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Public Utilities 2023/06/28CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES June 28, 2023 The agenda having been posted on Wednesday, June 21, 2023, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson Seymour at 5:00 p.m. on Wednesday, June 28, 2023, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California. Board Members Present: Chairperson J. Seymour, M. Lee, A. Pham, A. McMenamin, T. Bilezikjian Board Members Absent: Vice -Chairperson A. Abdulrahman, T. Ibrahim City Staff Present: D. Lee, A. Kott, P. Starr, J. Lehman, J. Lonneker, C. Parker, M. Seifen, T. Castaneda, A. Nguyen, B. Mendoza, S. Whitlock, B. Zimmerman, M. Bradley, J. Reyes, Y. Ceniceros, A. Lee Guest(s) Present: Vincent Lu, Oxford Academy; Nathan Jimenez, Anaheim High School; Tristhan Lim, Magnolia High School; Elise Huynh, Canyon High School; Aaliyah Mohammed, Disney Elementary; Megan San Diego, Orangeview Junior High; Sam Mohammed, Anaheim Resident; Alex Huynh, Anaheim Resident; Henry Lu, Anaheim Resident; Veronica San Diego, Compton Resident AGENDA ITEM ACTION TAKEN At the beginning of the meeting, M. Bradley, Senior Communications Specialist, was recognized by the Board for his many contributions to Anaheim customers through underground conversion presentations, event planning, graphics, and publications. M. Bradley will be retiring, and the Board congratulated him and wished him well. 1. RECOGNIZE 2023 WATER BOTTLE LABEL ART CONTEST WINNERS. M. Seifen, Communications Supervisor, presented Certificates of Recognition to Aaliyah Mohammed, 2nd grade student from Disney Elementary, as well as Megan San Diego, 81h grade student at Orangeview Junior High, for their winning art submissions to the 2023 Water Bottle Label Art Contest. The Board congratulated the students and their families for their artwork. 2023 - 41 2. RECOGNIZE ANAHEIM PUBLIC UTILITIES 2023 HIGH SCHOOL SCHOLARSHIP RECIPIENTS. T. Castaneda, Acting General Services Manager, introduced S. Whitlock, Resource Programs Specialist I, and B. Zimmerman, Resource Programs Specialist III, to provide an overview of the selection process of the High School Scholarship Recipients. S. Whitlock thanked the Board Members on the ad hoc Scholarship Selection Committee for their contributions during the selection process. S. Whitlock shared that the evaluation process identified the top five scholarship finalists, who were then interviewed by the selection Committee and added that the scholarship opportunity includes a paid internship through the partnership with Workforce Development and Hope Builders, which allows the scholarship recipients to obtain firsthand experience in the workplace. The Board recognized Vincent Lu, Oxford Academy; Nathan Jimenez, Anaheim High School; Tristhan Lim, Magnolia High School; and Elise Huynh, Canyon High School, as the 2023 Recipients of the High School Student Scholarships. 3. PUBLIC COMMENTS. 4. ELECTIONS FOR PUBLIC UTILITIES BOARD CHAIRPERSON AND VICE -CHAIRPERSON. ** A. Kott, Assistant City Attorney, opened the floor for nominations for Chairperson. Board Member A. McMenamin nominated J. Seymour, who accepted the nomination. By voice vote, the Board members unanimously voted to close the nominations and elected J. Seymour to the position of Chairperson of the Board. A. Kott opened the floor for nominations for Vice -Chairperson. Chairperson J. Seymour nominated A. Abdulrahman, who was not present to accept the nomination. Subject to confirmation by A. Abdulrahman, A. Kott accepted his nomination. By voice vote, the Board members unanimously voted to close the nominations and elect A. Abdulrahman to the position of Vice -Chairperson of the Board. There being no electronic or oral public comments, Chairperson J. Seymour closed the public comments portion of the meeting. T. Bilezikjian moved to close the nominations and elect J. Seymour as Chairperson of the Public Utilities Board. M. Lee seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2. [A. Abdulrahman, T. Ibrahim] Chairperson J. Seymour moved to close the nominations and elect A. Abdulrahman as Vice - Chairperson of the Public Utilities Board. M. Lee seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2. [A. Abdulrahman, T. Ibrahim] 2023 - 42 5. ELECTIONS FOR THREE UNDERGROUND CONVERSION By voice vote, the Board closed SUBCOMMITTEE MEMBERS. the nominations. Chairperson J. Seymour moved the election of A. Kott opened the floor for nominations for three Underground A. Pham, M. Lee, and Conversion Subcommittee Members. Chairperson J. Seymour A. Abdulrahman to serve on the nominated A. Abdulrahman, A. Pham, and M. Lee. Those present