Public Utilities 2021/02/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
February 24, 2021
The agenda, including the Teleconference Notice, having been posted on Thursday, February 18, 2021,
the Public Hearing/ Regular Meeting of the Public Utilities Board (Board) were called to order by
Chairperson E. Medrano at 5:00 p.m. on Wednesday, February 24, 2021, in the Gordon Hoyt Conference
Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson E. Medrano, Vice-Chairperson J. Seymour, A. Abdulrahman, J.
Showalter, V. Baroldi (via teleconference), N. Campos Kurtz, R. Bhalla (via
teleconference), R. Gaona (via teleconference)
Board Members Absent: None.
City Staff Present: D.Lee, P. Starr, A. Kott, M. Moore, J. Lonneker, B. Beelner, J. Lehman
M.Walker, M. Seifen, F. Barvarz (via teleconference), V. Tran, S. Smith,
L. Estrada (via teleconference), D. Ballin
Guest(s) Present: None.
AGENDA ITEM
1.PUBLIC COMMENTS.
Three public comments were submitted pursuant to the
Teleconference Notice. Two comments concerning the Public
Hearing (Item 5) were bifurcated so they would be part of the record
of the Public Hearing. There was a delayed receipt of the third
public comment inquiring about a potential renewable energy
project so it was distributed to the Public Utilities Board upon
receipt and the member of the public was contacted regarding the
comment by the appropriate staff.
2.RECOGNITION: JULIE SHOWALTER FOR HER SERVICE
TO THE ANAHEIM COMMUNITY AS A MEMBER OF THE
PUBLIC UTILITIES BOARD.
J.Showalter was recognized for her service to the community and
commitment to ensuring that Anaheim Public Utilities customers
received high quality service. She was presented with a
proclamation and plaque in recognition of her years of service on
the Anaheim Public Utilities Board.
2021 -10
ACTION TAKEN
There being no oral public
comments and three public
comments submitted
pursuant to the
Teleconference Notice,
Chairperson E. Medrano
closed the public comments
portion of the meeting.
ITEM # 01
J Showalter thanked staff and her colleagues on the Board and
welcomed the newest Board Member.
3.OATH OF OFFICE: NEW AND REAPPOINTED PUBLIC
UTILITIES BOARD MEMBERS.
•DISTRICT 1 -BOARD MEMBER ABDULMAGEED
(AB) ABDULRAHMAN
•DISTRICT 4 -BOARD MEMBER-ELECT NORMA
CAMPOS KURTZ
•DISTRICT 5 -BOARD MEMBER ERNESTO
MEDRANO
A.Kott, Assistant City Attorney, administered the Oath of Office
to the new and reappointed members of the Board.
4.APPROVAL OF THE MINUTES OF THE PUBLIC
HEARING/PUBLIC UTILITIES BOARD REGULAR
MEETING OF JANUARY 27, 2021. *
5.PUBLIC HEARING: FORMATION OF UNDERGROUND
DISTRICT NO. 69 (CERRITOS/NUTWOOD) AND
DETERMINE SUCH ACTION IS EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO SECTIONS 15301(B), 15302(C), 15302(0)
AND 15303 OF TITLE 14 OF THE CALIFORNIA CODE OF
REGULATIONS. *
D.Lee, Public Utilities General Manager, indicated that the staff
report and its attachment will serve as his report under Chapter
17.24 of the Anaheim Municipal Code (AMC). J. Lonneker,
Assistant General Manager -Electric Services provided a brief
overview of the Underground Conversion Program, which
included various projects throughout Anaheim to improve electric
reliability and visibility of roadways, and introduced V. Tran,
Principal Electrical Engineer, to provide the Board with a
presentation on the Cerritos/Nutwood district formation and
project details.2021-11 Vice-Chairperson J.
Seymour moved approval of
the Minutes of the Public
Hearing / Public Utilities
Board Regular Meeting of
January 27, 2021. A.
Abdulrahman seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 1 [N.
Campos Kurtz].
ABSENT: 0.
A.Abdulrahman moved
approval of formation of
Underground District No. 69
(Cerritos/Nutwood). N.
Campos Kurtz seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
7-0.
ABSTAINED: 0.
ABSENT: 0.
