Public Utilities 2019/06/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
JUNE 26, 2019
The agenda having been posted on Thursday, June 20, 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, June 26, 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,
J.Showalter, R. Gaona, V. Baroldi, A. Abdulrahman
Board Members Absent: None
City Staff Present: D.Lee, B. Beelner, G. Bowen, M. Moore, J. Lonneker, J. Lehman,
D.Albaugh, A. Kott, D. Ballin, L. Quiambao, P. Oviedo, M. Seifen,
S.Smith, L. Estrada, J. Sanks, V. Tran, M. Walker, S. Marsh, A. Markis,
A.Kanzler
Guest(s) Present: Milene Ly, Scholarship Recipient; Marine Ly, Parent; Brett Schumm,
Teacher; Bryan Chavolla, Solar Cup Boat Race Participant; Amy Chavolla,
Parent; Nestor Cuellar, Solar Cup Boat Race Participant; Nestor Hernandez
and Maria Cuellar, Parents; Johan Garrido, Solar Cup Boat Race
Participant; Jorge Garrido and Susana Avalos, Parents; Ricardo Martinez,
Solar Cup Boat Race Participant; Ricardo Martinez and Mireya Gonzalez,
Parents; Esteban Rodriguez, Solar Cup Boat Race Participant; Juan
Rodriguez and Teresa Rizo, Parents
AGENDA ITEM
1.RECOGNITION: ANAHEIM IDGH SCHOOL SOLAR CUP
BOAT RACE PARTICIPANTS.
M.Moore, Assistant General Manager-Water Services, recognized
Bryan Chavolla, Nestor Cuellar, Johan Garrido, Ricardo Martinez,
and Esteban Rodriguez for their participation in the Metropolitan
Water District of Southern California (MWD) Solar Cup Boat Race
(Solar Cup). Additionally, Brett Schumm, Anaheim High School
teacher and MWD Solar Cup advisor, was recognized for his efforts
in assisting students prepare for the MWD Solar Cup.
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ACTION TAKEN
ITEM #01
2.RECOGNITION: ANAHEIM PUBLIC UTILITIES STUDENT
SCHOLARSHIP A WARD RECIPIENTS.
The Board recognized Milene Ly as a recipient of the 2019
Anaheim Public Utilities High School Scholarship. Ms. Ly is a
graduate of Canyon High School and will be attending UC Santa
Barbara to focus on environmental studies. William Perez was also
awarded a scholarship. Mr. Perez is a graduate ofKatella High
School and will be attending Dartmouth University to study
chemical engineering; however, Mr. Perez was unable to attend the
Board meeting.
3.PUBLIC COMMENTS.
4.APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF MAY 22,
2019.*
5.PUBLIC HEARING: RECEIVE AND RESPOND TO PUBLIC
COMMENTS ON THE 2019 PUBLIC HEAL TH GOALS
REPORT.
J.Lehman, Chief Risk Officer, shared a copy of the Public Utilities
Department (Department) Public Health Goals (PHG) Report. J.
Lehman shared that the PHG Report is available on the
Department's web site, and is available at the Water Engineering
front counter located on the 6th floor of Anaheim West Tower, 201
South Anaheim Boulevard, Anaheim, California. A notice was
placed in the Anaheim Bulletin on June 13, 2019 informing the
public of the hearing date. J. Lehman indicated that the City
Clerk's Office and the Department received no phone calls or
correspondence from the public concerning the Report.
J.Sanks, Environmental Services Manager, then gave a
presentation explaining the PHG Report. J. Sanks defined PHGs
and how they are different than maximum contaminant levels, and
described that California water producers must compare water
quality data to public health goals every three years. He explained
that Anaheim water quality did not exceed maximum contaminant
levels that establish drinking water standards.
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There being no public
comments, Chairperson E.
Medrano closed the public
comments portion of the
meeting.
