Public Utilities 2020/04/22CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
April 22, 2020
The agenda, including the Teleconference Notice, having been posted on Thursday, April 16, 2020, the
Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson E. Medrano at
5:00 p.m. on Wednesday, April 22, 2020, in the I Ph Floor Large Conference Room, Anaheim West
Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson E. Medrano, Vice -Chairperson J. Seymour (via teleconference),
R. Bhalla (via teleconference), J. Showalter (via teleconference), R. Gaona
(via teleconference), V. Baroldi (via teleconference), A. Abdulrahman (via
teleconference)
Board Members Absent: None.
City Staff Present:
Guest(s) Present:
PUBLIC COMMENTS.
D. Lee, P. Oviedo, A. Kott, M. Moore (via teleconference), J. Lonneker (via
teleconference), B. Beelner (via teleconference), G. Bowen (via
teleconference), J. Lehman (via teleconference), M. Seifen (via
teleconference), T. Cooke (via teleconference)
Andrew Dressler (via teleconference) and Keith Lorenzetti (via
teleconference), Guidehouse, Inc.
AGENDA ITEM
1. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF FEBRUARY
26, 2020. *
ACTION TAKEN
There being no oral public
comments or public
comments submitted
pursuant to the
Teleconference Notice,
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 February 26,
2020. R. Gaona seconded
the motion.
2020 - 18
MOTION VIA ROLL
CALL VOTE CARRIED:
5-0.
ABSTAINED: 0.
ABSENT: 2 [R. Bhalla, A.
Abdulrahman].
2. APPROVAL OF THE 2020 WILDFIRE MITIGATION PLAN
Vice Chairperson J.
(PLAN) AND AUTHORIZE THE PUBLIC UTILITIES
Seymour moved the
GENERAL MANAGER OR DESIGNEES TO TAKE ALL
approval of the 2020
ACTIONS NECESSARY, REQUIRED, OR ADVISABLE TO
Wildfire Mitigation Plan.
IMPLEMENT, ADMINISTER, FUND, AND CARRY OUT
A. Abdulrahman seconded
THE ACTION OR ACTIVITIES ENVISIONED BY THE
the motion.
PLAN. *
MOTION VIA ROLL
CALL VOTE CARRIED:
T. Cooke, Electric Operations Manager, presented to the Board the
7-0.
Anaheim Public Utilities Department (APU) 2020 Wildfire
ABSTAINED: 0.
Mitigation Plan (Plan) explaining how the revised Plan has been
ABSENT: 0.
adapted to align with rapidly changing state regulatory
requirements outlined in Public Utilities Code (PUC) Section 8387
and also features best practices from the utility industry. T. Cooke
then introduced the Qualified Independent Evaluator (QIE) team
consisting of Andrew Dressler and Keith Lorenzetti of
Guidehouse, Inc. who were selected by APU through an open
procurement process for their experience in assessing the safe
operation of electrical infrastructure and evaluating wildfire risk
from electrical infrastructure and mitigation strategies.
Guidehouse reviewed and assessed the comprehensiveness of the
Plan and shared the report of their findings with the Board.
Guidehouse reported to the Board their conclusion that the Plan is
comprehensive and meets the statutory requirements in accordance
with PUC Section 8387.
The Board inquired about safety and operation procedures for
limiting operational activities during emergency situations and
asked when those safety procedures will be put in writing. Staff
indicated that safety and operational activities are already being
practiced by field staff and will be documented in the System
Order by June 2020.
3. APPROVAL OF THE 2020 GREENHOUSE GAS
Vice Chairperson J.
REDUCTION PLAN (2020 PLAN) AND AUTHORIZE THE
Seymour moved approval of
PUBLIC UTILITIES GENERAL MANAGER OR
the 2020 Greenhouse Gas
DESIGNEES TO TAKE ALL ACTIONS NECESSARY,
Reduction Plan. A.
REQUIRED, OR ADVISABLE TO IMPLEMENT,
Abdulrahman seconded the
ADMINISTER, FUND, AND CARRY OUT THE ACTIONS
motion.
