Public Utilities 2024/09/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
September 25, 2024
The agenda having been posted on Thursday, September 19, 2024, 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 25, 2024, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower,
201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson John Seymour, Vice -Chairperson A. Abdulrahman, M. Lee,
A. Pham, T. Bilezikjian, A. McMenamin, T. Ibrahim
Board Members Absent: None
City Staff Present: D. Lee, P. Starr, B. Beelner, C. Parker, J. Lonneker, J. Lehman, V. Tran,
M. Avelino -Walker, A. Lee, T. Chen, B. Mendoza, M. Seifen, A. Nguyen,
E. Krause, S. He, J. Wei, B. Fruchter, C. Pereyra, A. Flores, J. Balandran
Guest(s) Present: Dan Vozenilek, AT&T
AGENDA ITEM
1. PUBLIC COMMENTS.
D. Lee, Public Utilities General Manager, shared that three public
comments were submitted by email.
Anaheim Public Utilities (APU) staff responded to Rosa Esquibel, an
Anaheim resident, who submitted a request for a call back regarding her
utility services, and no further actions are needed.
Two public comments were submitted by AT&T and Spectrum (Charter
Communications) regarding Agenda Item 45 to establish a time frame for
telecommunication companies to remove their overhead lines as part of
undergrounding projects.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
AUGUST 28, 2024. *
Board Member T. Bilezikjian abstained because she was not present at the
Regular Meeting of August 28, 2024.
ACTION TAKEN
There being no oral public
comments, Chairperson
J. Seymour closed the public
comments portion of the
meeting.
T. Ibrahim moved the
approval of the Minutes of
the Regular Meeting of
August 28, 2024.
A. McMenamin seconded
the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 1.
[T. Bilezikjian]
ABSENT: 0.
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3. PUBLIC HEARING: FORMATION OF UNDERGROUND
DISTRICT NO.72 — LA PALMA/EAST (UD-72) AND
DETERMINE THAT UD-72'S FORMATION IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
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 stated that the staff report and its attachment will serve as his
report under Chapter 17.24 of the Anaheim Municipal Code (AMC).
J. Lonneker, Assistant General Manager — Electric Services, provided a
brief overview of the Underground Conversion Program, which included
various projects throughout the City of Anaheim (City) to improve
electric reliability and visibility of roadways. V. Tran, Electrical Capital
Projects Manager, provided the Board with an overview of the proposed
underground district formation including the project details.
V. Tran outlined the Underground Conversion Program's Five -Year Plan
(Plan) approval process and the number of projects that have been
approved under the current Plan. V. Tran discussed the proposed project
limits on La Palma Avenue from East Street to west of State College
Boulevard, including portions of East Street to connect to a prior project,
noting that Southern California Edison (SCE) lines will remain overhead
on East Street. V. Tran explained the estimated cost has increased to
$13.5 million as a result of the increase in scope along East Street and
further west on La Palma Avenue to accommodate a future expansion of
a substation and explained how APU will coordinate with affected
schools, residents and businesses. V. Tran described the various
construction activities associated with substructure and electrical
installations, and the timeframe and customer notification involved in
completing these installations.
D. Lee reported 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 whether limiting work hours during school pick up
and drop off times would increase the project's cost. V. Tran explained it
does not necessarily increase the cost but could extend the project's
timeline. The Board inquired about the factors that were considered when
forming this underground district. D. Lee explained that projects were
selected based on the Plan's five evaluation criteria, indicating that this
project is the next in line to be formed.
A. Abdulrahman moved the
recommendation to, by
resolution, approve the
formation of Underground
District No. 72 — La
Palma/East (UD-72) and
determine that the formation
is categorically exempt from
the California Environmental
Quality Act (CEQA).
T. Bilezikjian seconded the
motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
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The Board inquired about whether SCE's transmission lines will be
undergrounded in the future. V. Tran explained that SCE is regulated by
the California Public Utilities Commission (CPUC) and is not obligated
to fund undergrounding in jurisdictions where SCE does not serve and
collect revenues from customers. D. Lee added that APU's underground
funds are restricted, and a request to underground SCE lines will require
another source of funding. The Board asked what the voltage of SCE's
transmission lines are, and V. Tran responded that they are at 69,000
volts.
