Public Utilities 2021/09/22CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
September 22, 2021
The agenda, including the Teleconference Notice, having been posted on Thursday, September 16, 2021,
the Public Hearing / Regular Meeting of the Public Utilities Board (Board) was called to order by
Chairperson J. Seymour at 5:00 p.m. on Wednesday, September 22, 2021, in the Gordon Hoyt Conference
Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, Vice -Chairperson V. Baroldi, A. Abdulrahman,
N. Campos Kurtz, M. Lee
Board Members Absent: R. Bhalla, R. Gaona
City Staff Present: D. Lee, P. Starr, A. Kott, D. Ballin, M. Moore, J. Lonneker, B. Beelner, J.
Lehman, M. Avelino -Walker, E. Krause, B. Fruchter, V. Tran
Guest(s) Present: Mayor Pro Tern, Stephen Faessel; Bill and Karen Sullivan, Resident; William
Leming, Resident;
Tuan Le, Resident
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS. There being no oral public
comments and no submitted
public comments pursuant to
the Teleconference Notice,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
2. APPROVAL OF THE MINUTES OF THE PUBLIC Vice -Chairperson V. Baroldi
UTILITIES BOARD REGULAR MEETING OF AUGUST 25, moved approval of the
2021. * Minutes of the Public
Utilities Board Regular
Meeting of August 25, 2021.
N. Campos Kurtz seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (R. Bhalla &
R. Gaona).
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3. PUBLIC HEARING: FORMATION OF UNDERGROUND
DISTRICT NO.70 - WILDFIRE MITIGATION
UNDERGROUNDING IN FIRE THREAT ZONES AND
DETERMINE SUCH ACTION IS EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO SECTIONS 15301(B), 15302(C), 15302(D)
AND 15303 OF TITLE 14 OF THE CALIFORNIA CODE OF
REGULATIONS. *
Chairperson J. Seymour opened the public hearing and explained
the public hearing procedures.
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) and asked J.
Lonneker, Assistant General Manager — Electric Services, to
introduce the presenter. J. Lonneker 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 proposed
underground district formation and discussed the project details.
After the presentation, D. Lee mentioned that the 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.
The Board inquired about what would happen if this project does
not receive FEMA funding approvals for the construction phase of
the project. D. Lee indicated that funding approvals for the
construction phase is not a guarantee, and that Anaheim Public
Utilities (APU) will look into other options such as financing the
construction phase if FEMA does not approve additional funding.
D. Lee indicated that APU would like to capitalize on federal
funding where possible. The Board then inquired about why the
telecommunication companies take a long time to complete their
undergrounding. D. Lee explained the joint trench process, and
indicated that telecommunication companies have limited
resources allocated to these undergrounding projects since they are
also supporting other utilities and municipalities.
The Board opened the hearing to the public, and asked if there
were any members of the public who wished to speak. There were
two public speakers for this item. The first speaker (Karen Sullivan
— 7550 E. Martella Lane) inquired about whether new taxes will be
imposed onto the property owners as part of this project, and how
will the proposed work impact the private roadways. V. Tran
indicated that there are no taxes associated with undergrounding
A. Abdulrahman moved the
approval of the Public
Hearing: Formation of
Underground District No. 70
Wildfire Mitigation
Undergrounding in Fire
Threat Zones. N. Campos
Kurtz seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (R. Bhalla &
R. Gaona).
2021 - 62
projects, and that the project design will take into account the most
optimal route for the new underground facilities. He indicated that
the City will repair the roadways that are impacted by the
underground construction. The second speaker (William Leming —
725 Paseo Cumbre) expressed his concerns about the existing LED
lights being too bright within the Anaheim Hills Golf Course
parking lot. Since Mr. Lemming also expressed the same concerns
through an email correspondence prior to the public hearing, D.
Lee asked if it was acceptable to address Mr. Leming's concerns as
part of the correspondence update to the Board. The resident and
the Board agreed to the suggestion.
Chairperson J. Seymour asked D. Lee whether the Secretary of the
Board received any correspondence concerning this public hearing.
