant General Manager -Water Services, provided
the Water Supply dashboard indicating that there were positive
improvements in water storage throughout the Department's
portfolio. M. Moore then mentioned that recent local precipitation
and snowfall in northern California would continue to increase the
water storage levels throughout the state.
M.Moore discussed a recent article that was in local newspapers
regarding the status of the Prado Dam. M. Moore indicated that
the Dam was built to protect Orange County from flooding from
the Santa Ana River, and that the spillway was found to have some
deficiencies. M. Moore shared the U.S. Army Corps of Engineers
is investigating the recent spillway failure of the Oroville Dam and
is looking into funding and expediting plans to improve the Prado
Dam spillway.
M.Moore shared that the Metropolitan Water District (MWD)
provided a limited opportunity for multi-family housing customers
to participate in a program to receive free toilets. The Department
assisted customers through notification of the opportunity, and
customers responded with the most applications out of any MWD
agency.
Lastly, M. Moore made the Board aware of a water quality memo
and notification that will be issued in early June. The memo will
be similar to the information provided at the March PUB meeting
presentation on Anaheim's water quality initiatives, and comply
with statutory requirements on water quality notification for
Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonate
(PFOS), as well as steps taken to protect water quality in Anaheim.
11.UPDATE ON FINANCE ISSUES.
B.Beelner, Assistant General Manager-Finance and
Administration, discussed the monthly dashboard with the Board.
He indicated that the year to date electric revenue through April
30, 2019 was 8.8% higher than budget ($3 l .2M) with costs also
coming in above budget by 4.0% ($13.2 M) causing a year to date
net positive budget variance of $18.0M. Higher natural gas prices
and more frequent dispatching of the Department's resources
during shoulder periods when solar power is not available drove
the electric budget variance. B. Beelner then mentioned that year
to date water revenue was 4.8% ($3.3M) below budget due to
weaker than anticipated customer demand as a result of the
2019 -40
increase in rain, costs were below budget as well by 13.3%
($8.IM) causing a positive net $54.8M budget variance.
12.UPDATE ON POWER SUPPLY ISSUES.
G.Bowen, Assistant General Manager -Power Supply, provided
the Board with an update on the Department's Power Supply
portfolio. G. Bowen shared with the Board that gas prices had
moderated over the last month and that snowpack run-off was now
beginning to impact energy prices throughout the State. He
indicated that energy prices in some hours of the day were negative
meaning that the State's electric grid operator, the California
Independent System Operator, was actually paying generators not
to produce energy and was paying load serving entities like the
Department to consume more energy. G. Bowen mentioned that
this would likely continue well into the summer months as a result
of the unusually higher rainfall and snowpack observed in
California and the western states earlier in the year.
13.UPDATE ON ENTERPRISE RISK AND COMPLIANCE.
J.Lehman shared that Environmental Services staff has been
assisting Anaheim Fire and Rescue (AFR) with their brush clearing
activities at Deer Canyon Park Preserve. She noted that it's a very
sensitive time as it is bird nesting season as well as a key time for
vegetation clearing related to fire management. These sensitive
areas must be surveyed within 72 hours of removing brush to
ensure no protected birds are disturbed. J. Lehman indicated that
joint efforts significantly helped to expedite the project and protect
the local habitat.
J.Lehman then reported that there has been some promising
movement on a several key bills including the proposed water tax
-the Senate has amended the bill to fund the underperforming
water systems program through the State's general fund which is of
significance in that it would avoid a new tax that would increase
water rates. She explained that Department staff and industry
organizations have collaborated to advocate against the water tax
for the past five years, and that the solution being pursued helps
address other underperforming agencies without subsidizing them
through Anaheim and other water ratepayers.
14.ITEM(S) BY SECRETARY.
D.Lee shared with the Board the items scheduled for the following
Board meeting include:
•Five Year Undergrounding Plan
•Public Hearing for the 2019 Public Health Goals Report
•Summer Load Assessment
2019 - 41
D. Lee shared that the Department is working to enhance wildfire
protection. In addition to the recent approval of wildfire cameras,
the Department is partnering with Anaheim Fire & Rescue to
cross-promote home safety inspections with utility surveys, create
an attic insulation rebate that includes vents that reduce embers
from getting into attics. Staff will provide a presentation to the
Board at a future meeting on these initiatives.
D. Lee thanked members of the Board who participated in the
evaluation and interviews of the high school scholarship
applicants. Two students were selected as first and second place
winners, and they will be invited to attend the next Board meeting.
D. Lee also shared that the City hosted its second annual Big Give
event on May 11, where employees and family members
participated in volunteering projects throughout Anaheim. He
showed photos of Department staff who helped to lead a pallet
wall art project at the Temporary Homeless Shelter in conjunction
with the Salvation Army, as well as a school community garden at
Paul Revere Elementary.
15.ITEM(S) BY BOARD MEMBERS.
There were no comments.
16.ADJOURNMENT: (NEXT REGULAR MEETING ON JUNE
26, 2019, AT 5:00 P.M., IN THE 11TH FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
DukkuLee
Public Utilities General Manager
J.Seymour moved approval
to adjourn the Regular
Meeting at 6:50 p.m., to the
Board's Regular Meeting
date of June 26, 2019 at 5:00
p.m. V. Baroldi seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Gaona 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.
2019 -42