Public Utilities 2021/11/17CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
November 17, 2021
The agenda having been posted on Wednesday, November 10, 2021, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday,
November 17, 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,
M. Lee, R. Bhalla
Board Members Absent: R. Gaona, N. Campos Kurtz
City Staff Present: D. Lee, P. Starr, A. Kott, M. Moore, J. Lonneker, B. Beelner, J. Lehman,
M. Avelino -Walker, M. Seifen, C. Parker, P. Bogdanoff, M. Jouhari, M.
Adams, J. Martinez, D. Strain, G. Leon
Guest(s) Present: None.
AGENDA ITEM
1. PUBLIC COMMENTS.
ACTION TAKEN
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
2. RECOGNITION: WATER PIPE TAPPING CONTEST TEAM.
Michael Moore, Assistant General Manager — Water Services,
introduced the Anaheim Public Utilities (APU) Water Pipe Tapping
Team. The team consisted of Jeffrey Martinez, Water Production
Technician Supervisor; Darin Strain, Water Production Technician;
Gabriel Leon, Water Production Technician; and Gil Sanchez,
Water Production Technician. The team was accompanied by Mark
Adams, Water Production Superintendent. The team competed in
the annual Orange County Pipe Tapping Contest on September 23,
2021 and finished in first place. The competition included a four
person team that works on different tasks to make a water service
connection to a pipeline. The pipeline is pressurized and the team
can be given penalties for leaks and safety violations. The team was
recognized at the meeting with the first place trophy and
certificates.
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3. APPROVAL OF THE MINUTES OF THE PUBLIC A. Abdulrahman moved
UTILITIES BOARD REGULAR MEETING OF OCTOBER 27, approval of the Minutes of
2021• * the Public Utilities Board
Regular Meeting of October
27, 2021. M. Lee seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and R. Gaona).
4. ADOPT THE PROPOSED PUBLIC UTILITIES BOARD M. Lee moved the approval
MEETING SCHEDULE FOR THE 2022 CALENDAR YEAR of the Proposed Public
** Utilities Board Meetings
Schedule for the 2022
Calendar Year. A.
Abdulrahman seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and R. Gaona).
5. PRESENTATION: DROUGHT UPDATE.
Philip Bogdanoff, Water Engineering Manager, provided a
presentation on the current drought conditions in California. P.
Bogdanoff discussed the current water supply conditions and
reduction in reservoir storage levels in Northern California and the
Colorado River Basin. He also discussed APU's current and
planned drought response actions and public outreach efforts to
focus on preventing water waste now, with the anticipation that
additional drought response measures would be regulated in the
near future. P. Bogdanoff provided an overview of APU's Water
Shortage Contingency Plan and potential next steps in response to
the evolving drought conditions and regulations in California. The
Board inquired about customer outreach and staff explained the
various methods to inform customers, including a new campaign to
educate customers on being `water smart.'
6. DETERMINE THAT THE PROPOSAL SUBMITTED BY
A. Abdulrahman moved the
CDM CONSTRUCTORS INC. (CDM) IN RESPONSE TO A
approval of the proposal
CITY OF ANAHEIM (CITY) REQUEST FOR PROPOSAL
submitted by CDM
DATED JUNE 16, 2021 IS THE MOST ADVANTAGEOUS TO
Constructor Inc. (CDM) for
THE CITY FOR COMPLETION OF THE GROUNDWATER
the Groundwater Treatment
TREATMENT PLANT PHASE B PROJECT (PROJECT);
Plant Phase B and the award
AWARD AND APPROVAL OF AN AGREEMENT WITH
of the Design -Build Services
CDM TO PROVIDE DESIGN -BUILD SERVICES FOR THE
Agreement to CDM. R.
PROJECT IN THE AMOUNT OF $68,321,000; WAIVE ANY
Bhalla seconded the motion.
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IRREGULARITIES IN ANY PROPOSAL DOCUMENTS; MOTION CARRIED: 5-0.
AND AMEND THE ANAHEIM PUBLIC UTILITIES' FISCAL ABSTAINED: 0.
YEAR 2021/22 WATER CAPITAL IMPROVEMENT ABSENT: 2 (N. Campos
PROGRAM BUDGET BY $68,321,000. * Kurtz and R. Gaona).
C. Parker, Water Engineering Manager, presented an update on the
Groundwater Treatment Program and the solicitation process for the
Phase B Project to the Board. The proposed contract will be for the
design -build of the remainder of the treatments plants to restore
Anaheim's groundwater supply. C. Parker explained that cost
recovery through the Orange County Water District (OCWD) is an
essential part of the overall program.