The Board opened the hearing to the public and asked if there were any
members of the public who wished to speak. There were no public
speakers for this item.
Chairperson J. Seymour asked the Secretary of the Board if any
correspondence was received concerning this public hearing. D. Lee
informed the Board that APU did not receive any correspondence based
on 1,141 public notices that were mailed out. Chairperson J. Seymour
closed the public hearing. Chairperson J. Seymour asked for a motion
from the Board to take the action proposed by staff.
4. RECOMMEND APPROVAL OF A DESIGN -BUILD SERVICES
AGREEMENT WITH BURNS & MCDONNELL ENGINEERING
COMPANY, INC. TO DESIGN AND CONSTRUCT THE
SOUTHWEST SUBSTATION UPGRADE PROJECT IN THE
AMOUNT OF $27,707,073 PLUS A 10% CONTINGENCY AND
DETERMINE THAT THE PROJECT IS EXEMPT FROM CEQA
PURSUANT TO SECTIONS 15301(B), 15302(C), 15303, AND 15304
OF TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS.
S. He, Principal Electrical Engineer, provided the Board with a brief
overview of the proposed Southwest Substation Upgrade Project which
included the scope of work, the criteria and evaluation process. S. He
indicated that the evaluation criteria used for selecting the design -build
contractor included pricing, similar project experience, project team
members, references from other utilities, engineering and construction
methodology, plus interview results. The project will expand into
adjacent land owned by APU, but currently used by the Public Works
Department (PW) for temporary storage space. S. He explained that the
project will not interrupt electrical service to customers when
transitioning to the new equipment. The existing wall will be replaced
with a high perimeter wall plus an upgraded camera system to enhance
substation security.
The Board inquired what the cost of the project would be and how it
compares to the other proposal that was submitted. J. Lonneker shared
that it would be $27,707,073 plus a 10% contingency, which was
significantly lower than the other proposal APU received. The Board
asked about the coordination with PW on relocating their operations.
M. Lee moved the
recommendation of approval
of a Design -Build Services
Agreement with Burns &
McDonnell Engineering
Company, Inc. (BMcD) and
the determination that the
project is exempt from
CEQA. T. Ibrahim seconded
the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
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Staff responded that PW consolidated their operations with other existing
transfer stations.
The Board inquired if the old equipment would remain at the location.
S. He explained that the old equipment would be removed from the
location. The Board asked if this upgrade would increase the number of
customers. D. Lee explained that it would increase the capacity of the
substation and the transformers that will be installed will be rated at a
higher -level giving APU more ability to serve the City. The anticipation
is that APU will meet the service needs of electrification and have the
ability to reroute power during an outage. The Board asked how many
substations the City currently has, and if the upgrades can be done to the
others. J. Lonneker shared that the City has 14 substations and APU has
identified three additional substations that would qualify for the upgrade
within the next couple of decades. The Board asked how long Southwest
Substation has been operating with the current equipment. S. He shared
that the Southwest Substation has been in operation since 1989, resulting
in 35 years.
5. RECOMMEND INTRODUCTION AND ADOPTION OF AN
ORDINANCE AMENDING CHAPTER 17.24 OF THE ANAHEIM
MUNICIPAL CODE (AMC) ESTABLISHING TIMELINES,
DECLARING A PUBLIC NUISANCE, AND AUTHORIZING
ENFORCEMENT AND PENALTIES ASSOCIATED WITH THE
REMOVAL OF OVERHEAD FACILITIES WITHIN
UNDERGROUND UTILITY DISTRICTS, AND DETERMINE
THAT AMENDMENTS TO CHAPTER 17.24 OF THE AMC ARE
NOT SUBJECT TO CEQA PURSUANT TO SECTIONS
15060(C)(3),15301,15302,15303, AND 15304, AND 15378 OF
TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS.
Upon request of the City Council, APU is recommending the
Introduction and Adoption of an Ordinance amending Chapter 17.24 of
the AMC to establish timelines associated with the removal of overhead
facilities by telecommunication companies within underground utility
districts. This item was requested by Council Member Meeks, and City
Council directed staff to bring this item to the Board first, before
returning to Council with a recommendation. D. Lee noted that there are
four projects with telecommunication lines remaining overhead, and that
on average over the past 10 projects, it is taking the telecommunication
companies 2.4 years to remove their lines to complete pole removals. The
current language in Chapter 17.24 is vague and only refers to work being
performed "in a timely manner."
