Public Utilities 2024/02/28CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
Uttdfi"Ml
February 28, 2024
The agenda having been posted on Thursday, February 22, 2024, the Public Hearings/Regular
Meeting of the Public Utilities Board (Board) was called to order by Chairperson J. Seymour at
5:00 p.m. on Wednesday, February 28, 2024, in the Gordon Hoyt Conference Center, 2 nd floor,
Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, Vice -Chairperson A. Abdulrahman,
M. Lee, A. Pham, T. Bilezikjian, T. Ibrahim
Board Members Absent: A. McMenamin
City Staff Present: D. Lee, P. Starr, J. Lonneker, B. Beelner, J. Lehman,
C. Parker, M. Avelino -Walker, A. Lee, T. Chen, T. Castaneda,
T. Mardikian, B. Mendoza, M. Seifen, A. Nguyen, J. Wei,
R. Fuller, A. Gonzalez, C. Dalton, N. Medeiros, J. Reyes,
M. Chavez, 1. Haggins
Guest(s) Present: Abigail E., Jazelle B., Amy M., Hilary C., Said M., Oscar A.,
Esmeralda G., Alton H., K. Meland, Ronald Bengochea, Audrey
Hinh, Thanh Nguyen, Fermin Maciel, Maria Sanchez, Said Maciel,
Esmeralda Escobedo, Blanca Ocampo, Johann Ruiz, Carlos Garcia,
Faye Price, Amy Munoz, Ericka Ramirez, Biridiana Cruz, Olivia
Randall, Israel Jimenez, Maria Luz, Norman Todd, Carol Torres,
Lisa A. Augustine - Court Reporter, CSR # 10419, J. Villaseffor -
Orange County Translation and Interpretation Services
Anaheim Union High School District: Candace Cabrera,
WorkAbility Placement Specialist; Anjeanette La Curan,
WorkAbility Placement Specialist; Derek Bean, Special Education
Teacher; Tom Farranda, Vocational Counselor; Tina Carpenter,
Program Specialist and WorkAbility Coordinator
AGENDA ITEM
1. RECOGNITION: ANAHEIM UNION HIGH SCHOOL
DISTRICT WORKABILITY I PROGRAM
PARTICIPANTS.
M. Seifen, Communications Supervisor, provided an overview of
the Anaheim Union High School District's (AUHSD)
WorkAbility I program in collaboration with Anaheim Public
ACTION TAKEN
2024-10 ITEM NO. 01
Utilities (APU). M. Seifen highlighted examples of APU's event
support and community interactions, as well as job skills
development and project assistance for the WorkAbility I students
who participated during the school year.
The Public Utilities Board (Board) presented a proclamation to
the AUHSD's WorkAbility I program, and the students were
recognized for their efforts in supporting customer -focused
projects. The Board congratulated the students for their
accomplishments.
Chairperson J. Seymour invited the public to speak on matters
other than the public hearing items.
R. Bengochea, resident, thanked APU for providing exceptional
customer service. R. Bengochea shared his appreciation for the
construction of the Gypsum Canyon Veteran's Cemetery.
3. APPROVE THE MINUTES OF THE REGULAR MEETING
OF JANUARY 24, 2024. *
4. PRESENTATION: COMMUNITY AND SUSTAINABILITY
ANNUAL UPDATE.
M. Avelino -Walker, General Services Officer, introduced
T. Castaneda, Community and Sustainability Programs Manager,
to share how APU provided community -focused and sustainable
programs over the past year.
T. Castaneda shared that APU offers a variety of residential
energy -efficiency and bill assistance programs, and those
programs collectively saved 2.2 million in energy savings,
resulting in $2.4 million in customer bill savings. Last year's
Sustainable Homes Survey awarded nine winners with home
efficiency upgrades. T. Castaneda provided an overview of
commercial and multifamily programs, including the Small
Business Direct Install Program, which offers a menu of
efficiency upgrades and programs for large businesses through
rebates.
