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Public Utilities 2010/03/24CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES MARCH 24, 2010 The Agenda having been posted on Wednesday, March 17, 2010, the Regular Meeting of the Public Utilities Board was called to order by Chairperson Lon Cahill at 5:00 p.m. on Wednesday, March 24, 2010, in the I Ith Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: L. Cahill, J. Brandman, P. Carroll, J, Machiaverna, C. PeItzer, K. Murray, D. Morgan Board Members Absent: None Staff Present: M. Edwards, D. Calkins, M. Long, M. Ward, A. Kott, D. Lee, B. Beelner, R. Shintaku, C. Pereyra, C. Gilbert, R. Watkins, P. Wong, J. Pellegrino, M. Lopez, R. Dowell, L. Quiambao, P. Oviedo Guest(s) Present: P. Bos, Resident; J. Elwell, Resident; D. Wain, Resident and Member of the East Anaheim Neighborhood Council AGENDA ITEM ACTION TAKEN 1. PUBLIC COMMENTS. D. Wain indicated that he is very happy with the resolution to There being no further public the estimated billing for the irrigation of landscaping of the comments, L. Cahill closed the Anaheim Hills Planning Community Association. He thanked public comments portion of the E. Zacherl and staff for all their hard work meeting. M. Edwards introduced C. Pereyra, Customer Services Representative II, who was auditing the meeting, to the Board. 2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD (PUB) MEETING HELD ON FEBRUARY 24,2010.* 3. ADOPTION OF LANDSCAPE WATER EFFICIENCY GUIDELINES.* P. Carroll moved approval of the February 24, 2010, Public Utilities Board Meeting Minutes. K. Murray seconded the motion. MOTION CARRIED: 6 -0. ABSTAINED: 0. ABSENT: 1 (J. Brandman). M. Edwards indicated that the State of California passed a law Based on management's (Assembly Bill 188 1) which requires a new landscape water reconvnendation, no action was efficiency ordinance be adopted by the cities and counties taken on this item. throughout the state. If the cities and counties do not develop an ordinance that is at least as effective in conserving water as 2010 -14 ITEM NO. 03 AGENDA ITEM ACTION TAKEN the model state ordinance, they would default to the state's model ordinance. The Public Utilities Department and other cities in Orange County developed an Orange County model (OC Model), which complies with the State requirements, but does so in a more straightforward way with a simple condensed ordinance supplemented with guidelines that provide detailed procedures and technical information. The new ordinance was approved by City Council in December. The proposed guidelines, which are consistent with the OC Model, are now being recommended for approval. D. Calkins gave an overview of the OC Model and the proposed guidelines. The guidelines include information on soil analysis, grading, plant selection and irrigation system design, which the landscape professional community helped develop. For developers or a homeowner using a landscape professional, the landscape professional would be able to understand and easily comply with the guidelines, and provide the self certification. For individual homeowners who do not use a landscape professional, a much more simplified approach was developed which is defined in the Do- It- Yourself Homeowner Landscape documentation Form in Appendix E. During discussion, the Board had a number of comments and suggestions, including that the guidelines seem confusing and should be simpler to understand. The Board recommended that the Department should consider reviewing the guidelines in a year to evaluate how they are working. There was also discussion about consequences or penalties for not complying with AB 1881. A number of Board members evinced their frustrations with Sacramento's methodology of simply imposing onerous regulations through law. The Board decided that since the item is not time critical, staff should bring this back to the Board at its next meeting, with a discussion on how the guidelines might be written more simply, a clearer explanation of the Do- It- Yourself process and a discussion on consequences /penalties for non - compliance. J. Elwell was acknowledged by the Board for being in the audience. 4. RESOLUTIONS AMENDING VARIOUS RULES OF THE ELECRIC AND WATER RATES, RULES AND REGULATIONS.* M. Edwards indicated that the proposed Rule changes are for D. Morgan moved approval of the clarification and update only and do not impact electric or water Resolutions Amending Various rates. Rules of the Electric and Water AGENDA ITEM ACTION TAKEN The Board discussed this item and asked questions as to how many master meters are in the City to which B. Beelner responded. 5. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH CRITIGEN, LLC FOR THE ANAHEIM SOLAR MAP WEB PORTAL.* M. Edwards indicated that the Department conducted a pilot program, Anaheim Solar Map that covered three square miles within Anaheim and created a web portal where customers could voluntarily add information regarding their solar system. Due to the success of the pilot program, the agreement with Critigen, LLC is being recommended to expand the Anaheim Solar Map web portals that would provide coverage throughout the City. After M. Edwards responded to a variety of questions, the Board votes for approval of the Agreement. 5. RESOLUTION APPROVING ACCEPTANCE OF THE SMART GRID INVESTMENT GRANT FUNDS AND THE ASSISTANCE AGREEMENT.* J. Brandman moved approval of the Professional Services Agreement with Critigen, LLC for the Anaheim Solar Map Web Portal. P. Carroll seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0. Rates, Rules and Regulations. L. B. Beelner, Financial Planning Manager, indicated that recently Cahill seconded the motion. adopted Senate Bill (SB) 120 mandates changes to the City's MOTION CARRIED: 7 -0. Rules as implemented by the Department, specifically regarding ABSTAINED: 0. ABSENT: 0. master metered accounts and accounts where a tenant's utilities are paid by the landlord. Because the landlord is the customer, if the landlord is in arrears with the Utility, the tenant may be disconnected without being notified. Utilities are now required to update their rules to reflect that if utility bills are paid by a landlord rather than the tenants, the utility must notify the tenant in advance of taking action regarding the landlord's accounts that are in arrears especially if that could result in the tenant's service being disconnected. SB 120 requires that written notices be provided to tenants in six different languages before any disconnections. The Board discussed this item and asked questions as to how many master meters are in the City to which B. Beelner responded. 5. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH CRITIGEN, LLC FOR THE ANAHEIM SOLAR MAP WEB PORTAL.* M. Edwards indicated that the Department conducted a pilot program, Anaheim Solar Map that covered three square miles within Anaheim and created a web portal where customers could voluntarily add information regarding their solar system. Due to the success of the pilot program, the agreement with Critigen, LLC is being recommended to expand the Anaheim Solar Map web portals that would provide coverage throughout the City. After M. Edwards responded to a variety of questions, the Board votes for approval of the Agreement. 5. RESOLUTION APPROVING ACCEPTANCE OF THE SMART GRID INVESTMENT GRANT FUNDS AND THE ASSISTANCE AGREEMENT.* J. Brandman moved approval of the Professional Services Agreement with Critigen, LLC for the Anaheim Solar Map Web Portal. P. Carroll seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0. AGENDA ITEM 7. SCHEDULE A PUBLIC HEARING DATE OF MAY 26, 2010 FOR WATER RATE PUBLIC HEARING. M. Edwards asked the PUB to schedule a Public Hearing date of May 26, 2010 for the proposed water rate actions. No motion is necessary; however, a Board quorum will be required for the Public Hearing. Given the response of the community to the required Prop 218 mailers on this issue, the Board requested much greater detail on this proposed rate increase and the reasons for it. That information was provided under separate cover. 8. PRESENTATION ON THE SUSTAINABILITY INFORMATION MANAGEMENT SYSTEM (SIMS) PROJECT. R. Watkins gave a presentation followed by a live demonstration on the Sustainability Information Management System (SIMS). There are five primary greenhouse gas contributors that will be tracked by SIMS citywide: transportation within the City, electric usage, water usage, natural gas, and solid waste disposal. The Board discussed this item and asked questions such as how the actual greenhouse gas is measured and is it measured at the generation or consumption side to which R. Watkins responded. Some Board members found the amount of information that was available on a per resident basis to be confusing as well as invasive. There was discussion on why the utility was voluntarily using and refining emissions tracking systems in advance of an absolute legal requirement to do so. Staff responded that it was prudent to have a system that would allow us to examine and compare a broad variety of potential cost effective response strategies. There has already been some legislation passed in this area (e.g. SB 375) and more is expected. The utility is not requiring or mandating anything having to do with emissions at this time, but to not prepare by at least establishing tracking mechanisms, as well as educating ourselves as to potential problems and outcomes, will limit the utilities and PUB's later flexibility to select and choose a course of action. 