APU staff surveyed other utility agencies to determine what actions are
being taken in other jurisdictions. Of five surveyed agencies, only two are
actively trying to expedite the removal of overhead facilities. This
ordinance would allow the City to establish timelines, declare a public
nuisance, and authorize enforcement and penalties associated with the
removal of overhead facilities within underground utility districts.
A. Abdulrahman moved the
recommendation to
introduce and adopt an
Ordinance Amending
Chapter 17.24 and determine
that the ordinance is not
subject to CEQA. T. Ibrahim
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2024 - 81
D. Lee shared that APU would provide incentives for agencies that meet
the 12-month requirement, by having APU pay for pole removals and
street repairs. In the event that the 12-month requirement is not met, the
City would follow the Civil Citation process, with daily fines established
as follows: $200 per day for the first offense, $500 per day for the second
offense, and $1,000 per day for the third and subsequent offenses. The
effective date, following City Council Adoption, would be the end of
November 2024. Currently, the four projects that are in violation of the
12-month requirement would get a Notice of Violation issued with a six-
month grace period to take corrective actions.
Chairperson J. Seymour asked the Board if there were any objections to
the new Ordinance to amend Chapter 17.24 of the AMC. The Board
agreed that a new Ordinance is needed to establish timelines for the
removal of overhead facilities within underground utility districts. The
Board discussed concerns from AT&T and Spectrum (Charter
Communications) regarding not meeting the twelve-month timeline to
remove the overhead facilities due to unknown issues and problems that
might come up during the process. An additional concern was regarding
the implementation of coordination meetings to be added to the
Ordinance. D. Lee shared that coordination meetings are being held,
although not all members of AT&T and Charter's teams participate.
The Board inquired if the Ordinance is legally defensible. A. Lee, Deputy
City Attorney, confirmed that the City Attorney's office has validated the
legality of the Ordinance. The Board asked if the Ordinance states that
the City will offer additional time in the event that telecommunication
companies run into circumstances where additional time is needed.
A. Lee explained that the City has an administrative process to take
extenuating circumstances into consideration.
The Board asked if the City has established a maximum amount of time
allotted for the correction to be made once the violation is issued.
T. Chen, Deputy City Attorney, shared that the Planning and Building's
Code Enforcement division has flexibility when determining the
corrections period by determining if, based on the facts, correction of the
violation is feasible within the correction period. The Board asked how
APU determined the financial penalty structure following the notice of
violation. D. Lee shared that this was determined similar to how the City
structures Civil Citations — Chapter 1.20. The Board asked if
telecommunication companies previously hit below the one-year mark for
removal. D. Lee shared that four of the six telecommunication companies
have hit below the one-year completion mark.
6. RECEIVE FISCAL YEAR 2023/24 UTILITIES SUCCESS
INDICATORS UPDATE.
C. Pereyra, Budget and Performance Administrator, presented the
Utilities Success Indicators report for fiscal year 2023/24. The report has
been updated and now tracks 21 performance metrics aligned with APU's
strategic priorities, including sustainability, customer experience,
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reliability, affordability, risk mitigation, and safety. APU met 19 of its
targets for the fiscal year.
C. Pereyra provided a high-level overview of all metrics and elaborated
on two items that did not meet their goals, including call wait times and
generation availability. Although the Utilities Call Center did not meet
the three -minute target, efforts to improve the progress are trending in a
positive direction, and demonstrated by monthly call wait times that are
now consistently within the 3-minute target. The generation availability
reflects that Unit 1 of the Canyon Power Plant has been offline due to
ongoing repairs needed that have been previously explained to the Board,
and Intermountain Power Project (IPP) which has planned reduction of
output during non -summer months to preserve fuel.
C. Pereyra reported progress on water maintenance, stating that APU is
on track to inspect all hydrants and valves in the City within the three-
year cycle. C. Pereyra highlighted the lost injury time metric for
employee safety and introduced new metrics, including wildfire
mitigation, water conservation, and lighting repair and improvements.
The Board inquired about current frequency of street light wire theft in
comparison to previous months. J. Lonneker indicated that the frequency
of incidents appears to be decreasing. The Board thanked staff for their
contributions to APU's performance.
