Public Utilities 2020/08/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
August 26, 2020
The agenda, including the Teleconference Notice, having been posted on Thursday, August 20, 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, August 26, 2020, in the 1 10'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 (via
teleconference), R. Bhalla (via teleconference), R. Gaona (via
teleconference), A. Abdulrahman (via teleconference), J. Showalter (via
teleconference)
Board Members Absent: None
City Staff Present: 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), C. Parker (via
teleconference), S. Smith (via teleconference), L. Nugent (via
teleconference), S. Marsh (via teleconference)
Guest(s) Present: None.
AGENDA ITEM ACTION TAKEN
PUBLIC COMMENTS.
Two public comments from a representative for a resident concerning
the lack of response related to an electrical box being adjusted to grade
in a new driveway were submitted to the Board. The first comment
was submitted on August 22, 2020 and the second on August 24, 2020.
J. Lonneker, Assistant General Manager — Electric Services, explained
to the Board that the resident installed new pavers for a driveway and
afterwards discovered that an existing small underground utility pull -
box, located within the right-of-way and within the driveway, was no
longer flush with the new surface and could be a potential tripping
hazard. An Anaheim Public Utilities (APU) Electrical Inspector
contacted the resident and met at his home that day and discussed
arrangements for an APU crew to set a new pullbox with a traffic -rated
lid. The resident wanted his private contractor to first remove a few
pavers around the box so not to damage them, and that he or his
contractor would notify the APU Electrical Inspector once complete to
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schedule an APU crew to replace the electrical box. The resident was
satisfied with this arrangement and anticipated calling for the APU
crew the following week.
The resident's representative further stated concerns that APU staff did
not identify themselves before coming onto the property and did not
leave information about how to contact APU for additional questions.
J. Lonneker informed the Board that this complaint would be
addressed with staff and explained that it is part of APU's standard
procedure to wear APU uniforms and provide identification when
approaching customers recognizing the host of fraudulent activities
that can occur. J. Lonneker will provide further updates upon
completion of the pull box adjustment and staffing situation.
1. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF JULY 22,
2020. *
2. PRESENTATION: ENERGY CONDITIONS UPDATE.
D. Lee, Public Utilities General Manager, provided the Board with
an update on the rotating outages caused by extreme weather
conditions that affected the California Independent System
Operator (CAISO), which represents much of the state of
California.
G. Bowen, Assistant General Manager — Power Supply, discussed
the performance of APU resources during the CAISO declared
emergencies. He indicated that APU had more than sufficient
resources and reserves available to serve our forecasted load of 450
Megawatts (MW) during the Stage 3 Emergency on Friday, August
14, and that APU had 150 MW or 25% of additional capacity for any
unforeseen contingency like a unit tripping offline. G. Bowen
indicated that because APU is part of the CAISO with other utilities,
its load and capacity is aggregated and effectively treated as
combined load and capacity.
G. Bowen mentioned that overall, APU's resources performed well
and that there were some concerns with Canyon Unit 4, which
developed an oil leak. However, staff determined the unit could
continue to operate safely and would be taken out of service in
Vice -Chairperson J.
Seymour moved approval of
the Minutes of the Public
Utilities Board Regular
Meeting of July 22, 2020.
V. Baroldi seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 0.
ABSENT: 1 JR. Bhalla].
2020 - 45
October for depot level repairs, which is expected to take 3 to 4
weeks to complete.
J. Lonneker then explained how electric operators utilized existing
emergency procedures to initiate rotating outages. It was determined
that the amount of electric demand required for APU to shed could
be split among multiple circuits, so a 15-minute timeframe was
established to mitigate customer impacts. Load block numbers are
available on customer bills so they know if they are potentially
affected by rotating outages.
B. Beelner, Assistant General Manager — Finance & Administration,
shared that customer service representatives were called upon to
answer phones during the emergency. The use of the new phone
system allowed for staff to work remotely and still provide assistance
to customers.
J. Lehman, Chief Risk Officer, shared that the Governor's office
called for an investigation into the rotating outages, and state
regulatory agencies will be included in the investigation.