9. UPDATE ON WATER SYSTEM ISSUES. Water Supply Conditions Update D. Calkins indicated that the water supply conditions have been good so far this winter; however, the last couple of weeks have ACTION TAKEN 2010 -17 AGENDA ITEM been drier. Locally, precipitation is about 150% of normal for this time of year. Northern California and the Colorado River basin remain near normal. The State Water Project allocation is at 15 %, which is near the historic low. Staff is optimistic that it will be increased by the State Department of Water Resources within the next couple weeks to a month, but it is unclear how much. If it remains below the 40 %n to 45 %r range, Metropolitan Water District (MWD) will likely ration water again next year. Overall, Anaheim's water consumption for this fiscal year is 7% lower than MWD allocation target. Environmental Compliance Report for 2009 D. Calkins referred to the Water Environmental Compliance Report for 2009, which was in the PUB agenda package. D. Calkins indicated that D. Wilson and his staff are doing an excellent job achieving full compliance on all water quality and environmental regulations. Orange County Water Summit The 3 " annual Orange County Water Summit will be held May 14, 2010 at Disney's Grand Californian Hotel. An e -mail will be sent to the Board members regarding the Summit and those that are interested in attending should reply to staff. 10. UPDATE ELECTRIC SYSTEM ISSUES Canyon Power Plant M. Ward indicated that the California Energy Commission approved the license for Canyon Power Plant and should get the permit from Air Quality Management District next week. Groundbreaking will take place in May 2010 so please watch for the invitation. During discussion with the Board, M. Ward responded to a variety of questions such as how much time will elapse from beginning of construction to when the first kilowatt hour is generated, would the generation output be sold and how many construction jobs would the project generate. Under ound Pro'ects U12dat e M. Ward referred to the document entitled Update on Major Electrical Transmission & Distribution (T &D) Project (2011) and the accompanying map which provided information and updates on the following: underground conversion projects, development - related project and reliability -based projects. Staff continues to coordinate projects in conjunction with the Public Works Department in order to reduce the impact to Anaheim's residents and businesses. ACTION TAKEN 2010 -18 D10 IT.-In I Itw Canyon Power Plant Financing R. Dowell representing E. Zacherl indicated that staff is moving forward with the permanent take -out financing for the project and preparing information for the credit rating agency presentations. Distinguished Engineering Project Achievement Award M. Long reported that the Public Utilities Department received the Distinguished Engineering Project Achievement Award for the Smart Grid Project. Solar Flag Event at Vineyard Christian School M. long discussed the Solar Flag Event that was held at the Vineyard Christian School where over 300 students, parents and teachers attended. J. Brandman and K. Murray attended and represented the Utilities. iCel M. Long indicated that volunteers are needed to test iCel storage systems at their home. Ten sites will be selected and iCel battery packs will be installed. The battery packs will be used to store energy at night and then the energy will be used at peak hours during the day. The selected customers will be on the Residential Time of Use Rate to determine the effectiveness of the pilot program. Annual Report 2009 M. Long indicated that the Annual Report for 2009 will be distributed in a couple of weeks. Triple Rebate M. Long indicated that from April 22, 2010 thru May 23, 2010, the Department will be offering triple rebates on clothes washers, refrigerators, and room air conditioners. Funds are being provided from the state stimulus funds for that period of time only. Double rebates will continue through June 2010. 