C. Parker presented on the solicitation process and the reasons the
review team ranked CDM Constructors as the highest value to the
City from the short listed proposers. He explained that the
evaluation focused on lifecycle costs and design approach to each
of the five locations that have unique characteristics. Board
members asked questions regarding the transparency of the
solicitation process, reasons for the design -build delivery method,
and how close the cost proposals were among the two the bidders.
7. SET PUBLIC HEARING DATE, TIME, AND LOCATION TO
CONSIDER PROPOSED MODIFICATIONS TO THE WATER
AND ELECTRIC RATES, RULES AND REGULATIONS.
Brian Beelner, Assistant General Manager - Finance and Energy
Resources, requested approval from the Board to schedule a public
hearing at 5:00 PM on January 26, 2022 at the Gordon Hoyt
Conference Center located on the 2nd floor, Anaheim West Tower.
B. Beelner discussed the importance of amending water rates so that
APU can recover its increasing water supply costs as a result of the
operational impacts that the existence of Per- and Polyfluoroalkyl
Substances (PFAS) has had on Anaheim's supply of lower cost
groundwater, requiring the use of higher cost imported water. B.
Beelner mentioned that the proposed modifications to water rates, if
enacted, would impact a typical customer using 16 hundred cubic
feet of water a month by approximately $4.24 or approximately 6%
of their current bill.
B. Beelner then mentioned that APU would also request the
adoption of a new electric rule that would allow customers, if they
so choose, to purchase additional green energy, at a premium, to
meet corporate or philosophical sustainability goals. The program
would be completely voluntary with no impact to non -participating
customers. The Board expressed concern that customers would
believe the energy they receive at their premises was actually green
when in fact it was the same mix of energy their neighbors receive.
B. Beelner agreed that was factually true; however, the green
energy rule would allow customers to claim a larger percentage of
their consumption as renewable energy through a verified paper
M. Lee moved approval to
set a public hearing date,
time, and location to
consider proposed
modifications to the Water
and Electric Rates, Rules
and Regulations. R. Bhalla
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and R. Gaona).
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transaction and not through the physical delivery of renewable
energy to their premises.
B. Beelner then mentioned that APU would propose changing the
on peak, mid peak, and off peak periods of its Time of Use (TOU)
rates to coincide with the changing dynamic of peak energy usage
in Anaheim. B. Beelner assured the Board that TOU rates are
voluntary in Anaheim and if the changing periods are not tenable
for current TOU customers, they can opt into traditional block rates
that charge based on quantity of usage regardless of when the
energy is consumed.
B. Beelner made the Board aware that APU would make a full
presentation on all of the proposals at the December Board meeting.
8. APPROVAL OF A THIRD AMENDMENT TO THE MASTER
INTER -UTILITY AGREEMENT BETWEEN SOUTHERN
CALIFORNIA GAS COMPANY AND THE CITY OF
ANAHEIM FOR ENERGY EFFICIENCY, RESOURCE
SAVINGS AND RELATED ACTIVITIES TO PROVIDE
ADDITIONAL OPTIONAL SEVEN (7) ONE-YEAR
EXTENSION TERMS MAINTAINING THE CURRENT NOT -
TO -EXCEED AMOUNT OF $1.5 MILLION PER YEAR. *
Melinda Avelino -Walker, General Services Manager, summarized
the current agreement with the Southern California Gas Company
(SoCal Gas) that is set to expire on December 13, 2021. Staff is
seeking the Board's approval to recommend renewing the existing
Master Inter -Utility Agreement with SoCal Gas for up to seven,
one-year terms. The agreement allows APU and SoCal Gas to
continue the weatherization program which offers income -qualified
customers no -cost energy and water saving measures. The
partnership with SoCal Gas allows for a single vendor to interface
with customers to simplify and streamline their participation.
Vice Chairperson V. Baroldi
moved the approval of the
Third Amendment to the
Master Inter -Utility
Agreement between
Southern California Gas
Company and the City of
Anaheim. R. Bhalla
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and R. Gaona).
9. APPROVAL OF A FIRST AMENDMENT TO AN A. Abdulrahman moved the
AGREEMENT WITH PACKET FUSION, INC., FOR A approval of the First
UTILITY CUSTOMER SERVICE PHONE SYSTEM IN Amendment to an
ORDER TO INCREASE THE ANNUAL
TELECOMMUNICATION CHARGES AND ANNUAL
CHANGE ORDER LIMITS TO A NOT -TO -EXCEED
AMOUNT OF $60,000.00 FOR EACH ITEM; AND
AUTHORIZE THE PAYMENT OF ANY PRIOR CHANGE
ORDERS IN EXCESS OF PRIOR LIMITS INCURRED AS A
RESULT OF PANDEMIC DRIVEN TELECOMMUNICATION
Ivuxlmm
Janis Lehman, Interim Assistant General Manager — Administration
and Risk Services, requested approval of the recommendation for
City Council to approve an amendment to APU's cloud -based
phone services agreement. This amendment would increase the
telecommunication charges and the annual change order amount,
Agreement with Packet
Fusion. R. Bhalla seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and R. Gaona).
