Public Utilities 2022/10/26ITEM # 03
2. APPROVAL OF THE MINUTES OF THE PUBLIC
UTILITIES BOARD MEETING OF SEPTEMBER 28, 2022.
3. PRESENTATION: ANAHEIM PUBLIC UTILITIES
ELECTRIC SYSTEM RELIABILITY.
J. Martinez, Electric Operations Manager, presented the Electric
System Reliability report for 2021. He gave an overview of
Anaheim Public Utilities (APU) electric system, explained the
reliability indices, and discussed how reliability performance is
measured across the industry. J. Martinez also discussed APU's
historical reliability and the five-year sustained outage trend. J.
Martinez presented a summary of metrics which showed that APU
is in the 1 st Quartile (top 25%) of all Public Owned Utilities (POU)
in the nation for electric reliability, including duration of outages
and time to restore power. He indicated that APU fell below the
target goal for outage frequency which is in the top 25% largely due
to the increased temperatures and wind events across the state. He
also discussed reliability's most frequent offenders and reliability
capital project initiatives. He indicated that lead times for
equipment procurement have quadrupled since last year
predominately with transformers.
The Board inquired whether APU was having difficulty procuring
materials. J. Lonneker, Assistant General Manager — Electric
Services, indicated that there is high demand from other agencies
given recent regional emergencies, and APU is addressing this issue
by directly contacting suppliers, repurposing materials, and working
on creative ways to lower restrictive standards to ease
manufacturing and increase output.
Council Member S. Faessel commented that the metrics reflect that
APU staff is highly responsive to outages, and that minimizing
outage duration is of importance to the community. He expressed
his appreciation to APU staff for their efforts to support customers
by focusing on improvements to reliability.
A. Abdulrahman moved the
approval of the Minutes of the
Public Utilities Board Regular
Meeting of September 28,
2022. M. Lee seconded the
motion.
MOTION CARRIED: 4-0-1.
ABSTAINED: 1. [N.
CAMPOS KURTZ].
ABSENT: 1.
[CHAIRPERSON J.
SEYMOUR].
2022 - 78
4. PRESENTATION: EMERGENCY RESPONSE PLANNING.
J. Sanks, Environmental Services and Safety Manager, presented an
overview of the APU's Emergency Response Planning (ERP)
program. J. Sanks shared the importance of training, mutual
assistance agreements, and coordinating with other departments
within the City of Anaheim (City).
J. Sanks outlined the various planning documents maintained by
APU. J. Sanks shared with the Board that there were no major
outages or City Emergency Operations Center activations in the last
year, with the exception of an electrical outage caused by a
windstorm in November 2021. APU closely monitored the heat
storm and statewide power supply shortage in September 2022.
J. Sanks also noted that APU is continuing to monitor COVID-19.
He described a recent emergency response exercise that simulated
disruptions to APU's communication methods and shared that staff
could effectively complete their tasks when technology was
disrupted. The exercise was attended by staff from the Orange
County Sheriff's Department, who provided training with handheld
radio use.
J. Sanks concluded by emphasizing the importance of updating
APU's Emergency Response Plan, as it describes methods staff
would use to respond during a major outage.
The Board inquired about whether APU coordinates with area
hospitals. J. Sanks responded that such coordination is managed
centrally by the City through the Anaheim Fire & Rescue
Department, and that APU is part of the citywide Emergency
Operations Center that does coordinate with key stakeholders.
5. APPROVAL OF THE CITY OF ANAHEIM'S TASK ORDER
RELATED TO THE MASTER PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE SOUTHERN CALIFORNIA
PUBLIC POWER AUTHORITY (SCPPA) AND K2
FABRICATION, INC. DBA K2 DESIGN AND FABRICATION
(AGREEMENT) FOR PROFESSIONAL SERVICES TO
DESIGN AND FABRICATE EXHIBITS FOR THE
PROPOSED SUSTAINABILITY EDUCATION CENTER IN A
NOT -TO -EXCEED AMOUNT OF $1,500,000 WITH A
FIFTEEN PERCENT CONTINGENCY FOR EXTRA
SERVICES, IF NEEDED; AND AUTHORIZE THE PUBLIC
UTILITIES GENERAL MANAGER, OR DESIGNEE, TO
APPROVE TASK ORDERS AND OTHER RELATED
DOCUMENTS.*
M. Lee moved the approval of
the City's Task Order related
to the Agreement between
SCPPA and K2 Design. A.
Pham seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1.
[CHAIRPERSON J.
SEYMOUR].
