Public Utilities 2022/12/21CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
DECEMBER 21, 2022
The agenda having been posted on Thursday, December 15, 2022, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson Seymour at 5:00 p.m. on Wednesday,
December 21, 2022, in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower, 201 S.
Anaheim Blvd., Anaheim, California.
Board Members Present: Chairperson J. Seymour, N. Campos Kurtz, M. Lee, A. Pham
Board Members Absent: Vice -Chairperson V. Baroldi, A. Abdulrahman, At Large Board Member
Vacancy
City Staff Present: D. Lee, P. Starr, A. Kott, B. Beeiner, J. Lehman, M. Avelino -Walker;
C. Parker, J. Martinez, R. Trebizo, T. Castaneda, D. Payne, B. Fruchter,
C. Ghaby, J. Galvan
Guest(s) Present: None
AGENDA ITEM ACTION TAKEN
Prior to the opening of the meeting, D. Lee, Public Utilities General
Manager, requested two recognitions for Anaheim Public Utilities
(APU) staff.
M. Avelino -Walker, General Services Manager, first recognized
Customer Service and Community and Sustainability Programs staff
for their efforts to attend community outreach meetings at various
locations throughout the City, and to offer bill assistance and
efficiency programs. Staff participated in a total of seventeen
"Mobile Resource Fairs", which are neighborhood events that
include other departments and non-profit agencies to help residents
with a variety of needs. C. Ghaby, Assistant Customer Services
Manager, and T. Castaneda, Community and Sustainability Manager,
represented their respective employees.
D. Lee presented the second recognition to D. Payne, Deputy City
Attorney, who is retiring at the end of the year. Dan brought his vast
experience to the City Attorney's office and has directly impacted a
number of APU's initiatives. D. Lee shared that D. Payne helped
APU navigate major and complex utility issues. D. Payne shared his
gratitude for working with the City of Anaheim for over ten years,
that he will miss the work, but plans to enjoy retirement.
The Board congratulated all the recognized employees for their
efforts and wished D. Payne well in retirement.
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2. APPROVAL OF THE MINUTES OF THE PUBLIC UTILITIES
BOARD MEETING OF NOVEMBER 16, 2022. *
3. PRESENTATION: DEPARTMENT ORGANIZATIONAL
DEVELOPMENT REVIEW.
R. Trebizo, Utilities Analyst, provided a presentation on employee
development strategies and results. Key presentation highlights
included an overview of employee development initiatives and the
employee development pathway. He spoke of a 3-tier pathway that is
primarily differentiated by the amount of professional experience
within the organization and outlined the distinction amongst the tiers
for new and entry-level employees through the senior and executive
leadership teams.
At the conclusion of the presentation, Board Members asked
questions related to work climate studies and the number of job
openings amongst craft and office staff. Staff responded that although
a formal survey about the work climate has not been conducted,
various methods are employed to obtain feedback which is then used
to develop training programs. Staff further responded that there is a
higher vacancy rate than prior to the start of the pandemic across most
divisions regardless of craft or office, which is reflective of the job
market. Several Board members commented that their interactions
with employees are positive and there is a sense of pride to work for
APU.
4. PRESENTATION: ELECTRIC INDUSTRY TRENDS.
D. Lee provided an update on the Electric Industry Trends, discussing
a national annual survey conducted by Black & Veatch, a private
consulting firm that includes input from about 250 utility
stakeholders. The survey results highlight initiatives and emphasis
towards grid modernization, renewable energy, and energy storage.
He then pointed out trends from other utility reports showing cost
impacts related to accelerating the target date for 100% carbon -free
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments of
the meeting.
M. Lee moved the approval of
the Minutes of the Public
Utilities Board Regular
Meeting of November 16,
2022. N. Campos Kurtz
seconded the motion.
MOTION CARRIED: 4-0-0.
ABSTAINED: 0.
ABSENT: 2.
[VICE CHAIRPERSON V.
BAROLDI, A.
ABDULRAHMAN].
2022 - 95
resources and investments in wildfire mitigation and other capital
improvements. He concluded by sharing that APU is continuing to
reflect customer feedback to gradually modernize and become more
sustainable, but to do so in a cost-efficient manner that does not result
in dramatic rate increases.
