Public Utilities 2022/06/22CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
June 22, 2022
The agenda having been posted on Thursday, June 16, 2022, the Public Hearing/Regular Meeting of the
Public Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday,
June 22, 2022, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim
Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, A. Abdulrahman, N. Campos Kurtz, M. Lee
Board Members Absent: Vice -Chairperson V. Baroldi, R. Bhalla, A. Pham
City Staff Present: D. Lee, P. Starr, A. Kott, B. Beelner, M. Avelino -Walker, M. Moore,
J. Lehman, J. Martinez, M. Seifen, J. Sanks, T. Castaneda, A. Kanzler
Guest(s) Present: Cintya Felix, Loara High School; Yosselin De La Cruz, Katella High School;
Adam Garay, Canyon High School; Jack Devereux, Esperanza High School;
Teresa Wyszomirski, Anaheim Resident; Conrad Wyszomirski, Anaheim
Resident; Christine Lee, Vestar; Brooke West, Vestar
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: HIGH SCHOOL SCHOLARSHIP
RECIPIENTS.
M. Avelino -Walker, General Services Manager, provided an
overview of the selection process of the High School Scholarship
Recipients. The Board recognized Cintya Felix, Yosselin De La
Cruz, Adam Garay, and Jack Devereux, as the winners of the High
School Student Scholarship.
3. RECOGNITION: WATERSMART LANDSCAPE AWARD
WINNERS.
M. Avelino -Walker, General Services Manager, provided an
overview of the recognition and the selection process for the
WaterSmart Landscape Award. The Board recognized Anaheim
Hills Festival, for the commercial category, and Teresa and Conrad
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Wyszomirski, for the residential category, for their drought -tolerant
landscape efforts.
4. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD REGULAR MEETING OF MAY 25,
2022.*
5. PUBLIC HEARING: RECEIVE AND FILE THE ANAHEIM
PUBLIC UTILITIES DEPARTMENT'S 2022 PUBLIC
HEALTH GOALS REPORT.
Chairperson J. Seymour opened the public hearing, outlined the
hearing procedures, and requested a presentation on the item.
J. Lehman, Assistant General Manager — Administration & Risk
Services, shared a copy of the Anaheim Public Utilities' (APU)
2022 Public Health Goals (PHG) Report. J. Lehman mentioned that
the PHG Report is available on APU's web site, and is available at
the Customer Service front counter located on the 1 st floor of
Anaheim West Tower, 201 South Anaheim Boulevard, Anaheim,
California. A notice was placed in the Anaheim Bulletin on June 9,
2022 informing the public of the hearing date. J. Lehman indicated
that the City Clerk's Office and APU received no phone calls or
correspondence from the public concerning the Public Health Goals
Report.
J. Sanks, Environmental & Safety Services Manager, gave a
presentation explaining the PHG Report. J. Sanks defined PHGs
and how they are different than maximum contaminant levels, and
described that California water producers must compare water
quality data to public health goals every three years. He explained
that Anaheim water quality did not exceed maximum contaminant
levels that establish drinking water standards.
J. Sanks added that if a compound is found above a PHG, the water
producer must prepare a report and hold a public hearing, but no
other action is required. J. Sanks described how public health goals
are developed, and discussed that APU achieved public health goals
for 80 out of 87 compounds. He indicated that all but three
compounds above the PHGs were naturally occurring. The
exceptions were bromate, which is a disinfection byproduct,
trichloroethylene and perchlorate, which are from industrial
sources. J. Sanks explained that it is common for all these
N. Campos Kurtz moved the
approval of the Minutes of
the Public Utilities Board
Regular Meeting of May 25,
2022. M. Lee seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3. [V. Baroldi,
R. Bhalla, A. Pham].
2022 - 43
substances to be found above PHGs throughout California. APU
staff will continue to monitor water quality to ensure compliance
with all regulations and drinking water standards.
Chairperson Seymour offered the opportunity for the public to
comment on the issue; however, there were no public comments.
The Board then received and filed the 2022 PHG Report and
Chairperson Seymour closed the public hearing.