The Board inquired about the cost estimate of the
Cerritos/Nutwood undergrounding, and why it was higher than
what was previously proposed. V. Tran explained that the cost
difference was due to extending the undergrounding limits an
additional half mile on Nutwood Street from Cerritos A venue to
Ball Road. V. Tran also explained that the estimated project cost
was based on historic costs from previous projects that had similar
characteristics such as a railroad crossing and undergrounding high
voltage transmission (69kV) facilities at the intersection of
Nutwood/Ball. D. Lee mentioned that another reason to extend the
project another half mile is to avoid leaving gaps of overhead
facilities based on previous comments by the Underground
Subcommittee, as there are also plans to underground Ball Road
under the current Five-Year Plan.
After the presentation, D. Lee mentioned that Notice of Public
Hearing and the City Clerk's Office mailings were conducted in
accordance with Chapter 17 .24 and that the Affidavit of
Publication of the Notice of Public Hearing concerning this
District formation was filed with the Secretary of the Board.
Chairp erson E. Medrano noted that due to the COVID-19
pandemic, in-person and oral comments regarding the proposed
district formation were not possible but the public was able to
submit comments electronically.
Chairperson E. Medrano asked D. Lee whether the Secretary of the
Board received any correspondence concerning this public hearing.
D.Lee informed the Board that out of 1,006 mailed notices toagencies, including other utilities, and property owners, APU
received two emails and four telephone calls. The emails and
phone calls were inquiries regarding project scope. Chairperson E.
Medrano moved the written correspondence into the record and
thereafter closed the public hearing.
6.PRESENTATION: COMMUNITY ENGAGEMENT ANNUAL
UPDATE.
L.Estrada, Community and Sustainability Programs Manager,
provided the Board with an annual update on community
engagement, the COVID-19 response, and energy and water
efficiency results.
L.Estrada indicated that California legislation, Assembly Bill
(AB) 2021 and Senate Bill (SB) X7-7, requires utilities to meet
water and energy reduction goals. Through programs and
initiatives, Anaheim Public Utilities (APU) met its Fiscal Year
(FY) 19/20 goals; however, she indicated that next year's goals
may not be met due to the pandemic and its impact on programs.
L.Estrada discussed prominent community engagement
opportunities such as the community pop-ups, sustainable
2021 -12
landscape workshops, "We Drive EVs Video Contest," and the
inaugural holiday light exchange drive-thru event.
L.Estrada indicated that deferred bill payments, extended payment
arrangements, Internet Access rebates, COVID Emergency
Assistance Program, Business Emergency Assistance Program, and
on-site energy assessments were made available to APU customers
to help them during the pandemic.
L.Estrada's presentation also highlighted a number of activities to
support Anaheim's youth during the pandemic including, but not
limited to, direct mail activity kits, solar car kits, a facemask
sustainability design contest, and Sustainable Schools Award.
Lastly, the Board was updated on program participation numbers
and the five-year trend beginning with FY 15/16.
7.PRESENTATION: COMMUNITY CHOICE
AGGREGATION.
S.Smith, Integrated Resources Manager, gave a presentation on
Community Choice Aggregation, in response to a request from the
Board since cities in Orange County have or are considering
forming such an organization. S. Smith explained Community
Choice Aggregators (CCAs) were allowed to form in 2002 based
on Assembly Bill 117, and currently there are 11 million customers
who receive their power from CCAs while they still receive
transmission and distribution services from their existing utility. S.
Smith described key considerations, highlighted some of the large
CCAs, and explained how CCAs may impact APU in the future.
S.Smith explained the differences between CCAs, Investor Owned
Utilities (IOUs), and Public Owned Utilities (POUs) like Anaheim.
In addition, S. Smith reviewed the growth of CCAs since the first
one in 2010 and their procurement both historical and projected.
Finally, S. Smith explained that APU is not directly impacted;
however, staff is reviewing potential impacts to renewable
mandates, new legislation and regulations, and if wholesale
markets may change over time.
The Board asked if there are advantage for customers or cities in
forming CCAs. S. Smith indicated that cities or other agencies that
form CCAs get more control of the mix of power supplies, which
includes options to purchase more renewable energy as a percent
of their resource mix. In terms of customer impacts, CC As have
varying pricing plans, and some may have slight savings, if any,
compared to the serving IOU, since they are required to pay 'exit
fees' for stranded costs. Customers are opted into the CCA once it
is formed, and if they wish to return to their IOU, they would have
to opt out.
2021 -13
8.SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
EXPENDITURES ANNUAL REPORT (FISCAL YEAR
2019/20).