OR ACTIVITIES ENVISIONED BY THE 2020 PLAN. *
MOTION VIA ROLL
CALL VOTE CARRIED:
G. Bowen, Assistant General Manager — Power Supply, provided
7-0.
the Board with an overview of the 2020 Greenhouse Gas
ABSTAINED: 0.
Reduction Plan (2020 Plan). G. Bowen indicated that the plan was
ABSENT: 0.
2020 - 19
first developed back in early 2015 at the request of Council
Member Brandman and at a subsequent City Council meeting in
October 2019, Council Member Brandman requested that APU
bring back an updated plan to reflect the introduction of Senate
Bill 100 by the California State Legislature in 2018.
G. Bowen explained that the 2020 Plan update establishes APU's
updated goals for 2030 and new goals for 2045; additionally, the
Plan provides an overview of APU's accomplishments since the
plan was first developed in 2015. G. Bowen highlighted the major
actions taken by APU to reduce its carbon footprint, pointing to
APU's divestiture of its coal-fired power plant in New Mexico and
the new renewable contracts to replace that energy. G. Bowen also
mentioned that APU took steps to retire the Kraemer Power Plant
from service due to a lack of available parts for ongoing
operations. Overall, the 2020 Plan identified that 1,908,300 metric
tons of carbon dioxide equivalent greenhouse gases have been
reduced as a result of the various sustainability programs.
The Board inquired about specific measures, and staff responded
by stating additional details will be provided to the Board at a later
date.
4. APPROVAL AND AUTHORIZATION OF THE POSTING
THE 2020 WATER QUALITY REPORT ON THE ANAHEIM
PUBLIC UTILITIES WEBSITE AND FOR THE PUBLIC
UTILITIES GENERAL MANAGER OR DESIGNEE TO
PROVIDE A CERTIFICATION OF COMPLETION OF
POSTING TO THE STATE WATER RESOURCES
CONTROL BOARD DIVISION OF DRINKING WATER.
J. Lehman, Chief Risk Officer, invited the Board's attention to the
2020 Annual Water Quality Report (Report) detailing that APU
either met or exceeded all federal and state water quality
requirements. J. Lehman pointed out a correction to page 9 of the
Report. She stated that there was an omission of a Public Health
Goal level for Chromium, Hexavalent. The level was listed as
"n/a" when it is actually 0.02 parts per trillion.
J. Lehman requested the Board's approval to post the corrected
Report on the web site and certify to the State Water Resource
Control Board when the posting was completed. She mentioned
that customers would be informed on their bill inserts that the
Report was available and how to receive a hard copy if they
preferred one.
The Board inquired about the Federal Environmental Protected
Agency's (EPA) regulation of PFAS compounds. Staff mentioned
that, in general, if federal EPA standards become less strict, the
Staff will prepare a
presentation with additional
greenhouse gas reduction
details at a future Board
meeting.
A. Abdulrahman moved
approval to post the
corrected 2020 Water
Quality Report on the City
of Anaheim Public Utilities
website and provide
Certification of Completion
of Posting to the State Water
Resources Control Board
Division of Drinking Water.
R. Gaona seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
2020 - 20
state can have higher standards and that since this is an emerging
issue the state of California is likely to maintain higher standards.
The Board asked how the water quality data is gathered given that
the City has different districts. Staff indicated that the water
system is operated as a whole system and that samples are taken
throughout the City per our state drinking water permit and ensures
the samples reflect all areas of the City.
