Public Utilities 2024/11/20CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
November 20, 2024
The agenda having been posted on Thursday, November 14, 2024, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:03 p.m. on Wednesday,
November 20, 2024, 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 A. Abdulrahman, M. Lee,
A. Pham, T. Bilezikjian, A. McMenamin
Board Members Absent: T. Ibrahim
City Staff Present: D. Lee, P. Starr, B. Beelner, C. Parker, J. Lonneker, J. Lehman,
M. Avelino -Walker, B. Mendoza, M. Seifen, B. Fruchter, J. Zarate,
A. Nguyen, T. Chen, C. Ghaby, Y. Saldivar, C. Pereyra
Housing and Community Development Department: G. Stepter, S. Lozeau,
Z. Younes, J. Diaz, G. Ronquillo, A. Nguyen
Guest(s) Present: Mayor Pro Tern N. Campos Kurtz
Community Action Partnership: J. Tasooji, Utility Assistance Manager;
E. Martinez, Utility Assistance Supervisor; A. Gonzalez-Villalobos,
Eligibility Technician; D. Chairez, Eligibility Technician; B. Martinez,
Eligibility Technician
Anaheim Community Foundation: C. Latham, Anaheim Community
Foundation Board Chair; N. Martinez, Anaheim Community Foundation
Board Vice Chair
The Salvation Army: B. Hurst, Director of Partner Relations
AGENDA ITEM
1. PUBLIC COMMENTS.
D. Lee, Public Utilities General Manager, welcomed Mayor Pro Tern
N. Campos Kurtz, representing Council District 4 to the meeting.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
OCTOBER 23, 2024. *
ACTION TAKEN
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
M. Lee moved the approval of
the Minutes of the Regular
Meeting of October 23, 2024.
A. Pham seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1.
[T. Ibrahim]
2024- 100
3. FISCAL YEAR 2023/24 WRITE-OFF OF UNCOLLECTIBLE
UTILITY ACCOUNTS AND CUSTOMER ASSISTANCE
PROGRAM UPDATE.
C. Ghaby, Customer Services Manager, provided an update on
Anaheim Public Utilities' (APU) uncollectible debt. C. Ghaby shared
that this past fiscal year it was just over $660,000, a 79% reduction
compared to the previous fiscal year. C. Ghaby attributed this decrease
to a strong economy, APU's continued bill assistance programs, and re-
starting our disconnection process that had been halted due to the
coronavirus pandemic in 2019. APU staff has worked diligently to
ensure a seamless disconnection process by reviewing customers'
accounts and advising customers that disconnections would be
resuming via phone and social media.
As a not -for -profit organization, APU has various rebates and incentive
programs to help assist customers with their utility usage and bills.
These programs include senior, military veteran, long-term disabled,
and medical lifeline discounts for customers who meet the income
qualifications. APU offers payment plans, bill extensions, home utility
surveys, level payment plans, and monthly billing options.
Outside agency assistance programs are offered for customers who
need additional assistance. Along with APU's bill assistance, The
Salvation Army, Community Action Partnership of Orange County
(CAPOC), Anaheim Community Foundation, and Anaheim Housing &
Community Development Department have collectively provided $3.7
million towards utility bills. Additionally, these agencies positively
impact the community by assisting with rental assistance, food
vouchers, and job placement. The Board inquired how much of the total
funding is provided by APU, and staff responded that $1.3 million of
the total was provided by APU, and the balance from the other
agencies.
The Board expressed appreciation for the substantial assistance
provided by the agencies.
4. PRESENTATION: CUSTOMER WEB PORTAL UPDATE.
B. Fruchter, Enterprise Information Technology Manager, updated the
Board that the new customer web portal went live on November 18,
2024. The previous portal and customer information system were over
10 years old, and customers have commented over the years that the
portal was not user friendly. Customer outreach regarding the upgrade
was made through the web portal, City website, Interactive Voice
Response (IVR), and social media. The project required collaboration
due to the complex interfaces with other systems and was a collective
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team effort by staff from various departments. J. Zarate, Business
Information Systems Administrator, provided a demonstration of the
new portal's updated look and features. The portal allows customers to
access their account, view their usage, pay their bill, and make service
requests.
The Board asked if the new portal would adapt to the size of the device
being used. B. Fruchter explained that the new portal can automatically
resize to fit the screen. The Board asked if the new transfer service
form allows for an account holder to transfer the account to a new
account holder. J. Zarate clarified that the transfer service does not
transfer service to a new account holder. The new feature allows for an
existing customer to transfer service to another premise within the City.
