Public Utilities 2019/07/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MTNTTTV.q
JULY 24, 2019
The agenda having been posted on Friday, July 19, 2019, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Vice -Chairperson J. Seymour at 5:00 p.m. on Wednesday, July 24,
2019, in the 11d' Floor Large Conference Room, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: Vice -Chairperson J. Seymour, R. Bhalla, J. Showalter, V. Baroldi
Board Members Absent: Chairperson E. Medrano, R. Gaona, A. Abdulrahman
City Staff Present: D. Lee, B. Beelner, G. Bowen, M. Moore, J. Lonneker, J. Lehman,
D. Albaugh, A. Kott, L. Quiambao, P. Oviedo, M. Seifen, L. Estrada,
F. Barvarz, M. Walker, R. King, A. Markis,
Guest(s) Present: None.
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS. There being no public
comments, Vice -
Chairperson J. Seymour
closed the public comments
portion of the meeting.
2. ELECTIONS FOR PUBLIC UTILITIES BOARD
CHAIRPERSON AND VICE -CHAIRPERSON. **
This item was continued at the General Manager's request to the
August 28, 2019 meeting to allow for more Board members to be
present.
3. APPROVAL OF THE MINUTES OF THE PUBLIC V. Baroldi moved approval
UTILITIES BOARD REGULAR MEETING OF JUNE 26, of the Minutes of the Public
2019. * Utilities Board Regular
Meeting of June 26, 2019.
R. Bhalla seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
2019-51
4. APPROVAL AND AUTHORIZATION OF THE FISCAL
YEAR 2018/19 NET WRITE-OFF OF UNCOLLECTIBLE
UTILITY ACCOUNTS. *
B. Beelner, Assistant General Manager - Finance and
Administration, requested the Board approve and authorize the
Public Utilities Department (Department) to write-off $866,859 in
net uncollectible accounts for the prior fiscal year. The amount
represents 0.20% of total revenue, which is less than the industry
average of 0.33%. The Department offers a variety of programs
and services to help customers with ways to lower their bills or
receive assistance.
5. UPDATE ON FINANCE ISSUES.
B. Beelner, Assistant General Manager - Finance and
Administration, shared with the Board that the Department will
seek the Board's recommendation that the City Council approve
resolutions for the intent to reimburse the Department for certain
water and electric capital expenditures at the September Board
meeting. B. Beelner discussed how these resolutions would allow
the Department to reimburse itself for current capital expenditures
from future bond issuances. B. Beelner noted that these
resolutions would not authorize the Department to issue any bonds;
however, the IRS mandates the Department acquire approval of an
intent to reimburse resolution prior to any bond issuance if the
Department wishes to reimburse itself for current capital costs
from a future bond.
B. Beelner then discussed the monthly dashboard with the Board.
He indicated that the year to date electric revenue through June 30,
2019 was 6.3% higher than budget ($26.7M) due to wholesale
revenue that was 66% higher than anticipated as a result of higher
than expected of wholesale energy prices. Costs for the fiscal year
fell below budget by 6.0% ($25.4 M) due to a $30 million mid-
year budget amendment recommended by the Board at the April
Board meeting and approved by the City Council on May 14, 2019
to cover higher than anticipated power supply costs. B. Beelner
then mentioned that year to date water revenue was 4.9% ($4.1 M)
below budget due to weaker than anticipated customer demand as a
result of the wetter than normal winter in Anaheim; costs were
below budget as well by 11.5% ($8.5M) causing a positive net
$4.4M budget variance.
6. PRESENTATION: WIRELESS SERVICE IMPROVEMENTS
IN ANAHEIM.
F. Barvarz, Transmission and Distribution Manager, provided a
presentation on the planned wireless service improvements that are
occurring in City of Anaheim (Anaheim) by private
telecommunication companies. He explained the considerations
2019-52
V. Baroldi moved approval
of the Authorization of the
Fiscal Year 2018/19 Net
Write -Off of Uncollectible
Utility Accounts. J.
