Public Utilities 2021/05/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
May 26, 2021
The agenda, including the Teleconference Notice, having been posted on Thursday, May 26, 2021, the
Public Hearing / Regular Meeting of the Public Utilities Board (Board) was called to order by
Chairperson E. Medrano at 5:00 p.m. on Wednesday, May 26, 2021, in the Gordon Hoyt Conference
Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson E. Medrano, Vice -Chairperson J. Seymour, N. Campos Kurtz,
V. Baroldi, R. Gaona (via teleconference), R. Bhalla (via teleconference)
Board Members Absent: A. Abdulrahman
City Staff Present: D. Lee, P. Starr, A. Kott, M. Moore, J. Lonneker, B. Beelner, J. Lehman
D. Ballin, M. Seifen, A. Nguyen, B. Fruchter, C. Parker, P. Bogdanoff
Guest(s) Present: S. Faessel, Mayor Pro Tem; D. Polyzos, MWD (via teleconference); J.
Bodnar, MWD (via teleconference)
AGENDA ITEM
1. PUBLIC COMMENTS.
ACTION TAKEN
There being no oral public
comments and no submitted
public comments pursuant to
the Teleconference Notice,
Chairperson E. Medrano
closed the public comments
portion of the meeting.
2. RECOGNITION: ERNESTO MEDRANO FOR HIS SERVICE
TO THE ANAHEIM COMMUNITY AS A MEMBER OF THE
PUBLIC UTILITIES BOARD.
Chairperson E. Medrano was recognized for his service to the
community and commitment to ensuring that Anaheim Public
Utilities (APU) customers received quality service. Chairperson E.
Medrano was presented with a plaque and proclamation in
recognition of his years of service on the Anaheim Public Utilities
Board.
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3. APPROVAL OF THE MINUTES OF THE PUBLIC Vice -Chairperson J.
HEARING/PUBLIC UTILITIES BOARD REGULAR Seymour moved approval of
MEETING OF APRIL 28, 2021. * the Minutes of the Public
Hearing/Public Utilities
Board Regular Meeting of
April 28, 2021. N. Campos
Kurtz seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
5-0.
ABSTAINED: 0.
ABSENT: 2 (A.
Abdulrahman and R.
Bhalla).
4. PRESENTATION: UPDATE ON IMPORTED WATER
SUPPLY.
M. Moore, Assistant General Manager — Water Services, along
with Demetri Polyzos — Metropolitan Water District (MWD) and
James Bodnar — MWD provided an update on the condition of
imported water supplies. M. Moore indicated that although both
the State Water Project and Colorado River Aqueduct are in
drought conditions, Southern California has a significant amount
of water in storage accounts. M. Moore mentioned that most of the
water is in those accounts that cannot be accessed through the State
Water Project due to location and environmental restrictions. Due
to the restrictions, M. Moore indicated that MWD is planning to
purchase additional water this year from Northern California.
The Board inquired about which entities are involved with
marketing of wholesale water supplies, and staff responded that if
agricultural land in Central California are fallowed, agricultural
entities are able to sell water.
5. PUBLIC HEARING: ADOPTION OF THE CITY OF
Vice -Chairperson J.
ANAHEIM'S 2020 URBAN WATER MANAGEMENT PLAN
Seymour moved approval of
AND ITS WATER SHORTAGE CONTINGENCY PLAN AND
the adoption of the City of
2015 URBAN WATER MANAGEMENT PLAN
Anaheim's 2020 UWMP
AMENDMENT. *
and its Water Shortage
Contingency Plan and the
Chairperson E. Medrano opened the public hearing and explained
2015 UWMP Amendment.
the procedures.
N. Campos Kurtz seconded
the motion.
M. Moore provided a brief introduction and introduced P.
MOTION VIA ROLL
Bogdanoff, Engineering Manager, to provide the Board with a
CALL VOTE CARRIED:
presentation on the 2020 Urban Water Management Plan (2020
6-0.