J.Seymour moved approval
of the Minutes of the Public
Utilities Board Regular
Meeting of May 22, 2019.
V.Baroldi seconded the
motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
If a compound is found above a PHG, the water producer must
prepare a report and hold a public hearing, but no other action is
required. J. Sanks described how public health goals are
developed, and discussed that the Department achieved public
health goals for 81 out of 87 compounds. He indicated that all but
four compounds above the PHGs were naturally occurring. The
exceptions were bromate, which is a disinfection byproduct, and
trichloroethylene, which is a common degreaser. J. Sanks
explained that it is common for all these substances to be found
above PHGs throughout California. Department staff will continue
to monitor water quality to ensure compliance with all regulations
and drinking water standards.
The Board gave an opportunity for public comments related to this
agenda item. No members of the public attended the public
hearing to provide comments. The Board asked if the Department
staff had received inquiries about fluoridating water. Staff
responded that there have not been any recent inquiries, and while
fluoride is naturally present, the Department does not add fluoride
to the water. The Board also asked where the levels are set for a
PHG. Staff explained that these levels vary based on the nature of
the chemical, and all 87 chemicals have a different level. The
Board then received and filed the 2019 PHG Report and closed the
public hearing.
6.PRESENTATION: 2019 POWER SUPPLY SUMMER
OUTLOOK.
S.Smith, Integrated Resources Manager, provided the Board with
an annual update for the Department's Power Supply Summer
Outlook. S. Smith discussed the California Independent System
Operator (CAISO) and the Department's assessment of summer
peak loads in the state and in Anaheim. S. Smith also provided an
update on available resources, as well as wildfrre risk, and
mitigation planning should there be an issue meeting electrical
load in the area. S. Smith indicated that overall the CAISO and the
Department have enough generation resources to meet the forecast
peak electrical loads. However, should there be high electrical
loads, the Department is prepared and has procedures in place for
mitigation, should the need occur.
The Board asked about the gas storage capability and reasons
behind it. Staff explained that SoCal Gas continues testing the gas
storage facility, capping any wells with issues, and proceeding
cautiously.
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7.RECOMMEND APPROVAL OF THE PROPOSED FIVE
YEAR UNDERGROUND CONVERSION PLAN FOR
FISCAL YEAR 2019/2020. *
V.Tran, Senior Electrical Engineer, presented the proposed Five
Year Underground Conversion Plan for Fiscal Year 2019/2020
(Plan) to the Board for consideration. V. Tran provided
background information about the Plan, the process to add a new
project to the Plan, and the status of projects that are completed
and currently in progress. V. Tran concluded the presentation by
summarizing that the proposed Plan includes adding Eucalyptus
Drive, which is adjacent to high fire threat zones, and thanked
members of the Underground Subcommittee for their
recommendation of the new project to help improve resiliency and
mitigate wildfire risks in Anaheim.
8.UPDATE ON WATER QUALITY AND NOTIFICATION OF
EMERGING CONTAMINANTS.
M.Moore provided an update on the water quality indicating that
the State of California issued an order to perform water quality
testing for emerging contaminants called Per-and Polyfluoroalkyl
Substances (PF AS). The Department performed the required
testing and issued a notice of the results to the City Council, the
Public Utilities Board, and the governing bodies of neighboring
jurisdictions that receive City water on June 14, 2019. Two of
Anaheim's wells were above the recommended level for PF AS
compounds and were taken out of service. Subsequently, the State
of California informed water agencies they might be issuing a
revised order for PF AS with a much lower recommended limit.
M.Moore indicated that the proposed limit would greatly impact
the Department's groundwater wells by shutting down additional
wells, which would likely impact customer rates due to a greater
reliance on higher cost imported water. The Department is
continuing to collaborate with regional partners and will keep the
Board informed when the revised order is released from the State
of California.