5. APPROVAL OF AGREEMENT FOR CITY -OWNED
R. Gaona moved approval of
ELECTRIC VEHICLE (EV) CHARGER OPERATION AND
an Agreement for Electric
MAINTENANCE BETWEEN THE CITY OF ANAHEIM AND
Vehicle Charger Operation
KOURTIS INDUSTRIES LTD., DBA ENERGY
and Maintenance services
MANAGEMENT SOLUTIONS, IN THE AVERAGE
with Kourtis Industries
ANNUAL SUM OF $60,000 FOR AN INITIAL FIVE-YEAR
LTD., DBA Energy
TERM, WITH THREE ONE-YEAR OPTIONAL
Management Solutions, in
EXTENSIONS, WITH A 10% CONTINGENCY FOR EXTRA
the average annual sum of
SERVICES. *
$60,000 for an initial five-
year term, with three one-
G. Bowen discussed the Operation and Maintenance Agreement
year optional extensions,
for City -Owned Electric Vehicle (EV) Chargers with the Board.
with a 10% contingency for
G. Bowen explained that APU currently has installed 56 EV
extra services. Vice
charging stations throughout City -owned facilities for fleet and
Chairperson J. Seymour
public use and that in order to maintain these charging stations,
seconded the motion.
APU is seeking to contract for annual operation and maintenance
MOTION VIA ROLL
services through a third party provider.
CALL VOTE CARRIED:
7-0.
G. Bowen indicated that APU issued a request for proposals earlier
ABSTAINED: 0.
in the year to seek operations and maintenance support services
ABSENT: 0.
and received 8 proposals. Kourtis Industries was selected to
provide the services because of their extensive experience
maintaining and repairing the various EV charger brands that APU
currently owns, and has performed various electrical vehicle
services for other cities. He shared with the Board that the funding
to maintain and support EV charger operations will be provided
through the Low Carbon Fuel Standard program and administered
through the California Air Resources Board.
6. APPROVAL OF AGREEMENT WITH C.R.&A. CUSTOM, Vice Chairperson J.
INC. FOR GRAFFITI ABATEMENT SERVICES IN THE
Seymour moved approval of
AVERAGE ANNUAL SUM OF $341,287 FOR AN INITIAL
an Agreement with C.R.&A.
THREE-YEAR TERM, WITH TWO ONE-YEAR OPTIONAL
Custom, Inc. for Graffiti
EXTENSIONS, WITH A 15% CONTINGENCY FOR EXTRA
Abatement Services in the
SERVICES; AND DETERMINE THAT THESE SERVICES
average annual sum of
ARE CATEGORICALLY EXEMPT FROM THE
$341,287 for an initial three-
CALIFORNIA ENVIRONMENTAL QUALITY ACT
year term, with two one-year
PURSUANT TO SECTION 15301(B) OF TITLE 14 OF THE
optional extensions, with a
CALIFORNIA CODE OF REGULATIONS. *
15% contingency for extra
services end determine that
J. Lonneker, Assistant General Manager — Electric Services,
these services are
provided background information to the Board about the City's
categorically exempt from
2020 - 21
current graffiti removal practices and the supplemental APU
Graffiti Abatement program. J. Lonneker requested the Board's
approval on the new 3-year term Graffiti Abatement program
agreement in the average annual sum of $341,287 for vinyl
wrapping of up to 900 utility equipment enclosures with option to
extend the contract twice for additional one-year terms. J.
Lonneker explained to the Board the contract does not include
sealant applied to streetlight poles like the previous agreement and
that those services will be included in a separate contract in the
future.
7. APPROVAL OF THE ANAHEIM WATER RECYCLING
DEMONSTRATION FACILITY OPERATIONS AND
MAINTENANCE AGREEMENT BETWEEN THE CITY OF
ANAHEIM AND INTEGRATED PERFORMANCE
CONSULTANTS, INC. TO PROVIDE CONTRACT
OPERATIONS AND MAINTENANCE SERVICES FOR THE
WATER RECYCLING DEMONSTRATION FACILITY IN
THE AVERAGE ANNUAL SUM OF $236,236 FOR AN
INITIAL THREE-YEAR TERM WITH FIVE ONE-YEAR
OPTIONAL EXTENSIONS, WITH A 15% CONTINGENCY
FOR EXTRA SERVICES, IF NEEDED, AND A ONE-TIME
UPGRADE OF THE EXISTING CONTROL SYSTEM
SOFTWARE PROGRAMING IN THE SUM OF $22,500.