UWMP) and its Water Shortage Contingency Plan and 2015 Urban
ABSTAINED: 0.
Water Management Plan Amendment (2015 UWMP
ABSENT: 1 (A.
Amendment). P. Bogdanoff provided a presentation on the content
Abdulrahman).
of the 2020 UWMP and 2015 UWMP Amendment and the purpose
2021-38
and content of the Water Shortage Contingency Plan of the 2020
UWMP. P. Bogdanoff also discussed the findings of the 2020
UWMP which shows that (1) APU is projected to have sufficient
water supplies to meet projected demands and (2) no water
shortages were identified.
D. Lee, Public Utilities General Manager, mentioned that Notices
of Public Hearing and public review period were conducted in
accordance with applicable law and that the Affidavit of
Publication of the Notice of Public Hearing was filed with the
Secretary of the Board.
Chairperson E. Medrano noted that due to the COVID-19
pandemic, in-person and oral comments regarding the proposed
2020 UWMP and 2015 UWMP Amendment from the public were
able to submit comments in-person or electronically. Chairperson
E. Medrano asked D. Lee whether the Secretary of the Board
received any correspondence concerning this public hearing. D.
Lee informed the Board that no written or verbal comments were
received.
6. RECOMMEND ADOPTION OF THE PUBLIC UTILITIES
DEPARTMENT'S FISCAL YEAR 2021/2022 PROPOSED
BUDGET. *
B. Beelner, Assistant General Manager — Finance and Energy
Resources, gave a presentation on APU's proposed budget for
Fiscal Year 2022 (FY2). B. Beelner indicated that there is no
increase to operating expenses, and that the proposed capital
budget would fund critical infrastructure replacements. B. Beelner
noted that the proposed budget was fiscally prudent, and thanked
APU staff for their work on the budget, explaining that the budget
process requires months of scrutiny, analysis, and review before
being presented to the Board for their consideration.
The Board asked whether capital funds expended for the
groundwater treatment project (to treat PFAS) would be returned
to APU. D. Lee confirmed that such capital expenses were eligible
for reimbursement, and clarified that City Council had recently
awarded the first phase of the project, and that the budget would be
encumbered and carried over into next year's amended budget.
The Board also asked whether the increase in capital expenditures
would help flatten APU's proposed operating expenses. D. Lee
indicated that utility labor is included in the total amount proposed
for capital, which helps offset the amount of labor budgeted on the
operating side. D. Lee also mentioned that capital investments,
such as the transformer replacement program, should reduce future
maintenance and repair expenses, which helps minimize operating
expenditures.
2021-39
N. Campos Kurtz moved
approval of the adoption of
the Public Utilities
Department's Fiscal Year
2021/22 proposed budget.
Vice -Chairperson J.
Seymour seconded the
motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
6-0.
ABSTAINED: 0.
ABSENT: 1 (A.
Abdulrahman).
7. APPROVAL OF (A) AMENDMENT NO.4 TO THE
GENERAL AGREEMENT WITH EMETER CORPORATION
FOR THE UPGRADE TO THE METER DATA
MANAGEMENT SYSTEM (MDMS) IN AN AMOUNT NOT -
TO -EXCEED $500,000 FOR THE UPGRADE AND AN
ANNUAL AMOUNT NOT -TO -EXCEED $60,000 FOR AS -
NEEDED PROFESSIONAL SERVICES; AND (B)
AMENDMENT NO.1 TO THE SOFTWARE LICENSE AND
SERVICES AGREEMENT WITH EMETER CORPORATION
TO UPDATE TERMS OF THE MDMS SOFTWARE
LICENSES AND PROVIDE FOR SUPPORT AND
MAINTENANCE IN AN ANNUAL AMOUNT NOT -TO -
EXCEED $128,556 WITH AN ANNUAL ESCALATOR NOT -
TO -EXCEED 3% AND AN OPTION TO PURCHASE
ADDITIONAL SOFTWARE LICENSES AND
MAINTENANCE IN AN ANNUAL AMOUNT NOT -TO -
EXCEED $100,000. *
B. Beelner provided the Board with an overview of the customer
meter data flow process. B. Beelner explained that customer
electric consumption data is transmitted from automated meters at
customer premises to the head -end system at Anaheim West
Tower, aggregated and processed in the Meter Data Management
System (MDMS), and then provided to the Customer Information
System for billing. B. Beelner noted that the City's version of the
MDMS software has become outdated as is the platform it runs on
and that APU must upgrade the system to remain current and
reduce the risk of bill interruption to its customers.
