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Public Utilities 2010/02/24CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES FEBRUARY 24, 2010 The Agenda having been posted on Thursday, February 18, 2010, the Regular Meeting of the Public Utilities Board was called to order by Chairperson Lon Cahill at 5:05 p.m. on Wednesday, February 24, 2010, in the 1 lth Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim BIvd., Anaheim, California. Board Members Present: L. Cahill, K. Murray, J. Brandman, P. Carroll, J. Machiaverna, D. Morgan, C. Peltzer Board Members Absent: None Staff Present: M. Edwards, A. Kott, D. Calkins, M. Ward, E. Zacherl, J. Roosevelt, B. Beelner, R. Dowell D. Lee, B. Moorhead, D. Shen, P. Oviedo Guest(s) Present: P. Bos, Resident; P. Beckman, B. Chuchus, and D. Wain - Residents and Members of the East Anaheim Neighborhood Council AGENDA ITEM ACTION TAKEN 1. PUBLIC COMMENTS. P. Beckman, Chairman of the East Anaheim Neighborhood Council and Property Manager for the Anaheim Hills Planning Community Association, indicated that the monthly reading concept with the estimated billing for the irrigation landscaping system has created a cashflow problem and budgeting issues for the Association and requests that the Association be placed back on the old system of billing every two months. He has been working with Jeremy Brown and other Utility Staff to resolve this situation. E. Zacherl will meet with J. Brown and other staff members to review the situation and seek a resolution. 2. APPROVAL OF THE MINUTES OF THE REGULAR PUBLIC UTILITIES BOARD (PUB) MEETING HELD ON JANUARY 27,2010.* There being no further public comments, L. Cahill closed the public comments portion of the meeting. P. Carroll moved approval of the January 27, 2010, Public Utilities Board Meeting Minutes as written. K. Murray seconded the motion. MOTION CARRIED: 6-0. ABSTAINED: I (C. Peltzer). ABSENT: 0. 2010-7 AGENDA ITEM 3. APPROVAL OF AN AGREEMENT WITH AAC UTILITY PARTNERS, LLC FOR SELECTION AND OVERSIGHT SERVICES FOR THE CUSTOMER INFORMATION SYSTEM (CIS).* M. Edwards gave a brief explanation as to the purpose of hiring a consultant for CIS oversight services. E. Zacherl added that the current system has been in place since 1996, and this Agreement will provide the Department with consulting expertise to find solutions that will provide flexibility to provide better customer service, as well as the ability to respond to legislative requirements and/or policymaker requests, and manage the operation properly. E. Zacherl responded to questions from the Board such as integration of this system with the City's other Request for Proposal (RFP) system, possible partnership with other agencies, length of time the study will take and implementation of the program, and clarification of the program pricing as well as Exhibit A (referred to in the Agreement and not attached). 4. PRESENTATION REGARDING THE NOHL CANYON WATER STORAGE TANK CONSTRUCTION. B. Moorhead, Project Manager, gave a presentation regarding the Nohl Canyon Water Storage Tank Project, providing an overview of construction activities since the last update at the September 2009 meeting. The tank concrete work has been completed, and the contractor is wrapping the tank with four layers of steel cable and shotcrete (DYK technology), which gives it the necessary strength to prevent leaks and sustain seismic events. Remaining work includes testing, painting, final grading and landscaping. The Project is expected to be completed by November 2010. During discussion with the Board, B. Moorhead responded to a variety of questions such as the purpose in using the DYK technology to build the tank, interaction with the nearby community, earthwork fill around the tank, and the anticipated date that the tank will be placed into service. 5. UPDATE ON WATER SYSTEM ISSUES. Water Supply Conditions Update. D. Calkins indicated that water supply conditions have improved over the last month or so. Orange County has received thirteen inches of rain this winter, which is the average for an entire year and 170% of normal year -to -date. Northern ACTION TAKEN J. Machiaverna moved approval of the Agreement with AAC Utility Partners, LLC for selection and oversight services for the Customer Information System as stated in the staff report. L. Cahill seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0. Staff will provide the Board with a copy of Exhibit A and an explanation of pricing. 