D. Lee informed the Board that out of 1,203 mailed notices to
affected property owners, APU received three emails. The first
email correspondence was from Southern California Gas Company
indicating that they do not have any transmission gas facilities
within the project limits. The second email correspondence was
from a resident expressing support of the proposed project. The
resident is planning to construct a residential home and staff will
work to coordinate the timing of the development with the
proposed undergrounding. The third email correspondence was
from William Leming who wanted more clarification on whether
new taxes will be imposed onto properties within the proposed
underground district. The resident also inquired about the proposed
plan to install new LED street lighting. The resident expressed
concerns with the existing LED lights being too bright within the
Anaheim Hills Golf Course parking lot, and had questions about
the lighting levels for the proposed LED street lighting. Staff
contacted the resident to explain that there are no taxes associated
with undergrounding projects, and that the street lights will not be
as bright as the parking lot and could be shielded to address
specific areas. Staff also offered to coordinate with the golf course
operator, who installed the lights to address security needs, and has
asked the light manufacturer if they have a shield solution. Staff
will continue to help develop a solution for the parking lot lights.
With no further questions from the Board, Chairperson J. Seymour
closed the public hearing.
4. PRESENTATION: WATER SYSTEM RELIABILITY.
M. Moore, Assistant General Manager — Water Services, presented
the annual Water System Reliability presentation. Metrics were
reviewed in three categories; reliability, efficiency and supply.
Water reliability has been consistent with past years and APU is
working to improve outage duration by utilizing new equipment
and technology. Water supply did not meet the normal goals for
groundwater supply due to fourteen wells being offline due to
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water quality. The wells will be brought back to service over the
next three years with the Groundwater Treatment Program. As
previously requested by the Board, M. Moore indicated that annual
tracking was included in the presentation to reflect historical
trends.
The Board further inquired about the timeframe for the
groundwater treatment project, water supply demands, types of
pipes used in construction, and costs for treatment chemicals. M.
Moore address the questions, explaining that the groundwater
treatment program would start coming online in 2023. He
explained that water demands have significantly decreased over the
past decade and is now about 60 million gallons per day. He also
explained that water pipes are either PVC or ductile iron depending
on the soil in the location of the water pipes.
5. PRESENTATION: RENEWABLES PORTFOLIO
STANDARD UPDATE.
E. Krause, Integrated Resources Manager, began the presentation
showing a chart depicting the APU resource portfolio in 2004,
elaborating on the coal intensive and base -loaded set of resources
along with a single renewable contract for wind. E. Krause
indicated that renewable requirements and timing were presented
showing the increasing State mandated compliance targets along
with a review of APU approved renewable targets prior to the 2030
compliance deadline.
E. Krause went over the 2020 resource portfolio and the current
mix of resources and achievement of the 33% renewable target.
The portfolio was discussed elaborating on the reduction in coal
generation, removal of nuclear and transition to a diverse set of
renewable resources and contract lengths to meet compliance and
minimize rate impacts overtime. E. Krause noted that progression
towards meeting renewable targets through 2030 was presented,
showing compliance achievements through 2020 and targets to
meet 2024 compliance with current renewable resources.
E. Krause indicated potential strategies to increase the renewable
portfolio along with resources needed to integrate them into the
power supply such as battery storage to achieve a 60% 2030
renewable target and progress to 2045 goal of carbon -free
resources. E. Krause discussed the use and benefits of storage was
reviewed along with discussion of the current APU request for
proposals being developed and need to review the alternatives of
direct installation vs power purchase agreements. Flexibility of
resource procurement and financing potential was reviewed, which
gives APU the ability to fund projects. This led into the view of the
2030 resource portfolio depicting the use of 60% renewable
2021 - 64
resources, battery storage as well as other conventional resources
remaining in the portfolio such as hydro and natural gas.
E. Krause concluded by reiterating that that APU will maintain and
further achieve future targets through a sustainable and balance
resource portfolio and financial flexibility, emphasizing APU is on
track to achieve the 2030 renewable targets of 60% and 2045
carbon -free status.