The Board asked a series of questions about the rotating outages,
available generation resources, CAISO members, and APU's
obligations. The Board expressed that many of their neighbors were
upset over the rotating outages. Staff helped address the questions
by explaining that APU is part of the regional grid and gets
transmission services from the CAISO, which helps to bring in
resources to Anaheim and sharing those resources and costs help
keep rates affordable. However, the obligation is to participate to
prevent larger outages, and while rotating outages are not ideal, the
alternative could be larger, longer duration outages that cascade and
affect more people like the San Diego event in recent history. APU
will continue to work through the many complex issues associated
with power reliability, likely regulations and legislation, and
ensuring that APU's resource are sufficient to meet local needs.
3. PRESENTATION: GROUNDWATER TREATMENT
UPDATE.
C. Parker, Water Engineering Manager, gave a presentation on the
groundwater treatment program highlighting on the presence of
per- and polyfluoroalkyl substances (PFAS) in the groundwater.
C. Parker discussed the PFAS regulations, treatment alternatives,
phasing, schedule, and that the program will save the City about
$300M to $400M over 30 years versus purchasing additional
imported water.
The Board inquired about the overlap in the program's phases.
C. Parker indicated that the phases overlap to ensure they are
launched when ready, thereby reducing the cost to purchase
imported water until the treatment program is online. The Board
2020 - 46
also asked how much the treatment will cost and where the Ion -
Exchange (IX) resin will be disposed. C. Parker explained that the
cost of the program will be between $100M and $200M, and the
resin will be properly disposed of; currently, the options that are
authorized include disposal in a landfill or incineration. In
addition, the Board asked if pipelines would have to be constructed
to send the well water to centralized treatment sites. C. Parker
indicated that this might be required due to not being able to install
treatment facilities at some well sites due to limited land.
4. PRESENTATION: UTILITIES SUCCESS INDICATORS,
REPORTING PERIOD JANUARY 1, 2020 — JUNE 30, 2020.
A. Nguyen, Utilities Budget Administrator, gave a presentation on
the Utilities Success Indicators (USI) for the reporting period of
January 1, 2020 through June 30, 2020. A. Nguyen began with the
Call Center, describing how the average wait time met the goal,
but also how call volume had dipped since March because utility
service shutoffs and late payments had been suspended temporarily
to help customers. He also described how the City's 311 Call
Center saw higher call volume, attributable to callers who had
questions about the City's pandemic response programs.
A. Nguyen then focused on the Electric Utility's reliability indices,
indicating that they were in the top quartile of public owned
utilities nationwide for the reporting period. He also commented
that the American Public Power Association recognized the
Electric Utility as a Reliable Public Power Provider. Transitioning
to water system reliability, A. Nguyen noted that the 3-year goal of
inspecting all hydrants and exercising all valves had recently been
met.
Moving to financial health, A. Nguyen stated that current
projections show Electric and Water's debt service coverage will
be 1.7 and 1.8 respectively for fiscal year 2020. He explained that
the state's stay-at-home restrictions continue to impact revenue,
and the Water Utility is importing more water to address the
presence of PFAS in groundwater. The program to build treatment
plants to restore groundwater wells is a critical component of the
long-term strategy, and that the finance team is pursuing other
financial measures like refinancing higher interest debt in order to
reduce costs.
Lastly, A. Nguyen addressed how APU is working in close
alignment with the City to help utility customers and the Anaheim
community during the pandemic. He described how APU
provided energy efficiency kits to frontline workers, and how
residents impacted by school closures were given activity kits to
interact with their children. He also mentioned that APU had
2020 - 47
granted numerous bill extensions and deferrals for customers, with
nearly 14,000 avoided disconnections since March.
At the end of the presentation, J. Lonneker, noted that while the
Electric Utility's reliability appeared strong during the reporting
period, results for the next reporting period may tick higher. She
also noted that the upcoming Electric System Reliability Report
may contrast with the USI result because the former will measure a
different time period (calendar year 2019).