2021 - 81
and ratify excess spending related in part to the pandemic. J.
Lehman informed the Board that this is a valuable system that
allowed staff to work remotely during the height of the pandemic,
without impacts service levels to customers. The amendment to the
agreement is recommended help to ensure that the system maintains
the flexibility to provide phone services to meet customer needs.
10. UPDATE ON ELECTRIC SYSTEMS.
Janet Lonneker, Assistant General Manager — Electric Services,
shared information and pictures with the Board regarding the APU
line crew that participated in the 2021 International Lineman's
Rodeo held in Kansas City. Although the APU team did not place in
the competition, they had very competitive times for the various
events. The competition included 120 teams from across the nation.
11. UPDATE ON WATER SYSTEMS.
Michael Moore, Assistant General Manager — Water Services,
provided an update on water supply. Water storage levels by the
Metropolitan Water District of Southern California (MWD) remain
moderately healthy, although storage reservoirs in Lake Mead and
the State Water Project are at historic low levels. Staff will continue
to monitor the drought conditions through the winter to determine
next steps to take for drought response actions.
Several fire hydrants have been hit by cars in the past month.
Pictures of one incident on Harbor Boulevard was shared with the
Board which resulted in significant flooding. The quick response by
Anaheim Fire and Rescue allowed the hydrant to be shutoff before
there was damage to nearby homes.
A groundbreaking ceremony for the Groundwater Treatment Plant,
Phase A project, was held on November 16t" at the Linda Vista
Complex. Chairperson J. Seymour and several elected officials
were in attendance. APU facilitated tours for about 75 students from
Loara and Katella High Schools. Two students spoke on the
importance of water and their career ambitions.
12. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner presented the Power Supply dashboard and pointed out
that the current share of coal generation for the Intermountain
Power Plant has declined recently due to supply chain and logistical
constraints. B. Beelner mentioned that this decline should abate by
the end of the calendar year, however, APU is monitoring the
situation closely. B. Beelner will continue to keep the Board
apprised of any changes to the fuel supply challenges.
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13. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman provided the Board with several updates. The first was
on the Wholesale Energy Risk Management (ERM) Program's
Quarterly Compliance report for the fourth quarter of FY 21. J.
Lehman shared that while retail sales were down, wholesale sales
helped to make up the balance budgeted revenue. J. Lehman shared
that all wholesale energy transactions met the Program's
requirements and that there were no violations of the ERM during
this period.
J. Lehman then provided an update on the State's customer
arrearage assistance programs and the expected impacts to APU.
Information about this program will be a regular part of the updates
until the funding is dispersed by the end of January 2022.
As a status update of the safety program, J. Lehman shared that
with the exception of the impacts related to COVID illnesses, the
metrics are within the target ranges and are very similar to last
year's.
14. ITEM(S) BY SECRETARY.
Dukku Lee, Public Utilities General Manager, shared with the
Board the items scheduled for the following Board meeting which
include:
• Proposed Modifications to Electric and Water Rates and
Rules Presentation
• Electric Design -Build Master Agreement
D. Lee asked M. Avelino -Walker to share awards APU recently
received. M. Avelino -Walker shared photos of awards recently
received from the American Public Power Association (APPA). The
awards included the Smart Energy Provider Designation for 2021-
2023 and awards of merit for two of APU's communication pieces.
Lastly, D. Lee requested that the Board close the meeting in
memory of John Elwell, former Board Chairperson. Mr. Elwell was
remembered for being kind and very knowledgeable during his time
serving Anaheim as a Board member.
15. ITEM(S) BY BOARD MEMBERS.
M. Lee shared that he appreciates the streamlining of the design -
build RFQ/RFP process.
R. Bhalla indicated that he is impressed with the progress made
toward a plan to tackle the PFAS issue.
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A. Abdulrahman concurred about making progress on the PFAS
issue.
Vice -Chairperson V. Baroldi wished everyone a Happy
Thanksgiving.
Chairperson J. Seymour seconded Vice -Chairperson V. Baroldi's
sentiments, and then asked for a moment of silence in remembrance
of John Elwell.
16. ADJOURNMENT: (REGULAR MEETING ON NOVEMBER
17, 2021 AT 5:00 P.M.)
Respectfully s imitted,
Dukku Lee
Public Utilities General Manager
A. Abdulrahman moved to
adjourn the Regular Meeting
at 6:58 p.m., to the Board's
Regular Meeting date of
December 15, 2021 at 5:00
p.m. R. Bhalla seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (N. Campos
Kurtz and 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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