The Board inquired about how much rates would increase to achieve
carbon -free resources by 2035 rather than 2045. D. Lee responded
that the study does not give a specific amount, but refers to the
scenario as resulting `much more' cost impacts.
5. SCHEDULE A PUBLIC HEARING DATE, TIME AND
LOCATION TO CONSIDER PROPOSED MODIFICATIONS
TO THE WATER AND ELECTRIC RATES, RULES, AND
REGULATIONS.
B. Beelner, Assistant General Manager - Finance and Energy
Resources, requested approval from the Board to schedule a Public
Hearing at 5:30 PM on February 22, 2023 in the Gordon Hoyt
Conference Center located on the 2nd floor, Anaheim West Tower,
201 S. Anaheim Blvd.
B. Beelner discussed the importance of amending water rates so that
APU can recover the higher water supply costs imposed on Anaheim
by its wholesalers, Orange County Water District (OCWD) and
Metropolitan Water District of Southern California (MWD), as they
continue to build resiliency and increase water supply to Orange
County and Southern California respectively. Additionally, B.
Beelner discussed increased costs requiring rate changes related to
APU's continued focus on its re -investment in water infrastructure in
order to continue to provide high levels of service and reliability.
Customers will experience an approximately 2.6% increase in their
water bills if there is no majority protest to the proposed changes to
water rates.
B. Beelner shared with the Board that APU will propose several
ministerial electric and water rule and rate changes that will not
impact the amount APU charges its customers, but will solely
modernize and update various rules and rates.
B. Beelner mentioned that APU will mail Proposition 218 compliant
notices to customers on January 3rd 2023. The Board will receive a
full presentation on the proposed changes at its January Board
meeting, and APU will also post notices in local newspapers.
The Board then discussed the importance for staff to continue to
communicate with customers and the need to inform them of the
ongoing groundwater treatment program and how that will help
alleviate costs for customers and build water resiliency in the future.
N. Campos Kurtz moved the
approval of the scheduled
Public Hearing at 5:30 PM on
February 22, 2023. M. Lee
seconded the motion.
MOTION CARRIED: 4-0-0.
ABSTAINED: 0.
ABSENT: 2.
[VICE CHAIRPERSON V.
BAROLDI, A.
ABDULRAHMAN].
2022 - 96
6. APPROVE THE FIRST AMENDMENT TO THE
AGREEMENT, WHICH IS IN SUBSTANTIALLY FINAL
FORM, THE FINAL FORM OF WHICH SHALL BE
CONCLUSIVELY EVIDENCED BY THE EXECUTION AND
DELIVERY THEREOF, BETWEEN THE CITY OF ANAHEIM
(CITY) AND KUBRA AMERICA WEST, INC. (KUBRA) TO
EXTEND THE AGREEMENT TERM FROM THREE YEARS
WITH TWO OPTIONAL ONE YEAR EXTENSIONS TO TEN
YEARS WITH AUTOMATIC ONE YEAR EXTENSIONS
THEREAFTER UNTIL TERMINATED, INCREASE THE
TRANSACTION FEES FROM AN ANNUAL AMOUNT NOT -
TO -EXCEED $110,000 TO $150,000, AND PROVIDE AS -
NEEDED SOFTWARE AND SERVICES IN AN ANNUAL
AMOUNT NOT -TO -EXCEED $100,000 BRINGING THE
TOTAL ANNUAL AGREEMENT AMOUNT NOT -TO -EXCEED
$250,000 AND A PROVISION FOR AS -NEEDED EXTRA
WORK NOT -TO -EXCEED $40,000 ANNUALLY. *
J. Lehman, Assistant General Manager — Administration & Risk
Services, provided an overview of the proposed agreement
amendment with Kubra America West., Inc. (KUBRA). She
explained that City Council approved the agreement with KUBRA in
2018 to provide electronic bill payment services. This is used for
customers to pay their utility bills online and over the telephone
through interactive voice response (IVR). The agreement is set to
expire in July 2023. The amendment extends the term another five
years and it will renew annually until terminated. It increases the
transaction fees from $110,000 to $150,000 to allow growth as more
customers pay their bills electronically. She also explained that it
provides APU flexibility to purchase additional software and services
up to $100,000 annually as needed for services that benefit customers.