The Board asked if APU has conducted battery research or reviews
to see what other utilities are doing. Staff indicated that they have
reviewed Glendale and Imperial Irrigation District's battery
storage projects, and staff is also exploring joint efforts with the
Southern California Public Power Authority (SCPPA) regarding
battery storage.
The Board questioned if there would be increased rates due to the
increase in renewable resource. Staff provided insight from the
2018 Integrated Resources Plan (IRP) results which showed
approximately 15% to 20% rate increase to achieve a 50% target,
emphasizing that the next IRP would likely show different results
due to increased targets from state mandates. B. Beelner, Assistant
General Manager — Finance & Energy Resources, provided
information regarding changes in rates and noting that any
increases will be designed as much as possible to minimize any
shock resulting from increases in renewable costs.
The Board asked about customer engagement activities in
reference to the IRP. D. Lee responded that APU conducted a
number of approaches in 2018 that included student engagement
and customer surveys. Customer outreach efforts will be developed
during the upcoming IRP adoption process.
6. APPROVAL OF THE ACCEPTANCE OF BILL
REDUCTION FUNDS ADMINISTERED THROUGH THE
STATE OF CALIFORNIA IN THE APPROXIMATE SUM OF
$9M FOR COVID-19 PANDEMIC RELIEF FOR THE
BENEFIT OF UTILITY CUSTOMERS TO REDUCE
ELECTRIC, WATER, AND SEWER ACCOUNT
ARREARAGES; AND AUTHORIZATION TO MADE
ADJUSTMENTS AND APPLY BILL CREDITS TO
QUALIFYING CUSTOMER ACCOUNTS CONSISTENT
WITH PROGRAM GUIDELINE AND EXECUTE ANY AND
ALL RELATED DOCUMENTS. *
J. Lehman, Interim Assistant General Manager — Administration
and Risk Services, provided an update on the status of the State's
customer arrearage programs. J. Lehman explained that over the
past year and a half, because of the impacts related to the
pandemic, the State Legislature approved two programs to offset
Vice Chairperson Baroldi
moved the approval of the
Acceptance of Bill
Reduction Funds. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (R. Bhalla &
R. Gaona).
2021 - 65
utility customer arrearages. The programs cover customer
arrearages from the period of March 4, 2020 to June 15, 2021, and
the City of Anaheim can expect to receive approximately $9
million in funding, with approximately $7.3 million for electric
arrearages and approximately $1.6 million for water arrearages,
with the remaining amount for wastewater arrearages. J. Lehman
noted that for electric services, this represents about 13% of all
accounts, and for water services this represents about 5% of all
accounts. J. Lehman mentioned that the funds must be applied
directly to eligible customer accounts that meet the criteria of the
programs, which includes a requirement that the arrearage is
overdue by 60 days. Utilities must apply for funding on behalf of
their customers by December 6, 2021. Once received, all funding
must be applied to customer accounts by the end of January 2022.
7. APPROVAL OF SECOND AMENDMENT TO THE .
SOFTWARE LICENSE AND SERVICES AGREEMENT
WITH TIBCO SOFTWARE INC. TO UPDATE THE TIBCO
PROCESSOR LICENSING POLICY AND
AUTHORIZATION TO EXECUTE ORDER FORMS, WORK
ORDERS, AMENDMENTS, AND RELATED DOCUMENTS
IN AN ANNUAL AMOUNT NOT -TO -EXCEED $200,000
FOR CHANGE ORDERS TO PURCHASE ADDITIONAL
SOFTWARE LICENSES, MAINTENANCE, AND SERVICES
FOR UTILITY SYSTEMS INTEROPERABILITY. *
B. Beelner explained to the Board that the City uses an enterprise
bus to integrate different APU software systems together including
meter data management, customer information, and outage
management systems. B. Beelner explained that the agreement
amendment was to update the license terms for running TIBCO
software on virtual servers. There is no cost for the amendment.
The item also requests authorization to purchase additional
software and services as needed to provide flexibility in upgrading
and implementing improvements that benefit customers in a timely
manner.
Chairperson J. Seymour asked what a virtual server was. B.