0. AGENDA FOR THE NEXT MEETING ON APRIL 28,2009. • Water Supply Conditions Update • Landscape Water Efficiency Guidelines* • FY 2010/2011 Proposed Budget Presentation* • ARTIC Stakeholder Outreach Presentation • Agreement with TIBCO for Enterprise Service Bus* • Agreement with Opower for Customer Portal* ACTION TAKEN 2010 -19 AGENDA ITEM *Indicates item(s) will be forwarded to City Council for action after presentation to the PUB. 14. ITEM(S) BY SECRETARY. M. Edwards indicated that Commissioner John Byron said hello to the Board, had nice things to say about Anaheim and that Anaheim is progressive and green. M. Edwards discussed the Mayor's interests in a green overlay zone in the Canyon Area. He also met with Building Industry Association to work toward a zero energy home that's an education center in which developers and other people can walk through. He sent a personal letter of support of the Governors SB 71 for sales tax exemptions for green business and he wants to be one of the main supporters of Anaheim's residential green power program; to use it as an informational tool, more effectively communicating to customers that green is possible, but comes with a cost. 15. ITEM(S) BY BOARD MEMBERS. L. Cahill spoke about the draft for discussion only the Projected Cost of Electricity document. He asked if Anaheim has a long term plan of dealing with this or a strategy, because the numbers indicated in the document are big. He suggested a workshop with the Board. M. Edwards responded that it will be added to the April agenda to go through the document and receive feedback from the Board. D. Morgan added that a City Council Workshop might be good to reach out to the public. There was a spirited discussion between the Board and staff on AB 32, with many simultaneous statements and questions, making a clean capture and summary in the minutes difficult. However, the following is clear. The Board is disturbed by the path of CARB towards implementing AB 32. They are uncertain if staff has done enough, and therefore documentation as to the lengths staff has gone thus far was subsequently provided. They want more information and to greater understand the courses of action available to the utility in this area. Further opportunities for more detailed discussion will be provided. J. Machiaverna stated that the meeting was interesting and expressed his feelings on increasing rates. C. Peltzer stated that the document that M. Edwards prepared is an excellent one and it's a good basis for the Board to work through as the Board needs to be fully involved. He is concerned that City Council is not fully informed. ACTION TAKEN 2010 -20 AGENDA ITEM ACTION TAKEN J. Brandman congratulated staff on the Canyon Power Plant certification and indicated he had received several calls from people that will be working on the plant so they are grateful. J. Brandman added that he attended the Anaheim Boys & Girls Club Gala and congratulated J. Machiaverna on his appointment as Chair and thanked the Utility, the City, and Vice -Chair K. Murray for their support and sponsorship. K. Murray agreed with J. Brandman and added that it was a tremendous event. K. Murray reported that as Anaheim's Representative of Metropolitan Water District (MWD), she attended a trip to Washington, D.C. and met with White House Officials and spoke about. water and infrastructure. Transportation issues were also discussed. K. Murray thanked Principal Kim Voelker and parents, students and staff at Hepatha Lutheran School for doing a pep rally around the solar flag ribbon cutting and also thanked Principal Jim Wilkenson at Vineyard Christian School. She also thanked D. Predisik and everyone that made this possible. P. Carroll thanked M. Edwards and staff for bringing various issues to the Board because they are the kind of items that need to be discussed. He also thanked S. Sciortino for a job well done on the Canyon Power Project. He requested more information to educate the Board on green house gas emissions to better develop a basic level of understanding. D. Morgan congratulated staff for all their good work and complimented M. Edwards and staff who are clearly focused on the customer and community and the employees. 16. ADJOURNMENT: (TO THE REGULAR MEETING P. Carroll moved to adjourn the DATE OF APRIL 28, 2010, AT 5:00 P.M., IN THE 11 meeting at 7:20 p.m. to Regular FLOOR LARGE CONFERENCE ROOM, ANAHEIM meeting date of April 28, 2010 at WEST TOWER, 201 S. ANAHEIM BLVD., ANAHEIM, 5:00 p.m. in the 1 Ith Floor Large CALIFORNIA.) Conference Room of Anaheim West Tower, 201 S. Anaheim Blvd, Anaheim, California. D. Morgan seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0. Respectfully submitted, Marcie L. Edwards Secretary, Public Utilities Board 2010 -21