Public Utilities 2022/03/23ITEM # 01
3. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF FEBRUARY
23, 2022. *
4. PRESENTATION: UTILITIES SUCCESS INDICATORS,
REPORTING PERIOD 7/1/21-12/31/21.
C. Pereyra, Utilities Budget and Performance Administrator,
presented an update on the Utilities Success Indicators (USI) for the
reporting period of July 1, 2021 through December 31, 2021. C.
Pereyra reported that Anaheim Public Utilities (APU) accomplished
its customer service call wait time of less than three minutes on
average.
For electric service reliability, C. Pereyra explained that the
windstorm outages during the Thanksgiving holiday had a
significant impact on the metrics for the electric system, due to
20,000 customers being affected by a series of outages. The Board
sought clarification on how outage frequency is calculated. D. Lee
explained that the metric is calculated by taking the incidents and
dividing it by the total number of customers.
Discussing water system reliability, C. Pereyra noted that APU met
its water main break target that is set below the industry standard;
however, maintenance of hydrants and valves did not meet the
target due to crews working on other projects and reduced staffing
levels. C. Pereyra stated that an area of focus for continued
reliability improvements is by using the design build agreement
previously approved by the Board, which has allowed for
accelerated replacement of aged water mains.
For employee efficiency, C. Pereyra noted that while APU met the
target of meeting or exceeding industry benchmarks, previous ,
retirements and turnover of staff has reduced staffing levels, which
has resulted in prioritizing projects and work activities.
C. Pereyra described how electric and water rates remain
competitive compared to other agencies and mentioned that despite
the water adjustment increase earlier in the calendar year, a typical
APU residential bill remain below other Orange County cities.
Finally, C. Pereyra discussed how APU has maintained alignment
with City goals and initiatives, including participation in ReBuild
Beach improvements, securing arrearage funding to help APU
A. Abdulrahman moved the
approval of the Minutes of
the Public Utilities Board
Regular Meeting of
February 23, 2022. R.
Bhalla seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0
ABSENT: 1 [V. Baroldi].
2022 - 17
customers pay their bills, and hosting community engagement
events.
5. CAP AND TRADE PROGRAM COMPLIANCE UPDATE.
B. Beelner, Assistant General Manager — Finance and Energy
Resources, discussed the legislative history of California's Cap and
Trade program as mandated by Assembly Bill (AB) 32 and AB 398,
how the program works and how Anaheim has complied with the
program over Compliance Period 3 covering the years 2018 through
2020. B. Beelner shared with the Board that the law mandates APU
to update the Board on its Cap and Trade compliance after each
compliance period or every three years.
B. Beelner discussed how allowances are allocated to Anaheim,
how the program treats Publicly Owned Utilities (POUs), like
Anaheim, differently than Investor Owned Utilities (IOUs), and
how the program will change as Anaheim's resource mix
incorporates more renewable power supplies thereby emitting less
Green House Gas (GHG).
The Board asked how the State determines the amount of emissions
allowable under the cap before Anaheim must procure new
allowances. B. Beelner responded that the cap is based on historical
retail sales, and as retail sales have declined over time, Anaheim is
granted more allowances which Anaheim can then be utilized to
lower renewable power supply costs, which is essential for
affordability.
The Board also asked why allowances used for compliance in 2020
were so much higher than allowances used for compliance in 2018
and 2019. D. Lee responded that the allowances must be used over
the three year period of emissions in aggregate and that there is no
need to use them to match a singular year's emissions as long as
they are used to match the three years' worth of emissions. B.
Beelner then mentioned that these decisions are based on market
prices and other factors.
6. APPROVAL OF AGREEMENT WITH FRONTIER ENERGY
FOR ELECTRIC VEHICLE (EV) CHARGING
INFRASTRUCTURE TECHNICAL CONSULTING
SERVICES FOR A TERM OF THREE YEARS WITH UP TO
TWO ONE-YEAR EXTENSIONS IN AN ANNUAL NOT -TO -
EXCEED AMOUNT OF $271,600.00 WITH A FIFTEEN
PERCENT (15%) CONTINGENCY. *
D. Lee mentioned that APU accesses a state emissions credit
program that is utilized to fund zero emissions programs such as EV
customer rebates. The state requirement through this funding is that
APU has to spend a certain amount in disadvantaged communities.
As such, this agreement will assist APU with development of EV
charging stations at certain facilities such as shopping markets,
N. Campos Kurtz moved the
approval of the issuance of
the agreement with Frontier
Energy for Electric Vehicle
(EV) charging infrastructure
technical consulting services
for a term of three years
with up to two one-year
extensions in an annual not -
to -exceed amount of
$271,600.00 with a fifteen
percent (15%) contingency.
