Public Utilities 2018/06/27CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
JUNE 27, 2018
The agenda having been posted on Thursday, June 21, 2018, 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 27, 2018,
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, A. Abdulrahman,
R. Nelson, V. Baroldi, J. Showalter
Board Members Absent: V. Ramirez
City Staff Present: D. Lee, L. Quiambao, M. Moore, J. Lonneker, L. Nugent, A. Kott,
G. Bowen, J. Lehman, P. Oviedo, M. Seifen, M. Walker, Y. Gaytan,
L. Tsoi, P. Hayes; A. Markis, F. Barvarz, V. Tran, D. Algarme, J. Norris,
L. O'Connell
Guest(s) Present: Sam Murray, Teri Tannehill, and Carole Burt, WaterSmart Landscape
Award Recipients; Mark Dickinson, Anaheim Beautiful Program Director
AGENDA ITEM ACTION TAKEN
1. RECOGNITION: WATERSMART LANDSCAPE AWARD
WINNER.
P. Hayes, Business and Community Programs Manager, in
conjunction with Anaheim Beautiful, presented the Public Utilities
Department (Department) Annual WaterSmart Landscape Award
for 2018 to Anaheim residents Ken and Sam Murray and two
commercial winners: Carol Bush from Emerald Court Senior Living
Facility and Teri Tannahill from a multifamily housing complex.
The recipients were recognized by the Board for converting their
lawns to aesthetically -pleasing drought tolerant landscapes.
2. RECOGNITION: PUBLIC UTILITIES EMPLOYEE
ASSISTANCE IN THE PROTECTION OF ELECTRIC
FACILITIES.
J. Lonneker, Assistant General Manager — Electric Services,
acknowledged and presented a certificate of achievement to staff
member Jeff Norris, Utilities Systems Operator, for his outstanding
work in identifying a theft in progress at the Yorba Substation and
assisting the Anaheim Police Department in the ultimate arrest of
the suspects on the early morning of May 1, 2018.
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The Board thanked J. Norris for going above and beyond in the
protection of Department property.
3. PUBLIC COMMENTS.
4. APPROVE THE MINUTES OF THE PUBLIC UTILITIES
BOARD MEETING OF MAY 23, 2018. *
5. PRESENTATION: CALIFORNIA WATERFIX PROJECT.
M. Moore, Assistant General Manager — Water Services, provided
an update on the California WaterFix Project (WaterFix). M.
Moore mentioned that the WaterFix would modernize the 50 -year-
old State Water Project by building two new tunnels underneath
the Delta. M. Moore indicated that Metropolitan Water District
(MWD) would vote on funding up to 65% of the cost at its July 10,
2018 meeting.
The Board asked what would be the primary reason for increased
reliability of the water flowing south. M. Moore explained that
currently the water flows through the southern part of the Delta,
which causes the endangered species of fish to be trapped while
pumping the water; the WaterFix would build tunnels to alleviate
that issue and improve resiliency from earthquakes or other causes
of potential disruption. The Board asked what the timeline was for
this Project. Staff indicated that the time frame for construction
due to the size would be approximately ten years.
Lastly, the Board inquired about the cost impact on the
Department's customers. M. Moore indicated that the cost coming
from MWD would be charged to customers per usage amount and
not a fixed charge, and would therefore range between $2.50 and
$4.00 per month for a typical residential customer. The range is
due to the potential for Central California agricultural customers to
participate in the WaterFix and therefore spread the cost of water.
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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 Meeting of
May 23, 2018. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 1
(E. Medrano).
ABSENT: 2 (V. Ramirez;
V. Baroldi).
6. PRESENTATION: LINDA VISTA PHASE 2 DESIGN WITH
CONSULTANT.
L. O'Connell, Associate Engineer, explained to the Board about
the planned Linda Vista Complex Pump Station Improvements
Phase 2 Project. L. O'Connell provided a brief history and
overview of the importance and criticality of the Linda Vista
Complex noting that it is the largest pumping facility in Anaheim,
capable of pumping more than 20 million gallons of ground water
a day during high demands.
L. O'Connell described this Project as part of the multi -phased
improvements identified in Facility Master Plan that was
completed in 2009, which outlined the scope to rehabilitate the
facility based upon the long-term water needs. Phase 2 will
replace existing electrical and controls and replace the existing
pumps relocated in Phase 1 with new upsized pumps and motors as
well as a new building to house the new electrical and controls.