2010 -8 AGENDA ITEM California and the Colorado River Basin are about normal for this time of year. The Department of Water Resources will be re- adjusting its allocation on the State Water Project within a week or so, which will help determine how much imported water the Metropolitan Water District (MWD) will receive from northern California. Overall, Anaheim's total water use is down about 6% and is in line with the rationing target set by MWD for this fiscal year. Delta Conveyance D. Calkins discussed a recent MWD Board letter regarding the Bay Delta Conservation Plan Environmental Impact Report (EIR)/EnvironmentaI Impact Study (EIS). A group of stakeholders have agreed on the scope of the environmental studies. Of the three main alternatives being considered, the stakeholders selected the underground tunnel as the preferred alternative. The draft EIR/EIS is scheduled to be completed and distributed for public comment by the end of this calendar year. The Board discussed this item and asked questions such as why the tunnel was selected as the preferred alternative, cost differences between the various alternatives, volume of water to be conveyed, mitigation efforts, and the EIRIEIS timeline /process, to which D. Calkins responded. 6. UPDATE ON ELECTRIC SYSTEM ISSUES. Underground Projects Update M. Ward, referring to the Update on Major Electrical Transmission and Distribution (T &D) Projects (FY 2009110) and the accompanying map, noted that questions have been asked over the years about the status of the T &D Projects, and this information provides updates on the following: underground conversion projects, development - related projects, 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. Power Outages M. Ward indicated that although there have been some challenges regarding power restoration, the frequency and number of outages has been contained. M. Edwards noted that there were a few minor power outages during the recent rainstorms. ACTION TAKEN 2010 -9 AGENDA ITEM 7. UPDATE ON FINANCE ISSUES. FY 2010/2011 Budget E. Zacherl indicated that Staff is wrapping up the FY 2010/2011 Draft Budget, which will be presented to the Board for its review prior to presentation in final form at the subsequent PUB meeting for its consideration and recommendation to City Council. Canyon Power Plant Financing E. Zacherl indicated that the final take out financing is in process, and Staff is working with the underwriters and financial advisors. There are multitude financing options including Build America bonds that previously were not available. Although there are some restrictions associated with Build America bonds, we should be able to procure efficient financing by using them for a portion of the issue. In response to a question from the Board regarding the status of the Canyon Power Plant Project (Project), M. Edwards discussed the expected process over the next couple of months, indicating that Staff anticipates to procure full unlimited Notice -to- Proceed with the Project sometime in April 2010, with the groundbreaking tentatively scheduled for May 2010. 8. UPDATE ON JOINT SERVICES ISSUES. Delegation from Gumi. South Korea J. Roosevelt, representing M. Long as Acting Assistant General Manager, Joint Services, indicated that Staff hosted a delegation from Gumi, South Korea. Mayor Nam and several other high level figures in education were taken on a tour of various facilities, and pictures of the Delegation observing the Solar Tree at the Valley Christian School were shown. J. Brandman, representing the PUB, welcomed the guests, shared details of our Solar Flag Program, and presented Mayor Nam with a Proclamation from the City. Unitarian Universal Church Solar Dedication Event J. Roosevelt shared pictures of the dedication, indicating that it is the first Anaheim church to officially have its solar system up and running. J. Brandman spoke at the event. Marketing Information J. Roosevelt shared the new marketing information regarding water conservation, noting the literature has been well received. Smart Home Energy & Water Efficiency Workshops J. Roosevelt discussed the Workshops scheduled for Saturday, March 27, 2010, from 8:00 a.m. to 1 :00 p.m., at the Downtown ACTION TAKEN 2010 -10 AGENDA ITEM Community Center, indicating that this is the first time that solar, water, and energy efficiency workshops have been combined into a one day event as well as having a Resource Fair promoting