Public Utilities 2022/09/28ITEM #01
2. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD MEETING OF AUGUST 24, 2022.
3. APPOINTMENT OF ONE ALTERNATE MEMBER FOR THE
PUBLIC UTILITIES HEARING BOARD. **
Chairperson J. Seymour stated that he is seeking one volunteer to
serve as an alternate on the Public Utilities Hearing Board. Board
Member A. Pham volunteered and agreed to be appointed as the
alternate. Chairperson J. Seymour confirmed this appointment to
the Public Utilities Hearing Board.
4. PRESENTATION: NEIGHBORHOOD AND RESIDENTIAL
LIGHTING PROGRAM.
D. Lee, Public Utilities General Manager, indicated that Anaheim
Public Utilities (APU) has received a number of customer requests
to address safety across the City in conjunction with other
departments, and wanted to share with the Board how APU's
neighborhood and residential lighting programs are helping to
address some of these safety concerns.
V. Tran, Principal Electrical Engineer, discussed APU's systematic
approach in assessing lighting concerns and establishing the
appropriate improvement strategies, which may include LED street
light upgrades, new installations and encouraging property
lighting. V. Tran also provided metrics on the citywide LED street
light conversion progress, and elaborated on the different challenges
that makes street light upgrades difficult in certain neighborhoods.
T. Castaneda, Community and Sustainability Manager, presented on
the Dusk -to -Dawn lighting program, and explained how residents
can qualify for free Dusk -to -Dawn lights to improve their property
lighting. T. Castaneda discussed the various program benefits, and
how APU has promoted the program through community meetings
and pop-up events.
The Board asked if all street lights within the City will eventually
be converted to LEDs. D. Lee indicated that APU aims to convert
all street lights to LEDs. However, APU understands that some
M. Lee moved the approval
of the Minutes of the Public
Utilities Board Regular
Meeting of August 24, 2022.
V. Baroldi seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1. [N.
CAMPOS-KURTZ].
2022 - 68
neighborhoods prefer the nostalgic look of the older style lights.
APU is currently looking into various options such as utilizing
lower color temperature LEDs, and plans to pilot these lights prior
to implementing additional replacements.
5. PRESENTATION: UTILITIES SUCCESS INDICATORS FOR
01/01/2022 — 06/30/2022.
Y. Saldivar, Utilities Analyst, presented an update on the Utilities
Success Indicators (USI) for the reporting period of January 1, 2022
through June 30, 2022. Y. Saldivar reported that APU achieved its
customer satisfaction targets for Anaheim Anytime and Call Center
surveys by meeting at least 85% of survey respondents'
expectations. Y. Saldivar made the Board aware of how APU rates
remain competitive compared to surrounding Orange County cities.
For electric service reliability, Y. Saldivar explained that APU
missed its targets due to last year's windstorm outages that are still
impacting reliability numbers. She provided examples of ways APU
is working on mitigating outages caused by metallic balloons and
older underground cable failures.
Regarding water system maintenance, Y. Saldivar reported that
APU fell short of the target for the reporting period due to staffing
impacts related to COVID and reassignments to assist with water
field construction activities. She discussed that APU is currently
ahead on hydrant maintenance while slightly behind maintaining
valves.
Y. Saldivar provided an overview of the Disabling Injury Rate
metric and reported that APU missed its target primarily due to
COVID-related time away from work. APU's safety services group
is working with staff to implement operational changes to mitigate
hazards causing occupational injuries.
Y. Saldivar discussed how APU has maintained alignment with the
City's goals and initiatives by conducting educational outreach
events and workshops for customers to comply with Anaheim's
current water shortage contingency plan; securing funding through
the California Arrearage Payment Program; and updating its
Wildfire Mitigation Plan.
The Board asked how the safety metrics this reporting period
compared to the last reporting period. D. Lee shared that while the
metrics were lower than the prior year, the types of injuries are also
reviewed to determine if there are greater safety issues. J. Lehman,
Assistant General Manager — Administration and Risk Services,
added that the improvements made by the safety group would be
presented to the Board at an upcoming meeting. B. Beelner,
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Assistant General Manager — Finance and Energy Resources,
offered to include a trend analysis for the metrics in the next USI
report. J. Lonneker, Assistant General Manager — Electric Services,
shared that the Board would receive an Electric and Water
reliability update showing annual trending at the next Board
meeting.
