Public Utilities 2019/10/23CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
OCTOBER 23, 2019
The agenda, including the Teleconference Notice, having been posted on Thursday, October 17, 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, October 23, 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, V. Baroldi,
A. Abdulrahman, J. Showalter (Teleconference)
Board Members Absent: R. Bhalla, R. Gaona
City Staff Present: D. Lee, B. Beelner, G. Bowen, M. Moore, J. Lonneker, J. Lehman,
D. Albaugh, A. Kott, L. Quiambao, P. Oviedo, M. Seifen, D. Schmidt,
J. Sanks, C. Parker, M. Jouhari
Guest(s) Present: None.
AGENDA ITEM
D. Lee and the Board recognized David Albaugh, Administrative
Services Manager, for his 11 years of service with the City of
Anaheim. D. Albaugh will be taking a new position in the City of
Yorba Linda.
PUBLIC COMMENTS.
1. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF SEPTEMBER
25, 2019. *
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ACTION TAKEN
There being no public
comments in both locations,
Chairperson E. Medrano
closed the public comments
portion of the meeting.
Vice -Chairperson J.
Seymour moved approval of
the Minutes of the Public
Utilities Board Regular
Meeting of September 25,
2019. A. Abdulrahman
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla,
R. Gaona].
2. PRESENTATION: WATER SYSTEM RELIABILITY
UPDATE.
M. Moore, Assistant General Manager — Water Services, provided
a presentation on the Anaheim Public Utilities (APU) Department
water system's performance over the past fiscal year. M. Moore
provided a comparison of nation-wide metrics in the areas of
supply, availability, and efficiency. The period covered in the
presentation was July 2018 through June 2019. M. Moore
indicated that APU has a very reliable water system. However,
APU is working to improve performance measurements in the area
of outage duration and water loss. Approaches to improve these
performance measures were provided during the presentation.
3. PRESENTATION: ANNUAL EMERGENCY RESPONSE
AND PLANNING PROGRAM.
D. Schmidt, NERC Compliance and Emergency Planning
Manager, provided a presentation on APU's emergency response
planning and preparedness activities. APU's Emergency Response
Planning program provides staff vital information and guidance on
actions to be taken before, during, and after major emergencies and
it supplements Citywide efforts to prepare for, and respond to
emergencies.
D. Schmidt shared that during the past year there had been no
major outages on either the electric or water systems that triggered
the activation of the APU's Emergency Response Plan. As well,
there had been no activation of the citywide Emergency Operations
Center. He also provided highlights on APU's annual exercise that
had taken place in August.
J. Lehman, Chief Risk Officer, indicated that the time, energy, and
focus put into this program also helps APU perform current duties
better by improving communications, providing a better
understanding of other staff's duties, and identifying resources that
need updating, as well it helps responders to be more effective,
efficient, and comfortable working together during an actual
emergency.
4. APPROVAL OF THE SAFETY SERVICES CONSULTING
AGREEMENT IN AN AMOUNT NOT -TO -EXCEED $300,000
PER CONSULTANT, WITH UP TO 15% FOR EXTRA
WORK, FOR A THREE-YEAR TERM WITH ALTA
ENVIRONMENTAL, L.P., GLOBAL ENVIRONMENTAL
NETWORK, INC., AND STEARNS, CONRAD AND
SCHMIDT, CONSULTING ENGINEERS, INC., AND SUCH
OTHER SAFETY CONSULTANTS AS MAY BE
PREQUALIFY DURING THE TERM OF THE
AGREEMENT. *
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Vice -Chairperson J.
Seymour moved approval of
the Safety Services
Consulting Agreements. V.
Baroldi seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla,
R. Gaona].
J. Lehman provided background information stating that the
agreements will allow APU to provide a wide range of safety
services and will help to ensure that technical expertise and support
are available quickly to respond when needed. These resources are
necessary to help the APU work more safely, comply with federal
and state safety related laws and regulations, as well as provide
training to staff.
5. APPROVAL OF A CONSULTANT AGREEMENT WITH
JOHN FRIEDMAN ALICE KIMM ARCHITECTS, INC., FOR
DESIGN, PLANNING, AND CONSTRUCTION SUPPORT
SERVICES FOR THE UTILITIES CREW QUARTERS
BUILDING AND SUSTAINABILITY EDUCATION
CENTER.*
C. Parker, Water Engineering Manager, discussed the planned
Field Crew Quarters Building (FCQB) and the Sustainability
Education Center (SEC). C. Parker described how the existing
FCQB houses field crews for Water and Electric. The current
building, which is 44 years old, does not meet current and future
needs. A consultant performed a study in 2017 identifying many
deficiencies including heating and air conditioning equipment at
the end of its useful life, accessibility issues per the American with
Disabilities Act (ADA), several seismic (earthquake) issues, space
limitations, and other safety related concerns in the building. C.
Parker discussed that some Anaheim West Tower (AWT) field
staff will be relocated to the new FCQB in order to make space for
the One -Stop -Shop process being implemented by APU at AWT.
