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Public Utilities 2021/11/17CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES November 17, 2021 The agenda having been posted on Wednesday, November 10, 2021, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday, November 17, 2021, 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 V. Baroldi, A. Abdulrahman, M. Lee, R. Bhalla Board Members Absent: R. Gaona, N. Campos Kurtz City Staff Present: D. Lee, P. Starr, A. Kott, M. Moore, J. Lonneker, B. Beelner, J. Lehman, M. Avelino -Walker, M. Seifen, C. Parker, P. Bogdanoff, M. Jouhari, M. Adams, J. Martinez, D. Strain, G. Leon Guest(s) Present: None. AGENDA ITEM 1. PUBLIC COMMENTS. ACTION TAKEN There being no electronic or oral public comments, Chairperson J. Seymour closed the public comments portion of the meeting. 2. RECOGNITION: WATER PIPE TAPPING CONTEST TEAM. Michael Moore, Assistant General Manager — Water Services, introduced the Anaheim Public Utilities (APU) Water Pipe Tapping Team. The team consisted of Jeffrey Martinez, Water Production Technician Supervisor; Darin Strain, Water Production Technician; Gabriel Leon, Water Production Technician; and Gil Sanchez, Water Production Technician. The team was accompanied by Mark Adams, Water Production Superintendent. The team competed in the annual Orange County Pipe Tapping Contest on September 23, 2021 and finished in first place. The competition included a four person team that works on different tasks to make a water service connection to a pipeline. The pipeline is pressurized and the team can be given penalties for leaks and safety violations. The team was recognized at the meeting with the first place trophy and certificates. 2021 - 78 3. APPROVAL OF THE MINUTES OF THE PUBLIC A. Abdulrahman moved UTILITIES BOARD REGULAR MEETING OF OCTOBER 27, approval of the Minutes of 2021• * the Public Utilities Board Regular Meeting of October 27, 2021. M. Lee seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). 4. ADOPT THE PROPOSED PUBLIC UTILITIES BOARD M. Lee moved the approval MEETING SCHEDULE FOR THE 2022 CALENDAR YEAR of the Proposed Public ** Utilities Board Meetings Schedule for the 2022 Calendar Year. A. Abdulrahman seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). 5. PRESENTATION: DROUGHT UPDATE. Philip Bogdanoff, Water Engineering Manager, provided a presentation on the current drought conditions in California. P. Bogdanoff discussed the current water supply conditions and reduction in reservoir storage levels in Northern California and the Colorado River Basin. He also discussed APU's current and planned drought response actions and public outreach efforts to focus on preventing water waste now, with the anticipation that additional drought response measures would be regulated in the near future. P. Bogdanoff provided an overview of APU's Water Shortage Contingency Plan and potential next steps in response to the evolving drought conditions and regulations in California. The Board inquired about customer outreach and staff explained the various methods to inform customers, including a new campaign to educate customers on being `water smart.' 6. DETERMINE THAT THE PROPOSAL SUBMITTED BY A. Abdulrahman moved the CDM CONSTRUCTORS INC. (CDM) IN RESPONSE TO A approval of the proposal CITY OF ANAHEIM (CITY) REQUEST FOR PROPOSAL submitted by CDM DATED JUNE 16, 2021 IS THE MOST ADVANTAGEOUS TO Constructor Inc. (CDM) for THE CITY FOR COMPLETION OF THE GROUNDWATER the Groundwater Treatment TREATMENT PLANT PHASE B PROJECT (PROJECT); Plant Phase B and the award AWARD AND APPROVAL OF AN AGREEMENT WITH of the Design -Build Services CDM TO PROVIDE DESIGN -BUILD SERVICES FOR THE Agreement to CDM. R. PROJECT IN THE AMOUNT OF $68,321,000; WAIVE ANY Bhalla seconded the motion. 2021 - 79 IRREGULARITIES IN ANY PROPOSAL DOCUMENTS; MOTION CARRIED: 5-0. AND AMEND THE ANAHEIM PUBLIC UTILITIES' FISCAL ABSTAINED: 0. YEAR 2021/22 WATER CAPITAL IMPROVEMENT ABSENT: 2 (N. Campos PROGRAM BUDGET BY $68,321,000. * Kurtz and R. Gaona). C. Parker, Water Engineering Manager, presented an update on the Groundwater Treatment Program and the solicitation process for the Phase B Project to the Board. The proposed contract will be for the design -build of the remainder of the treatments plants to restore Anaheim's groundwater supply. C. Parker explained that cost recovery through the Orange County Water District (OCWD) is an essential part of the overall program. C. Parker presented on the solicitation process and the reasons the review team ranked CDM Constructors as the highest value to the City from the short listed proposers. He explained that the evaluation focused on lifecycle costs and design approach to each of the five locations that have unique characteristics. Board members asked questions regarding the transparency of the solicitation process, reasons for the design -build delivery method, and how close the cost proposals were among the two the bidders. 