Public Utilities 2021/03/24ITEM # 01
3. PRESENTATION: UTILITIES SUCCESS INDICATORS,
REPORTING PERIOD JULY 1— DECEMBER 31, 2020.
A. Nguyen, Utilities Budget Administrator, presented an update on
the Utilities Success Indicators (USI) for the reporting period July
1, 2020 through December 31, 2020. A. Nguyen noted that
Anaheim Public Utilities Department's (APU) call wait time
trended higher during the reporting period, mainly because of
customers requesting assistance with their bill during the
pandemic. A. Nguyen described how these calls take longer to
address and mentioned that APU customer service representatives
have assisted customers through discussing payment plan options
and offering payment assistance for those who are eligible.
In discussing water reliability, A. Nguyen noted that a number of
main breaks during the report period were caused by pipe stress,
due to nearby contractor work. The Board inquired about the
number of main breaks that occurred and whether the upward trend
would continue or decline. M. Moore, Assistant General Manager
— Water Services, indicated that APU will focus on more main
replacements in the coming months and those capital
improvements should reduce the risk of main breaks in the future.
A. Nguyen also discussed the Water Utility's credit rating and debt
service coverage, indicating that Fitch had downgraded the credit
rating in December from AAA to AA+, and how the debt service
coverage was projected to slip to 1.4 for the current fiscal year
(versus a target of 2.0). He described how elevated water supply
costs were impacting these financial metrics, but explained that
groundwater restoration will improve water financial metrics.
The Board inquired about the Water Utility's lower debt service
coverage. Staff explained that the ratio suggests how much is
available after expenses to cover the Water Utility's debt service
costs for a specific year, and with higher operating costs due to
emerging regulations, there have been financial impacts.
A. Nguyen then noted that APU met the state's 3 3 % renewable
portfolio standards (RPS) by the 2020 requirement. He indicated
that the renewable solar project known as Desert Harvest II, which
is located in Riverside County, recently went online in December.
4. DETERMINATION THAT THE DESIGN -BUILD
PROPOSAL SUBMITTED BY CDM CONSTRUCTORS INC.
(CDM) IS THE MOST ADVANTAGEOUS TO THE CITY OF
ANAHEIM FOR COMPLETION OF THE GROUNDWATER
TREATMENT IMPROVEMENTS AT LA PALMA, LINDA
VISTA, BOYSEN PARK, AND ENERGY FIELD SITES
(PROJECT); APPROVAL OF AN AGREEMENT WITH CDM
TO PROVIDE DESIGN -BUILD PROJECT SERVICES IN AN
AMOUNT OF $56,894,500; APPROVAL OF AN
V. Baroldi moved approval
of the Design -Build
agreement with CDM
Constructors Inc.; the
agreement with MWH
Constructors, Inc. for
construction management
services for all phases of the
Groundwater Treatment
2021 - 20
AGREEMENT WITH MWH CONSTRUCTORS, INC. TO
PROVIDE CONSTRUCTION MANAGEMENT SERVICES
FOR ALL PHASES OF THE GROUNDWATER
TREATMENT PROGRAM IN AN AMOUNT NOT TO
EXCEED $9,730,800 WITH A FIFTEEN PERCENT (15%)
CONTINGENCY FOR EXTRA SERVICES; APPROVAL OF
THE EXECUTION OF ANY LAKE AND STREAMBED
ALTERATION AGREEMENTS AND ANY RELATED
PERMITS, CERTIFICATIONS, AND DOCUMENTS WITH
THE CALIFORNIA DEPARTMENT OF FISH AND
WILDLIFE, STATE WATER RESOURCES CONTROL
BOARD, OR OTHER GOVERNMENT AGENCIES FOR THE
PROJECT; ADOPTION OF A MITIGATED NEGATIVE
DECLARATION AND MITIGATION MONITORING PLAN
(NO.2020-001) FOR THE PROJECT PURSUANT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA);
AND AMENDMENT OF ANAHEIM PUBLIC UTILITIES'
FISCAL YEAR 2020/21 WATER CAPITAL IMPROVEMENT
PROGRAM BUDGET BY $66,625,300. *
Chairperson E. Medrano announced that he would not participate
in the discussion or vote on this item and would be leaving the
room because of a potential conflict due to his employment with
the Los Angeles/Orange Counties Building and Construction
Trades council, which represents local unions and district councils
some of which may become involved in this construction project.