2022 - 79
M. Avelino -Walker, General Services Manager, introduced T.
Castaneda, Community and Sustainability Programs Manager, to
present an update on the Sustainability Education Center (SEC).
T. Castaneda presented an overview of the SEC as a concept
developed from community feedback, and elaborated that vision to
increase current student engagement efforts that provide pathways
for students to learn about sustainability and utility careers.
T. Castaneda identified stakeholders that would use the center and
recent feedback from students on facility utilization considerations.
T. Castaneda shared where the location of the APU-owned parcel
was, and that the 65-year old storage building previously on the site
has been demolished to prevent further vandalism.
Although the pandemic paused the project, additional outreach
conducted by staff led to improved ideas for interactive
programming. Other publicly owned utilities (POUs) looking to do
similar exhibits conducted a joint solicitation through the Southern
California Public Power Authority (SCPPA). Two firms provided
proposals, and K2 Design and Fabrication (K2) was the highest
rated with experience developing exhibits at the Long Beach
Aquarium and other sites.
T. Castaneda indicated that K2's experience would allow APU to
highlight various electrification, conservation, and efficiency
programs with LED displays that can be updated and translated into
multiple languages.
T. Castaneda presented the recommendation to enter into a Task
Order with SCCPA to proceed with K2 with a not -to -exceed
amount of $1.5 million to design, fabricate, program, and project
manage exhibits. T. Castaneda shared that while the original
architect is no longer working on the project, APU intends to use
the preliminary site plans and procure design -build services to
perform construction. T. Castaneda indicated the project is two
years behind schedule because of the pandemic, and the estimated
budget is $10 million. Funding sources include public benefit funds
collected by Assembly Bill 1890, and state emission credits that
will fund electric transportation displays and charging stations.
APU continues to seek external funding.
The Board asked for clarification to determine if the Task Order
was for the exhibits within the facility only. D. Lee responded
affirmatively and indicated that APU would seek a separate design -
build firm for the building construction.
The Board asked if the exhibits were permanent or mobile so they
could be taken to school or other sites, D. Lee indicated that the
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exhibit design has not begun, but APU will explore the idea of
mobility as a good suggestion for community events.
The Board asked for clarification as to the meaning of the
maintenance of the exhibits. D. Lee indicated that the maintenance
will be identified upon the exhibits' completion and would include
updating digital information easily.
The Board asked about the exact location of the site. D. Lee shared
that it is in close proximity to the APU maintenance yard on
Vermont Avenue with parking access and near schools. The Board
expressed that the facility looked like a good facility for multiple
uses. D. Lee shared that the facility will also be used for workforce
development to help fill vacancies through apprenticeships and
similar career planning programs.
6. APPROVAL OF A SAFETY CONSULTING SERVICES
AGREEMENT (AGREEMENT) FOR AS -NEEDED SAFETY
SERVICES IN A NOT -TO -EXCEED AMOUNT OF $500,000
PER CONSULTANT FOR THE ENTIRE FIVE-YEAR TERM
OF THE AGREEMENT AND UP TO TWO ONE-YEAR
EXTENSIONS, AS NEEDED, WITH AUTHORIZATION FOR
EXTRA WORK IN AN AMOUNT PER WORK ORDER NOT
TO EXCEED $10,000 OR 15% OF THE COST, WHICHEVER
IS GREATER; AUTHORIZE THE PUBLIC UTILITIES
GENERAL MANAGER, OR DESIGNEE, TO EXECUTE THE
AGREEMENT SEPARATELY WITH THE FOLLOWING
PREQUALIFIED CONSULTANTS AND SUCH OTHER
SAFETY SERVICES CONSULTANTS AS MAY BE
PREQUALIFIED DURING THE TERM OF THE
AGREEMENT: A -TECH CONSULTING, INC., ALTA
ENVIRONMENTAL, L.P., AN NV5 COMPANY, GLOBAL
ENVIRONMENTAL NETWORK, INC., AND TRC
SOLUTIONS, INC.*
J. Lehman, Assistant General Manager - Administration and Risk
Services, presented the Board with a request for the approval of
Safety Services Consulting Agreement with four consultants on an
as -needed basis. Safety services has been divided into two groups:
training and hazardous materials as well as facility management.
The bidders can select and respond to either of the two groups.
Three consultants were selected in group one and four consultants
for group two.
When services are needed, they are often needed in a very timely or
expedited manner so having pre -approved agreements allows APU
to respond more quickly.
A. Abdulrahman moved the
approval of the Safety
Consulting Services
Agreement with multiple
Consultants. N. Campos Kurtz
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1.
[CHAIRPERSON J.