APU's operating centers for water and electric will also be
relocated to the new FCQB for better efficiencies during
emergencies. Finally, there will be a backup customer call center
at the new FCQB in the event the call center at AWT is not
operable.
C. Parker described the existing building, which is to be converted
for the SEC is in poor condition and is 63 years old. The SEC will
be a resource for customers to learn about water and energy
efficient programs, electric vehicles, and available rebate
programs. There will be a meeting space for educational
workshops and the potential for job training through partnerships
with other organizations. The display concepts include items such
as smart thermostats, irrigation controllers, heat pumps, and
electric vehicle chargers.
C. Parker described the design consultant selection process, which
included review of the 12 proposals received. The project team
shortlisted the three top firms for interviews to select the most
qualified firm. John Friedman Alice Kimm Architects (JFAK) was
selected based on qualifications, experience, and the fee
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A. Abdulrahman moved
approval of a Consultant
Agreement with John
Friedman Alice Kimm
Architects, Inc. for design,
planning, and construction
support services for the
Utilities Crew Quarters
Building and Sustainability
Education Center. Vice -
Chairperson J. Seymour
seconded the motion.
MOTION CARRIED: 4-1.
AYES: 4 [Chairperson E.
Medrano, Vice -
Chairperson J. Seymour,
A. Abdulrahman, J.
Showalter]
NOES: 1 [V. Baroldi].
ABSENT: 2 [R. Bhalla,
R. Gaona].
reasonableness. JFAK has completed similar projects for the City
of Los Angeles and the Los Angeles Department of Water and
Power (LAWDP).
The Board asked why the two buildings were not combined into
one building and constructed on the Edwards Utilities Complex
site, where the existing FCQB is located. D. Lee responded that
the complex is a working field crew site and not intended for daily
public access. The SEC proposed site would be a more suitable
location and easily accessed by the public.
The Board asked if the selected consultant was aware of the budget
and could design the buildings within the budget. C. Parker
indicated that the consultant was aware of the budget and would be
able to design the two buildings within the budget.
6. APPROVAL OF A RESOLUTION AUTHORIZING THE
V. Baroldi moved approval
WITHDRAWAL FROM MEMBERSHIP IN THE POWER
of a Resolution authorizing
AGENCY OF CALIFORNIA, A JOINT POWERS AGENCY. *
the withdrawal from
TERM AND A ONE-TIME LICENSE FEE IN THE AMOUNT
membership in the Power
G. Bowen, Assistant General Manager — Power Supply, briefed the
Agency of California, a
Board on APU's recommendation to withdraw from the Power
Joint Powers Agency. Vice -
Agency of California (PAC), which is a Joint Powers Agency. He
Chairperson J. Seymour
indicated that PAC was formed in the early 1990s as a Joint
seconded the motion.
Powers Agency (JPA) with its primary function to assist Publicly
MOTION CARRIED: 5-0.
Owned Utilities that own and operate electric generation and
ABSTAINED: 0.
transmission facilities in the sharing of costs and resources to
ABSENT: 2 [R. Bhalla,
operate those facilities through procurement of joint contracts for
R. Gaona].
scheduling services. G. Bowen mentioned that deregulation of the
electric industry occurred shortly thereafter, culminating in the
formation of the CAISO in 1998, which in turn eliminated the need
for this JPA. G. Bowen indicated that the other JPA members
Azusa, Banning, Colton and Riverside have already withdrawn or
are planning to do so.
7. APPROVAL OF A LICENSE AGREEMENT WITH ORANGE
A. Abdulrahman moved
COUNTY WATER DISTRICT LICENSE AGREEMENT TO
approval of a License
ACCESS THE LINDA VISTA COMPLEX FOR A 25 -YEAR
Agreement with the Orange
TERM AND A ONE-TIME LICENSE FEE IN THE AMOUNT
County Water District for
OF $1,148.00. *
the Linda Vista Complex.
V. Baroldi seconded the
M. Moore indicated that a portion of the Linda Vista Complex site is
motion.
owned by Orange County Water District. This License Agreement
MOTION CARRIED: 5-0.
and one-time fee will allow APU the right of site access.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla,
R. Gaona].
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8. QUARTERLY STATUS REPORTS ON CAPITAL
IMPROVEMENT PROJECTS, MASTER AGREEMENTS,
GENERAL SERVICES AGREEMENTS, AND SPOT BID
AWARDS.
M. Moore and J. Lonneker provided updates to the Board on the
quarterly reports, explaining that carry overs have not yet been
adopted by City Council for multi-year construction projects.
Budgetary information will be updated upon approval.
9. UPDATE ON ELECTRIC SYSTEM ISSUES, AND REPORT
ON DONATION OF SURPLUS CITY EQUIPMENT TO THE
CITY OF PENJAMO, GUANAJUATO, MEXICO.
J. Lonneker, Assistant General Manager — Electric Services,
reminded the Board about the Harbor Substation Dedication event
to be held on November 5, 2019 at the site and requested that
Board members contact P. Oviedo if they plan to attend.