L. O'Connell highlighted some of the benefits of the new
improvements such as increased pumping capacity; improved
efficiency and cost savings; improved safety for field staff working
in and around these high voltage facilities; and increased
operational flexibility for operators to meet peak and fire system
demands. The project construction is scheduled to be to complete
by winter 2020.
7. RECOMMEND APPROVAL OF AN AGREEMENT WITH
KUBRA AMERICA WEST, INC. FOR ELECTRONIC BILL
PAYMENT AND CUSTOMER PAYMENT KIOSKS FOR A
THREE (3) YEAR PERIOD, WITH TWO (2) ONE-YEAR
EXTENSIONS, IN AN ANNUAL AMOUNT OF $110,000 FOR
TRANSACTIONS AND $40,000 FOR EXTRA WORK, IF
NEEDED, FOR A COMBINED ANNUAL NOT TO EXCEED
AMOUNT OF ONE HUNDRED AND FIFTY THOUSAND
($150,000.00) WITH A 2.5% ANNUAL ESCALATION OF
THE TRANSACTION AMOUNTS. *
G. Bowen, Assistant General Manager — Power Supply, provided an
overview of the proposed Agreement with Kubra America West Inc.
(KUBRA) for electronic bill pay services for customers to pay their
utility bills using electronic platforms including personal computers
and mobile devices. G. Bowen indicated that 40,000 customers pay
using electronic bill payment and that the number is expected to
grow steadily over the next several years. Additionally, this
Agreement provides the installation of two payment kiosks which
will be located in the lobby area of Anaheim West Tower for
customers that use cash or the onsite cashier services during non-
business hours. The electronic bill payment system is expected to
be complete by early 2019 and the payment kiosks will be installed
by spring 2019.
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A. Abdulrahman moved
approval of an Agreement
with KUBRA America West
Inc. for electronic bill
payment services and
customer payment kiosks. J.
Seymour seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
The Board asked about the cost of each kiosk and how long they
are expected to last. Staff indicated that each kiosk costs a flat fee
of $35,000 with a $1.50 per use transaction fee. The kiosks are
expected to last five years. Additionally, the Board inquired about
the security of the kiosks and if they were user friendly. Staff
explained the kiosks have the ability to assist in multiple languages
and accept cash payments. The KUBRA software meets security
compliance requirements and is capable of integrating with the
Department's current Customer Information System.
8. RECOMMEND APPROVAL OF AN AGREEMENT WITH
PACKET FUSION, INC. FOR A CLOUD -BASED PHONE
SERVICE FOR A THREE (3) YEAR PERIOD, WITH SEVEN
(7) ONE-YEAR EXTENSIONS IN A TOTAL NOT TO
EXCEED THE AMOUNT OF $313,939 FOR THE FIRST
YEAR AND $231,259 FOR EACH TERM YEAR
THEREAFTER WITH COMMERCIAL PRICE INDEX
ADJUSTMENTS FOR EACH EXTENSION TERM. *
L. Nugent, Utilities Customer Service Manager, provided the
Board with an overview of the proposed Cloud -Based Phone
System. L. Nugent made the Board aware that the current phone
system is aging, showing signs of instability, and is no longer
supported by the original manufacturer. L. Nugent described the
evaluation process of choosing between a premise -based or cloud -
based platform, and that the Department is recommending a cloud -
based platform with the vendor Packet Fusion, Inc. because it
would improve the customer experience, provide the Department
with better redundancy and reliability and would reduce overall
operational costs.
L. Nugent described the advantages a new phone system would
provide the Department, including features that would allow
supervisors to improve call quality, allow customers to provide
feedback, and the ability to route calls based on the skillsets of
agents. L. Nugent discussed how the mobility of a cloud -based
phone system would allow the Department to move the call center
in the event of an emergency, and that upgrades and maintenance
were provided by the vendor as part of the service.
The Board asked what would be the downside to implementing a
cloud -based solution versus a premise -based solution. L. Nugent
responded that the downside would be that if the internet were
down, then the phone system would also be down. L. Nugent
highlighted that if the internet was down, the Customer
Information System would also be down, so if that were to happen,
the Department already had a process in place to route all calls to
the third -party call center the until the internet service is restored.
The Board also asked if quality improvement features had been a
requirement in original Request for Proposal (RFP). D. Lee
responded that it had been part of the original proposal, but of the
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J. Seymour moved approval
of an Agreement with
Packet Fusion Inc. for a
cloud -based phone service
system. V. Baroldi
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1 (V. Ramirez).
two final vendors, Packet Fusion was the only vendor to respond
with full pricing for all requested modules.