B. Beelner explained the agreement amendments with eMeter
Corporation will provide services to upgrade the system, additional
professional services as needed, update the license terms from
14,000 to 200,000 meters, reduce the annual maintenance fee
increase from 5% to 3%, and updates to other terms.
The Board inquired about the plan for installing electric and water
meters. D. Lee responded that the deployment of automated
meters has been underway for some time. Commercial electric
meters were initially rolled out followed by residential electric. D.
Lee explained that APU has deployed upward of 50,000 electric
meters out of approximately 120,000. Water meter deployments
are not as far along and will piggyback on electric meter
communications. D. Lee anticipates 4-6 years to complete the
electric meter deployments.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services, shared
pictures of a fire along the railroad tracks adjacent to an electrical
substation that occurred on May 1, 2021. J. Lonneker indicated
that the dense amount of smoke migrated toward the substation
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N. Campos Kurtz moved
approval of Amendment
No. 4 to the General
Agreement with eMeter
Corporation for the upgrade
to the Meter Data
Management Systems; and
Amendment No. 1 to the
Software License and
Services Agreement with
eMeter Corporation. Vice -
Chairperson J. Seymour
seconded the motion.
MOTION VIA ROLL
CALL VOTE CARRIED:
5-0.
ABSTAINED: 0.
ABSENT: 2 (A.
Abdulrahman and R.
Gaona).
which was captured on the security cameras and alerted the system
operator who proceeded to call in a crew for observation. J.
Lonneker noted that Anaheim Fire and Rescue was quick to
respond to extinguish the source of the fire which was a pile of
railroad ties stored alongside the tracks and that no incident
occurred at the substation.
9. UPDATE ON WATER SYSTEM ITEMS.
M. Moore provided a water supply update and reviewed the
dashboard. M. Moore indicated that California is in drought
conditions and the State Water Project allocation is only at 5% this
year. He mentioned the storage levels are still healthy in the
Orange County Basin and Metropolitan Water District storage
accounts. However, M. Moore noted that the statewide drought
may cause local water agencies to start implementing portions of
the drought contingency plans.
M. Moore then discussed the annual WaterSmart Landscape award
program. M. Moore indicated that APU customers both residential
and commercial submitted photos of their drought -tolerant
landscaping. M. Moore presented pictures of the winners for each
category.
M. Moore provided the Board with an update on the status of the
Groundwater Treatment Project, and indicated that staff held a
construction kickoff meeting for Phase A of the project.
Lastly, M. Moore shared pictures of the 16 winners of the Water
Poster Contest and noted that the recognition ceremony was held at
the Honda Center with the Anaheim Ducks.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly finance dashboard with the
Board. B. Beelner indicated that the year to date electric revenue
through April, 2021 was 1.1 % below budget ($3.7M) due primarily
to decreased commercial and industrial demand and electric costs
for the fiscal year fell below budget by 7.7% ($24.OM) causing a
net positive budget variance of $20.3M. B. Beelner then
mentioned that year to date water revenue was 3.7% ($3.OM)
below budget due to weaker than anticipated commercial and
industrial demand as a result of continued business restrictions
related to the COVID-19 pandemic and costs were below budget as
well by 4.7% ($3.OM) causing no net budget variance.
B. Beelner then discussed the monthly Power Supply Dashboard.
B. Beelner mentioned that due to extended outages at both the
Magnolia Power Project (MPP) and Intermountain Power Project
(IPP), APU purchased more wholesale power than originally
anticipated; however, due to the typically low April wholesale
2021-41
power prices these outages did not cause any undue pressure on the
budget. B. Beelner made the Board aware that both MPP and IPP
both have returned to full operation.