The Board asked if the future detailed hourly electric usage would be
real-time. D. Lee explained that it will not be real-time since meter data
is not readily available. J. Zarate added that the customer will be able to
filter the amount of data retrieved up to 30 days, and the data will be
available as of midnight the previous day. The Board asked how the use
of automated meters has impacted meter reader staff. D. Lee shared that
majority of electric meters are read using advanced metering
infrastructure (AMI) with automation, and water meters are still read
using meter readers. The Board expressed appreciation for the efforts
taken to improve the customer experience.
5. PRESENTATION: WATER SYSTEM RELIABILITY.
C. Parker, Assistant General Manager — Water Services, presented the
Water System Reliability update for Fiscal Year 2023/24. APU was in
line with being in the top 251h percentile as compared to other water
agencies for the majority of the performance indicators. The Water
System Reliability report includes water supply and equipment
availability (Lenain Water Treatment Plant and wells), water main
breaks, outages, hydrant and valve maintenance, and annual water loss
audit. The Lenain Treatment Plant availability was 98% and met the
goal of 95%. The well operational availability was 42% which was
under the 75% goal due to the Per- and polyfluoroalkyl substances
(PFAS) groundwater treatment program that was still under
construction in FY 2023/24. Affected wells in phases A and B are now
online, and the availability metric is expected to increase next FY.
APU will continue to use data to assist reducing water main leaks and
increasing equipment resiliency and integrity. APU was well below the
industry national average of 11.2 main breaks per 100 miles, with only
2.0 in the past fiscal year. However, the duration of 3.5 hours per
occurrence was slightly outside of the top 25%. The reasons for this
were to prioritize worker safety, and taking into account soil conditions,
having to replace sections of pipe, and dewatering of holes during
excavation. Both the hydrant maintenance and valve maintenance
metrics were exceeded in the past fiscal year.
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The water loss metric was under the mark as well for FY 2023/24 (data
for Fiscal Year 2024 is not available yet). APU water is expected to
improve next FY due to replacing the effluent meter at the Lenain
Water Treatment Plant. APU has also worked with Metropolitan Water
District of Orange County (MWDOC) to utilize their leak detection
vendor to survey about 70 percent of Anaheim's system. Results to -date
have identified only one main break, and the remaining small leaks
were service lines or leaks on the customer's system. Customers were
notified when leaks were detected, helping them to avoid water waste
and high bills.
The Board asked if APU measures water meters for accuracy. C. Parker
stated that APU measures large meters, but it is more cost effective to
replace smaller meters than to correct meter accuracy issues. The Board
inquired why contractors are exercising valves. C. Parker stated that the
long-term goal is to use in-house staff, and contractors supplement
internal staff as needed to catch up. The Board asked how APU
mitigates pump failures during fires. C. Parker stated that as an
example, the Hidden Canyon Pump Station in East Anaheim has been
modified to mitigate fires by installing a second electrical circuit, fire
hardening the building, and having provisions to bring in a portable
transfer pump station. The Board asked how APU identified the Lenain
water effluent meter issue. C. Parker stated that staff investigated the
effluent meter and subsequently identified the issue.
6. PRESENTATION: FINANCIAL UPDATE AND PROPOSALS.
A. Nguyen, Financial Planning Manager, highlighted financial
strategies for the Water Utility, along with financial metrics. A. Nguyen
described how a typical Anaheim residential water bill of $72.82 is
under the average of all Orange County agencies by approximately
28%, and recovers the costs for customer and technology systems,
water supplies, operations and maintenance, and capital improvements.
Discussing cost drivers, A. Nguyen noted that Metropolitan Water
District of Southern California (MWD) wholesale rates continue to
increase as the agency recoups investments that mitigate drought risk
and enhance long-term water access. A. Nguyen also indicated that
Orange County Water District (OCWD) is addressing PFAS in the
groundwater basin and increased their wholesale rates by 10% this
fiscal year and 41 % over the last four years.
A. Nguyen described a proposal to increase the Water Commodity
Adjustment by approximately 13 cents per hundred cubic feet (HCF) to
recover higher wholesale water costs from MWD and OCWD.
A. Nguyen also proposed increasing the Water System Reliability
Adjustment by 10 cents per HCF to fund continued replacement of
water infrastructure. A. Nguyen indicated that both rate proposals result
in a monthly bill impact of $3.62 for a typical customer consuming
nearly 12,000 gallons of water.