There being no electronic or
other oral public comments,
Chairperson J. Seymour closed
the public comments portion of
the meeting.
A. Pham moved the Approval of
the Minutes of the Regular
Meeting of January 24, 2024.
T. Bilezikjian seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [A. McMenamin]
2024 - 11
T. Castaneda emphasized that last year, APLJ helped multifamily
property owners with security lighting to address resident
In 2023, residential water conservation programs saw an increase
in gallons saved compared to the previous year, attributed to
APUs outreach efforts. Additionally, APLJ is working with other
agencies in Orange County to develop programs to address the
state's mandates on non-functional turf.
T. Castaneda shared that electric vehicle adoption has accelerated
in Anaheim, and to allow more customers to participate, APU has
reduced the electric vehicle charger rebate. T. Castaneda
mentioned that APU facilitates any educational and engagement
programs.for students, and. the Sustainability Education. Center
(SEC) is set to support the community by offering seminars,
workshops, and career pathways for students and adults. The SEC
will include hands-onlea ming exhibits to reinforce key learning
themes.
INFRASTRUCTURE OVERVIEW.
A. Gonzalez, SCADA Systems Analyst, provided an. overview of
APU's Electric Advanced Metering Infrastructure (AMI). APU
implemented an Electric AMI System that consisted of upgrading
older anal og utility meters that are no longer being manufactured
to modem digital meters. Customers can benefit -from an AMI
system by having their service reconnected within. minutes of
payment of a past due bill; APLJ can perform saine-day move-
in/move-out requests with. remote, on -demand register reads;
outages can be detected faster without the need for customers to
report the outage; high bill data analysis can be performed with
the detailed energy usage data that is collected; and more
consistent and accurate titer reads support customer billing.
The project began as a pilot in 2016, with full AMI deployment of
124,000 electric meters completed in. 2023. Some challenges
included maintaining consistent communication., which was
resolved as more meters were enabled; coordinating property
access to exchange meters; managing customer disruptions during
the pandemic; and meter supply chain constraints due to chip
shortages.
The Board inquired about how customers will be able to see their
detailed energy usage data to perform a high bill data analysis. A.
Gonzalez shared that APU is currently implementing an online
customer portal that will show a customer's detailed energy usage
for analysis in 15-minute intervals to identify high usage trends
and will also allow them to perform rate comparisons.
The Board inquired if the meter data being captured was in real-
time. A. Gon7alez responded that certain. meter data is being sent
over in real-time, such as outage or restoration events, but energy -
usage is communicated every four hours.
The Board inquired if APU laid off anymeter readers due to
implementation of the AM] system.. D. Lee, Public Utilities
General Manager, shared that APU did not lay off a iy employees.
APU's projects are designed to increase of and provide
better service. However, the number of meter reading employees
has been reduced due to natural attrition., such. as retirement, while
other employees are retrained and have job opportunities in areas
of growth matching utility needs.
A member of the public made comments unrelated to the agenda
items regarding animals. D. Lee requested that the customer speak
with a staff member.