B. Beelner also indicated to the Board that Standard and Poor's
downgraded the City's General Fund rating to A- with a negative
outlook. B. Beelner mentioned that this downgrade should not
impact either the electric or water utilities' credit ratings.
11. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman, Interim Assistant General Manager — Administration
and Risk Services, discussed the Internal Compliance Plan
memorandum and shared that all programs were in compliance,
and there were no violations during this period.
J. Lehman then shared an update on legislative activities, including
that both the State Assembly and Senate had voted to limit bills for
each legislator to a maximum of 12, which significantly minimizes
the number of bills that will be passed by the State this year. J.
Lehman then highlighted four of the legislative bills that APU has
been following.
J. Lehman went over the safety metrics and shared that APU was
meeting its targets and the statistics were very similar to last year
with the exception of COVID-19 related illnesses and a shoulder
injury that resulted in restricted work duties. J. Lehman indicated
that these metrics help APU monitor the safety program and
proactively identify areas that may require further attention.
J. Lehman closed by highlighting the efforts underway to improve
customer service including initiating a campaign to increase
awareness of services that are currently offered on line or over the
phone, such as bill payments and the ability to check account
balances. J. Lehman discussed a new incentive for customers to
sign up for outage notifications so they can be notified of the latest
information regarding an outage in their area. J. Lehman explained
that over the next few months as the State opens up, it is expected
that customers are likely to have questions regarding their accounts
and APU would like to ensure they are aware of the self-service
options so they can quickly and efficiently obtain information
about their account
12. ITEM(S) BY SECRETARY.
D. Lee shared with the Board the items scheduled for the following
Board meeting include:
• Election for Chairperson and Vice -Chairperson and the
Underground Conversion Subcommittee
2021-42
• Summer Readiness Presentation
• Physical Security Presentation
• Update on Five -Year Underground Program
• Electric Master Agreements
D. Lee then shared that there were three winners of the APU high
school scholarship program and thanked Board members V.
Baroldi, N. Campos Kurtz, and R. Gaona for their participation in
selecting the recipients.
D. Lee shared photos of Mayor Pro Tem S. Faessel and the family
of former APU Superintendent, George Elkers. The family
donated test equipment to APU.
D. Lee made the Board aware of the passing of John Machiaverna,
a community leader and previous Board Chairperson. D. Lee
requested the meeting be adjourned in John Machiaverna's
memory.
13. ITEM(S) BY BOARD MEMBERS.
V. Baroldi indicated it was great to participate in the interviews for
the high school scholarship recipients.
N. Campos Kurtz thanked APU staff for allowing her to participate
in the selection and interview process of the scholarship recipients.
She then thanked Chairperson E. Medrano for his service on the
Board.
Vice -Chairperson J. Seymour thanked Chairperson E. Medrano for
his service on the Board and wished him well.
Chairperson E. Medrano thanked the Board and APU staff and
indicated that he intends to visit.
14. ADJOURNMENT: (NEXT REGULAR MEETING ON JUNE
Vice -Chairperson J.
23, 2021 AT 5:00 P.M. PLEASE BE ADVISED THAT SOME
Seymour moved to adjourn
OF THE BOARD MEMBERS MAY PARTICIPATE IN THIS
the Public Hearing/Regular
MEETING REMOTELY.)
Meeting in Memory of John
Machiaverna at 6:41 p.m., to
Chairperson E. Medrano called for a moment of silence, followed by
the Board's Regular
a call for a motion to adjourn the meeting in Memory of John
Meeting date of June 23,
Machiaverna.
2021 at 5:00 p.m. N.
Campos Kurtz seconded the
motion. MOTION VIA
ROLL CALL VOTE
CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2 (A.
Abdulrahman and R.
Gaona).
2021-43
Res. ectfully sul ktted,
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.
2021-44