Showalter seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
for placing these wireless facilities on street light poles and the
regulatory and technical issues involved, noting that federal and
state regulations allow such installations within the public Right of
Way (ROW). F. Barvarz added that the goal is to maintain
consistency of approval process and installations for these wireless
sites across all carriers and throughout Anaheim, without
negatively impacting public safety or roadway aesthetics.
7. PRESENTATION: UTILITIES LEADERSHIP
DEVELOPMENT OVERVIEW.
D. Albaugh, Administrative Services Manager, provided a brief
overview of leadership development initiatives in the Department
from 2017-2019, and discussed the Department's approach to
internal development and succession planning. He noted that the
Department has approximately 40% of its workforce at or within 5
years of retirement eligibility, and training of staff has been
emphasized to help prepare current employees for future
promotional opportunities. Most recently, new supervisors and
managers participated in an 8 -session series led by Department
managers covering topics such as workplace dynamics, conflict
management, productive communications, delegation, and
accountability and goal setting.
8. APPROVAL OF AN AGREEMENT FOR ENERGY AND
WATER EFFICIENCY SERVICES WITH EAGLE SYSTEMS
INTERNATIONAL, INC. (DBA SYNERGY COMPANIES)
FOR A TERM OF THREE YEARS WITH UP TO THREE
ONE-YEAR EXTENSIONS IN AN ANNUAL AMOUNT OF
$1,098,525.50 WITH A TEN PERCENT (10%)
CONTINGENCY FOR EXTRA SERVICES, IF NEEDED,
AND ANY AUTHORIZED CONSUMER PRICE INDEX
INCREASES IN AN AMOUNT NOT TO EXCEED FIVE
PERCENT (5%) DURING THE TERM EXTENSIONS; AND
THREE SEPARATE AGREEMENTS FOR ENERGY AND
WATER EFFICIENCY PRODUCTS EACH FOR A TERM OF
THREE YEARS WITH UP TO THREE ONE-YEAR
EXTENSIONS, INCLUDING A TEN PERCENT (10%)
CONTINGENCY FOR AS -NEEDED EXTRA PRODUCTS
PER AGREEMENT WITH 1) AMERICAN ELECTRIC
SUPPLY INC. IN AN AMOUNT NOT TO EXCEED $145,775
ANNUALLY, 2) GREENLITE LIGHTING CORPORATION
USA IN AN AMOUNT NOT TO EXCEED $675,499
ANNUALLY, AND 3) AM CONSERVATION GROUP, INC.
IN AN AMOUNT NOT TO EXCEED $7,255.00 ANNUALLY.
G. Bowen, Assistant General Manager — Power Supply, provided
the Board with an overview of the four Agreements for energy and
water efficiency services and products. G. Bowen described that
the Department offers a wide variety of programs and services to
residential and commercial customers to promote energy and
2019-53
J. Showalter moved
approval of the four
Agreements for energy and
water efficiency products
and services. R. Bhalla
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
water efficiency, conservation and sustainability. G. Bowen
indicated that in order to assist in providing these programs and
services, the Department utilizes companies with expertise in
implementing efficiency programs. With the assistance of these
companies, last Fiscal Year the Department installed over 30,000
efficiency measures totaling 26 million kilowatt hours of energy
savings and over 17 million gallons of water for its customers.
G. Bowen shared with the Board that in April of 2019, the
Department issued two Requests for Proposals (RFP). One for
contractors to administer and provide energy and water efficiency
services and the second for the energy and water efficiency
products themselves.
The Department is recommending Eagle Systems International
(dba Synergy Companies) to provide energy and water efficiency
services including the Home Utility Checkup and Dusk to Dawn
programs. To supply the products to implement those programs
and to deliver welcome kits and provide an LED light bulb
buydown program for local retailers, the Department is
recommending three separate companies, American Electric
Supply Inc., Greenlite Lighting, and AM Conservation Group.
The Board asked about the cost benefits of efficiency programs,
and staff responded that these conservation measures are required
by state mandates, and that efforts are made to implement
programs in a cost effective manner.