D. Lee added that the KUBRA payment solution has many
integration points with APU's information systems and customers
will not be required to re -register by continuing with the KUBRA
solution.
The Board asked if the payment services are for online only or also
for in -person payments. J. Lehman indicated that this particular
system is for online and IVR transactions. The cashiering functions
are separately administered by the Finance Department.
7. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Martinez, Electric Operations Manager, shared Electric System
updates starting with a fire that occurred at a recycling plant on South
Street that caused damage to a pole and transformer bank.
J. Martinez discussed how, in December, APU experienced an
increase in outages caused by drunk -driving incidents. He showed a
brief video clip from a resident of a pole fire caused by an impact
A. Pham moved the approval
of the First Amendment to the
Agreement between the City
of Anaheim and Kubra
America West, Inc. N.
Campos Kurtz seconded the
motion.
MOTION CARRIED: 4-0-0.
ABSTAINED: 0.
ABSENT: 2.
[VICE CHAIRPERSON V.
BAROLDI, A.
ABDULRAHMAN].
2022 - 97
-from a car at Orange Avenue and Falcon Street. Ile then. shared two
time -lapsed video clips showing the extensive workinvolved with
replacing utility poles that will improve reliability.
In closing, J. Martinez displayed a short video showing an Electric
Field crew removing a cat .-rTom the top of a utility pole an. d returning
it to the resident, displaying their commitment to serving the
community.
8. UPDATE ON WATER SYSTEM ITEMS.
C. Parker, Acting Assistant General Manager — Water Services,
updated the Board on. the current water supply conditions. The final
phase of the Groundwater Replenishment System is now producing
water at OCWD's facilities with the total flow now at 130 million
gallons per day. "This means that most wastewater in the Oran. ge
County Groundwater Basin is being recycled and recharged. in. the
basin. This is a successful initiative and provides a more reliable
source of water than imported. water at much lower costs.
"The imported. water condition for the State Water ProJect and. the
Colorado River (CR) Aqueduct from MWD is still quite strained..
There will likely be mandated water cuts next spring, which may
mean Anaheim will go to Level III in the Water Contingency Plan,
resulting in outdoor watering being reduced to two days per week
from the current three days per week.
C. Parker, also presented pictures from the recent CR Aqueduct
Inspection Trip.. Several City Council and. Board Members attended.,
along with local Anaheim citizens in partnership with a group from
West Basin Municipal Water District. C. Parker also highlighted a
tour of the Caro undwater]Teat ment Plant with members of the
Board.
Finally, C. Parker showed. the art selected by MWD to be placed in
their Water is Life calendar. A local 2nd grade student from
Anaheim was selected.
9. 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 (late electric revenue through November 2022 was 14.6%
above budget ($27.2M) due to wanner temperatures driving up higher
than expected wholesale, retail, and transmission revenue. Electric
costs for thefiscal year were also above budget, by. 8.3% ($14.2M)
due to higher than expected. fuel and energy costs causing a net
positive budget variance of $13.OM.
B. Beelner then mentioned that year to date water revenue was 2.4%
($ 1.1 M) below budget due to ongoing conservation measures
undertaken by customers.
Water operating costs fell below budget by 6.5% ($2.4M) causing a
net positive budget variance of $13M.
B. Beelner then discussed with the Board the Power Supply
Dashboard and the continued higher than normal wholesale energy
costs and how high natural gas prices drive up wholesale energy
prices. B. Beelner mentioned that APIJ has hedged against higher
natural. gas prices for its gas fired power plants; however, those
hedges will expire, and if natural gas prices continue to remain
elevated, AP could see budgetary pressure on its power Supply
portfolio in order to cover those sustained elevated fuel costs.
Ili® UPDATE ON ADMINISTRATION & RISK SERVICESITEMS.
J. Lehman, Assistant General Manager -- Administration and Risk
Services, presented the Third Quarter Internal Compliance Plan. This
report provides a summary of some of the compliance and regulatory
activities that APU is undertaking to make sure APU remains in
compliance with applicable laws and regulations.