The Board asked if APU is evaluating health and safety standards
for contractors and subcontractors and if COVID-related time away
from work is factored into these standards. D. Lee confirmed that
APU monitors both design -build and pre -qualified contractors'
safety incidents, and have, at times, held meetings with contractors
to address safety issues, and has the ability to remove contractors
from prequalified status if safety deficiencies persist. J. Lehman
added that APU also conducts safety inspections at contractor and
sub -contractor sites.
The Board asked if APU would have met its target for the safety
and health injury rate indicator if the COVID cases were not
factored into the calculation. D. Lee confirmed that APU would still
be above the 1.0 target because of the four occupational injuries that
took place during the reporting period. The Board asked how
indicator targets are established. D. Lee briefly discussed that APU
sets these targets to align with best industry practices, and has
lowered initial targets when APU is significantly ahead of national
averages.
6. ACCEPTANCE OF ADDITIONAL ELECTRIC BILL
REDUCTION FUNDS ADMINISTERED THROUGH THE
STATE OF CALIFORNIA FOR COVID-19 PANDEMIC
RELIEF FOR THE BENEFIT OF UTILITY CUSTOMERS TO
REDUCE ELECTRIC ARREARAGES AND NOTICE OF
RESUMPTION OF RESIDENTIAL SERVICE
DISCONNECTIONS FOR NON-PAYMENT IN 2023.*
R. King, Assistant Customer Services Manager, presented an update
on customer past due balances and planned resumption of
disconnections in early 2023. R. King reported that APU is
requesting authority to apply for an additional $1.7 million in
COVID-19 relief funding through the 2022 California Arrearage
Payment Program (CAPP 2.0). CAPP 2.0 covers arrearages from
the period of March 4, 2020 to December 31, 2021 that have been
past due for 60 or more days, specifically for active residential
customers. CAPP 2.0 is administered through the California
Department of Community Services and Development.
R. King reported that APU has helped customers with $14 million
in assistance since the start of the COVID-19 pandemic in 2020.
However, there are still 18,000 accounts with outstanding balances
A. Abdulrahman moved the
approval of the acceptancy
of the Additional Electric
Bill Reduction Funds. V.
Baroldi seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1. [N.
CAMPOS-KURTZ].
2022 - 70
that are over 30 days past due, totaling approximately $16 million
in uncollected payments.
C. Dalton, Electric Field Superintendent, presented to the Board on
the various challenges that field staff encounter when on -site at a
business or residential property and evaluating an electrical service
panel. These challenges include theft of energy and power diversion
which is a safety concern and requires further investigation to
determine the corrective action. C. Dalton made the Board aware
that the number of these incidents has remained constant over the
years, even while APU suspended service disconnections for non-
payment during the pandemic.
The resumption of disconnections in combination with customer
outreach will aid customer accountability with utility accounts.
Commercial disconnections for non-payment resumed in February
2022, and a plan has been developed to resume residential
disconnections in early 2023 once the CAPP 2.0 arrearage program
disconnection moratorium ends. Resuming disconnections will
reduce outstanding debt and help keep utility rates affordable.
The Board asked how staff was made aware of tampering and
diversion. C. Dalton shared that each instance is unique, but that
leads come from various sources, including staff reviewing
customer usage history and observations by staff in the field.
The Board stated that the average residential arrearage amount of
$220 does not seem to be correct. Staff will review the amounts and
provide an update to the Board.
7. RECEIVE AND FILE THE ANNUAL EXTRA WORK /
CHANGE ORDER REPORT FOR DEPARTMENT ORDER
(DO) 310.
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.
D. Lee provided the Board with a summary of the annual report of
the past year's change orders on all various construction projects.
APU had a 1.5% variance on $51.4 million in awarded projects.