The Board asked a series of questions related to water supplies,
testing procedures, and ability to utilize more recycled water. Staff
responded and explained that recycled water is not allowed to be
directly supplied to customers as drinking water and is used
primarily to recharge the groundwater basin.
9.UPD ATE ON ELECTRIC SYSTEM ISSUES.
J.Lonneker, Assistant General Manager-Electric Services, shared
photographs of work being performed by a Southern California
Edison (SCE) contractor to raise the height of several transmission
towers located within their easement near Katella A venue and
Claudina Street. The purpose was to raise the SCE towers, which
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A.Abdulrahman moved
approval to recommend the
proposed Five-Year
Underground Conversion
Plan for Fiscal Year
2019/2020. R. Bhalla
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
support 220 kilo Volt (kV) high voltage transmission lines to create
more clearance between the Department's 69kV electric
distribution lines that pass underneath. SCE determined these
towers needed to be raised up to 10 feet in order to meet
mandatory clearance requirements between high voltage electric
lines. The contractor developed the method for using what is
similar to a car-jack placed mid-way on the tower to raise the top
section of the tower without the need to replace the entire
tower. This work is performed while the lines are energized.
J.Lonneker made the Board aware of preparations being made by
both Water and Electric Divisions for the upcoming Fourth of July
holiday. She indicated that crews were available on-site and
additional troubleshooting and operator staffing were available on
standby.
10.UPDATE ON WATERSYSTEM ISSUES.
M.Moore reviewed the water supply dashboard, he indicated that
the imported water reservoir levels are near full. M. Moore
mentioned the MWD is considering implementing their in-lieu
program this summer to store imported water in the Orange County
groundwater basin.
M.Moore made the Board aware of two open houses hosted by the
Department that allowed customers to visit the water facilities.
M.Moore noted the first open house was on May 18, 2019 in the
downtown area near City Hall. He mentioned that this open house
included visiting a groundwater well site. The second open house
was held at the Walnut Canyon Reservoir on June 8, 2019. Both
open houses received positive comments from customers.
11.UPDATE ON FINANCE ISSUES.
B.Beelner, Assistant General Manager -Finance and
Administration, discussed the Department's Call Center summer
readiness. B. Beelner mentioned that during the summer months
call volume typically increases from 1,000 calls per day to
upwards of2,000 calls per day. In order to accommodate this
increase in calls, the Department's strategy is to hire temporary
employees to help manage the temporary high call volume.
B.Beelner mentioned that historically those hired for temporary
employment usually end up being hired for part time and/or full
time positions in the Call Center.
B.Beelner also discussed the monthly dashboard with the Board
indicating that the year to date electric revenue through May 31,
2019 was 7.4% higher than budget ($28.8M) with costs also
coming in above budget by 3 .1 % ($11.2 M) causing a year to date
net positive budget variance of$17.6M. B. Beelner pointed out
that the Department allocated the $30 million budget amendment
2019 - 47
recommended by the Board and approved by City Council to June.
He then mentioned that year to date water revenue was 4.9%
($3. 7M) below budget due to weaker than anticipated customer
demand as a result of the wetter than normal winter in Anaheim,
costs were below budget as well by 13.8% ($9.4M) causing a
positive net $5.7M budget variance.
12.UPDATE ON POWER SUPPLY ISSUES.
G.Bowen, Assistant General Manager -Power Supply, provided
the Board an update on the Department's Power Supply Portfolio
for the month of May. G. Bowen pointed out that with Kraemer
Plant still out of service and with lower energy prices as a result of
run-off from the winter snow deposits, the Department's gas
facilities saw reduced dispatches in the market from the previous
month.
G.Bowen updated the Board on the en hancements to the
Department's Dusk-to-Dawn lighting program. He provided the
Board with illustrations of the new types of lights included in the
program and some of the key changes in the program, which
included the retail buy-down program and the rebates available to
customers who wanted to purchase their own lights to match their
decor. He indicated that the enhancements were designed to
provide more options for Department's customers. G. Bowen also
spoke about an elderly Anaheim resident who recently participated
in the enhanced Dusk-to-,Dawn program and how the new lighting
helped the resident place additional security lights around her
home at no cost since she is income qualified and received
installation services from the Department's contractor.