J. Lonneker shared with the Board the request for the donation of
surplus equipment from a community member on behalf of the
City of Penjamo (Penjamo), a municipality in Guanajuato, Mexico.
City departments were requested to identify salvage vehicles and
equipment available for donation and APU identified two bucket
trucks already scheduled for replacements that have exhausted
their useful life and would otherwise be salvaged for
approximately $15,000. Additionally, High Pressure Sodium
(HPS) street lights, which are being phased out in Anaheim and
replaced with new Light Emitting Diodes (LEDs), and residential
outdoor lighting fixtures that are in working condition will be
collected as they become available and stored until ready for
donation. Representatives from Penjamo have agreed to make the
necessary arrangements and cover the costs for delivery of the
salvaged vehicles and equipment. J. Lonneker indicated to the
Board that this donation recommendation will be taken forward to
City Council for consideration by the Public Works Department
and include APU salvage items in November.
10. UPDATE ON WATER SYSTEM ISSUES.
M. Moore reviewed APU's water dashboard for the new year. He
indicated that storage levels are strong for this time of the year as
the rainy season approaches.
M. Moore mentioned that a tour of the downtown water recycling
facility was provided to a delegation from Anaheim's Sister City
Mito, Japan on October 23, 2019.
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11. UPDATE ON FINANCE ISSUES.
B. Beelner, Assistant General Manager — Finance and
Administration, discussed the monthly dashboard with the Board;
the year to date electric revenue through September 30, 2019 was
7.7% below budget ($ 10. OM) due primarily to a temperate summer
causing low retail demand coupled with lower than expected
wholesale revenue driven by lower than expected wholesale prices.
Costs for the fiscal year fell below budget by 4.5% ($4.5M) also
due to lower than expected demand lower than expected wholesale
power prices causing a negative net budget variance of $5.5M.
B. Beelner then mentioned that year to date water revenue was
8.6% ($2.2M) below budget due to weaker than anticipated
customer demand as a result of the temperate summer costs were
below budget as well by 1.9% (0AM) causing a positive net $1.8M
budget variance.
B. Beelner then distributed Board member biographies for review
as the information will be part of the documentation for the
potential Fiscal Year 2019/20 bond issuances. He asked each
Board member to review their respective biographies and respond
by November's Board meeting with any updates or changes.
12. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen provided an update on APU's Power Supply Portfolio
and shared with the Board that loads within Anaheim have been
down for the last several months as a result of the milder summer
weather. G. Bowen pointed out that APU's renewable portfolio
had seen a slight reduction from the geothermal and biomass
facilities as result of the cooler weather, and that increased
generation from APU's wind resources had helped to offset the
reduction seen in the renewable portfolio.
Lastly, G. Bowen provided the Board with an update on the
various residential outreach events that APU attended in the past
several months.
13. UPDATE ON ENTERPRISE RISK AND COMPLIANCE.
J. Lehman invited the Board's attention to the Internal Compliance
Report. She highlighted that there was an equipment failure at '
Canyon Power Plant that resulted in no emission exceedances, and
that the incident was self-reported, had been corrected, and no
violation is expected. J. Lehman then shared that all applicable
staff with responsibilities for energy trading, settlements, and risk
had completed the required annual anti -market manipulation
training.
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Lastly, J. Lehman shared photos of a pair of nesting Bald Eagles in
Anaheim.
14. ITEM(S) BY SECRETARY.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Kraemer Power Plant Presentation
• Set Public Hearing Date for Water and Electric Rates and
Rules
• Biomass Agreement
• Agreement for Refrigerator Recycling Services
• Amendment for Energy Scheduling Services
• Agreement for North American Electric Reliability
Corporation (NERC) consulting services
D. Lee shared photos of APU's Public Power week with the Board.
D. Lee also shared a customer survey response from Anaheim
Anytime thanking electric operation staff for the information they
provided during an outage.
D. Lee requested that the meeting be closed in the memory of
former APU employee who worked as a power resource scheduler
and retired in 2014, Elaine Griffin. Ms. Griffin passed away in
September 2019.
15. ITEM(S) BY BOARD MEMBERS.
A. Abdulrahman thanked APU for participating in the donation of
vehicles to Guanajuato, Mexico.
V. Baroldi thanked APU for the street light improvements as he
indicated it has made a significant difference in the community.
J. Showalter indicated both of her daughters recently became
homeowners in Anaheim. J. Showalter also commended APU's
staff for promptly assisting with turning water services on for the
new homeowners. Staff indicated that they would look into getting
Welcome Kits to the homeowners as part of its ongoing program to
recognize new customers in Anaheim.
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16. ADJOURNMENT: (NEXT REGULAR MEETING ON
NOVEMBER 20, 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 the meeting in memory of Elaine Griffin.
R ectfully bmitted,
Dukku Lee
Public Utilities General Manager
Vice -Chairperson J.
Seymour moved to adjourn
the Regular Meeting in
Memory of Elaine Griffin at
6:59 p.m., to the Board's
Regular Meeting date of
November 20, 2019 at 5:00
p.m. V. Baroldi seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla,
R. Gaona].
* 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.
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