9. RECOMMEND APPROVAL OF THE PROPOSED FIVE-
YEAR UNDERGROUND CONVERSION PLAN FOR
FISCAL YEARS 2018/19 TO 2022/23. *
F. Barvarz, Transmission and Distribution Manager, presented the
proposed Five-year Underground Conversion Plan (Plan) for Fiscal
Years 2018/19 to 2022/23 to the Board. F. Barvarz 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. F. Barvarz concluded the presentation
by summarizing that the proposed Plan includes adding Sycamore
Street as a new project, completing undergrounding on Lincoln
Avenue / Rio Vista Street and Orangewood Avenue over the next
year, and construction starting on Euclid Street.
10. RECOMMEND APPROVAL OF A MASTER AGREEMENT
FOR ELECTRIC HIGH VOLTAGE UTILITY
CONSTRUCTION, MAINTENANCE, REPAIR AND
IMMEDIATE RESPONSE PROJECTS WITH MULTIPLE
CONTRACTORS PRE -QUALIFIED BY THE CITY OF
ANAHEIM FOR A THREE-YEAR TERM, WITH A $500,000
LIMIT PER WORK ORDER PACKAGE AND A $2,000,000
LIMIT IN TOTAL AWARDS PER CONTRACTOR DURING
EACH FISCAL YEAR, WITH CHANGE ORDER
AUTHORIZATION IN AN AMOUNT NOT TO EXCEED 10%
OF THE WORK ORDER PACKAGE PER CHANGE ORDER
AND NOT TO EXCEED $100,000 IN TOTAL PER WORK
ORDER AS WELL AS AN INCENTIVE PAYMENT EQUAL
TO 1% OF THE BID AMOUNT FOR CONTRACTORS
THAT MEET A 25% LOCAL HIRE AND/OR VETERAN
HIRING GOAL DURING THE COURSE OF A PROJECT;
AND RECOMMEND DETERMINATION THAT THE
PROJECTS TO BE PERFORMED UNDER THE MASTER
AGREEMENT SHALL BE CATEGORICALLY EXEMPT
UNDER CEQA GUIDELINES, SECTIONS 15301,15302,
15303, AND/OR 15304 OF CALIFORNIA CODE OF
REGULATIONS TITLE 14. *
J. Lonneker provided a summary of the main components of the
Master Agreement for Electric High Voltage Utility Construction
to the Board. J. Lonneker noted that a new element includes a bid
award limit of $2M per contractor per fiscal year in order to
encourage competition amongst contractors. Additionally, J.
Lonneker made the Board aware of a provision establishing an
incentive payment equal to I% of the bid amount for contractors
that meet a 25% Local Hire and/or Veteran hiring goal during the
course of a project. J. Lonneker discussed with the Board the
contractor pre -qualification process follows the state Public
Contracting Code and a pre -qualified contractor list for
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A. Abdulrahman moved
approval of the proposed
Five-year Underground
Conversion Plan for Fiscal
Years 2018/19 to 2022/23.
R. Nelson seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
R. Nelson moved approval
of a Master Agreement for
Electric High Voltage
Utility Construction,
Maintenance, Repair and
Immediate Response
Projects with multiple
contractors pre -qualified by
the City of Anaheim. J.
Seymour seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
construction of high voltage utility scale electric systems is
established every three years, but new submissions mid-cycle can
still be added throughout that timeframe.
The Board expressed support for the Master Agreement, including
the new contract provisions that have been included. Staff
addressed questions regarding the use of contractors during
emergencies; by having a contract in place, the Department has the
ability to request contractors to begin work immediately.
11. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, made the Board aware of the continued efforts to
replace aging poles. In addition, she mentioned the Department is
preparing for the 4h of July holiday and will have additional crews
onsite. J. Lonneker indicated line crews will be participating in the
4t' of July event at a local park by providing residents with bucket
truck rides.
12. UPDATE ON WATER SYSTEM ISSUES.
M. Moore made the Board aware of the Department's 4t' of July
readiness plan that includes adding a second operator in the
operations center. M. Moore mentioned that standby crews will be
in place in case there are any pipeline breaks or hydrant damage.