5. APPROVAL OF THE GENERAL SERVICES AGREEMENT
(AGREEMENT) FOR PREQUALIFIED PROFESSIONAL
ENGINEERING SERVICES TO SUPPORT ELECTRICAL
PROJECTS WITH THE FOLLOWING PREQUALIFIED
CONSULTANTS FOR A THREE-YEAR TERM WITH UP TO
TWO ONE-YEAR EXTENSIONS: AMPED I, LLC; ASEC,
INC.; AURIGA CORPORATION; AVECS, INC.; BKF
ENGINEERS; BLACK & VEATCH CORPORATION; CHO
DESIGN ASSOCIATES, INC.; COMMONWEALTH
ASSOCIATES, INC.; CORDOBA CORPORATION; DAHL,
TAYLOR & ASSOCIATES; DEREK J. MCGREGOR, INC.;
ELCON ASSOCIATES, INC.; ELECTRIC POWER
SYSTEMS ENGINEERING AND DESIGN; ELECTRICAL
CONSULTANTS, INC.; EN ENGINEERING, LLC;
GUIDEHOUSE, INC.; GRID SUBJECT MATTER EXPERTS,
LLC; HENKELS & MCCOY, INC.; IMEG CORPORATION;
INTEC SERVICES, INC.; KEWO ENGINEERING
CORPORATION; LOPEZ ENGINEERING, INC.; MAGNA
CONSULTING AND DESIGN, INC.; MAYERS &
ASSOCIATES CIVIL ENGINEERING, INC.; MESA
ASSOCIATES, INC.: MALONE AND ASSOCIATES, LLC;
NV5, INC.; OUTSOURCE UTILITY CONTRACTOR
CORPORATION; P2S, INC.; PARKIA, INC.; PXISE
ENERGY SOLUTIONS, LLC; POWER -TECH ENGINEERS,
INC.; Q3 ENGINEERS, INC.; R.G. VANDERWEIL
ENGINEERS, LLP; SCHNEIDER ELECTRIC
ENGINEERING SERVICES, LLC; SHEFFIELD
SCIENTIFIC, LLC; STANTEC CONSULTING SERVICES,
INC.; THE ENGINEERING PARTNERS INC., DBA EPI; VCI
UTILITY SERVICES, LLC, DBA VANTAGE UTILITY
SERVICES; WILSON MIKAMI CORPORATION; AND
SUCH OTHER PROFESSIONAL ENGINEERING
CONSULTANTS AS MAY BE PREQUALIFIED DURING
THE TERM OF THE AGREEMENT, ALL SUCH
AGREEMENTS IN A NOT -TO -EXCEED AMOUNT OF
$400,000 PER WORK ORDER PACKAGE, WITH A 15%
CONTINGENCY, AND A LIMIT PER CONSULTANT OF $1
MILLION IN TOTAL AWARDS PER FISCAL YEAR. *
A. Abdulrahman moved
approval of the General
Services Agreement for all
40 of the pre -qualified
consultants. R. Gaona
seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
2020 - 48
J. Lonneker explained to the Board that APU utilizes engineering
consultants for specialized technical services to support APU in-
house engineers on capital projects and gave examples of projects
including direct buried cable replacement design, mapping, studies,
generation plant testing, and easement/Right-of-Way (ROW)
acquisition. APU pre -qualifies technical firms on a 3-year cycle
who are then eligible to submit proposals on specific projects, with
services limited to $400,000 per project. Of 125 inquiries, 40
firms were pre -qualified based on requisite criteria. J. Lonneker
made the Board aware that the General Services Agreement
between the firms and the City of Anaheim included the addition
of a $1,000,000 limit per consultant per fiscal year on project
awards and additional compliance and safety requirements. The
Agreements will remain in place for the 3-year cycle.
6. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker shared with the Board pictures of installed slip
resistant electrical vault covers piloted at five locations. APU
worked with manufactures to design a slip resistant surface for
high pedestrian traffic areas.
J. Lonneker made the Board aware that APU participated in the
annual training of the Fire Watchers hosted by Anaheim Fire and
Rescue (AF&R). These community volunteers are trained to
watch for anomalies of electric overhead infrastructure in
Anaheim Fire Threat Zones (FTZ). APU Operations Manager,
Tracy Cooke, reviewed the components on the power poles,
overhead lines and equipment to identify, and report anomalies
that could potentially lead to a fire hazard. This training is hosted
annually prior to the start of fire season and high wind conditions.
7. UPDATE ON WATER SYSTEM ISSUES.
M. Moore, Assistant General Manager — Water Services, reviewed
the Water Supply Dashboard. M. Moore indicated that the Orange
County ground water basin has seen a significant increase in water
levels primarily due to reduced pumping due to PFAS. The water
levels are now within normal ranges.
M. Moore then mentioned that during last CAISO Stage 2 and 3
power emergencies, the backup power generators at three water
facilities were operated to reduce load on APU's electric grid. The
three facilities reduced the electric load on the grid by
approximately 1.5 MW.
Lastly, M. Moore indicated that the reduced maintenance
procedures that were implemented to maintain social distancing
have been removed from water operations. Field crews have
2020 - 49
started flushing the water distribution to ensure there is good water
quality throughout Anaheim.