6. JOINT PUBLIC HEARING: (1) PROPOSED
MODIFICATIONS TO THE WA.TER..RATES,.RULESA1VD
REGULATIONS RESULTING IN A IN IL
DECREASE FOR TYPICAL RESIDENTIAL CUSTOMERS:
(A) DECREASE TO THE WATER COMMODITY
ADJUSTMENT (W-CA) RATE AND INCREASE TO THE
WATER SYSTEM RELIABILITY ADJUSTMENT (W-SRA)
RATE WITH CORRESPONDING REVISIONS TO
SCHEDULES W-CA AND W-SRA **; (B)DECREASE TO
THE COMMODITY CHARGE AND INCREASE TO THE
CUSTOMER CHARGE RATES; (C) TEXT
MODIFICATIONS TO SCHEDULE W-CA (COMMO)ITY
ADJUSTMENT CLAUSE), SCHEDULE W-SRA (WATER
SYSTEM RELIABILITY A)JUSTMENT), SCHEDULE W-G
(GENERAL WATER SERVICE), AND SCHEDULE W-PFL
(PRIVATE FIRELINE SERVICE); AND (D)
MODIFICATIONS TO RULE NO. 26 (WATER BILL
ASSISTANCE FOR INCOME -QUALIFIED CUSTOMERS);
AND (2) DETERMINATION THAT THESE
MODIFICATIONS ARE EXEMPT UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO THE PUBLIC RESOURCES CODE
SECTION 21080(B)(8) AND SECTIONS 15061(11)(3)AND
1.5273(A) OF TITLE 14 OF THE CALIFORNIA CODE OF
REGULATIONS. *
T. Bilezi.kyian moved that the
Board recommend to the City
Council that the City Council, by
resolution, (1) determine that the
modifications to the Water Rates,,
Rules and Regulations are
exempt under CEQA; and (2)
approve the proposed. decrease to
the Commodity Charge rate and
increase to the Customer Charge
rates; proposed non -rate
revisions to Schedules WCA,
W-SRA, W-G, and W-'P.FL; and
Rule No. 26 of the Water Rates,
Rules and Regulations.
A. Abdulrahman seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: I [A.McMera minl.
The Public Ile aring was called to order by Chairperson J.
Seymour. The court reporter swore in APU staff.
APU presented prepared testimony and oral testimony in support
of its proposed (1) water rate decreases to the Water Commodity
Adjustment (WCA) and Commodity Charge, water rate increases
to the Water System Reliability Adjustment (WSRA) and
Customer Charges, (2) non -rate revisions to the four water rate
schedules, and (3) the proposed modifications to Rule No. 26 of
the Water Rates, Rules and Regulations,
B. Beelner, Assistant General Manager -- Finance and Energy
Resources, presented. oral testimony explaining that APU is
proposing to decrease the Water Commodity Adjustment (WCA)
and Commodity Charge rates; increase the Water System
Reliability Adjustment (WSRA) and Customer Charge rates that
results in an. overall decreasefor typical residential customer bills
of less than I %. Additional proposals include non -rate revisions,
which include text and/or fortnulas, to Schedules W-CAA, W-SRA,
W-G, and W-PFL of the Water Rates, Rules, and Regulations. The
rate proposal is intended to minimize customer bill impacts while
better aligning the recovery of fixed costs with the corresponding
fixed rate component, and to address aging infrastructure needs to
maintain service reliability.
B. Beelner also noted proposed modifications to Rule No. 26,
w . hich would increase the income -qualified discount for seniors,
long-term disabled, and mil.itar.y veteran customers from 10% to
12% for individually metered residential. customers, and from. $5
to $ 10 per month for tenants of master -metered residential
customers that provide submetering.
.D. Lee stated that approximately 85,317 Notices of Public
I-learing were mailed, and, of those, 1,802 notices were in Spanish
and 83,51.5 notices were mEnglish. Of these Notices,
approximately 62,620 were mailed to property owners and
approximately 22,697 were mailed to customers of record. D. Lee
also shared that there were 39 customer service phone calls, and
12 written protests were received as of the public hearing date.
Upon conclusion of the foundational testimony, the Board did not
pose any questions, and Chairperson J. Seymour asked if there
were any members of the public who would like to speak either in
favor of or in. opposition to the proposed modifications to the
Water Rates, Rules and Regulations concerning water rates, rate
schedules, or the Rule related to water bill assistance for income -
qualified customers. One member of the public commented about
an older water bill from the 1960s. Afterwards, D. Lee provided
some closing remarks.
ffluz�
Upon the completion of the testimony and. opportunity for public
comments, Chairperson J. Seymour entertained the following
motion from A. Lee, Deputy City Attorney, who moved that all
evidence, oral and written, submitted by staff, including the
Prepared Testimony with exhibits of B. Beelner; the Affidavits of
Publication of the Notices of Public Flearing; the Certificate of
Mailing; and the written protests filed with the Secretary of the
Board become part of the record and submitted into evidence.