7. RECEIVE FISCAL YEAR 2023/24 REPORT FOR DEPARTMENT
ORDER 310 — EXTRA WORK/CHANGE ORDERS.
D. Lee provided the Board with an overview of the completed extra
work/change order projects totaling approximately $30 million in the past
fiscal year. Total expenditures were approximately 4.7% less than
authorized. APU did not exceed the authorized change order authority on
any of the projects. Reasons for expense changes during a project include
a change in scope of work due to field conditions, or in the difference
between estimated and actual quantities of bid items.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker shared metrics from the recent heat wave at the beginning of
September. Temperatures in Anaheim reached a high of 109 degrees,
with the nightly lows averaging 80. APU experienced 14 outages over the
3-day period, most of which were attributed to overheated or overloaded
transformers. APU's Transformer Replacement Program has replaced
300 transformers, indicating improved reliability during these stressed
conditions. J. Lonneker shared that electric crews, inspectors, operators
and warehouse staff worked concurrent outages throughout the day and
night, prioritizing responses, re-routing power and directing contract
crews to locations to minimize restoration time. The average duration of
all the outages was less than 6.5 hours. Operations management prepared
in advance of the heat wave with additional personnel on standby and
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portable generators on hand to mitigate the anticipated number of
incidents.
J. Lonneker shared with the Board that a truck struck a power pole on
State College Boulevard and Via Burton Street causing extensive
damage. Downed power and telecommunication lines caused road
closures for much of the day. APU was able to restore power to nearby
businesses within two hours, however telecommunications were
unavailable for the remainer of the day.
J. Lonneker announced that the annual Public Power Week celebration
will be held on Thursday, October 1 Ot", on Center Street Promenade. This
event is open for the public to visit booths and learn about energy
conservation and opportunities to save on their bill. Students from
Dr. Jonas E. Salk Elementary School will learn how power is delivered,
safety around power lines, and future career opportunities in the energy
field. The bucket truck rides will feature APU's all electric bucket trucks.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker shared that the Orange County Groundwater Basin is in good
shape. The State Water Project (SWP) is investigating construction of a
reservoir south of the Northern California Delta region to capture water
during wet years to use during dry years. The storms are projected to be
more intense over shorter periods of time and the dry periods will have
longer durations. The Colorado River Basin condition has not changed
much from last month, as they continue to work on the conservation plan.
The rain has been about average this year, with the rain season ending at
the end of September.
C. Parker also briefed the Board on how the recent wildfires did not
affect APU's water system, nor was water used from our Walnut Canyon
Reservoir via the use of helicopters.
C. Parker stated that a 36-inch water main leak recently occurred in
Anaheim Hills. The leak was small, so water crews were able to plan a
shutdown to mitigate water supply and customer impacts. The water main
was about 10 feet deep, and the leak occurred on a plate for an outlet used
during construction. All repairs went as planned.
10. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance and Energy Resources,
discussed the heatwave in Southern California in early September, and
how APU and the state at large responded as compared to similar heat
events in 2020 and 2022. B. Beelner mentioned that the California
Independent System Operator (CAISO) added 15,000 megawatts (MW) of
capacity going 48,555 MW in 2020 to 63,717 MW in 2024. During the
heatwave the CAISO system demand was 47,753 MW - far below the
63,717 MW in capacity allowing for no need for demand response in APU
or in California. B. Beelner then mentioned that the City also had an ample
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reserve margin and was able to meet its system demand. The Board asked
B. Beelner what APU's peak was during the heatwave. B. Beelner
answered 579 MW, just a bit below the system's all-time peak of 593 MW.
B. Beelner then discussed the recent 0.5% interest rate reduction by the
Federal Reserve. B. Beelner reminded the Board that APU issued variable
rate debt to finance water infrastructure. B. Beelner mentioned that the
action by the Federal Reserve positively impacted APU with a drop in the
variable rate debt in its portfolio.
B. Beelner then discussed the monthly Finance Dashboard with the Board.
B. Beelner mentioned that year to date electric operating expenditures were
32.9% ($29.7M) due to lower fuel and power supply costs. B. Beelner
shared that natural gas prices have continued to be lower than normal for
the summer with wholesale power costs also much lower allowing for
APU to purchase wholesale power at lower -than -expected costs as opposed
to using power from Intermountain Power Project (IPP). The Board asked
B. Beelner if APU can decide whether to run IPP or not. B. Beelner
mentioned that the operating agreement now allows for APU to determine
how much power it receives from IPP each month so that it can save fuel
for months that are more critical to APU's system needs.