Some projects did not complete the full estimated scope, while
others required additional work based on field conditions during
construction.
The Board asked about the 39.5% net variance on the State College
Blvd. Sewer Project. D. Lee responded that this was a multi -year
Staff will review the average
residential arrearage amount
and report back to the
Board.
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project managed by the Orange County Sanitation District, and their
subcontractor performed water main construction. The project
required a number of change orders due to the contractor damaging
existing lines and modifications in scope resulting from the larger
sanitation project. APU did take the change order to City Council
for approval since the amount exceeded what was previously
approved.
The Board asked about the average change order amount per
contract. D. Lee responded that it depends on the type of agreement
provisions, and that change order authority is usually 10% of the
total contract amount.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services,
presented to the Board on a summary of power outage metrics
related to the September 2022 heat wave. J. Lonneker shared that
there were fewer outages during the 2022 heat wave due to the
Transformer Replacement Program that was initiated in 2021.
Restoration time was shorter due to additional APU staff prepared
to respond rather than waiting for contractors or mutual aid to arrive
when called upon. J. Lonneker shared that positive customer
feedback acknowledging the repair work performed by the APU
crews was received through social media.
J. Lonneker shared with the Board the customer outreach efforts
performed by staff to disseminate information about the upcoming
undergrounding projects in areas in or adjacent to high fire threat
zones. The outreach took place over two days near Oak Canyon
Nature Center and on Martin Road and Santa Ana Canyon Road.
Anaheim Fire and Rescue also participated in the outreach to
provide information on wildfire season preparedness. A number of
residents impacted by the undergrounding construction visited the
booths where staff answered specific questions related to the
projects.
J. Lonneker invited the Board to Public Power Week on Thursday,
October 6th between 11 am - 3pm on Center Street Promenade
adjacent to the Farmers Market. APU staff will provide information
to the public on rebates and programs available to conserve power
and save money. APU will host elementary school students to
educate them on safety around power lines and careers in the power
industry.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker, Acting Assistant General Manager — Water Services,
shared with the Board the current water supply condition, noting
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that the local groundwater basin is in good condition, but the State
Water Project and Colorado River supplies are strained due to the
drought. C. Parker also indicated that the annual precipitation is
slightly under average for the year locally, for the state, and in the
Colorado River basin. It is unlikely the City will lower the level of
the water contingency plan, which is currently at Level 2 (watering
only three days per week). If the winter is dry again this year, then
water agencies will likely be mandated by the State to go to Level 3
(watering only two days per week) next year.
C. Parker also made the Board aware of the valve replacement
project being performed by the design -build master construction
agreement delivery method. The project is critical to replace valves
so the system can be isolated when needed and affect as few
customers as possible.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly finance dashboard. The year to
date electric revenue through August 2022 was 15.8% above budget
($11.7M) due to higher than expected wholesale revenue due to
higher than projected wholesale energy prices. Electric costs for the
fiscal year were also above budget by 5.1 % ($3.4M) also due to
higher than expected energy costs, causing a net positive budget
variance of $8.3M. B. Beelner then shared that year to date water
revenue was 0.5% ($0.1M) below budget. Water operating costs
also fell below budget by 5.7% ($0.8M) causing a net negative
budget variance of $0.7M.
B. Beelner made the Board aware that the heatwave that occurred
across California for 10 days, from August 3 1 " - September 91h,
stressed the grid by setting a peak load of 52,061 MW. B. Beelner
compared this heatwave and the State's response with the heatwave
in 2020 (46,970 MW) and explained how the State was able to
ensure there was enough power supply to meet this new peak
without the need to resort to rolling blackouts. The State added
6,700 MW of capacity since 2020 mostly through the addition of
4,624 MW of additional battery storage coupled with higher levels
of imported energy.
B. Beelner discussed APU's response to the heatwave and how
APU was able to sell $4.8 million worth of power during these 10
days on the wholesale market. The Board discussed the State's
response and how the State will meet these kinds of demands in the
future if imports are not available. D. Lee mentioned that this was
why the state decided to keep Diablo Canyon Nuclear Generating
Station online for an additional 10 years, and discussed how the
State is now looking into offshore wind and other potentially higher
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cost power supply options to help augment power supply
constraints.