7. SET PUBLIC HEARING DATE, TIME, AND LOCATION TO CONSIDER PROPOSED MODIFICATIONS TO THE WATER AND ELECTRIC RATES, RULES AND REGULATIONS. Brian Beelner, Assistant General Manager - Finance and Energy Resources, requested approval from the Board to schedule a public hearing at 5:00 PM on January 26, 2022 at the Gordon Hoyt Conference Center located on the 2nd floor, Anaheim West Tower. B. Beelner discussed the importance of amending water rates so that APU can recover its increasing water supply costs as a result of the operational impacts that the existence of Per- and Polyfluoroalkyl Substances (PFAS) has had on Anaheim's supply of lower cost groundwater, requiring the use of higher cost imported water. B. Beelner mentioned that the proposed modifications to water rates, if enacted, would impact a typical customer using 16 hundred cubic feet of water a month by approximately $4.24 or approximately 6% of their current bill. B. Beelner then mentioned that APU would also request the adoption of a new electric rule that would allow customers, if they so choose, to purchase additional green energy, at a premium, to meet corporate or philosophical sustainability goals. The program would be completely voluntary with no impact to non -participating customers. The Board expressed concern that customers would believe the energy they receive at their premises was actually green when in fact it was the same mix of energy their neighbors receive. B. Beelner agreed that was factually true; however, the green energy rule would allow customers to claim a larger percentage of their consumption as renewable energy through a verified paper M. Lee moved approval to set a public hearing date, time, and location to consider proposed modifications to the Water and Electric Rates, Rules and Regulations. R. Bhalla seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). 2021 - 80 transaction and not through the physical delivery of renewable energy to their premises. B. Beelner then mentioned that APU would propose changing the on peak, mid peak, and off peak periods of its Time of Use (TOU) rates to coincide with the changing dynamic of peak energy usage in Anaheim. B. Beelner assured the Board that TOU rates are voluntary in Anaheim and if the changing periods are not tenable for current TOU customers, they can opt into traditional block rates that charge based on quantity of usage regardless of when the energy is consumed. B. Beelner made the Board aware that APU would make a full presentation on all of the proposals at the December Board meeting. 8. APPROVAL OF A THIRD AMENDMENT TO THE MASTER INTER -UTILITY AGREEMENT BETWEEN SOUTHERN CALIFORNIA GAS COMPANY AND THE CITY OF ANAHEIM FOR ENERGY EFFICIENCY, RESOURCE SAVINGS AND RELATED ACTIVITIES TO PROVIDE ADDITIONAL OPTIONAL SEVEN (7) ONE-YEAR EXTENSION TERMS MAINTAINING THE CURRENT NOT - TO -EXCEED AMOUNT OF $1.5 MILLION PER YEAR. * Melinda Avelino -Walker, General Services Manager, summarized the current agreement with the Southern California Gas Company (SoCal Gas) that is set to expire on December 13, 2021. Staff is seeking the Board's approval to recommend renewing the existing Master Inter -Utility Agreement with SoCal Gas for up to seven, one-year terms. The agreement allows APU and SoCal Gas to continue the weatherization program which offers income -qualified customers no -cost energy and water saving measures. The partnership with SoCal Gas allows for a single vendor to interface with customers to simplify and streamline their participation. Vice Chairperson V. Baroldi moved the approval of the Third Amendment to the Master Inter -Utility Agreement between Southern California Gas Company and the City of Anaheim. R. Bhalla seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). 9. APPROVAL OF A FIRST AMENDMENT TO AN A. Abdulrahman moved the AGREEMENT WITH PACKET FUSION, INC., FOR A approval of the First UTILITY CUSTOMER SERVICE PHONE SYSTEM IN Amendment to an ORDER TO INCREASE THE ANNUAL TELECOMMUNICATION CHARGES AND ANNUAL CHANGE ORDER LIMITS TO A NOT -TO -EXCEED AMOUNT OF $60,000.00 FOR EACH ITEM; AND AUTHORIZE THE PAYMENT OF ANY PRIOR CHANGE ORDERS IN EXCESS OF PRIOR LIMITS INCURRED AS A RESULT OF PANDEMIC DRIVEN TELECOMMUNICATION Ivuxlmm Janis Lehman, Interim Assistant General Manager — Administration and Risk Services, requested approval of the recommendation for City Council to approve an amendment to APU's cloud -based phone services agreement. This amendment would increase the telecommunication charges and the annual change order amount, Agreement with Packet Fusion. R. Bhalla seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). 2021 - 81 and ratify excess spending related in part to the pandemic. J. Lehman informed the Board that this is a valuable system that allowed staff to work remotely during the height of the pandemic, without impacts service levels to customers. The amendment to the agreement is recommended help to ensure that the system maintains the flexibility to provide phone services to meet customer needs. 