B. Beelner then discussed the Power Supply Dashboard and highlighted
lower than normal average wholesale power prices of $38/Megawatt-hour
(MWh) in 2024, about half the price at the same point in 2023. B. Beelner
also discussed the abnormally low natural gas prices at $2.0/1V4etric Million
British Thermal Unit (MMBtu) in 2024 as compared to $6.0/1\4MBtu in
2023.
11. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided an update on the Wholesale Energy Risk Management
(ERM) Program's Quarterly Compliance Report for the fourth quarter of
Fiscal Year 2024. During this period there were no violations of the ERM
Program, and all transactions were within the ERM requirements.
J. Lehman then invited the Board's attention to the Administration and
Risk Services Dashboard. As the legislative session wraps up, September
301h will be the last day for the Governor to either sign or veto a bill.
J. Lehman shared that APU is tracking over 70 bills, and highlighted
three sets of bills that APU is closely monitoring:
• AB 1820, AB 3012, SB 1210 — Housing Development Fee
Estimates: these bills are being watched by APU;
• AB 2561 — Local Public Employees: Vacant Positions: this bill is
being watched by APU; and
• AB 1834 — Energy Market Design Clean -Up: this bill is being
supported by APU.
2024 - 85
J. Lehman then reviewed the safety metrics and shared that there was one
injury during the reporting period. APU continues to meet its safety
metrics, and trainings help raise attention to safety matters.
At last month's Board meeting, the Board inquired if the software system
used for telephone, Interactive Voice Response (IVR), and customer
contact center had accessibility features. J. Lehman shared that staff
reviewed the features and confirmed that the system accommodates
vision, hearing, speech and mobility impairments for the customer as well
as for staff who utilize the system via telephone, chat, and email.
12. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Electric Reliability Update;
• Water Quality Laboratory Testing Services Agreement;
• Agreement for Graffiti Abatement Services on Electric
Equipment; and,
• Power Purchase Agreements for Wind and Solar.
D. Lee shared the following updates:
• RE+ Conference at the Anaheim Convention Center was well
attended, and that Board Members M. Lee and A. Pham attended
with APU staff,
• Love Anaheim partnered with APU to paint fire hydrants;
• APU joined other departments at a Mental Health community
event at Pearson Park;
• Bill assistance was offered to residents at a mobile family
resource event;
• Homeless initiatives have been prioritized by the City, and APU
is participating by adding streetlights, and hosting a lighting
distribution to residents near areas that are impacted along a
railroad right of way; and,
• Wildfire cameras that were installed have proven to be a useful
asset and are being used extensively by Anaheim Fire & Rescue
Department. Images of the Airport Fire captured from the wildfire
cameras were shown to the Board.
13. ITEMS BY BOARD MEMBERS.
T. Ibrahim thanked APU for the thoughtful card and for supporting the
residents and businesses in the City.
T. Bilezikjian requested a future agenda item regarding nuclear power
and climate change.
A. Pham inquired if APU had previously installed any blue lights
throughout the City. D. Lee shared that APU installs LED lights that have
a slightly lower color temperature.
Staff will agendize at a
future Board meeting.
2024 - 86
A. Pham and M. Lee thanked APU staff for the discussion regarding solar
and battery storage at the RE+ Conference.
A. Abdulrahman inquired if the underground project on Ball Road and
Nutwood Street has a projected timeline. D. Lee shared that APU
submitted the grant application, but there has been no notification yet.
J. Seymour asked if the reservation deadline had passed for the
Metropolitan Water District of Southern California (MWD) tour. Staff
confirmed the tour was closed due to reaching capacity.
14. ADJOURN: (NEXT REGULAR MEETING ON OCTOBER 23, 2024,
AT 5:00 P.M.)
ReL)ectfully su fitted,
Dukku Lee
Public Utilities General Manager
A. Pham moved to Adjourn
the Public Hearing/Regular
Meeting in the Gordon Hoyt
Conference Center at 6:48
p.m. to the Board's Regular
Meeting date of October 23,
2024, at 5:00 p.m. M. Lee
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
* 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.
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