M. Moore, Assistant General Manager — Water Services, presented
the proposed Agreement with Integrated Performance Consultants
for the operations and maintenance of the Water Recycling
Demonstration Facility (WRDF). M. Moore indicated that the
initial term of the Agreement is three years with five one-year
optional extensions. The WRDF operations and maintenance has
been contracted since it came online in 2013. Integrated
Performance Consultants has been operating the WRDF since
2013, and the proposed agreement cost is consistent with their
existing agreement that will expire in May 2020.
The Board asked why there were only two bidders. M. Moore
responded that likely because this is a smaller treatment plant,
some contractors did not submit a proposal. The Board asked if
the WRDF is a cost effective source of water. M. Moore
responded the WRDF is not APU's lowest cost water supply,
however, the purpose of the plant is for demonstration and
education purposes. The Board asked how similar the proposed
cost are with the existing agreement. M. Moore explained that the
cost are very similar with annual operating and maintenance cost
being approximately $230,000 per year.
CEQA. R. Bhalla seconded
the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
V. Baroldi moved approval
of the Anaheim Water
Recycling Demonstration
Facility Operations and
Maintenance Agreement
with Integrated Performance
Consultants, Inc. to provide
contract operations and
maintenance services for the
Water Recycling
Demonstration Facility in
the average annual sum of
$236,236 for an initial three-
year term with five one-year
optional extensions with a
15% contingency for extra
services and a one-time
upgrade of the existing
control system software
programing in the sum of
$22,500. R. Gaona
seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
2020 - 22
8. UTILITIES SUCCESS INDICATORS.
B. Beelner, Assistant General Manager — Finance and
Administration, gave a presentation on the Utilities Success
Indicators (USI) for the reporting period covering July 1, 2019
through December 31, 2019. B. Beelner provided an overview of
the USI report, explaining how the key performance indicators
measure APU's performance across several operating areas and
mentioned that the report would be posted on the Anaheim Public
Utilities website.
9. QUARTERLY STATUS REPORTS ON CAPITAL
IMPROVEMENT PROJECTS, MASTER AGREEMENTS,
GENERAL SERVICES AGREEMENTS, AND SPOT BID
AWARDS.
J. Lonneker explained to the Board the expenditure variance in the
overall Electric Services Capital Improvement Projects budget and
specifically in the Underground Conversion category, which is due
to an earlier encumbrance of $20.5M for the multi -year
undergrounding project planned on Beach Blvd., which is currently
in design with APU staff working with Caltrans for permitting. J.
Lonneker indicated that construction of the project is contingent on
receiving permits and expenditures will increase when construction
begins. In addition, City Council awarded $5M for the UD-65
Phase 1 Royal Oak UG in March 2020, which is not yet reflected
in the current CIP dashboard but will be encumbered this FY.
D. Lee, Public Utilities General Manager, explained to the Board
that the Solar for Schools projects have been placed on hold due to
the COVID-19 state restrictions.
Lastly, M. Moore indicated that the Water CIP encumbered
contracts are significantly less than budgeted due to the deferral of
the Anaheim South Recycled Water Project for the groundwater
treatment plant projects that are planned for next fiscal year.
M. Moore also indicated the groundwater treatment plant projects
are time sensitive to reduce imported water supply cost and that
some of these agreements will be taken directly to City Council to
save time. These agreements will be reviewed with the Board in
the future with a presentation on the overall program. The Board
commented that the determination to prioritize the groundwater
treatment plant projects made sense.
2020 - 23
10. CORONAVIRUS UPDATE — ESSENTIAL WATER AND
POWER SERVICES FOR CUSTOMERS.
D. Lee gave a presentation on APU's status during the current
Coronavirus pandemic.
B. Beelner provided the Board with an overview on the Finance
and Administration division. B. Beelner indicated that staff has
been provided with the proper personal protective equipment
(PPE). B. Beelner then mentioned that most of the Call Center
representatives are currently telecommuting.