A. Pham seconded the
motion.
2022 - 18
multi -family developments, and help with master planning at large MOTION CARRIED: 6-0.
fleets such as schools. ABSTAINED: 0.
ABSENT: 1. [V. Baroldi]
The Board inquired about how potential customers will be notified
about the program, and D. Lee responded that through targeted
outreach as well as responding to inquiries that are starting to come
in from interested customers seeking to provide EV charging.
Additionally, by being proactive and having resources available to
assist schools and businesses who may have large EV charging
needs, APU will be better prepared to plan for distribution system
upgrades needed to support higher electrical capacity needs, and
avoid incremental, inefficient projects. Further, APU is currently
developing a direct installation program for public access chargers,
and this consulting service will help with site feasibility.
The Board inquired about targets for the consulting firm, and D.
Lee directed the Board to the proposal worksheet in the agreement
that includes tasks and quantities, and noted that although
participation is voluntary by customers, the goal is to fully utilize
the agreement.
The Board inquired about how much funding would be allocated to
disadvantaged communities. D. Lee responded that there is no set
allocation, but that efforts would be made to target outreach to areas
such as shopping centers or other public spaces for the benefit of
area residents.
The Board asked if there were any labor impacts to outsource such
services. D. Lee referenced S. Boodanian who is the responsible
supervisor and his team who often utilize consulting services for
program business efficiency deployment and implementation, and
that this is no different.
The Board asked a series of questions related to infrastructure and
timelines, and D. Lee responded that the challenge facing APU and
much of the utility industry is not the incremental chargers in
neighborhoods, since the transformer replacement project is helping
to address such needs, but rather large-scale deployments such as
fleets that could require significant upgrades to utility infrastructure,
and part of the reason for retaining a consultant is to assist with
master planning to provide sufficient lead time to make necessary
upgrades.
7. APPROVAL OF THE DIRECT PAYMENT AGREEMENT
M. Lee moved the approval
WITH HORNE LLC TO RECEIVE FEDERALLY -FUNDED
of the direct payment
LOW-INCOME HOUSEHOLD WATER ASSISTANCE
agreement with Horne LLC
PROGRAM (LIHWAP) GRANT FUNDS TO BE APPLIED TO
to receive Federally -funded
THE ACCOUNTS OF ELIGIBLE WATER AND
Low -Income Household
WASTEWATER CUSTOMERS. *
Water Assistance Program
(LIHWAP) grant funds to be
J. Lehman, Interim Assistant General Manager - Administration and
applied to accounts of
Risk Services, requested that the Board approve the
eligible water and
2022 - 19
recommendation to City Council to participate in the State's Low
Income Water Assistance Program (Program). J. Lehman explained
that this Program would provide eligible customers with one-time
assistance on their water and/or wastewater bill of up to $2,000
based on their income. J. Lehman mentioned that there are income
eligibility requirements for this Program; for example, for a family
of four this would equate to an income of approximately $59,000
annually, which is based on 60% of the state median income. J.
Lehman indicated that since 2003, APU had participated in a
similar program for electric services customers, but this is a new
program and it will be the first time that this Program will be
available for water customers. The State expects to begin accepting
applications in May. J. Lehman then shared that this will be one
more tool that APU will be able to offer its customers who are
having trouble paying their bills.
J. Lehman made a correction to the staff report to clarify that APU
was asking the Board to recommend approval of the item by the
City Council.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
No updates.
9. UPDATE ON WATER SYSTEM ITEMS.
M. Moore, Assistant General Manager — Water Services, provided
an update on Water Services. The monthly Water Supply
Dashboard was presented and M. Moore pointed out that Southern
California is in the 3rd year of drought conditions. The Governor is
anticipated to impose mandatory water reductions to respond to the
drought conditions. APU will present to the Board in April the
status of the drought and recommend taking further action under
Anaheim's Water Shortage Contingency Plan.
M. Moore mentioned a tour of Orange County Water District's
Groundwater Replenishment System (GWRS) project was provided
to the Board. Board Members M. Lee and A. Pham attended the
tour that included two APU construction sites for a pipe
replacement project and new well drilling.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner shared with the Board that the City Council approved
the Water and Electric Bond Resolutions, which the Board
recommended in February, by a vote of 7-0 at its March 15, 2022
meeting. B. Beelner then discussed with the Board the current state
of the Bond market including: the recent rise in interest rates, how
the rise in interest rates may hinder APU's ability to refund bonds
as planned, and a forecast of where interest rates are likely to go
based on Wall Street estimates.
wastewater customers, with
the correction to the staff
report recommendation. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [V. Baroldi].