6. RECOMMEND APPROVAL OF THE GENERAL SERVICES
AGREEMENTS - WATER ENGINEERING (AGREEMENTS),
IN AN AMOUNT NOT TO EXCEED $400,000 PER WORK
ORDER PACKAGE PLUS AUTHORIZATION FOR UP TO
15% IN CONTINGENCIES, WITH A LIMIT PER
CONSULTANT OF $1 MILLION IN TOTAL AWARDS
DURING EACH FISCAL YEAR, FOR PROFESSIONAL
ENGINEERING AND CONSULTING SERVICES;
AUTHORIZE THE PUBLIC UTILITIES GENERAL
MANAGER TO EXECUTE THE AGREEMENTS
SEPARATELY WITH THE FOLLOWING CONSULTANTS
PREQUALIFIED BY THE PUBLIC UTILITIES
DEPARTMENT FOR A THREE-YEAR TERM WITH UP TO
TWO ONE-YEAR EXTENSIONS AS NEEDED TO
COMPLETE ONGOING PROJECTS: AECOM TECHNICAL
SERVICES, INC.; AESCO, INC.; ANSER ADVISORY
MANAGEMENT, LLC; ARDURRA GROUP INC.; CANNON
CORPORATION; DRP ENGINEERING, INC.; GEO-
ADVANTEC, INC.; HARRIS & ASSOCIATES, INC.; JIG
CONSULTANTS; KOA CORPORATION; LEE + RO, INC.;
MICHAEL K. NUNLEY & ASSOCIATES, INC.; NV5, INC.;
PACIFIC ADVANCED CIVIL ENGINEERING, INC.;
PARIKH CONSULTANTS, INCORPORATED; PSOMAS; SA
ASSOCIATES; STANTEC CONSULTING SERVICES INC.;
TESCO CONTROLS, LLC; TETRA TECH, INC.; ULTEIG
ENGINEERS, INC.; WOOD RODGERS, INC.; YAO
ENGINEERING, INC.; AND SUCH OTHER ENGINEERING
CONSULTANTS AS THE DEPARTMENT MAY
PREQUALIFY DURING THE TERM OF THE
AGREEMENTS; AUTHORIZE THE PUBLIC UTILITIES
GENERAL MANAGER TO TAKE ALL ACTIONS
NECESSARY TO IMPLEMENT AND ADMINISTER THE
AGREEMENTS AND ANY OTHER RELATED
DOCUMENTS; AND AUTHORIZE DE MINIMIS CHANGES
THAT DO NOT SUBSTANTIALLY CHANGE THE TERMS
AND CONDITIONS OF THE AGREEMENTS, AS
DETERMINED BY THE CITY ATTORNEY.*
M. Moore, Assistant General Manager — Water Services, provided
an overview of the 2022 General Service Agreements (GSA). The
GSA include a pre -approved on -call list of vendors to provide
A. Abdulrahman moved
approval of the General
Services Agreements —
Water Engineering. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3. [V. Baroldi,
R. Bhalla, A. Pham].
2022 - 44
consulting engineering services for various water projects.
M. Moore described the solicitation process, selection process that
follows Council Policy 4.1, and quarterly reporting process that
provides additional details to the Board and public for
review. Twenty-three GSA firms are proposed for approval in five
different categories.
The Board inquired about the use of sub -consultants and M. Moore
explained that in certain cases where specialty expertise is required,
sub -consultants may be retained by the primary consultant.