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Describing the Electric Utility's finances, A. Nguyen noted that a
monthly bill for the typical Anaheim residential customer is 41 % lower
than the neighboring electric utility. A. Nguyen also indicated that APU
continues to invest in the electric system, using bond proceeds and "Pay
As You Go" (PAYGO). In explaining why Anaheim's electric rates are
significantly lower than other utilities serving Orange County,
A. Nguyen cited significantly lower wildfire risk, APU's not -for -profit
structure, and the focus on keeping rates stable and affordable.
The Board inquired about the days of cash on hand by other agencies in
comparison to APU, and staff explained that each agency's policy body
prioritizes different criteria for how much days of cash to keep. While
OCWD's days of cash is high, they also provided cost recovery of the
groundwater treatment program for its member agencies. The Board
inquired about how the proposed water rate adjustment was devised.
A. Nguyen and B. Beelner, Assistant General Manager — Finance and
Energy Resources, explained how both proposals are based on a well-
defined formula in the water rate schedules that recovers APU's cost of
service. Both the Board and City Council have previously approved the
formula.
7. SET A PUBLIC HEARING DATE, TIME, AND LOCATION TO A. Abdulrahman moved the
CONSIDER PROPOSED MODIFICATIONS TO WATER
recommendation to establish
RATES.*
January 22, 2025, at 5:30
p.m., or as soon thereafter, in
B. Beelner recommended the Board establish the date, time, and
the Gordon Hoyt Conference
location for a water rate hearing. B. Beelner recommended that the
Center, 2"d Floor, Anaheim
hearing be held on January 22, 2025.
West Tower as the date, time,
The Board inquired about how much advance notice is needed and the
and location for the Board to
timing of those mailing notices, and if there is any sensitivity to the
conduct a public hearing.
timing during the holidays. D. Lee and B. Beelner confirmed that
T. Bilezikjian seconded the
notices would be sent by December 3, 2024, and that such notices must
motion.
be sent at least forty-five days prior to the hearing date, and that notices
MOTION CARRIED: 6-0.
have been sent out in previous year during this timeframe.
ABSTAINED: 0.
ABSENT: 1.
[T. Ibrahim]
8. ADOPT THE PROPOSED PUBLIC UTILITIES BOARD
T. Bilezikjian moved the
MEETING SCHEDULE FOR THE 2025 CALENDAR YEAR. **
approval to Adopt the
Proposed Public Utilities
Board Meeting Schedule for
the 2025 Calendar Year.
A. McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1.
[T. Ibrahim]
2024 - 104
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services, shared that
Chairperson J. Seymour and Board Member T. Bilezikjian joined APU
staff at the Beach Boulevard undergrounding project to view the bore
pit and steel encasement installation. J. Lonneker thanked the Board for
attending and will communicate future site visit opportunities.
J. Lonneker updated the Board that APU received final approval of
$6.5M in grant funding from the Department of Homeland Security's
Federal Emergency Management Agency (FEMA) and California
Governor's Office of Emergency Services (CalOES) for the
construction phase of the Wildfire Mitigation Undergrounding project
to underground the remaining seven segments of overhead lines within
or adjacent to Anaheim Fire Threat Zones (FTZs). APU estimates the
project will cost approximately $20M due to the current bidding
environment, and the Underground Conversion fund will cover the
balance of the cost, which is already included in the Underground
Conversion five-year plan. Design is complete and construction is
planned to begin in Summer 2025.
J. Lonneker shared examples of APU's protective measures to address
homeless encampment activities throughout the community. The first
location is Chaparral Park where APU and the Public Works
Department (PW) addressed trash accumulation and encampments
behind the electrical equipment. PW worked with the adjacent resident
who was supportive of the enclosure and addressed some trespassing
issue for them as well. APU will also securely enclose another location
at the southwest corner of E. La Palma Avenue and N. State College
Boulevard. To address requests by businesses, schools and multi -family
properties, APU initiated a protective fencing rebate offering up to
$1,000 for installation and up to $200 for permitting fees for locations
on private property having trespassing and encampment activity. The
information on the Protective Fencing Rebate can be found on APU's
website.
The Board inquired about the cause of recent power outages, and J.
Lonneker replied they were due to animal contacts.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the current water supply condition. C.
Parker stated that the Orange County Groundwater Basin is in good
condition, as well as the State Water Project reservoirs. The Colorado
River reservoirs are adequate. The rain season is still at the early part
of the season, so there has not been measurable precipitation yet. C.
Parker mentioned that MWD will brief the Board about their Climate
Adaption Master Plan at a future board meeting.