Underground Conversion accepted their nominations and subject to confirmation by A. Subcommittee. T. Bilezikjian Abdulrahman, A. Kott accepted his nomination. By voice vote, the seconded the motion. Board members unanimously voted to close the nominations and elect MOTION CARRIED: 5-0. A. Pham, M. Lee, and A. Abdulrahman to serve on the Underground ABSTAINED: 0. Conversion Subcommittee. ABSENT: 2. [A. Abdulrahman, T. Ibrahim] 6. APPOINTMENT OF THREE MEMBERS AND FOUR ALTERNATES FOR THE PUBLIC UTILITIES HEARING BOARD AND APPOINTMENT OF THREE MEMBERS FOR THE AD HOC LEGISLATIVE WORKING GROUP. ** Chairperson J. Seymour appointed the incumbent members, A. Abdulrahman, subject to confirmation, and M. Lee who accepted the appointment to serve as members on the Public Utilities Hearing Board. Chairperson J. Seymour indicated he would continue to serve. Chairperson J. Seymour then appointed the other four Board Members to serve as alternates on the Public Utilities Hearing Board. Board Members T. Ibrahim, subject to confirmation, A. McMenamin, A. Pham, and T. Bilezikjian accepted the appointments as alternates. Chairperson J. Seymour confirmed all appointments to the Public Utilities Hearing Board. Chairperson J. Seymour appointed Board Members M. Lee and T. Bilezikjian to serve on the ad hoc Legislative Working Group. Board Members M. Lee and T. Bilezikjian accepted the appointment. Chairperson J. Seymour indicated he would continue to serve and confirmed the others' appointments to the ad hoc Legislative Working Group. 7. APPROVE THE MINUTES OF THE REGULAR MEETING OF A. Pham moved the approval of MAY 24, 2023. the Minutes of the Public Utilities Board Meeting Regular Meeting of May 24, 2023. M. Lee seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2. [A. Abdulrahman, T. Ibrahim] 8. BY RESOLUTION, 1) FIND THAT THERE NO LONGER A. Pham moved the resolution of EXISTS AN ELEVATED WATER SHORTAGE LEVEL AND the Water Reduction Plan. T. ORDER THE DISCONTINUANCE OF THE WATER Bilezikjian seconded the motion. REDUCTION PLAN 2, AND 2) FIND THAT THERE EXISTS A MOTION CARRIED: 5-0. 2023 - 43 MILD WATER SHORTAGE LEVEL AND ORDER THE ABSTAINED: 0. IMPLEMENTATION OF A WATER REDUCTION PLAN 1 ABSENT: 2. [A. Abdulrahman, PURSUANT TO CHAPTER 10.18 (WATER CONSERVATION T. Ibrahim] ORDINANCE) OF THE ANAHEIM MUNICIPAL CODE. C. Parker, Assistant General Manager — Water Services, shared with the Board that due to the heavy storms this rain season and the Governor easing drought restrictions, Anaheim Public Utilities (APU) is recommending moving from Level 2 to Level 1 of the Water Shortage Contingency Plan. This would move the City of Anaheim (City) from a mandatory position to a recommended position of watering outside three days a week (as well as other minor drought restrictions). C. Parker also mentioned that at a future time the Water Conservation Ordinance will need to be amended to align with minor State mandatory actions and future non-functional turf legislation regarding mandating no potable water be used to irrigate non- functional turf, as well as the City Council potentially delegating approval to move to different levels of the Water Shortage Contingency Plan to the Board. C. Parker shared that APU would continue to promote water conservation through the many programs available to residents. The Board inquired about the amount of time businesses would have to conform to this new legislation. C. Parker estimated roughly two years, and expressed that APU is advocating for future funding to assist customers with expenses. The Board inquired how APU will communicate and enforce this legislation if passed. C. Parker explained that the legislation would require retail water agencies, such as APU, to enforce requirements, and that APU would first seek to educate customers to help transition away from non-functional turf. A follow-up question by the Board was asked regarding the number of locations that would be impacted. C. Parker said thousands of locations would be impacted, just in Anaheim. APU is creating a guidebook to help customers fill out rebate applications, view landscaping options, and plan for future landscape upgrades. C. Parker made the Board aware that customers would not lose access to rebates once the City has moved back to Level 1. 