SEYMOUR].
2022 - 81
J. Lehman shared with the Board that this request is similar to an
agreement the Board approved in 2019 that has been very effective
and mentioned that this agreement is a 5-year period whereas the
2019 agreement was for a 3-year period. The pre -qualification does
not guarantee work, the consultants will have to compete on each of
the projects and respond to a request for work order proposals. The
work will then be awarded to the highest rated consultant. APU will
continue to report regularly to the Board in the quarterly status
reports for pre -qualified electric and water construction,
environmental and safety services, spot bid and electrical purchase
report.
Before Vice -Chairperson Baroldi left the meeting at 5:52 PM, he
appointed Board Member A. Abdulrahman to act as Chairperson for
the remainder of the meeting.
7. RECEIVE AND FILE THE QUARTERLY STATUS REPORTS
ON CAPITAL IMPROVEMENT PROJECTS, MASTER
AGREEMENTS, GENERAL SERVICES AGREEMENTS,
AND SPOT BID AWARDS.
J. Lonneker, Assistant General Manager — Electric Services,
provided an update on Electric Capital Projects. She explained that
due to supply chain issues, there have been issues with sourcing
equipment for projects and as a result, additional procurements of
materials have been made to try and meet project needs.
C. Parker, Acting Assistant General Manager — Water Services,
shared that the Water CIP is progressing well and staff is on
schedule to complete the planned CIP for this fiscal year. The Valve
Replacement Program is going well, along with the Pipeline
Replacement Program. The design -build delivery method has
proven very efficient for completing the Pipeline Replacement
Program. The Groundwater Treatment Program is proceeding on
schedule, with some facilities coming online in February 2023.
Phase A will be completed by Spring 2023 and Phase B by Fall
2023.
The Board inquired about the scope of services for a water
consulting award being somewhat vague. Staff will make
improvements to provide additional descriptive language in future
versions of the report.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services, shared
with the Board pictures of the newly installed weather station co -
located on the same pole structure as the wildfire cameras at the
Lenain Treatment Plant/Walnut Canyon Reservoir area overlooking
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the Oak Canyon Preserve. J. Lonneker showed the Board a
dashboard developed to display the data from the weather station
which includes wind speed and direction along with ambient
temperature and humidity. The information will be available for
Anaheim Fire & Rescue (AF&R) dispatchers as well as APU
operations for wildfire mitigation.
J. Lonneker indicated to the Board that APU participated in the
annual Wildfire Safety Fair hosted by AF&R on October 15, 2022
with a booth to display the programs and rebates available to
Anaheim residents for wildfire prevention including attic venting,
irrigation programs and energy saving rebates.
J. Lonneker made the Board aware that APU has completed street
lighting upgrades along Vermont Avenue between State College
and East Street after receiving community feedback on safety issues
near Boysen Park.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker, Acting Assistant General Manager — Water Services,
shared with the Board the water supply condition, indicating the
groundwater basin is in good shape and that the imported water
supplies are strained. The Colorado River basin states are trying to
find ways to conserve more water due to the dropping Lake Mead
levels. The Metropolitan Water District of Southern California
(MWD) will have about 2 million acre-feet (MAF) in storage
available by the end of the calendar year.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager - Finance and Energy
Resources, discussed the monthly Finance Dashboard with the
Board. The year to date electric revenue through August 2022 was
16.8% above budget ($19.5M) due to warmer temperatures driving
up higher than expected wholesale, retail, and transmission revenue.
Electric costs for the fiscal year were also above budget by 8.6%
($8.8M) due to higher than expected fuel and energy costs causing a
net positive budget variance of $10.7M. B. Beelner then mentioned
that year to date water revenue was 2.4% ($0.7M) below budget.
Water operating costs also fell below budget by 5.1 % ($1.1 M)
causing a net positive budget variance of $0.4M.
B. Beelner reviewed with the Board the Power Supply Dashboard
and discussed the continued positive trend in wholesale revenue. B.
Beelner mentioned that APU capitalized on Intermountain Power
Project (IPP) operating at full capacity for the summer coupled with
much higher than normal energy prices. B. Beelner then mentioned
that IPP will reduce its operations on November 1 st to one unit at
100% capacity through the balance of the calendar year.
2022 - 83
11. UPDATE ON ADMINISTRATION & RISK SERVICES
ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided the Board an update on the Wholesale Energy
Risk Management (ERM) Program's Quarterly Compliance report
for the third quarter of FY22. J. Lehman indicated that during this
period there were no violations of the Wholesale ERM Program,
and that all transactions were within the ERM requirements.