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C. Parker mentioned that Anaheim received an award from the
American Public Works Association (APWA) for their Groundwater
Treatment, Phase A Program. Additionally, Anaheim participated in the
MWD METWorks Event to inform vendors of potential contracting
opportunities at MWD, focusing on small businesses and veteran
owned businesses. J. Hester, Water Engineering Manager, was invited
to share about contracting opportunities in Anaheim regarding APU's
Water Capital Improvement Program.
11. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner provided an update of the Intermountain Power Project
(IPP) in Delta, Utah, and discussed the IPP Renewed project currently
under construction, in which a two -unit 840 megawatt (MW)
combined cycle gas plant will replace the current two -unit 1,800 MW
coal facility. B. Beelner explained that Anaheim will retain its
approximately 13% share of IPP with the new facility. B. Beelner then
gave a timeline of the project, stating that both coal units will run until
March 2025 and only one unit will run until July 2025, as testing will
commence on the new gas fired units and the transmission lines cannot
handle both coal units and the test energy. B. Beelner reminded the
Board that APU will exit IPP completely in 2027, replaced largely
with the battery storage project that should be online by 2027. IPP
expects to have approximately 500,000 tons of unspent fuel still on
site after the closing of the coal fired units which will cost participants
an estimated $11 million, of which APU's share will be approximately
$1.5 million.
B. Beelner briefed the Board on the Finance and Power Supply
Dashboards and explained that APU had an approximately $3 million
positive electric revenue variance in October that was mainly driven
by wholesale revenue. APU had almost $4 million in wholesale energy
sales but budgeted no wholesale energy sales for the month.
B. Beelner explained that when APU developed its budget, it could not
reasonably rely on IPP to deliver energy as the unit continued to suffer
from sporadic fuel deliveries. So, to be most conservative, APU's
budgeted wholesale sales were zero. B. Beelner informed the Board
that water revenue and expenditures continue to be in alignment with
the budget.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES
ITEMS.
J. Lehman, Assistant General Manager — Administration & Risk
Services, provided an update on the Internal Compliance Plan,
highlighting that the Anaheim Fire and Rescue Department inspects
APU facilities on a regular basis, and that during this reporting period
they issued several Notices to Comply which were addressed, including
one where APU is working with the Public Works Department to
improve an emergency exit. APU also received a Notice of Violation
from the South Coast Air Quality Management District (SCAQMD) for
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failing to comply with testing requirements on a generator that is out of
service. APU staff is working with the SCAQMD to explain that the
generator is not operational.
J. Lehman then reviewed the safety metrics, and shared that APU had
one reportable injury during the reporting period due to a cut hand that
occurred during off -site training. J. Lehman mentioned that these types
of injuries have caused APU to exceed the target for Days Away,
Restricted, or Transferred (DART) because these preventable injuries
result in time off from normal work duties. Even one day away from
normal work duties and doing other work is counted in the DART
metric. APU continues to provide training to help minimize injuries,
including safety awareness and incident reviews with staff.
13. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
Sustainable homes recognitions;
Nuclear presentation as requested by the Board; and,
MWD's Climate Adaption Master Plan Update.
D. Lee shared the following updates:
• The City Manager participated in field visits with water and
electric crews;
• APU attended a neighborhood meeting in which lighting was
one of the needs addressed, and the Dusk to Dawn program
details were provided;
• APU participated in the 100"' anniversary of the Fall Festival
Parade;
• APU staff participated in the Veteran's Day ceremony;
• Construction is underway on the Sustainability Education
Center; and,
• APU recently demolished an old warehouse that was in need of
major repairs and will construct a new warehouse facility at its
utility yard.
14. ITEMS BY BOARD MEMBERS.
A. McMenamin shared that the vault near Loara Street and Wilshire
Avenue is missing the decorative stacks.
T. Bilezikjian thanked APU staff for the site visit of the
undergrounding project and appreciates APU's community
engagement.
A. Pham thanked the MWD Director for the MWD Inspection trip, and
shared that he attended the Fall Festival Parade, noting that he
appreciated the fun and educational message that APU put on the float.
APU staff will follow up an
update to the Board.
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M. Lee enjoyed the MWD Inspection trip and appreciates APU's
involvement in the community.
15. ADJOURN: (NEXT REGULAR MEETING ON DECEMBER 18,
2024, AT 5:00 P.M.)
Res ectfully -u mitted,
Dukku Lee
Public Utilities General Manager
M. Lee moved to adjourn the
Regular Meeting in the
Gordon Hoyt Conference
Center at 7:00 p.m. to the
Board's Regular Meeting date
of December 18, 2024, at 5:00
p.m. A. McMenamin
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1.
[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.
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