He asked staff to come get him once this item was done so he
could rejoin the meeting. Vice -Chairperson J. Seymour conducted
the meeting in his absence.
C. Parker, Water Engineering Manager, briefed the Board on per -
and polyfluoroalkyl substances (PFAS) that are synthetic
chemicals that have been found in groundwater supplies causing
the shut down of wells in Anaheim. As a result, more higher cost
imported water is used than groundwater. C. Parker discussed the
three -prong strategy to mitigate PFAS — customer safety, cost
recovery, and restoring the groundwater supply.
C. Parker discussed the four sites where treatment will be installed
for Phase A. He talked about the Design -Build entity selection
process for Phase A and the Construction Management consultant
selection process for the program for all three phases.
The Board inquired regarding the security and safety at the project
sites. C. Parker and M. Moore explained that the sites will be
secured with fencing and security cameras. The Board asked about
the noise impacts, and C. Parker explained that the system will
meet the noise limits of the City. The Board then asked about the
design -build process. C. Parker indicated that the first step was to
issue a request for qualifications (RFQ). The top three qualified
Design -Build Entities (DBEs) were selected to proceed to the
Program; and the execution
of Lake and Streambed
Alteration agreements with
the appropriate government
agencies as well as approval
of a Mitigated Negative
Declaration and Mitigation
Monitoring Plan for the
Project. A. Abdulrahman
seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
5-0.
ABSTAINED: 0.
RECUSAL: 1
[Chairperson E. Medrano]
ABSENT: 1 [R. Bhalla].
2021 - 21
request for proposals (RFP) stage, where a detailed technical
(partial design and approach) and price proposal were submitted.
Lastly the Board asked why there was not a reservoir at each well
site. C. Parker discussed that reservoirs are only needed when
numerous wells are pumped to one centralized site and that single
well sites can pump directly into the distribution system.
5. PRESENTATION: ELECTRIC SYSTEM RELIABILITY
UPDATE.
Chairperson E. Medrano rejoined the PUB meeting.
J. Wei, Electric Systems Planning Manager, gave a presentation on
APU's 2019 Electric Reliability Report, which included the 2019
reliability metrics that are standardized throughout the industry. J.
Wei reported on APU's reliability statistics which compared
favorably to local investor -owned and public owned utilities.
J. Wei made the Board aware of the top six most common causes
of power outages, which include direct buried underground cable,
mylar balloons, overhead equipment, subsurface equipment,
vehicle contact, and animal contact. J. Wei then discussed ongoing
reliability initiatives to address these most common outage causes
and improving outage restoration time.
6. APPROVAL OF THE FOLLOWING TWO AGREEMENTS
WITH ELECTRIC GAS INDUSTRIES ASSOCIATION
(EGIA) FOR FIVE-YEAR TERMS WITH TWO OPTIONAL
ONE-YEAR EXTENSIONS AND A TEN PERCENT (10%)
CONTINGENCY FOR EXTRA SERVICES: (A) A REBATE
AND CUSTOMER PROGRAMS SOLUTION AGREEMENT
FOR A CUSTOMER REBATE PROCESSING AND
PROGRAMS MANAGEMENT SOFTWARE SOLUTION IN
AN AMOUNT NOT TO EXCEED $60,000 FOR
IMPLEMENTATION, $168,000 FOR FIRST YEAR
SERVICES, AND $98,550 ANNUALLY THEREAFTER; AND
(B) A REBATE PROCESSING SERVICES AGREEMENT
FOR CUSTOMER REBATE PROCESSING SERVICES IN
AN ANNUAL AMOUNT NOT TO EXCEED $125,000. *
D. Lee, Public Utilities General Manager, described the purpose
and use of the Rebate Processing Software System. Staff currently
uses spreadsheets to manage customer engagement in efficiency
rebates. The request is to contract with a firm to provide a more
advanced software solution to manage customer rebates, and for
services to assist customers through the rebate process.
EGIA is being recommended based on an RFP. EGIA currently
provides similar services for water efficiency rebates on behalf of
the Metropolitan Water District of Southern California (MWD),
R. Gaona moved approval of
two agreements with
Electric Gas Industries
Association for five-year
terms with two optional one-
year extensions for a
Customer Rebate Processing
and Programs Management
Software Solution. N.