Lastly, G. Bowen shared with the Board that the Department
received 7-entries from five school districts for the Sustainable
Schools Award Program. G. Bowen requested that there be a three
Board Member review panel to participate in the evaluation and
selection process. He stated that the winning schools will receive
the award recognition and laptops in Fall. Chairperson
E.Medrano, R. Bhalla, and R. Gaona agreed to participate in the
review panel.
13.UPDATE ON ENTERPRISE RISK AND COMPLIANCE.
J.Lehman discussed the Wholesale Energy Risk Management
(ERM) Program's Quarterly Compliance report with the Board.
She indicated that the ERM program helps ensure that wholesale
energy-related transactions are conducted in a timely manner while
ensuring that the Department's interests are protected and risks are
minimized. J. Lehman mentioned that all transactions were within
the authorized transaction limits during this period.
2019 - 48
She then shared that the 2019 legislative year was getting close to
the finish line and that the Legislature will be on recess from mid
July to mid-August returning with about a month to pass any bills
by September 13 th• J. Lehman shared that the PUB Legislative
working group met prior to the Board meeting and reviewed some
of the key bills that have the potential to impact the Department.
She then thanked the Legislative working group for their time and
effort for their feedback during the legislative session.
J.Lehman also shared that the Department held its Safety Fair on
June 13th, which emphasized the Department's commitment to
safety providing demonstrations and exhibits of safety-related
equipment. The event was well attended and included Public
Works employees as well as safety staff from other utilities.
J.Lehman thanked safety services staff Arlene Quintero and
Carlos Paiz for their efforts in planning and running the Safety
Fair.
Lastly, J. Lehman invited the Board to save the date for the
Department's annual Emergency Response Planning Exercise,
which will be held on Wednesday, August 28, 2019.
14.ITEM(S) BY SECRETARY.
D.Lee shared with the Board the items scheduled for the following
Board meeting include:
•Election of PUB Chair and Vice Chair
•Utility Write-Offs•Energy and Water Efficiency Agreements•Presentation on Leadership Development
D.Lee shared that the Department received the American Public
Power Association's Community Services Award for its efforts
with helping to construct a temporary homeless shelter. He shared
photographs of the Department's inaugural OC Green Expo event
that was attended by approximately 600 residents. The event
featured Electric Vehicle test drives, a solar car student
competition, and 50 vendor booths that provided information on
sustainability.
D.Lee requested that the meeting be closed in the memory of the
victims that lost their lives in the Virginia Beach shooting who
were fellow Public Utilities and Public Works employees.
15.ITEM(S) BY BOARD MEMBERS.
V.Baroldi thanked staff for their quick response time when he
reported a mylar balloon stuck on a light pole in his neighborhood.
2019-49
The Board will be invited to
attend the Emergency
Response Planning Exercise
that is scheduled for
Wednesday, August 28,
2019.
J.Seymour shared he was invited to speak at the Anaheim Hills
Women's Ebell Club regarding his role with the Public Utilities
Board. He indicated that his presentation was well received.
16.ADJOURNMENT: (NEXT REGULAR MEETING ON JULY
24, 2019, AT 5:00 P.M., IN THE 11TH FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
E.Medrano called for a minute of silence, followed by a call for a
motion to adjourn in memory of the Virginia Beach Shooting
victims.
DukkuLee
Public Utilities General Manager
J.Seymour moved approval
to adjourn the Regular
Meeting in Memory of the
Virginia Beach Shooting
victims at 6:50 p.m., to the
Board's Regular Meeting
date of July 24, 2019 at 5:00
p.m. A. Abdulrahman
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
*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 -50