B. Beelner discussed the current interest rate market, the Federal
Reserve's recent actions, the overall increase to interest rates, and
the current phenomenon of the severe yield curve inversion. B.
Beelner mentioned how this rising interest rate environment may
impair APU's ability to refund bonds in the future. However, B.
Beelner reminded the Board that all of APU's interest rates on its
debt is currently fixed, thereby eliminating any risk associated with
the current rising interest rate environment.
11. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman discussed the Administration and Risk Services
Dashboard. She provided an update on the legislative session that
was ending and reviewed three bills of interest. J. Lehman then
discussed the safety metrics with the Board.
12. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Quarterly Status Reports on Capital Improvements and
Prequalified Contracts
• Safety Consulting Services Agreements
• Annual Electric Reliability Presentation
• 2022 Emergency Response Planning Update
• Sustainability Education Center (SEC) Presentation and
Exhibit Design and Fabrication Agreement
D. Lee reminded the Board that the Public Utilities Hearing Board is
scheduled to convene next month, October 26 at 4PM in the
Anaheim West Tower 11 th Floor Conference Room. The resident has
been invited to attend.
D. Lee shared photos of the Department Staff Meeting held on
September 8, 2022. The guest speaker at the event was Chairperson J.
Seymour.
D. Lee shared photos from the EV Ride & Drive event at Katella
High school. APU staff was present to answer questions regarding
EV battery use in the home and charging rate plans. Residents with
EV vehicles were invited to showcase their vehicles.
D. Lee reminded the Board of the emergency homeless shelter built
in 79 days that was managed by APU in 2019, and then shared
photos of the new Center of Hope campus currently under
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construction by the Salvation Army. This project should be
operational by late spring of 2023, and APU's role for the new
development is to provide electric and water services.
13. ITEMS BY BOARD MEMBERS.
Board member A. Pham thanked APU staff for their public
communication during the heatwave. In regards to the upcoming
Energy Storage Project, Board member A. Pham suggested that
APU look into fire safety due to potential fire hazards as seen in
other locations. D. Lee responded that he had recently discussed
safety aspects of this project with B. Beelner and his team. J.
Lehman's team will be involved in reviewing safety aspects of the
construction. APU also searches for best practices and will review
proposals in detail to see how safety issues are being addressed. D.
Lee stressed that the issue of fire safety is ,something APU staff is
very focused on.
Board member M. Lee expressed appreciation for the new
presenters this evening, their concise presentations and ability to
respond to questions are especially appreciated. He expressed
concern over the continuous importation of power and the fact that
Anaheim currently does not have the infrastructure to independently
import large amounts of power. D. Lee responded that this is an
industry -wide concern, and the Federal Government and the State
of California are looking into many power options. B. Beelner and
his staff are putting together an Integrated Resource presentation for
the Board in March 2023 with a comprehensive. plan for all
integrated resources.
Board member AB. Abdulrahman asked about the growing number
of EV cars and the plan to accommodate them. D. Lee responded
that monthly meetings are held across multiple divisions to plan and
prepare for EV proliferation. As residents and businesses transition
to EVs, APU staff is working to address build -out of infrastructure
needs.
Vice Chairperson V. Baroldi commented about the benefits of
refinancings that have previously taken place, and about continuing
to address forced mandates by the State.
Chairperson J. Seymour encouraged all members of the Board to
attend the upcoming Colorado River tour.
14. ADJOURNMENT: (NEXT REGULAR MEETING ON
OCTOBER 26, 2022 AT 5:00 P.M.)
M. Lee moved to adjourn
the Regular Meeting in the
Gordon Hoyt Conference
Center at 7:07 p.m. to the
Board's Regular Meeting
2022 - 75
date of October 26, 2022 at
5:00 p.m. A. Pham seconded
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1. [N.
CAMPOS-KURTZ].
Res ectfully sub itted,
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.
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