J. Lehman then provided an update on the Administration and Risk
Services Dashboard where she highlighted three bills of interest and
then reviewed the safety metrics for the month. There were no
reportable injuries this month.
12. ITEMS BY SECRETARY.
D. Lee, Public Utilities General Manager, shared with the Board that
the Public Utilities Hearing Board was unable to convene for the
hearing scheduled for this afternoon. The customer and his
representative were present and agreed to reschedule the hearing to
November 16, 2022. D. Lee requested that all Board members
consider serving as alternates for the Public Utilities Hearing Board
to avoid future scheduling issues. Currently, the Public Utilities
Hearing Board is structured with 3 appointed members and 1
alternate.
D. Lee shared agenda items planned for next month:
• Water Reliability Update
• Utilities Financial Overview and Update
D. Lee shared photos from two Resource Fairs held this month, the
first was held at Pauline and Wilhelmina, and the second was near
Euclid and La Palma. Resource Fairs are done in collaboration with
Community Services, who identify and provide resources to
Anaheim residents. Customer Service Representatives were present
to provide billing services by looking at customer accounts,
addressing questions, and offering available programs.
D. Lee shared photos from the OC Auto Show held at the Anaheim
Convention Center earlier in the month. APU customers were given
access to the Auto Show at no charge for the first time this year and
approximately 3,000 customers took the opportunity to attend.
D. Lee shared photos from APU's Public Power Week, where 120
students from Edison and Maxwell Elementary Schools were
accompanied by staff to stations that included bucket truck rides and
demonstrations on power safety. This event is an opportunity to
2022 - 84
showcase APU staff to our community and provides very positive
public engagement.
APU staff visited Schweitzer Elementary School, one of the two
APU's Sustainability Award -winning schools, and delivered the
prize of free Chromebooks for their students. Schweitzer provides
after -school programs for approximately 150 students, and computers
were not available for them. The Chromebooks can be used for
completing homework and other assignments after school. Council
Member Diaz along with the School District Assistant
Superintendent were present as well.
D. Lee presented photos from the Workability Program organized by
Anaheim Union High School District. This program provides special
needs students ages 18 and up, who are transitioning from being
students to adults in the workforce, the opportunity to explore
different job opportunities. C. Dalton, Electric Field Superintendent,
organized a project for the students to stuff envelopes. These projects
give the students an opportunity to experience professional work
culture.
Lastly, D. Lee shared photos from Career Day with the first grade
students at Guinn Elementary School. Staff discussed with the
students what utility workers do, and allowed the kids to dress up in
linemen gear.
13. ITEMS BY BOARD MEMBERS.
Board Member A. Pham visited the San Diego Water District's
Water Fair. While there, he picked up one of the complimentary
conservation kits distributed to new San Diego residents. Board
Member A. Pham compared their water efficient showerhead with
the showerhead APU includes in its conservation kits and
commended APU staff for balancing aesthetics with efficiency.
Board Member M. Lee thanked APU staff for their presentations,
providing answers to and following up on his direct questions. M.
Lee thanked J. Lonneker for identifying the underlying cause of
supply issues and resolving it directly with the supplier, and offered
to follow up with her to discuss other ideas.
Board Member N. Campos Kurtz mentioned that she attended a
community meeting at Boysen Park, and was asked by a half a
dozen people about the lighting of Vermont Street and Boysen Park.
The issue was addressed almost immediately, and the residents that
stopped by expressed that they felt much safer taking walks along
Vermont Street. N. Campos Kurtz thanked D. Lee and staff for
APU's quick response and shared that she and the community
appreciate it.
2022 - 85
Board Member A. Abdulrahman commended J. Lonneker and APU
staff for the impressive reliability report presentation.
City Council Member S. Faessel reminded the Board and APU staff
that their responsibility is to ask the questions that residents may not
know how to ask. The Board oversees the largest asset that the City
of Anaheim has. S. Faessel mentioned that he takes what the Board
does very seriously. He thanked and congratulated the Board again
for the work they do for the community's interest.
14. ADJOURNMENT: (NEXT REGULAR MEETING ON
NOVEMBER 16, 2022 AT 5:00 P.M.)
RLectfullyed,
Dukku Lee
Public Utilities General Manager
N. Campos Kurtz moved to
adjourn the Regular Meeting
in the Gordon Hoyt
Conference Center at 6:52
p.m. to the Board's Regular
Meeting date of November 16,
2022 at 5:00 p.m. A. Pham
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 2.
[CHAIRPERSON J.
SEYMOUR, VICE -
CHAIRPERSON 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 - 86