B.Beelner, Assistant General Manager -Finance and Energy
Resources, provided the Board with an update on expenditures. He
indicated that $80.5M from APU's FY20 budget was allocated
towards projects completed with Southern California Public Power
Authority (SCPP A) that allows public utilities to jointly participate
in projects for economies of scale. The majority of expenses are for
transmission, power generation, and fuel.
9.UPDATE ON ELECTRIC SYSTEM ITEMS.
J.Lonneker shared that APU received approval of a Federal
Emergency Management Agency (FEMA) grant that will cover
75% of the estimated $1.lM design and engineering costs of
undergrounding seven separate segments of overhead electric lines
located in the high fire threat zones (HFTZ) in Anaheim. A
subsequent phase for construction is subject to FEMA approval
after completion of the design. J. Lonneker discussed the process
of the application for the grant and indicated that she will continue
to provide updates on the progress of the project.
10.UPDATE ON WATER SYSTEM ITEMS.
M.Moore, Assistant General Manager -Water Services, reviewed
the water dashboard for the month of February. He indicated that
precipitation in Orange County, northern California, and Colorado
River basin are all in dry conditions. Imported water storage
supplies are still high and APU should not be in mandatory
cutbacks this year.
M.Moore indicated that there have been a few articles in the news
on ethics claims against Metropolitan Water District (MWD)
management. Recently the Los Angeles City Council sent a letter
to MWD demanding a formal investigation. M. Moore shared that
the MWD Board is looking into these allegations and taking it very
seriously.
Lastly, M. Moore provided an update on the Linda Vista Complex
construction project. He indicated that upgrades to mechanical and
electrical equipment are scheduled to be completed this Spring,
and he shared photos of Board members who participated in a tour
of the construction activities.
11.UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B.Beelner shared with the Board that Moody's Investor Services
cut the City of Anaheim's rating three notches from AAI to Al as
a result of the ongoing pandemic and its impact on the City's
2021 -14
revenue stream. This change did not affect APU's rating at this
time.
B.Beelner then discussed the monthly finance dashboard with the
Board -the year to date electric revenue through January 31, 2021
was 0.7% below budget ($1.8M) due primarily to decreased
commercial and industrial demand. Electric costs for the fiscal
year fell below budget by 6.6% ($14.SM) causing a net positive
budget variance of $12.7M. B. Beelner then mentioned that year
to date water revenue was 4.8% ($2.9M) below budget also due to
weaker than anticipated commercial and industrial demand
because of continued business restrictions related to the COVID-19
pandemic. Costs were below budget as well by 5. 8% ($2. 7M) a
negative $0.2M budget variance.
B.Beelner discussed the monthly Power Supply Dashboard. He
mentioned that APU has been able to sell more power on the
wholesale market than originally budgeted as a result of continued
excess power available and higher than expected wholesale prices.
B.Beelner mentioned the power supply shortage in Texas during
their recent extreme winter weather event and the failure of the
Electric Reliability Council of Texas (ERCOT) to provide power
to the state for multiple consecutive days. B. Beelner compared
and contrasted the situation in Texas with the brownouts in
California during the August 2020 heat dome over the Western
United States; specifically, he mentioned that Texas was 30,000
Megawatts (MW) short of power during their energy crisis, while
California was only 1,000 MW short. He indicated that Anaheim
customers suffered brownouts for only one hour during the heat
wave in 2020 compared to the multiple days of brownouts in
Texas.
B.Beelner then discussed with the Board that natural gas prices
spiked up to approximately $135/MMBtu during the winter storms
that covered much of the United States as national demand
outstripped supply due to heating and power needs. Anaheim was
able to sell excess gas it purchased for $3.50/MMBtu because one
of its gas plants was down for maintenance resulting in an excess
supply. The Board members asked if these price spikes caused
concern for the potential of continued elevated natural gas prices.
B.Beelner mentioned that he did not believe they did, he believed
that there was still a sufficient supply of natural gas -the problem
this winter was due to the freezing of natural gas wells causing a
dramatic drop in production.
B.Beelner then indicated to the Board that the Desert Harvest II
solar plant that provides Anaheim 36 MW through a 25-year
agreement with Southern California Public Power Authority
(SCPP A) came online in December 2020. Anaheim does not need
the power from Desert Harvest II, but it does need the renewable
2021 - 15
attributes required to meet the state's renewable power supply
mandates. B. Beelner explained to the Board that this plant
provides those renewable attributes for Anaheim at a price of
$15.25/MWh while the power is provided to the grid.