8. UPDATE ON FINANCE ISSUES.
B. Beelner, Assistant General Manager — Finance &
Administration, discussed the monthly dashboard with the Board -
the fiscal year to date electric revenue through July 31, 2020 was
2.8% below budget ($1.OM) due primarily to a temperate summer
causing low retail demand coupled with lower commercial and
industrial demand due to Shelter in Place orders. Operating
expenditures fell below budget by 6.8% ($2.1M) also due to lower
than expected demand along with lower than expected wholesale
power prices causing a positive net budget variance of $1.1M. B.
Beelner then mentioned that year to date water revenue was 3.5%
($0.3M) below budget due to weaker than anticipated customer
demand due to a temperate summer and lower
commercial/industrial demand related to the Shelter in place
orders. Costs were below budget as well by 9.6% (0.7M) causing
a negative net budget variance of $0.44M.
B. Beelner then mentioned that the Finance Committee at the
Southern California Public Power Authority (SCPPA) has
identified potential savings for APU of approximately $7 million
in Fiscal Year (FY) 2021 and approximately $7 million in FY 2022
through refinancing of currently outstanding SCPPA debt.
9. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen informed the Board that for the first month of the new FY
there were no unit outages to report and that renewable generation
was slightly above its forecast due to higher output from its wind
resources. He also indicated that Canyon and Magnolia Power
Plants operated more than forecasted in the on peak hours, while the
IPP units operated less in the off peak and shoulder hours.
G. Bowen also mentioned that wholesale sales were promising for
the first month, exceeding APU's forecast for July. He also indicated
that next month the Board could expect to see a large shift in CAISO
energy prices due to the heatwave experienced in August.
10. UPDATE ON ENTERPRISE RISK AND COMPLIANCE.
J. Lehman, Chief Risk Officer, shared that August 31, 2020 was
the last day for State bills to be passed by the Legislature and sent
to the Governor. She indicated that recently the Legislature had
been focused on topics other than utility operations. However, two
beneficial bills mentioned last month continued to progress. These
two bills are both water related and are Assembly Bill (AB) 2560,
which would provide a clearer and more transparent process for
2020 - 50
setting or revising drinking water advisory levels for unregulated
water contaminants, and Senate Bill (SB) 1368 by Senator
Moorlach, which would reaffirm the current means for how costs
related to fire hydrants are billed. Both of these bills are expected
to pass into law.
Lastly, J. Lehman shared an overview of APU's recent Employee
Safety Appreciation event.
11. ITEM(S) BY SECRETARY.
D. Lee recognized S. Marsh, Resource Efficiency Advisor I, for
going above and beyond and assisting a veteran customer with
limited mobility, who needed help with a rebate form. S. Marsh
personally delivered the form to the customer.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Presentation of Revenue Protection
• Update on Emergency Response Planning
• Power Resource Presentation
D. Lee then indicated to the Board information about the new City
Manager, Jim Vanderpool. D. Lee also made the Board aware of
the accelerated separation program that will be available to
employees to help with city expenditures.
12. ITEM(S) BY BOARD MEMBERS.
J. Showalter shared she was moved by S. Marsh's act of kindness
and thanked her for her service to APU.
A. Abdulrahman thanked S. Marsh for her customer service.
V. Baroldi indicated that S. Marsh did a great job with the customer.
He then mentioned he hopes everyone is staying safe.
R. Gaona thanked S. Marsh for her job and expressed he was moved
by her compassion.
J. Seymour congratulated S. Marsh for her work. He then shared his
experience touring the Lenain Water Treatment Plant and suggested
Board members take advantage of touring the Plant.
E. Medrano thanked S. Marsh for being a positive representation of
APU employees.
2020 - 51
13. ADJOURNMENT: (NEXT REGULAR MEETING ON
Vice Chairperson J.
SEPTEMBER 23, 2020 AT 5:00 P.M. PLEASE BE ADVISED
Seymour moved to adjourn
THAT BOARD MEMBERS WILL PARTICIPATE IN THIS
the Regular Meeting at 7:14
MEETING TELEPHONICALLY.)
p.m. to the Board's Regular
Meeting date of September
23, 2020 at 5:00 p.m. in the
11 t" Floor Large Conference
Room of Anaheim West
Tower. R. Gaona seconded
the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
R - ectfully s(ibmitted,
�I
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 - 52