10. UPDATE ON ELECTRIC SYSTEMS. Janet Lonneker, Assistant General Manager — Electric Services, shared information and pictures with the Board regarding the APU line crew that participated in the 2021 International Lineman's Rodeo held in Kansas City. Although the APU team did not place in the competition, they had very competitive times for the various events. The competition included 120 teams from across the nation. 11. UPDATE ON WATER SYSTEMS. Michael Moore, Assistant General Manager — Water Services, provided an update on water supply. Water storage levels by the Metropolitan Water District of Southern California (MWD) remain moderately healthy, although storage reservoirs in Lake Mead and the State Water Project are at historic low levels. Staff will continue to monitor the drought conditions through the winter to determine next steps to take for drought response actions. Several fire hydrants have been hit by cars in the past month. Pictures of one incident on Harbor Boulevard was shared with the Board which resulted in significant flooding. The quick response by Anaheim Fire and Rescue allowed the hydrant to be shutoff before there was damage to nearby homes. A groundbreaking ceremony for the Groundwater Treatment Plant, Phase A project, was held on November 16t" at the Linda Vista Complex. Chairperson J. Seymour and several elected officials were in attendance. APU facilitated tours for about 75 students from Loara and Katella High Schools. Two students spoke on the importance of water and their career ambitions. 12. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS. B. Beelner presented the Power Supply dashboard and pointed out that the current share of coal generation for the Intermountain Power Plant has declined recently due to supply chain and logistical constraints. B. Beelner mentioned that this decline should abate by the end of the calendar year, however, APU is monitoring the situation closely. B. Beelner will continue to keep the Board apprised of any changes to the fuel supply challenges. 2021 - 82 13. UPDATE ON ADMINISTRATION & RISK SERVICES ITEMS. J. Lehman provided the Board with several updates. The first was on the Wholesale Energy Risk Management (ERM) Program's Quarterly Compliance report for the fourth quarter of FY 21. J. Lehman shared that while retail sales were down, wholesale sales helped to make up the balance budgeted revenue. J. Lehman shared that all wholesale energy transactions met the Program's requirements and that there were no violations of the ERM during this period. J. Lehman then provided an update on the State's customer arrearage assistance programs and the expected impacts to APU. Information about this program will be a regular part of the updates until the funding is dispersed by the end of January 2022. As a status update of the safety program, J. Lehman shared that with the exception of the impacts related to COVID illnesses, the metrics are within the target ranges and are very similar to last year's. 14. ITEM(S) BY SECRETARY. Dukku Lee, Public Utilities General Manager, shared with the Board the items scheduled for the following Board meeting which include: • Proposed Modifications to Electric and Water Rates and Rules Presentation • Electric Design -Build Master Agreement D. Lee asked M. Avelino -Walker to share awards APU recently received. M. Avelino -Walker shared photos of awards recently received from the American Public Power Association (APPA). The awards included the Smart Energy Provider Designation for 2021- 2023 and awards of merit for two of APU's communication pieces. Lastly, D. Lee requested that the Board close the meeting in memory of John Elwell, former Board Chairperson. Mr. Elwell was remembered for being kind and very knowledgeable during his time serving Anaheim as a Board member. 15. ITEM(S) BY BOARD MEMBERS. M. Lee shared that he appreciates the streamlining of the design - build RFQ/RFP process. R. Bhalla indicated that he is impressed with the progress made toward a plan to tackle the PFAS issue. 2021 - 83 A. Abdulrahman concurred about making progress on the PFAS issue. Vice -Chairperson V. Baroldi wished everyone a Happy Thanksgiving. Chairperson J. Seymour seconded Vice -Chairperson V. Baroldi's sentiments, and then asked for a moment of silence in remembrance of John Elwell. 16. ADJOURNMENT: (REGULAR MEETING ON NOVEMBER 17, 2021 AT 5:00 P.M.) Respectfully s imitted, Dukku Lee Public Utilities General Manager A. Abdulrahman moved to adjourn the Regular Meeting at 6:58 p.m., to the Board's Regular Meeting date of December 15, 2021 at 5:00 p.m. R. Bhalla seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 2 (N. Campos Kurtz and R. Gaona). * 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 - 84