7. RECOMMEND APPROVAL OF THE MASTER
AGREEMENT FOR WATER SYSTEM CONSTRUCTION,
REPAIR, MAINTENANCE AND IMMEDIATE RESPONSE
(AGREEMENT) AND AUTHORIZE THE PUBLIC UTILITIES
GENERAL MANAGER, OR DESIGNEE, TO EXECUTE THE
AGREEMENT SEPARATELY WITH THE FOLLOWING
CONTRACTORS PREQUALIFIED BY THE PUBLIC
UTILITIES DEPARTMENT FOR A FIVE-YEAR TERM
WITH AN EXTENSION OF UP TO TWELVE (12) MONTHS:
ARNAZ ENGINEERING CONTRACTORS, INC.; BIG BEN,
INC.; FERREIRA CONSTRUCTION CO., INC.; GENERAL
PUMP COMPANY, INC.; J. DE SIGIO CONSTRUCTION,
INC.; J.A. SALAZAR CONSTRUCTION AND SUPPLY
CORPORATION; J.R. FILANC CONSTRUCTION
COMPANY, INC.; MIKE BUBALO CONSTRUCTION, INC.;
PAULUS ENGINEERING, INC.; STEPHEN DORECK
EQUIPMENT RENTALS, INC.; T.E. ROBERTS, INC.; W.A.
RASIC CONSTRUCTION COMPANY, INC.; AND SUCH
OTHER CONTRACTORS AS THE DEPARTMENT MAY
PREQUALIFY DURING THE TERM OF THE AGREEMENT;
APPROVE A NOT -TO -EXCEED AMOUNT OF $500,000 PER
WORK ORDER PACKAGE, PLUS CHANGE ORDER
AUTHORIZATION, IN AN AMOUNT NOT TO EXCEED THE
GREATER OF $10,000 OR 10% OF THE ORIGINAL WORK
ORDER COST, WITH TOTAL CHANGE ORDERS PER
WORK ORDER NOT TO EXCEED $100,000; AUTHORIZE
THE PUBLIC UTILITIES GENERAL MANAGER, OR
DESIGNEE, TO TAKE ANY AND ALL ACTIONS AS ARE
NECESSARY TO IMPLEMENT AND ADMINISTER THE
AGREEMENT; AUTHORIZE DE MINIMIS CHANGES
THAT DO NOT SUBSTANTIALLY CHANGE THE TERMS
AND CONDITIONS OF THE AGREEMENT, AS
DETERMINED BY THE CITY ATTORNEY; AND
DETERMINE THAT THE PROJECTS TO BE PERFORMED
UNDER THE AGREEMENT SHALL BE CATEGORICALLY
EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA), SECTIONS 15301,15302,15303,
AND/OR 15304 OF TITLE 14 OF THE CALIFORNIA CODE
M. Lee moved the approval
of the Master Agreement for
Water System Construction,
Repair, Maintenance and
Immediate Response. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3. IV. Baroldi,
R. Bhalla, A. Pham].
2022 - 45
OF REGULATIONS.*
M. Moore, Assistant General Manager — Water Services, provided
an overview of the 2022 Master Construction Agreement (MCA).
The MCA includes a pre -approved on -call list of contractors to
provide construction services to supplement internal
crews. Contractors are also utilized during emergency situations and
for smaller capital improvement projects where City staff does not
have the resources or necessary equipment.
M. Moore described some situations where the Master Construction
Agreements were utilized in the past and described the process for
selection. Twelve contractors were selected to provide construction
support for a range of water projects including pipelines, pumps,
and electrical and instrumentation installation.
The Board inquired about whether or not there is an annual limit,
and staff indicated that the limit per contractor is $3M. The Board
inquired about how design -build awards are related to this MCA,
and staff explained that the MCA is for smaller projects less than
$500,000 per award, design -build prequalified firms can perform
work up to $3M per award, and large construction projects, whether
a standard bid award or design -build, are awarded through City
Council through the Public Works Department.
The Board inquired about how risk is managed, and staff explained
the procedures in place through the City's Risk Management
Division within the Human Resources Department that addresses
insurance, indemnification and related risk services.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Martinez, Electric Operations Manager, updated the Board on the
progress of the Transformer Replacement Program (Program) and
shared with the Board that APU has replaced approximately 129
aging transformers, associated poles, and conductors since inception
of the Program, which is short of the annual goal due to supply
chain delays in obtaining equipment. Additionally, J. Martinez
explained that APU is working on improving the customer
notification process and is planning on bringing a new Department
Order for the Board's consideration in the near future.