9. APPROVAL OF THE ENVIRONMENTAL SERVICES
AGREEMENT (AGREEMENT) SEPARATELY WITH
DUDEK, ECORP CONSULTING, INC.; HELIX
ENVIRONMENTAL PLANNING, INC.; PSOMAS; AND
STANTEC CONSULTING SERVICES, INC. WITH A NOT -
TO -EXCEED AGREEMENT AMOUNT OF $150,000 PER
CONSULTANT FOR A THREE-YEAR TERM, WITH TWO
ONE-YEAR OPTIONAL RENEWALS, FOR AS -NEEDED
ENVIRONMENTAL SERVICES AND SUCH OTHER
ENVIRONMENTAL SERVICES CONSULTANTS AS THE
DEPARTMENT MAY PREQUALIFY DURING THE TERM
OF THE AGREEMENT. *
J. Lehman, Chief Risk Officer, requested the Board's approval for
five Environmental Services Consulting Agreements. J. Lehman
provided background information indicating that the Agreements
will allow the Department to provide a wide range of
environmental services and will help to ensure that technical
expertise and support are available quickly to respond to critical
projects. J. Lehman indicated that these resources are necessary to
help the Department comply with numerous federal and state
environmental laws, regulations, and permits.
2019-54
V. Baroldi moved approval
of the five Agreements for
Environmental Services
consulting services. R.
Bhalla seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
10. APPROVAL OF A RESOLUTION FOR SUBMISSION OF AN
APPLICATION TO THE SOUTHERN CALIFORNIA
ASSOCIATION OF GOVERNMENT (SCAG) FOR
ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
PLANNING SERVICES FOR THE 2019 SUSTAINABLE
COMMUNITIES PROGRAM AND ACCEPTANCE OF THE
GRANT FOR NO COST CONSULTING SERVICES. *
G. Bowen discussed the resolution for the application and future
agreement for electric vehicle charging infrastructure consulting
services from the Southern California Association of Governments
(SCAG) with the Board. G. Bowen indicated to the Board that the
grant services provided under the agreement would provide the
Department with recommendations on how to address and
overcome barriers to electric vehicle adoption in Anaheim. He
also indicated that the agreement will provide services at no cost to
the Department and that the value of the services being provided
was approximately $87,000. G. Bowen also shared with the Board
that the report from the services provided would be made available
in fall of 2020.
11. DISCUSSION ON THE QUARTERLY STATUS REPORTS
ON CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVICES AGREEMENTS,
AND SPOT BID AWARDS.
Staff provided a dashboard for the capital expenditures to date,
which follows the new format that shows projects by category and
by district. The consulting services, contractors, and spot bid
purchase summary showed completed expenditures for Fiscal Year
2018/19 in comparison to prior fiscal years.
12. UPDATE ON ELECTRIC SYSTEM ISSUES.
J. Lonneker, Assistant General Manager — Electric Services, shared
with the Board of the progress on the installation of the Anaheim
wildfire cameras. J. Lonneker shared photos of the two sites where
the cameras were installed, and indicated to the Board that work
continues on installation of communications equipment to transmit
the data and integrate with the ALERT wildfire network.
13. UPDATE ON WATER SYSTEM ISSUES.
M. Moore, Assistant General Manager — Water Services, provided
an update on the Department's water supply. M. Moore indicated
that local and imported water storage levels are increasing as
snowmelt continues to fill reservoirs. He mentioned that the
Metropolitan Water District (MWD) has historic highs this year for
placing water in storage. M. Moore noted that the Department is
planning to participate in MWD's in -lieu program this year to add
more imported water to the local groundwater basin.
2019-55
J. Showalter moved
approval of a Resolution for
Submission of an
application to the Southern
California Association of
Government for electric
vehicle charging
infrastructure planning
services. V. Baroldi
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
M. Moore then mentioned that the Department is awaiting a
revised order from the State of California with a lower Per- and
polyfluoroalkyl substances (PFAS) notification level. The order is
anticipated to come in two separate parts. The first part in August
will lower the PFAS notification levels and the second part in
October will lower the response level in which the Department
must take action. The Department will fully comply with water
quality standards issued by the state.