12.UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J.Lehman, Interim Assistant General Manager -Administration
and Risk Services, discussed the Internal Compliance Plan in their
packet and shared highlights indicating that all programs were in
compliance, and there were no violations during this period.
J.Lehman then provided an update on improvements made
recently to the residential and small business customer Level Pay
program, which allows customers to manage their utility payments.
She indicated that last month Board Member V. Baroldi had
highlighted an issue with the program that allowed APU to make
improvements to bill notifications and training of staff members.
She also indicated that APU was working on developing a pilot for
a business Level Pay program.
J.Lehman then shared that APU began welcoming customers back
to the Anaheim West Tower building in early February 2021
serving about 50 customers a day, as compared to approximately
130 customers before the COVID-19 pandemic. J. Lehman noted
that the customer visits were mostly identification verifications for
new services. She indicated that many other services could now be
provided over the new phone system that was put into place last
year.
Lastly, J. Lehman introduced a new dashboard that will initially
cover key legislative bills and safety, and over time will be
modified to address other areas as needed. J. Lehman highlighted
several interesting bills, and shared that the next Legislative
Working Group meeting is planned for March. She then went over
the safety section of the new dashboard, which provides a year-to
date comparison of APU's key safety metrics, which are used to
monitor the effectiveness of the safety program.
13.ITEM(S) BY SECRET ARY.
D.Lee mentioned there would be a virtual Brown Act training
offered to the Board in March that will be conducted by the City
Attorney.
D.Lee shared with the Board the items scheduled for the following
Board meeting include:
•Safety Services Presentation
•Department Order -Safety Accident Prevention Manual
2021 -16
P.Starr will email the Board
with the information
pertaining to the virtual
Brown Act training.
•Electric Reliability Presentation
•Bi-Annual Utilities Success Indicators report
•Design-build agreement for Groundwater Treatment
•Agreement for Software Solution for Rebate Processing
•Agreement for utility-owned solar O&M services
D.Lee shared photos of APU employees who have volunteered at
the vaccine Points of Dispensing (POD) sites in Anaheim.
D.Lee requested the meeting be adjourned in memory of John
Pellegrino, Electric Capital Project Manager, who recently passed
away. He and J. Lonneker shared about J. Pellegrino's significant
contributions to Anaheim customers through his protection
engineering and automation projects.
14.ITEM(S) BY BOARD MEMBERS.
R.Gaona expressed his condolences to the family of John
Pellegrino.
V.Baroldi thanked J. Lehman for discussing the Level Pay program
with him. He thanked M. Moore for the tour of the Linda Vista
complex. He sent his condolences to the Pellegrino family.
A.Abdulrahman mentioned he enjoyed the tour of the Linda Vista
complex. He expressed his condolences to the Pellegrino family.
J.Seymour enjoyed the Linda Vista complex tour and recommended
Board Members schedule a tour. J. Seymour also expressed his
condolences to Pellegrino family.
N.Campos Kurtz stated her condolences and prayers to the
Pellegrino family. She thanked staff for welcoming her to the Board
and for all the information that has been provided to her.
E.Medrano welcomed N. Campos Kurtz to the Board. He then
expressed his condolences to the Pellegrino family. He also thanked
staff for the presentation on CC As as the topic is being discussed
more in Orange County.
15.ADJOURNMENT: (NEXT REGULAR MEETING ON
MARCH 24, 2021 AT 5:00 P.M. PLEASE BE ADVISED
THAT SOME OF THE BOARD MEMBERS MAY
PARTICIPATE IN THIS MEETING REMOTELY.)
Chairperson E. Medrano called for a moment of silence, followed by
a call for a motion to adjourn the meeting in Memory of John
Pellegrino.
2021 -17
Vice-Chairperson J.
Seymour moved to adjourn
the Regular Meeting in
Memory of John Pellegrino
at 6:54 p.m., to the Board's
Regular Meeting date of
March 24, 2021 at 5:00 p.m.
A.Abdulrahman seconded
the motion. MOTION VIA
ROLL CALL VOTE
CARRIED: 6-0.
Dukku Lee
Public Utilities General Manager
ABSTAINED: 0.
ABSENT: 1 [R. Bhalla].
*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.
2021 - 18