local green vendors. Should any of the Board Members want to attend, please either call or e-mail J. Roosevelt. "Spring Into Summer" Double Rebate Program In order to stimulate participation in the Rebate Program, rebates will be doubled for residents and commercial businesses until June 30, 2010. Stimulus Funding Activities Update J. Roosevelt indicated that the Department just received notice from the State Energy Program that the Department did not receive the $4.9 million funding requested. There were seventy -one applications submitted to the California Energy Commission (CEC) for this funding, and the Department's application was ranked number six. Staff was pleased that the Department scored that well, as the CEC only funded three applications. Electric Monthly Resource Adequacy Plan The Electric Monthly Resource Adequacy PIan shows that the Public Utility Department is fully resourced for the month of March 2010. 9. AGENDA ITEM(S) FOR THE NEXT PUBLIC UTILITIES BOARD MEETING ON MARCH 24, 2010. • Water Supply Conditions Update • Energy Portfolio Update • AB 32 Presentation • Adoption of Landscape Guidelines* • Resolutions Amending Rules of the Electric and Water Rates, Rules and Regulations* • Second Amendment to Water Facility Design and Installation Agreement for the Mountain Park Development* • Set Hearing Date for Water Rate Public Hearing * ** *Indicates item(s) will be forwarded to City Council for action after presentation to the PUB. *'"Indicates item(s) that will be forwarded to City Clerk and City Council for informational purposes. ** *Indicates item(s) requiring Public Utilities Board action only and will be forwarded to City Clerk and City Council for informational purposes. 2010 -11 ACTION TAKEN AGENDA ITEM ACTION TAKEN 10. ITEM(S) BY SECRETARY. None. 11, ITEM(S) BY BOARD MEMBERS. J. Machiaverna thanked Staff for the invitation to the State of the City and found it very interesting and informative. J. Machiaverna also wanted to thank the Department for purchase of the Boys & Girls Club "Make a Difference" Campaign that will provide the Department with advertising opportunities. J. Brandman indicated he enjoyed attending several solar events (the SA Recycling, Victory Church, and Unitarian Universalist Church) as well as the Cypress Americano Awards Dinner, where Mr. and Mrs. L. Cahill received the Citizen of the Year Award for their service to the community. K. Murray indicated that she is working with MWD to organize an inspection tour to Northern California and the Sacramento Delta. She wants to make sure that important stakeholders, particularly the business community, are invited to attend due to the resulting major economic impact of fixing the Delta and securing a reliable long -term water supply from Northern California will have. She will be working with Staff to secure a date for the trip. K. Murray requested that there be future PUB meeting discussion and review of the upcoming Water Bond Proposition that will be on the November 2010 ballot. D. Morgan reminded the Board and Staff that Form 700 needs to be submitted by April 1, 2010. D. Morgan will not be attending the March PUB meeting as he will be out of town. D. Morgan requested that the Board be provided with a list of major electrical transmission and distribution projects scheduled over the next eighteen months (FY 2009/2010 and FY 2010/2011) as well a list of Public Works projects and possible State Agency projects during this same timeframe in the format of the update and map distributed by Mark Ward. L. Cahill, D. Morgan, K. Murray, J. Machiaverna, J. Brandman and P. Carroll each thanked P. Oviedo for the homemade cookies. L. Cahill then called for a motion to adjourn the meeting. Staff will contact Public Works Department to compile the list of projects, including those combined with the Public Utilities Department. 2010 -12 AGENDA ITEM 12. ADJOURNMENT: (TO THE REGULAR MEETING DATE OF MARCH 24, 2010, AT 5:00 P.M., IN THE 10 FLOOR LARGE CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S. ANAHEIM BLVD., ANAHEIM, CALIFORNIA). Respectfully Submitted, Marcie L. Edwards Secretary, Public Utilities Board ACTION TAKEN P. Carroll moved to adjourn the meeting at 6:15 p.m. to the Regular Meeting date of March 24, 2010, at 5:00 p.m. in the I V Floor Large Conference Room of Anaheim West Tower, 201 S. Anaheim Blvd, Anaheim, California. C. Peltzer seconded the motion. MOTION CARRIED: 7 -0. ABSTAINED: 0. ABSENT: 0.