Fruchter, Enterprise Information Technology Manager, responded
that a virtual server is a simulated server that is configured using
virtualization software that runs on a large physical server or
servers. The virtual servers are like containers that run software
and are independent from one another and the underlying physical
server. Virtualization allows optimal use of shared server hardware
resources. B. Fruchter explained that the agreement amendment
clarifies TIBCO Software's licensing policy regarding virtual
processors.
N. Campos Kurtz moved the
approval of Second
Amendment to the Software
License and Service
Agreement. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (R. Bhalla &
R. Gaona).
2021 - 66
8. APPROVAL OF AGREEMENT FOR ENERGY AND WATER
SUSTAINABILITY EDUCATION PROGRAMS AND
SERVICES TO ANAHEIM STUDENTS WITH ORANGE
COUNTY SUPERINTENDENT OF SCHOOLS, OPERATING
INSIDE THE OUTDOORS, FOR A TERM OF THREE
YEARS WITH UP TO TWO ONE-YEAR EXTENSIONS, IN
AN ANNUAL AMOUNT NOT TO EXCEED $125,000, WITH
A TEN PERCENT (10%) CONTINGENCY FOR EXTRA
SERVICES; AUTHORIZE AND DIRECT THE PUBLIC
UTILITIES GENERAL MANAGER OR DESIGNEE TO
EXECUTE ANY AND ALL RELATED DOCUMENTS AND
TAKE SUCH ACTIONS AS ARE NECESSARY, REQUIRED,
OR ADVISABLE TO IMPLEMENT, FUND AND
ADMINISTER THE AGREEMENT. *
M. Avelino -Walker, General Services Manager, shared photos of
students participating in sustainability-related activities and field
trips. These programs are provided at no cost to participating
schools and available to all public and private school students K
through 12th grades. The programs include opportunities to learn
about solar power and electric vehicles, and include eco
exploratory field trips.
The new service agreement is with Inside the Outdoors (ITO)
based on a request for proposals that was delayed during the
pandemic. The agreement provides flexibility for both virtual and
in -person programs depending on the school's preference. There
were two proposals submitted, and ITO demonstrated that it met
Council Policy 4.1 as the highest rated firm. They were also the
more cost-effective provider, and are being recommended to
continue providing sustainability educational services to Anaheim
students.
9. FISCAL YEAR 2020/21 REPORT FOR DEPARTMENT
ORDER 310 — EXTRA WORK/CHANGE ORDERS. **
The annual update on extra work and change orders was provided
to the Board. The report is a requirement of APU Department
Order (DO) 310 that documents extra work and change orders for
projects administered through the Public Works Department as
well as Master Construction Agreements administered by APU
staff.
M. Moore reported all but one contract were within the limits and
thresholds established in DO 310. The construction contract and
inspection agreements for the Lenain Water Treatment Plant
Rehabilitation exceeded these thresholds due to uncovering
additional equipment that required replacement. These change
orders were brought to City Council for approval.
A. Abdulrahman moved the
approval of the Agreement
for Energy and Water
Sustainability Education
Programs and Services. M.
Lee seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (R. Bhalla &
R. Gaona).
2021 - 67
J. Lonneker informed the Board that electric projects did not
exceed established change order thresholds for the reporting period
and discussed that some projects were completed under the
awarded amount due to reduction in scope of work and
unnecessary acquisition of easements.
The Board inquired how project scopes are developed, and staff
informed the Board that the scope is established during the budget
process and refined based upon field conditions or performance
metrics.
10. UPDATE ON ELECTRIC SYSTEMS.
J. Lonneker shared with the Board that momentary power outages
caused by the lighting storm on September 10, 2021 occurred
when two high voltage sub -transmission lines de -energized. J.
Lonneker mentioned troubleshooters discovered two smoking
vaults filled with debris, water and damaged equipment and that
this equipment was repaired. J. Lonneker further stated that there
was enough redundancy so that service was not impacted;
however, the Canyon Power Plant units were dispatched to offset
load given the reduced capacity with the two de -energized lines. J.