M. Moore provided the Board with on update on MWD's water
storage lake located in Hemet, California called Diamond Valley
Lake (DVL). M. Moore indicated that the lake receives water
from the State Water Project and stores it for droughts and
emergencies. He mentioned that DVL is currently shutdown for
recreation use due to a large algae bloom that occurs periodically
during this time of the year and last for a few weeks. M. Moore
indicated that the Department does not receive water from DVL,
therefore the algae bloom would not have an impact on supply.
M. Moore discussed the Pearson Park open house, which occurred
on Wednesday, June 27, 2018. He explained the new recycle
water connection will replace potable water being used for the
irrigation system and the conversion will save about 25,000 gallons
per day of potable water.
Lastly, M. Moore reminded the Board of the upcoming dedication
ceremony for the La Palma Water Complex on Tuesday, July 31,
2018.
13. UPDATE ON FINANCE ISSUES.
L. Nugent, acting AGM — Finance and Administration, had no
additional updates to provide.
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14. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen provided the Board with an update on the Department's
power supply resources for the month of May. G. Bowen
indicated that in preparation for the summer season, the Canyon
units each went through a two day planned outage to prepare for
operations. G. Bowen highlighted the fact that although there were
planned and ongoing outages, the power supply portfolio still
managed to produce the expected amount of energy for the month
due to increased wind generation. Lastly, he mentioned that
market prices were relatively low for the last few months but this is
expected to change as the weather gets warmer.
15. UPDATE ON ENTERPRISE RISK MANAGEMENT.
J. Lehman, Chief Risk Officer, discussed the Wholesale Energy
Risk Management (ERM) Program's Quarterly Compliance Report
with the Board. J. Lehman noted that the ERM Program sets the
criteria under which certain energy related transactions can be
made providing an efficient framework for conducting timely
transactions while ensuring that the Department's interests are
protected and risks are minimized. J. Lehman indicated that during
this period violations were received from the California
Independent System Operator (CAISO) related to forecast reports
for certain generators being submitted a day late. The process for
these submittals has been revised to prevent this from occurring
again. J. Lehman noted that there could be a penalty up to $2,500,
which will be reported on the quarterly internal compliance report.
J. Lehman made the Board aware of an audit by City Audit
Division that occurred in May, for the ERM program covering the
period of calendar years 2016 and 2017. The audit determined that
the Department complied with the ERM Program's transaction
control and risk management protocols. Additionally, it found that
the ERM Program is comprehensive, robust, and effective in
identifying and mitigating potential risks. There were no findings
or recommendations.
J. Lehman then shared that the Public Utilities Board Legislative
Working Group had met prior to the Board meeting and had
reviewed key bills with the potential to impact the Department's
operations. J. Lehman noted that these bills included the water tax
bill that could potentially transfer over $1 million annually from
the Department's customers to the state, and a grid regionalization
bill that would require publically owned utilities to obtain approval
from the California Energy Commission prior to joining a
Regional Transmission Organization. Lastly, J. Lehman indicated
that this new jurisdictional authority and added level of oversight
would not provide any benefits to consumers and would increase
costs for no commensurate benefit.
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16. ITEM(S) BY SECRETARY.
D. Lee indicated that staff had planned on presenting on cyber
security; however, due to staffing changes, the presentation will be
postponed to a later date.
Items scheduled for the following Board meeting include:
• Election for Board Chair and Vice -Chair, as well as the
Underground Subcommittee
■ Appointments for ad hoc Legislative Working Group and
Public Utilities Hearing Board
• Wildfire Mitigation Plan
• Bill Print / Mailing Service
• Uncollectible Account Write -Offs
• Summer Intern Presentation
17. ITEM(S) BY BOARD MEMBERS.
A. Abdulrahman reported that he attended a tour, along with Board
member R. Nelson and Vice -Chairperson J. Seymour, of the
installation of an underground vault.
R. Nelson reported he attended and enjoyed the Orange County
Water Summit.
18. ADJOURNMENT: (REGULAR MEETING ON JULY 25,
2018, AT 5:00 P.M., IN THE 111 FLOOR LARGE
CONFERENCE ROOM, ANAHEIM WEST TOWER, 201 S.
ANAHEIM BOULEVARD, ANAHEIM, CALIFORNIA).
")ectfull , b fitted,
Dukku Lee
Public Utilities General Manager
J. Seymour moved approval
to adjourn the Regular
Meeting at 7:09 p.m., to the
Board's Regular Meeting
date of July 25, 2018 at 5:00
p.m. V. Baroldi seconded
the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1(V. Ramirez).
* 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.
2018-50