Chairperson J. Seymour granted A. Lee's motion.
Chairperson J. Seymour next entertained A. Lee's request to close
the record of the public hearing because there were no further
witnesses or evidence to be submitted by APU for the Board's
consideration. Since no objections to A. Lee's request were
interposed, Chairperson J. Seymour closed the Public Hearing,
Chairperson J. Seymour summarized the prior testimony of D.
Lee and noted that the number of protests received did. not
constitute a rn�kjority protest to the proposed rate decrease related
to Schedule W-CA and proposed rate increase related to Schedule
W-SRA. Based on the forgoing, Chairperson J. Seymour
concluded that the decrease to the WCA. rate and increase to the
WSRA rate are in. effect on April 3, 2024, as guided by applicable
state laws,
A. Abdulrahman moved that the
Board recommend to the City
Council that the City Council, by
resolution, (1) determine that the
modifications to the Electric
Rates, Rules andRegulations are
exempt under CEQA; and (2)
approve the proposed rate and
rule modifications to theElectric
Rates, Rules and Regulations.
A. Pham seconded the motion.
MOTION CARIIIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [A. McMenamin].
N�
MODIFICATIONS ARE EXEMPT UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) PURSUANT TO THE PUBLIC RESOURCES
CODE SECTION 21080(B)(8) AND SECTIONS 15061(B)(3)
AND 15273(A) OF TITLE 14 OF THE CALIFORNIA CODE
OF REGULATIONS. *
The Public Hearing was called to order by Chairperson J.
Seymour. T. Chen, Deputy City Attorney, reminded APU staff
that they were previously sworn in.
APU presented prepared testimony and oral testimony in support
of its proposed rate and rule modifications to the Electric Rates,
Rules and Regulations.
B. Beelner presented oral testimony explaining that APU is
proposing rate and rule modifications to the Electric Rates, Rules
and Regulations.
B. Beelner discussed the proposed restructuring of electric rates
contained in Schedules D, GS-1, GS-2, TOU, TES, PA, LS, MS,
TOU-2, Developmental D-TOU-L, Developmental D-EV, and
Developmental D-EV-2 to better align electric costs with the
appropriate rate that is designed to recover that cost with minimal
impact to customer bills. B. Beelner described how this proposal
involves decreasing the Rate Stabilization Adjustment rates,
intended to recover costs that are thought to be temporary in
nature, with corresponding increases to base rates comprised of
customer charges, energy charges, and demand charges contained
in the electric rate schedules. The overall impact is revenue
neutral and typical bills will not be affected.
Lastly, B. Beelner discussed the proposed changes to Rule Nos.
26 and 29, which provide discounts on the electric portion of
income -qualified residential customer bills. For Rule No. 26, B.
Beelner described the proposal to increase the income -qualified
discount for seniors, long-term disabled, and military veteran
customers from 10% to 12% for individually metered residential
customers, and from $10 to $15 per month for tenants of master -
metered residential customers that provide submetering. For Rule
No. 29, which covers the Community Solar Discount Program
that provides income -qualified residential customers with a bill
discount for access to solar energy from a local site, B. Beelner
described the proposal allowing APU to adjust the program
discount based on participation levels and available funding.
2024 - 16
Upon conclusion of the foundational testimony, Chairperson J.
Seymour asked if any member of the Board had questions for
staff. No member of the Board had any questions.
Chairperson J. Seymour then asked if there were any members of
the public who would like to speak either in favor of or in
opposition to the proposed rate or rule modifications to the
Electric Rates, Rules and Regulations. There were no public
comments. D. Lee provided some closing remarks.
Upon the completion of the testimony and opportunity for public
comments, A. Lee moved that all evidence, oral and written,
submitted by staff, including the Prepared Testimony with
exhibits of B. Beelner; and the Affidavits of Publication of the
Notices of Public Hearing become part of the record and
submitted into evidence. Chairperson J. Seymour granted A.
Lee's motion.
