MINUTES OF THE BOARD OF DIRECTORS v. 04-11-2019
MINUTES OF THE
REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
A regular meeting of the Board of Directors was held on October 17, 2019 at the offices of the Authority:
1160 Nicole Court
Glendora, California 91740
This meeting was called to order at 10:00am by the President.
The following Board Members (B)
and Alternates (A) were present:
Jorge Somoano (B), Dukku Lee (B), Manny Robledo (B), Jorge Somoano (B), Todd Corbin (B), Tom Miller (B), Todd Corbin (B), Danny Garcia (A), Dave Kolk (B), Gurcharan Bawa (B), Ramzi Raufdeen (A), Henry Martinez (B), Jason Randu (A)
Staff Members present were: Daniel Hashimi, Mike Webster, Rick Morillo, Bryan Cope, Yoli Pantig, Aileen Ma, Randy Krager, Matt Curtis, Joanna Lopez, Nick Blair, Tanya DeRivi, Amy Mmagu, Nicole Solano, Salpi Ortiz, Jessica Chu, John Quan, Peter Huynh, Tamer Ellyahky, Theodore Zeiss
Attorneys, Member Employees
and Consultants present were:
Victor Hsu, Norton Rose Fulbright, Julie Desimone – Moss Adams, Keith Simovic – Moss Adams
1. Notice/Agenda and Opportunity for the Public to Address the Board Mr. Somoano called the meeting to order at 10:00am. After introductions, Mr. Somoano asked for a motion to approve the consent calendar.
2. Consent Calendar:
Minutes of the Board of Directors
o September 19, 2019
Monthly Investment Report
o August 2019
Monthly Finance Committee Minutes
o September 2019
Resolution 2019-123: Adopt Resolution approving the Fourth Amendment to Professional Services Agreement with PFM Financial Advisors LLC (PFM) extending the agreement on a month-to-month basis for six months.
Resolution 2019-124: Adopt Resolution approving the withdrawal of all funds from the City of Riverside Project Stabilization Fund Account.
Resolution 2019-125: Adopt a resolution to serve as a single reference resolution number for agreements of $100,000 or less annually approved by the Executive Director pursuant to his
MINUTES OF THE BOARD OF DIRECTORS v. 04-11-2019
authority under the SCPPA Procurement Code.
Consent Calendar
Moved By: Tom Miller Seconded By: Dukku Lee
Unanimously Approved
3. Executive Director’s Report
After the unanimous approval of the Consent Calendar, Mr. Webster gave his Executive Director’s Report.
Mr. Webster reviewed emergency protocol. He then thanked the Board for one-on-one meetings that were held to discuss how SCPPA can meet utilities’ needs. Takeaways from one-on-ones included lessons learned on SmartGrid/flexible grid, helping utilities with tr ansmission tariffs, and mo re work on generation transmission studies. Mr. Webster also gave a Training report and a Working Group report, and he advised the Board of a Rate Design workshop coming up on October 24.
Mr. Somoano invited questions from the Board. After a brief discussion, the Executive Director’s Report was concluded.
STAFF REPORTS
4. Project and Program Development: Managers’ Reports
Following the Executive Director’s Report, Ms. Lopez presented for the Board’s consideration Resolution 2019-122, regarding the Arbor Day Foundation, and 2019-127, regarding Siemens Industry, Inc.
Ms. Lopez provided a brief background on the Arbor Day Foundation. Their Energy Saving Tree Program provides customers trees to plant on their property, as well as an online platform that advises tree placement for optimum energy efficiency. Contract is a 3-year term with an option to extend 3 years.
After discussion by the Board, Resolution 2019-122 was presented for a vote:
Resolution 2019-122
Moved By: Dave Kolk Seconded By: Tom Miller
Abstention by: Riverside
Ms. Lopez then presented to the Board Resolution 2019-127. Siemen’s Industry provides Wildfire mitigation services. This is a third agreement for services similar to those approved by the Board last month.
Resolution 2019-127
Moved By: Gurcharan Bawa Seconded By: Manny Robledo
Unanimously Approved
Mr. Quan then presented to the Board Resolutions 2019-119, regarding Archer Energy Solutions, Inc., and 2019-120, regarding Cooper Compliance Corporation, for the Board’s approval. SCPPA members reached out to SCPPA staff regarding NERC compliance. SCPPA issued an RFP and received 16 responses. SCPPA
MINUTES OF THE BOARD OF DIRECTORS v. 04-11-2019
Members and Staff reviewed responses and decided to pursue two vendors: Archer and Cooper Compliance.