Lonneker informed the Board that engineering will initiate
inspection of additional high voltage vaults and prioritize those
needing sump pumps to remove the water.
11. UPDATE ON WATER SYSTEMS.
M. Moore reviewed the Water Supply Dashboard. He indicated
that drought conditions still exist with our imported water supplies.
M. Moore stated that Southern California is not yet in an
emergency drought condition; however, conditions may change
this winter if California experiences another year of below average
snowpack and precipitation.
M. Moore mentioned that there will be a public outreach event at
the Walnut Canyon Reservoir on October 9, 2021. M. Moore
invited the Board members to come by the event and get a tour of
the recently upgraded Lenain Water Treatment Plant.
12. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly finance dashboard with the
Board. B. Beelner indicated that the year to date electric revenue
through August, 2021 was 13.5% above budget ($10.OM). The
positive budget variance was driven by increased economic
activity driving up retail revenue, coupled with higher than normal
wholesale energy prices allowing for higher than forecasted
wholesale revenue. B. Beelner stated that electric costs for the
fiscal year to date fell below budget by 8.8% ($5.5M) causing a net
2021 - 68
positive budget variance of $15.5M. B. Beelner then mentioned
that year to date water revenue was 0.58 ($0.1M) above budget;
however, water operating costs fell below budget by 9.0% ($1.3M)
causing a net positive budget variance of $1.4M.
B. Beelner discussed that due to higher than normal gas prices
wholesale energy prices were consequently much higher than
normal allowing for increased wholesale revenue. Additionally,
due to the higher than normal gas prices, APU received a larger
share of its power supply than normal from the Intermountain
Power Project.
13. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman discussed the monthly dashboard with the Board; she
highlighted three bills of interest, and said that the Legislative
Wrap Up report would be provided at the next meeting.
J. Lehman then went over the safety metrics and shared that APU
was meeting its targets and that the statistics were very similar to
last year with the exception of COVID-19 related illnesses. J.
Lehman mentioned that the metrics help APU monitor the safety
program and proactively identify areas that may require further
attention.
14. ITEM(S) BY SECRETARY.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Electric Reliability Update Presentation
• Emergency Response Program Annual Update
• Cybersecurity Update
• Amendment for Customer Information System
D. Lee shared photos of a Popup Event at the Sunkist Gardens
Mobile Home neighborhood and explained that it's a neighborhood
event in which staff engages in conversations with Anaheim
customers and addresses their concerns. Customers are encouraged
to sign up for no -cost home surveys to identify ways to lower their
bills.
D. Lee shared that APU recently posted a social media promotion
for a weather -based irrigation controller and the winner was
highlighted.
Lastly, D. Lee discussed two opportunities for the Board to
participate in; one is the Sustainable School Award Program and
the other is Sustainable Small Business Award Program. D. Lee
mentioned that three Board Members will be needed to be on the
2021 - 69
ad hoc Sustainable School Award Selection Committee and that
the appointments will be agendized at an upcoming PUB meeting.
15. ITEM(S) BY BOARD MEMBERS.
M. Lee commented that he appreciates how each staff member
really commands their topics.
N. Campos Kurtz thanked staff for the information provided during
the meeting.
A. Abdulrahman also thanked staff on the information that was
provided and added to keep doing a good job.
Vice -Chairperson V. Baroldi asked that APU continue keeping the
rates low.
Chairperson J. Seymour thanked Mayor Pro Tem Faessel for
attending the meeting; he appreciates the interest and participation.
S. Faessel, Mayor Pro Tern shared that he enjoys attending the PUB
meetings and added that it's important the Board Members ensure
that the residents feel confident that they will have safe and
sufficient water and adequate power at competitive rates.
16. ADJOURNMENT: (REGULAR MEETING ON OCTOBER
27, 2021 AT 5:00 P.M.)
Res ectfully su mitted,
Dukku Lee
Public Utilities General Manager
A. Abdulrahman moved to
adjourn the Public Hearing /
Regular Meeting at 6:51
p.m., to the Board's Regular
Meeting date of October 27,
2021 at 5:00 p.m. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1 (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.
2021 - 70