9. APPROVE AN AGREEMENT FOR UNARMED SECURITY M. Lee moved the approval of SERVICES BETWEEN THE CITY OF ANAHEIM AND the Agreement for unarmed AMERICAN GLOBAL SECURITY, INC. FOR A TERM OF security services. A. THREE YEARS WITH UP TO TWO ONE-YEAR EXTENSIONS McMenamin seconded the IN AN ANNUAL NOT -TO -EXCEED AMOUNT OF $375,000. motion. MOTION CARRIED: 5-0. A. Nguyen, Acting Assistant General Manager — Finance and Energy ABSTAINED: 0. Resources, explained that the professional services agreement for 2023 - 44 unarmed security services is primarily intended for APU's warehouse and yard complex, but could also be utilized at any utility facility. He described how the request for proposal (RFP) was issued, the evaluation criteria, and how staff ranked American Global Security, Inc. highest based on the necessary criteria. A. Nguyen conveyed how such services, combined with current efforts to harden APU's security infrastructure, will help deter theft and vandalism. D. Lee, Public Utilities General Manager, provided additional context about APU's security, describing how the proposed security services will provide flexibility to address security concerns during construction to harden security infrastructure progresses. The Board asked about the remote monitoring services that were referenced in the staff report. D. Lee replied that the RFP also solicited for a vendor who could utilize smart sensors and analytics to monitor live camera feeds in a cost-effective manner, but APU did not receive responsive proposals that adequately addressed this scope of service. The Board inquired about the use of dogs on the property, and staff indicated that the use of dogs was not included in the scope of services and poses other concerns on the property. The Board asked if staff works with firms to deter theft of materials, and staff explained that most theft includes scraps of metal, and not entire reels. APU works with recycling companies to salvage materials and unload stock to avoid attracting attention. 10. UPDATE ON ELECTRIC SYSTEM ITEMS. J. Lonneker, Assistant General Manager — Electric Services, shared with the Board a summary of recently completed streetlight upgrades. Residents voiced their concerns regarding vandalism and graffiti along the rear alleys adjacent to Janss Street, between Cypress and Sycamore Street. After the lights were installed on existing wood poles, APU received several positive comments by residents within the area. J. Lonneker also mentioned that additional lighting is planned near the intersection of Claudina and Santa Ana Street following Board comments about the dark intersection. J. Lonneker made the Board aware of the multiple instances of streetlight wiring theft occurring across the City. The streetlight wires are cut and removed leaving a string of streetlights without power. Normally, streetlighting repairs are made by APU crews within several business days of being reported; however, due to the extensive damage and long material lead-times, crews are not able to make repairs as quickly. J. Lonneker shared that master agreements with contract crews will be utilized to accelerate the repairs and supply materials. Additionally, solar power lights and temporary overhead power will be installed ABSENT: 2. [A. Abdulrahman, T. Ibrahim] 2023 - 45 where feasible, and staff is evaluating the use of tamper -proof bolts to securely lock streetlight pull -boxes and base plates. J. Lonneker reported receiving a shipment of electric materials after issuing an emergency purchase order. Information was shared with the Board that APU continues to see long lead times for materials, in some cases more than two years, compounded by market conditions calling for variable pricing and escalation clauses that are a challenge within the City's current purchasing process. J. Lonneker shared an example of having to re -bid for wood poles due to bids deemed non -responsive for including a price escalation factor, something which is now common in the marketplace. J. Lonneker added that APU is working towards a streamlined solution with the flexibility to adjust to market conditions which is imperative to prepare for major system upgrades over the next several years to accommodate load growth and for reliability projects. J. Lonneker reported that customer notifications will be sent to inform residents located near the end of Oak Canyon Road and Weir Canyon Road that wildfire mitigation cameras will be installed to overlook Gypsum Canyon and Weir Canyon. The notifications will include the locations of the cameras which are scheduled to be installed by September 2023. 11. UPDATE ON WATER SYSTEM ITEMS. C. Parker briefed the Board that due to the heavy rain, water storage levels significantly improved. Additionally, he reported that the Linda Vista Groundwater Treatment Plant is operational providing access to the local aquifer. He updated the Board on the Water Awareness Month outreach event hosted by APU last month, attended by local students, and that an APU team participated in the Santa Ana Pipe Tapping Event where they earned 2nd place. He also briefed the Board on a State -initiated microplastics water quality monitoring pilot that will take place at the Lenain Water Treatment Plant. C. Parker expanded on what microplastics are, sources, and suspected health effects. The State is expected to set a maximum contaminant level in the future after all the research is completed. 12. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS. A. Nguyen discussed the monthly Finance dashboard with the Board through May 2023. A. Nguyen explained how May's performance was close to budget for the Electric Utility, and how end -of -year results may appear in -line with the current budget variance. A. Nguyen reminded the Board that next month's dashboard will incorporate the $48 million Council -approved budget amendment for power supply, which should make operating expenditures appear under budget. 2023 - 46 A. Nguyen also described how Water Utility results for May appear consistent with prior months and added that the finance team continues to monitor macroeconomic indicators such as inflation and interest rates to gauge potential impacts to utility finances. 13. UPDATE ON ADMINISTRATION & RISK SERVICES ITEMS. J. Lehman, Assistant General Manager — Administration and Risk Services, provided the Board with an update on the Wholesale Energy Risk Management (ERM) Program's Quarterly Compliance report. During this period there were no violations of the ERM Program, and all transactions were within the ERM requirements. J. Lehman also provided an update on the Administration and Risk Services dashboard; she highlighted three bills of interest (Senate Bill (SB) 908 that would require utilities to purchase negative emissions credits impacting customer rates, Assembly Bill (AB) 755 that would require publicly identifying high use residential water customers, and AB 1594 that would help alleviate cost pressures and operational concerns with electrification of heavy duty fleet vehicles used by water and electric public utilities). She then reviewed the safety metrics for May 2023 indicating there were no incidents. 14. ITEMS BY SECRETARY. D. Lee shared agenda items planned for next month: • Recognition of WaterSmart Landscape Award Winners • Appointments for the ad hoc Sustainable Home and Sustainable Schools Awards Selection Committee • Approval Award for Inspection of Overhead Electrical Assets D. Lee shared that APU staff provided a tour for Council Member Norma Campos -Kurtz of the Harbor Substation, Boysen Park, and Customer Service. D. Lee thanked the members of the Board who attended the Facilities Inspection of the Robert B. Diemer Water Treatment Plant of the Metropolitan Water District of Southern California. APU participated in a community meeting and safety walk in the Guinida Lane neighborhood with Council Member Norma Campos - Kurtz and shared some of the improvements that have been made as a result of the community meeting, including removing shoes from power lines, increased lighting, painting over graffiti on a hydrant, and trimming trees around a streetlight. D. Lee provided an update on APU's signature event, the OC Green Expo, which helps educate the community about the benefits of electric transportation, efficiency improvements, and featured 2023 - 47 sustainability initiatives by other City departments, local businesses, and public agencies. The event was well attended with approximately 1,100 attendees, and 15 electric vehicles were available to test drive. D. Lee thanked Council and Board members for attending the event. D. Lee requested that the Board Meeting be closed in memory of Donn West, a former APU employee and Anaheim resident. Prior to Donn's employment with APU, he served in the Army earning the rank of Corporal. Donn started his career with APU in Electric Services and Engineering Division where he retired in 1991 after 33 years of service to the Anaheim community. Board Member Bilezikjian thanked APU staff for meeting with her and providing an explanation of transmission lines. Chairperson J. Seymour closed the meeting in memory of Donn West after a moment of silence. 16. ADJOURNMENT: (NEXT REGULAR MEETING ON JULY 26,2023, AT 5:00 P.M.) Respectfully s ibmitted, Dukku Lee Public Utilities General Manager T. Bilezikjian moved to adjourn the Regular Meeting in the Gordon Hoyt Conference Center at 7:19 p.m. to the Board's Regular Meeting date of July 26, 2023 at 5:00 p.m. A. McMenamin seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2. [A. Abdutrahman, T. Ibrahim] 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 the City Clerk and City Council for informational purposes. 2023-48