Campos Kurtz seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 0.
ABSENT: 1 JR. Bhalla].
2021 - 22
offered competitive pricing, and demonstrated they have the
qualifications and expertise to perform the requested services.
The Board inquired about the software and if it's a hosted service.
Staff explained that the system is hosted and the RFP included
cyber security requirements to address securing customer data.
The Board commented that this item helps prepare for the future.
7. PRESENTATION: SAFETY SERVICES — PROTECTING
EMPLOYEES AND THE PUBLIC.
J. Sanks, Environmental Services and Safety Manager, provided a
presentation and gave an overview of the APU's safety program
that includes training, conducting inspections, interpreting
regulations, reviewing incidents, and coordinating with City safety
staff. J. Sanks then discussed safety incidents that occurred in
2020, with an emphasis on sprains and strains and COVID-19.
He described the protective measures APU put in place in response
to COVID-19, such as face masks, physically distancing staff,
conducting daily self -assessments, COVID-19 testing, contact
tracing, quarantines of employees, and implementing a robust
teleworking program. J. Sanks noted that the use of virtual
meetings and trainings has been implanted to limit COVID-19
exposure as well as evaluation works sites. J. Sanks indicated that
APU employees have been volunteering at the Anaheim
Convention Center and Disneyland vaccination sites.
He noted that overall injury rates have declined since the 1980s,
but there was an increase last year due to COVID-19 cases. J.
Sanks went over safety performance compared to last year, and
noted that staff has done well reporting near misses and close calls.
J. Sanks reviewed the responses of an employee safety perception
survey, and gave plans to improve outreach and training in
response to the survey.
The Board asked if utility workers were considered essential and if
that helped to obtain access to vaccines sooner? Staff explained
that utility workers are working through the City to gain access to
vaccinations, following state guidelines.
8. APPROVAL OF DEPARTMENT ORDER 514 - ACCIDENT
PREVENTION MANUAL AND SAFETY PROGRAMS AND
DEPARTMENT ORDER 515 - STOP WORK POLICY AND
CONTRACTOR SAFETY.
J. Sanks gave a presentation on two Department Orders (DOs).
DO 514 establishes processes to review and update APU's
Accident Prevention Manual (APM). The APM document
summarizes the safety requirements for field and office staff. The
DO also establishes that APM training will be conducted.
Vice -Chairperson J.
Seymour moved approval of
Department Order 514 -
Accident Prevention Manual
and Safety Programs and
Department Order 515 -
Stop Work Policy and
Contractor Safety. N.
Campos Kurtz seconded the
motion.
2021 - 23
J. Sanks indicated that DO 515 creates a formal process allowing
APU staff to stop work if they see an unsafe condition. The DO is
meant to ensure that employees feel empowered to take action to
ensure safety. The Board inquired about contractor safety and J.
Sanks noted that the DO applies to projects conducted by APU
staff and contractors, and also allows staff to intervene if they
observe unsafe work practices conducted by 3' parties.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services,
provided the Board with an update on a recent power outage that
occurred on March 18, 2021 caused by a metallic balloon coming
in contact with high voltage electric lines. J. Lonneker explained
to the Board the outage momentarily impacted approximately
1,700 customers and, after isolating the damage, approximately
500 customers remained without power for close to 7 hours before
repairs were completed and power restored.
J. Lonneker provided the Board with updates on the APU Street
Light Improvements Program and shared before and after photos
of recently completed projects. J. Lonneker explained that street
lighting upgrades and replacement projects are prioritized based on
safety reasons that have been identified by Code Enforcement and
that APU partners with Community Services to track and address
these requests. Over the past five years, approximately 400
requests have been received and that number has been reduced to
about 25 pending requests to date.
10. UPDATE ON WATER SYSTEM ITEMS.
M. Moore, Assistant General Manager — Water Services, provided
an overview of the Water Supply dashboard. He indicated that
precipitation levels in the west are well below normal and it looks
like another dry year, which could lead to drought conditions.
Water storage levels in Lake Mead are lowering below a
target level that will affect Arizona and Nevada water supplies. M.
Moore indicated that if the water levels in Lake Mead continue to
decrease, imported water supplies for APU might be affected.