Lastly, M. Moore indicated that the construction at the Lenain
Water Treatment Plant is still in progress. He indicated that the
adjacent Walnut Canyon Reservoir is about half full and the filling
of the Reservoir has stopped for the contractor to make some
repairs to the valves. M. Moore noted that the Reservoir is
expected to be full by the end of the calendar year.
14. UPDATE ON POWER SUPPLY ISSUES.
G. Bowen provided the Board with an update on the Department's
Power Supply Portfolio, noting that the Department continues to
see historic low loads throughout Anaheim driven by a number of
factors including cooler weather in Southern California and the
proliferation of solar in the city. G. Bowen also indicated that the
Kraemer facility remains unavailable for operation while options
are being considered for its future.
Next, G. Bowen made the Board aware that customers now have
the option of signing up for text notifications regarding their utility
bill. He explained how the customer can sign up, and provided a
few samples of the information the text messages would convey,
such as messages that the customer bill is ready for viewing, a
courtesy reminder that the bill is past due, and the option to opt out
of receiving messages.
Lastly, G. Bowen discussed a 2019 J. D. Power survey which
placed the Department as one of the top mid-sized utilities in the
nation, and the highest of those rated in California, providing a
high level of residential customer satisfaction and community
involvement.
15. UPDATE ON ENTERPRISE RISK AND COMPLIANCE.
J. Lehman invited the Board's attention to the Internal Compliance
Report and noted that the Department remained in compliance with
over 70 different utility legal/regulatory issues that are tracked by
staff.
J. Lehman then provided the Board with a brief legislative update,
highlighting that the first year of a two year legislative session is
starting to wind down. J. Lehman indicated that it was overall a
2019-56
successful year with the legislative proposal for a water tax to help
struggling water agencies being replaced with new law that uses
Greenhouse Gas Allowance funds and State General Fund dollars
instead, and the "delay" of the multi-million dollar water storage
mandate bill. She mentioned there were still several other bills that
were concerning that the Department was working to address;
however, when the Legislature comes back into session August
12'' the bills will have only about a month to pass. With the
passage of AB 1054, the massive wildfire bill that carries many of
the Governor's issues, there is a low likelihood that the Legislature
will go into special session.
Lastly, she reminded the Board that the Department's annual
Emergency Response Plan exercise will be on August 28th, the
morning of the scheduled Board meeting, and Board members are
invited to attend.
16. ITEM(S) BY SECRETARY.
D. Lee shared that the Department participated in the annual 4`h of
July event at Peralta Park, with field staff offering bucket truck
rides to residents. He also informed the Board that the first of a
series of pop-up events highlighting income qualified programs
were being conducted. The first event was at Solara Apartments
for seniors in Council District 1.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• A public hearing for the formation of two underground
districts will be held in the Gordon Hoyt conference room
• Intent to reimburse from future bond proceeds
• Utilities Success Indicators update
• Work Order Management System consultant
• Pre -Qualified water consultant and construction firms for
small projects and immediate response
Lastly, D. Lee shared and discussed the Department's new
organizational chart.
17. ITEM(S) BY BOARD MEMBERS.
J. Showalter indicated that with recent utility companies in the news
she was thankful for the Department.
J. Seymour stated he will be attending the Emergency Preparedness
Exercise and thanked staff for the reminder.
2019-57
18. ADJOURNMENT: (NEXT PUBLIC HEARING/REGULAR
MEETING ON AUGUST 28, 2019, AT 5:00 P.M., IN THE 2ND
FLOOR GORDON HOYT CONFERENCE CENTER,
ANAHEIM WEST TOWER, 201 S. ANAHEIM BOULEVARD,
ANAHEIM, CALIFORNIA).
R ° ctfully subf iitted,
I
Dukku Lee
Public Utilities General Manager
V. Baroldi moved approval
to adjourn the Regular
Meeting at 7:15 p.m., to the
Board's Public
Hearing/Regular Meeting
date of August 28, 2019 at
5:00 p.m. J. Showalter
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3 [E. Medrano,
R. Gaona, A.
Abdulrahman].
* Indicates item(s) that will be forwarded to City Council for action upon recommendation by the
Board.
** Indicates item(s) that will be forwarded to City Clerk and City Council for informational purposes.
2019-58