After brief discussion, the resolutions were put to a vote.
Resolution 2019-119 and Resolution 2019-120
Moved By: Dukku Lee Seconded By: Gurcharan Bawa
Unanimously Approved
Mr. Quan then presented Resolution 2019-121, regarding the project agreements for the Roseburg SB 859 Biomass Project, for the Board’s approval. LADWP, Ri verside, IID, and Anaheim, as well as three non- SCPPA members, are participating in this agreement. Roseburg was selected via RFP process. It was noted that Riverside has elected not to participate through SC PPA in this matter but is contracting directly with Roseburg. After discussion from the Board, the resolution was put to a vote.
Resolution 2019-121
Moved By: Dukku Lee Seconded By: Todd Corbin
Unanimously Approved
5. Asset Management and Special Projects: Director’s Report Following Mr. Quan’s presentation, Ms. Solano addressed the Board. Ms. Solano discussed the Roseburg Budget and presented Resolution 2019-126 for the Board’s approval.
Project Vote (Roseburg)
Resolution 2019-126
Moved By: Dukku Lee Seconded By: Jason Randu
Members Approve Deny Present, Not
Voting
Anaheim X
IID X
LADWP X
Ms. Solano then discussed the STS overrun. 32.8M dollars is partially offset by an insurance reimbursement of approximately 15.4M. We have used the IPP Contingency fund for part of the shortfall. Projected overbilling in the next fiscal year of over 7M, which will be us ed to offset the underbilling. One takeaway Ms. Solano mentioned was that SCPPA is not asking the Board for any additional money. IPP and SCPPA plans to better time their budget processes so they occur concurrently in order to avoid this in the future.
Ms. Solano then presented Budget comparisons for projects. Loyalton is significantly under generating. Wind projects are on par with budget.
6. Government Affairs: Director’s Report
Following Ms. Solano’s presentation, Ms. DeRivi presented a regulatory update to the Board. She discussed CARB, highlighting RPS penalties for POUs, as well as SF6 Gas Insulated Switch Gear. Mr. Blair stated that SCPPA is working with investor utilities to control phase out schedule and baseline. SCPPA is working with CARB to look at solutions for an agreeable phase-out schedule and baseline year. A report will be sent out
MINUTES OF THE BOARD OF DIRECTORS v. 04-11-2019
by CARB. SCPPA will have 45 days to comment. SF6 al ternatives are not readily available. Utilities need more time to phase out equipment. Phase-out will affe ct utilities currently purchasing SF6 equipment. Mr.
Blair took questions from the Board. After brief discussion, Ms. DeRivi moved on to a legislative update. She mentioned that in-district meetings are about 1/3 of the way through with legislative staff.
Ms. DeRivi discussed Wildfires. Cal-Fire is reviewin g standards for wires’ distance from trees. CalFire regulation will reach a vote around August 2020. SB357 public safety power shutoffs in January. There is concern that POUs may not be included in the bill.
7. Finance
Representatives from Moss Adams discussed the audit results for Fiscal Year 2019. Financial reports will be provided in November. 1400 hours were put in for this year’s audit. Each project was assessed individually for risk. There are 1700 pages in the audit binder. Moss Adams met with the Audit Committee on October 7, 2019. No instances of non-compliance were found. GASB No. 83 – Asset Retirement Obligation now requires the entire obligation to be booked on day one of the project. Audit adjustments for Apex and Pinedale.
Moss Adams then took questions from the Board. Ms. Ma then discussed Milford I Bond refunding. She reported there was a 20.6% savings of refunding bonds. Ms. Ma took questions from the Board.
8. Roundtable
Mr. Somoano opened discussion to the Board for an y updates. Mr. Miller expressed concerns about overbilling. Mr. Corbin mentioned that Danny Garcia is the new Deputy General Manager for Riverside. Mr.
Somoano addressed the budget concern brought up by Mr. Miller. Mr. Martinez gave a brief update on IID.
9. Closed Session
There being no items for discussion in Closed Session, Mr. Somoano adjourned the meeting at 12:00pm.
Respectfully Submitted,
Michael Webster
Assistant Secretary