M. Moore updated the Board on the school water bottle fill station
rebate program. M. Moore noted that after the lead testing was
completed at all Anaheim schools, APU implemented a new
program to fund water bottle fill stations. M. Moore reported that
over the past 3 years, 56 new water bottle fill stations have been
installed at 38 different Anaheim schools.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 0.
ABSENT: 1 [R. Bhalla].
2021 - 24
11. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance & Energy
Resources, made the Board aware that Fitch Ratings placed APU's
water rating three notches on negative outlook. Fitch Ratings
methodologies limit APU's water and electric ratings to three
notches above the City's rating. B. Beelner mentioned the water
rating suffered from downward pressure due to the weakened City
credit rating. B. Beelner then shared with the Board a negative
outlook typically requires the rating agency to either downgrade
the water rating or remove the negative outlook within 90 days.
The Board asked if any federal stimulus money has been made
available. B. Beelner responded that customers that receive federal
rental relief money are also eligible for utility relief money through
the COVID-19 Relief Bill, and let the Board know that the City
will receive $107 million from the COVID-19 Relief Bill — half in
Fiscal Year (FY) 2021 and the other half in FY 2022.
B. Beelner then discussed the monthly finance dashboard with the
Board - the year to date electric revenue through February 2021
was 0.1% below budget ($0.2M) due primarily to decreased
commercial and industrial demand. Electric costs for the fiscal
year fell below budget by 6.9% ($17.3M) causing a net positive
budget variance of $17.1 M. B. Beelner discussed the higher than
projected natural gas and higher than projected wholesale sales in
February due to spiking gas and wholesale energy prices caused by
the winter storm events in Texas and the Midwest. B. Beelner then
mentioned that year to date water revenue was 5.1 % ($3.4M)
below budget due to weaker than anticipated commercial and
industrial demand as a result of continued business restrictions
related to the COVID-19 pandemic. Costs were below budget as
well by 5.2% ($2.7M) causing a negative $0.7M budget variance.
B. Beelner then discussed the monthly Power Supply Dashboard.
He mentioned that APU received more revenue from the sale of
excess natural gas and energy on the wholesale market than
originally budgeted as a result of excess power and natural gas
available as well as higher than expected prices.
12. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman, Interim Assistant General Manager — Administration
and Risk Services, provided a brief update to the Board. J.
Lehman highlighted several legislative bills that APU is tracking,
and shared that the Legislative Working Group had met prior to the
Board meeting and reviewed key legislative bills of concern in
detail, and had reviewed and approved the 2021-22 Legislative
Guiding Principles. J. Lehman then went over key safety metrics
for APU which are used to monitor the effectiveness of the safety
program.
2021 - 25
13. ITEM(S) BY SECRETARY.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Budget Presentation
• Posting of Water Quality Report
• Update on Wildfire Mitigation Plan
D. Lee then shared photos of APU's customer service lobby
located on the first floor of Anaheim West Tower and explained
that services will continue to be offered at the first floor or online
rather than making customers go up to multiple floors. D. Lee then
discussed the new financial assistance program for small
businesses that was requested by the City Council ad hoc
committee.
D. Lee discussed the high school scholarship program and
indicated that an email would be circulated asking for Board
members that are interested in participating in the selection and
interview panel to let P. Starr know.
14. ITEM(S) BY BOARD MEMBERS.
N. Campos Kurtz thanked APU for supporting the Holiday Lights
contest. She indicated customers were happy to receive LED lights.
A. Abdulrahman thanked staff for keeping the community informed
when power outages occur.
J. Seymour requested a future presentation on customer -owned solar
and electric vehicles.
15. ADJOURNMENT: (NEXT REGULAR MEETING ON APRIL
28, 2021 AT 5:00 P.M. PLEASE BE ADVISED THAT SOME
OF THE BOARD MEMBERS MAY PARTICIPATE IN THIS
MEETING REMOTELY.)
Vice -Chairperson J.
Seymour moved to adjourn
the Regular Meeting at 6:58
p.m., to the Board's Regular
Meeting date of April 28,
2021 at 5:00 p.m. R. Gaona
seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 0.
ABSENT: 1 [R. Bhalla].
2021 - 26
Respectfully su > itted,
Dukku Lee
Public Utilities General Manager
* 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.
2021 - 27