9. UPDATE ON WATER SYSTEM ITEMS.
M. Moore, Assistant General Manager — Water Services, reviewed
the Water Supply dashboard indicating that the Colorado River
basin storage levels are dropping to record low levels. The low
State Water Project allocation (5%) will require Southern California
to continue to rely mostly on imported water from the Colorado
2022 - 46
River Aqueduct. It is likely water shortages will continue next year
due to the low storage levels.
Metropolitan Water District (MWD) is planning to host Inspection
Tours. APU staff is coordinating a trip to the Colorado River
Aqueduct and will provide information to the Board of any
upcoming tours.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance & Energy
Resources, discussed the monthly Finance dashboard with the
Board. The year to date electric revenue through May 2022 was
0.2% above budget ($0.9M). Electric costs for the fiscal year to date
fell below budget by 6.1 % ($22.1 M) causing a net positive budget
variance of $22M. B. Beelner then mentioned that year to date
water revenue was 0.1 % ($0.1 M) above budget. However, water
operating costs fell below budget by 8.0% ($6.OM) causing a net
positive budget variance of $6.1M. B. Beelner then discussed the
recent 0.75% increase in the Federal Funds Rate made by the
Federal Reserve. B. Beelner made the Board aware that since all the
APU debt is fixed, the interest rate change would have no impact on
APU.
B. Beelner presented the Power Supply dashboard and discussed the
various inflationary pressures APU's power supply portfolio
currently faces. B. Beelner mentioned the recent increase in
wholesale energy prices due to continued increases in the price of
natural gas caused by the ongoing situation in Ukraine.
B. Beelner also discussed with the Board the continued difficulty in
sourcing and delivering fuel to the Intermountain Power Project
(IPP). This difficulty has increased recently due to ongoing labor
issues with Union Pacific Railroad who transports fuel, the
increasing demand for coal in Europe due to the lack of natural gas
for their power needs, and various issues with the quality of coal
supplied by one of IPP's main fuel providers.
11. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided the Board with information on the upcoming
second round of State customer arrearage funding.
J. Lehman then invited the Board's attention to the Administration
and Risk Services Dashboard where she highlighted bills of interest,
and then discussed the safety metrics.
2022 - 47
12. ITEMS BY SECRETARY.
D. Lee, Public Utilities General Manager, discussed the upcoming
events memo, and requested that Board members contact P. Starr if
any member is planning to attend.
D. Lee introduced Tania Castaneda, the new Community and
Sustainability Programs Manager. She will oversee public facing
programs that deal with electric transportation and efficiency
rebates for businesses and residential customers.
D. Lee shared agenda items planned for next month:
• Per -and Poly-Fluoroalkyl Substances (PFAS) Update
• Credit and Collections Vendor Services Agreement
• Underground Utility Locating Services Agreements
• Environmental Services Agreements
• Second Amendment to the Customer Information System
Agreement
• New Pole Lease Agreements
D. Lee gave an update on a neighborhood meeting that took place
on Anna Drive. APU partnered with the River Church who held a
resource fair in which other departments participated. APU
provided resource information.
D. Lee shared information on APU's signature event, the OC Green
Expo event, which helps educate the community about the benefits
of lower tail pipe emissions and electric transportation. The event
was well attended with approximately 800 attendees, 40 vendors,
and 18 electric vehicles were available to test drive.
13. ITEMS BY BOARD MEMBERS.
M. Lee thanked D. Lee and APU staff for attending the
neighborhood community meetings. He also added that he really
likes the scholarship program that APU offers high school students
and shared that he appreciated having the two previous high school
recipients in attendance.
A. Abdulrahman encouraged staff to continue with their programs
and projects.
14. ADJOURNMENT: (NEXT REGULAR MEETING ON JULY
27, 2022 AT 5:00 P.M.)
M. Lee moved to adjourn
the Regular Meeting in the
Gordon Hoyt Conference
Center at 6:35 p.m. to the
Board's Regular Meeting
date of July 27, 2022 at 5:00
2022 - 48
p.m. N. Campos Kurtz
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 3. [V. Baroldi,
R. Bhalla, A. Pham].
Respectfully s iitted,
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.
2022 - 49