Chairperson J. Seymour next entertained A. Lee's request to close
the record of the Public Hearing because there were no further
witnesses or evidence to be submitted by APU for the Board's
consideration. Since no objections to A. Lee's request were
interposed, Chairperson J. Seymour closed the public hearing.
A verbatim transcript of the joint public hearing, with all
testimony and exhibits that were a part of the public hearing, will
be prepared by the Court Reporter. The certified original
transcript will be on file in the 111h floor Department Records,
Public Utilities Department, Anaheim West Tower. A certified
copy of the original transcript will be on file in the City Clerk's
Office, 2nd floor, City Hall.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services,
updated the Board regarding ongoing wire theft with additional
incidents that occurred this month. Anaheim Police Department
(APD) apprehended two individuals for wire theft near the Honda
Center on Douglass Road near Katella Avenue. The wire was
improperly removed from underneath an energized, above -ground
switch resulting in serious injury. The two individuals were
transported to the nearest hospital to seek immediate care. The
incident resulted in a power outage to approximately 1,700
customers, and power was restored after approximately 40
minutes. The damage to the switch required its replacement;
however, a prolonged outage to the Honda Center was avoided by
bypassing the damaged switch, allowing time for crews to
complete the work.
2024 - 17
APLJ received a resident complaint about a streetlight outage in
the neighborhood adjacent to Apollo Avenue/Pandora Place/Porto
Place. The repairs were prioritised due to multiple streets
impacted and will take approximately two weeks to
repair. Temporary jumpers to provide power to the lights have
been installed until the repairs are completed, J. Lonneker
informed the Board that a shipment of new metal. embedded
pull boxes were received and tested in addition to new customized
bolts to deter further access to the wire. Additional. reports of
street light wiring theft occurred close to this area, and APD is
increasing patrols in the area.
9. UPDATE ON WATER SYSTEM ITEMS.
C - Parker, Assistant General. Manager - Water Services, briefed
the Board on. the Water Supply Condition. The Orange County
Groundwater Basin. is in good condition, and the Orange County
Water District (OCWD) captured a majority of the stormwater
this month in the groundwater recharge basins. In addition, the
Orange County precipitation to date is above average. The State
Water Project currently has a 1. 5% allocation and is hoping for
that to increase to 25 to 3 0% in the near future. 'rhis would be
good news if that occurred because Metropolitan Water District of
Southern California (MWD) would not have to utilize storage,
The precipitation in Northern California is about average, as well.
as the snowpack. 'rhe Colorado River structural deficit
negotiations continue, with. the Upper Basin and Lower Basin
submitting separate proposals to the federal government. The
snowpack in Colorado River basin is about average to date.
C. Parker also presented current water maintenance metrics to
date. These included fire hydrant and valve turning. The fire
hydrants are at 91 % of the fiscal year goal to date -last year the
entire fiscal year met 81% of the goal. The valve tuming is at 55%
of the fiscal. year goal. to date - last year the entire fiscal year met
62% of the goal. Due to emergencies and other critical
maintenance, the goals to date are behind, APIJ has filled
vacancies with five new apprentice pipefitters to assist with this
effort. API_J will be bringing a contractor online to ensure the
Fiscal. year goal is met.
The Board asked if the contractor would cost more than in-house
staff performing the work. C. Parker shared that there are no cost
estimates yet. D. Lee stated that typically contractors can perform
efficiently on larger projects with higher volumes; however,
smaller priority projects are conducted by APU staff.
2024-18
10. UPDATE ON FINANCE & ENERGY RESOURCE ITEMS.
B. Beelner discussed the monthly Finance and Power Supply
Dashboards for the fiscal year to date through January 2024.
B. Beelner shared that the turbine for Unit One (Unit) of the
Canyon Power Plant (Canyon) has been repaired and re -installed
in the Unit. B. Beelner shared various pictures of technicians
installing the turbine after all the repairs had been made. B.
Beelner did, however, make the Board aware that the Unit was
not yet in service, as the technicians discovered vibrations in the
generator that were most likely caused by faulty ball bearings and
stated that the necessary repairs would be made, and the Unit
would be placed in service once those repairs were complete.