M. Moore indicated that Water Services is continuing with critical
operations like serving pumps and valves but has temporarily
stopped working on certain maintenance and other non -critical
services that don't pose a risk for an outage. M. Moore mentioned
staff is practicing physical distancing in their workspace when
possible and field employees are practicing distancing by driving
separate vehicles.
J. Lonneker noted that Electric Services has also reduced or
cancelled non -essential outages during this time and when
possible, have scheduled outages to take place at nighttime to limit
any inconvenience to APU customers. J. Lonneker indicated that
field staff are aware that they need to wear their PPE when
working in close proximity, for example in confined spaces.
J. Lonneker also mentioned that Electric Services engineering and
office staff are primarily telecommuting.
G. Bowen provided an update on the impacts of the Coronavirus to
the Power Supply division. He explained that several projects
would be postponed until Fiscal Year 22, including Solar for
Schools, Energy Storage System, and the decommissioning of the
Kraemer Power Plant. G. Bowen also explained that the
Technology group, provided computer support services so staff
had the ability to telecommute and connect to the City intranet
remotely. G. Bowen also shared with the Board that most of the
commercial and residential programs were suspended and that
rebate programs are still being processed. G. Bowen also made the
Board aware that the electrical load has dropped due to the
Governor's Stay at Home order on March 19.
J. Lehman provided an update on Enterprise Risk and Compliance
division. J. Lehman indicated that safety is the priority and main
concern during this time and that staff has been working diligently
with field crews to reevaluate work practices and modify
procedures where appropriate. In addition to the update on
COVID-19 impacts, J. Lehman invited the Board's attention to the
Internal Compliance Report in the Board's packet; she indicated
that staff works effectively to keep APU in compliance with the
myriad of rules and regulations.
2020 - 24
J. Lehman then discussed the Wholesale Energy Risk Management
(ERM) Program's Quarterly Compliance report. She mentioned
that the ERM program helps ensure that wholesale energy -related
transactions are conducted in a timely manner while ensuring that
APU's interests are protected and risks are minimized. J. Lehman
noted that all transactions were within the Authorized Transaction
Limits during this period.
11. ITEM(S) BY SECRETARY.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Financial Overview Presentation and Proposed FY21
Budget
• Update on Groundwater Treatment Activities
• On -Call Hazardous Waste Management Services
D. Lee requested that the meeting be closed in the memory of two
former APU employees, Armando Rivera who passed away on
March 11, 2020 and Virginia "Ginger" Turner who passed away on
March 21, 2020.
12. ITEM(S) BY BOARD MEMBERS.
J. Showalter mentioned her husband is on the Budget committee for
Anaheim and that due to this Coronavirus pandemic, modifications
are being made to the city's budget.
V. Baroldi thanked staff for continuing to come into work during
this difficult time to keep Anaheim's utilities services flowing.
J. Seymour indicated that there has not been a great surge of
COVID-19 impacted patients at Anaheim Regional Medical Center.
E. Medrano thanked APU staff for their hard work and stepping up
during this time.
2020 - 25
13. ADJOURNMENT: (NEXT REGULAR MEETING ON MAY Vice Chairperson J.
27, 2020 AT 5:00 P.M. PLEASE BE ADVISED THAT BOARD Seymour moved to adjourn
MEMBERS WILL PARTICIPATE IN THIS MEETING the Regular Meeting in
TELEPHONICALLY.) memory of Armando Rivera
and Virginia "Ginger"
E. Medrano called for a minute of silence, followed by a call for a Turner at 6:47 p.m. to the
motion to adjourn the meeting in memory of Armando Rivera and Board's Regular Meeting
Virginia "Ginger" Turner. date of May 27, 2020 at 5:00
p.m. in the 111h Floor Large
Conference Room of
Anaheim West Tower. V.
Baroldi seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
Res c tfully lifted,
Dukku Lee
Public Utilities General Manager
* 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.
2020 - 26