2022 - 20
B. Beelner then showed the Board a picture of the current coal pile
at the Intermountain Power Project (Project) highlighting the
shrinkage in the pile. B. Beelner discussed how current shipments
of coal are about double the current burn rate which should build
the pile back up in order to run the Project at full capacity for the
summer months.
11. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman invited the Board's attention to the Administration and
Risk Services Dashboard and pointed out that the Dashboard now
highlights legislative updates, as the water and electric arrearages
have been applied to the applicable customer accounts and the
legislative session is gearing up. J. Lehman highlighted three bills
of interest, and reported that the PUB Legislative Working Group
had met prior to the PUB meeting to discuss legislative matters in
more detail. J. Lehman then highlighted the safety metrics and
shared that there had been no reportable injuries during the
reporting period. J. Lehman stated that the metrics help APU
monitor the safety program and proactively identify areas that may
require further attention.
12. ITEMS BY SECRETARY.
D. Lee shared with the Board a residential neighborhood meeting
hosted by Council Member Valencia, he mentioned Board Member
N. Campos Kurtz attended. The meeting originated due to a number
of car vandalisms occurring in this neighborhood. Anaheim Police
Department, the City Manager's Office, and Code Enforcement
were also present. APU provided Dusk to Dawn security lights and
other program information to the residents.
D. Lee shared photos of an area near East Street and La Palma
Avenue where APU attached lights to utility poles and offered Dusk
to Dawn lighting to help brighten the area. APU passed out flash
lights and walked through the neighborhood to see which areas
need more lighting.
D. Lee shared that APU added a double arm street light to light up
part of the alley behind the Walgreens on Lincoln and State
College; he noted that the residents were appreciative of the
installation.
D. Lee shared that APU held a Smart Garden Workshop at the
Ponderosa Family Resource Center. APU spoke with residents
about the programs APU offers and smart gardening ways for
residents to start growing their own food. Mayor H. Sidhu attended
and spoke about agriculture being part of his upbringing.
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D. Lee shared that APU has been working on the Sustainability
Education Center. The idea is to have a facility in the community
that would help teach residents about energy conservation, electric
transportation, solar, and other programs that APU offers.
Lastly, D. Lee made the Board aware of an upcoming Electric
Vehicle (EV) Ride and Drive event that will be held April 16th. A
vendor will facilitate test drives of different types of electric
vehicles at no cost to residents so they can learn about electric
transportation.
D. Lee provided an update on items planned for next month.
• Recognition of sustainable small businesses
• Presentation on the California Independent System
Operator
• Presentation on APU's budget
• Water shortage contingency plan
• Water quality report
13. ITEMS BY BOARD MEMBERS.
A. Pham thanked M. Moore and J. Lehman for the tour of Orange
County Water District (OCWD) and its Groundwater Replenishment
System (GWRS). A. Pham shared that it was great hands on
experience. He commended APU for their presence in the
community and the great relationships established, citing the
Sustainability Small Business Program.
M. Lee thanked M. Moore and J. Lehman for the educational tour.
He offered his best wishes to D. Ballin.
N. Campos Kurtz wished good luck to D. Ballin. She mentioned that
she participated in a webinar on polyfluoroalkyl substances (PFAS),
found it very interesting, and indicated that M. Moore did well in
representing APU. She then thanked APU staff for the neighborhood
event she participated in and commended staff.
R. Bhalla thanked D. Ballin and wished him good luck.
A. Abdulrahman thanked D. Ballin and mentioned how they worked
together on the Underground Conversion Subcommittee and
appreciated his legal advice.
J. Seymour shared an experience of someone in his neighborhood
impersonating a utility worker from another utility knowing well
that Anaheim was not serviced by that company. J. Seymour
wanted to make people aware that these types of fraudulent things
are taking place.
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14. ADJOURNMENT: (NEXT REGULAR MEETING ON APRIL
27, 2022 AT 5:00 P.M.)
Respectfully su itted,
Dukku Lee
Public Utilities General Manager
N. Campos Kurtz moved to
adjourn the Regular Meeting
in Gordon Hoyt Conference
Center at 6:18 p.m. to the
Board's Regular Meeting
date of April 27, 2022 at
5:00 p.m. R. Bhalla
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [V. Baroldi].
* 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.
2022 - 23