B. Beelner informed the Board that the warranty with General
Electric (GE) would cover approximately $500,000 of the $5
million total in repairs. The warranty coverage would be more if
the City agreed to wait 74 weeks for GE to supply overhauled
parts. After doing a cost -benefit analysis, B. Beelner explained
that the long wait time was not worth the additional warranty
coverage, so APU procured new parts from another vendor to
speed up the repairs.
B. Beelner shared that APU's future budgets would include
funding to repair the other three turbines at Canyon. The Board
asked if APU would proactively repair the other units before
failure. B. Beelner explained that it would be best to run the units
until failure was imminent to ensure maximum use of the turbines
as there would be no cost savings to repairing them early. D. Lee
shared that APU continues to inspect and monitor the four units
on a regular basis. The Board inquired if Canyon is reliable. B.
Beelner explained that the units have had to run more than
originally anticipated, especially during hot summer months, so
repairs may seem more frequent, but that the investment in
Canyon has more than proven its worth over its life.
11. UPDATE ON ADMINISTRATION & RISK SERVICES
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided an update on the improvements in three areas
of the fiscal year 2023 Utility Success Indicators. J. Lehman
shared that Average Call Wait Times had increased in 2023 due to
the resumption of disconnections for non-payment. To help
customers restore service and start making payments after three
years of non-payment in many cases, Customer Services staff
took more time to go through bill payment options and assistance
programs. Improvements to call wait times have been
2024 - 19
implemented to empower employees to make decisions, utilizing
technology systems to streamline wait times, and hiring
J. Lehman updated the Board on. the safety metrics and shared that
the utility is currently meeting the Lost Time Injury Rate of I .0,
as well as the number of safety inspection targets. .1. Lehman
outlined the measures being taken to make improvements in both
safety areas.
I Lehman briefed the Board on. the Internal Compliance Plan
report and highlighted some of the new requirements that would
be added to the plan that resulted from bills passed into law last
year. J.Lehman shared that the utility is highly regulated and that
the report is just an overview of the any compliance obligations
that the utility must meet on a regular basis. 17he Board inquired if
non-ftuictional turf regulations will cover fenced locations, and. I
Lehman explained that they are in commercial areas such as
shopping centers.
J. Lehman updated thel3oard on the Administration and Risk
Services Dashboard and highlighted the safety metrics, noting that
there had been one minor injury during the reporting period.
Training continues to be a key focus in helping to prevent
accidents. J. Lehman shared that the annual update on APUs
safety program would be presented to the Board in March.
1.2. ITEMSBY SECRETARY.
D. Lee shared agenda items planned for next month:
• Safety Services Presentation
• Intemship agreement with California State University,
Fullerton
• Energy Trading and Risk Management System Agreement.
® Amendment for the Meter Reading Software System
• Assignment of existing power purchase agreements for
cost saving financing
1). Lee shared that Magnolia High School was one of the two
schools recognized by the Board for the Sustainable Schools
Award. 1"'he school selected was awarded $15,000 to invest in
their agricultural center.
Lastly, APU is hosting a Community Resource Fair at Savanna
High School. The event will feature efficiency programs, test
driving of electric vehicles, and document shredding for Anaheim
residents,
13. ITEMS BY BOARD MEMBERS.
Board Member T. Bilezikjian thanked APU staff for their efforts
on behalf of the community.
14. ADJOURN: (NEXTREGULAR MEETING ON MARCH 27,
2024 AT 5:00 P.M.)
Re7,ectifully s bmitted,
Dukku Lee
Public Utilities General Manager
M. Lee moved to adjourn the
Public flearings/RegUlar Meeting
in. the Gordon Hoyt Conference
Center at 6:38 pm. to the
Board's Regular Meeting date of
March 27, 2024 at 5:00 p.m.
T. Ibrahim seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT. 1. IA® McMenamini
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.
2024 - 21