J. Lehman updated the Board on the Administration & Risk Services
Dashboard. APU received federal bill assistance funding administered
through the State, referred to as the California Arrearage Payment
Program (CAPP) 2.0 that provides an additional $1.7 million which
will help offset electrical residential arrcarages. This brings the total
amount to $8 million that Anaheim has recovered on behalf of its
customers. This is likely the last of the State funding for customer
arrearn ges, and APU will have a State audit sometime in the future.
Disconnections for customers who are non -responsive will begin in
March 2023, and will be done in a sensitive manner with other means
of assistance provided to those who continue to be in financial
hardship.
J. Lehman presented the Safety Dashboard updates and noted that
September and October had no reportable accidents. However, in
November during a training exercise a digger derrick tipped over and
injured the operator. Following an. internal investigation conducted
with City and APU safety personnel, AP has identified measures to
help prevent this Roth occurring again, ensuring that staff understand
what the loading capacity of the truck is and the weight of the item
they are going to lift. The California Occupational Safety and Health.
Administration (Cal OSHA) conducted an investigation and. issued a
notice of citation. 17he fine is estimated to be about $1.0,000.
2022-99
11. ITEMS BY SECRETARY.
M. Avelino -Walker introduced a new employee J. Galvin, Resource
Programs Specialist III, who will be joining the Community
Sustainability team to help oversee the commercial and industrial
programs.
D. Lee shared agenda items planned for next month:
• Proposed Modifications to Electric & Water Rates, Rules, and
Regulations
• Battery Energy Storage System (BESS) Overview
• Approval of a Power Sales Agreement for a solar and energy
storage project
D. Lee discussed the Public Utilities Hearing Board's recent
determination. The Hearing Board met and heard from both the
customer and his representative as well as APU staff on a matter
related to water leaks found to be on the customer's property. The
Hearing Board's determination was to issue a courtesy credit for
having to cancel and reschedule the Hearing Board meeting, as well as
to offer access to two financial assistance programs, Emergency
Assistance and Leak Repair. This was on the proviso that the customer
submit the applications for these two programs. D. Lee reported that
the customer did make the applications, and all three items have been
provided.
D. Lee updated the Board regarding City Council's recent
appointments. City Council reappointed S. Faessel to the MWD Board
of Directors and appointed N. Meeks to the OCWD Board.
D. Lee shared that APU received two awards for Excellence in Public
Power Communications from the American Public Power Association,
a national organization.
D. Lee shared photos of the Holiday Light Exchange. Residents had the
opportunity to exchange an old set of holiday lights for a new set of
LED holiday lights, as well as donate toys for children. The event is a
drive up event which is easy for the public to access. Anaheim High
School's Workability Program assisted at this event and approximately
150 holiday lights were distributed.
D. Lee shared photos from two neighborhood meetings. The first was
at Sage Park, which is located at Euclid and La Palma, and the second
was on Chippewa and Greenleaf, near Euclid and the 5 Freeway. Other
departments participated along with non-profit agencies to provide
services to the community.
D. Lee also shared photos from a Nohl Canyon Elementary student
tour of the Lenain Treatment Plant and Walnut Canyon Reservoir.
2022 - 100
D. Lee shared an update on a high school student mentorship program,
with APU completing its 8t' year offering the program in conjunction
with the Anaheim Union High School District. The students learned
about career skills, toured utility facilities, and made presentations on
what career preparation skills they learned.
D. Lee and M. Avelino -Walker shared photos taken with M. Moore,
former Assistant General Manager — Water Services, at the East Valley
Water District. M. Moore sends his best to the Board and expressed
appreciation for his time in Anaheim.
D. Lee requested that today's Board Meeting be closed in memory of
Patti Faraone. Patti started her career with APU in 1996 as a part time
Customer Service Representative, and was promoted to full-time
Customer Service Representative II in 1998. She retired in 2019 after
23 years of service to the Anaheim community where she served and
lived. She is survived by two siblings and five nieces and nephews.
12. ITEMS BY BOARD MEMBERS.
Board Member A. Pham shared notable moments from the MWD
inspection trip and expressed his appreciation for the efforts of staff
to educate local student about the water treatment process. A. Pham
also mentioned the recent power outage and shared that APU handled
this very well, as he was able to check the Anaheim web site and
easily find a restore time for the outage.
Board Member M. Lee participated in the inspection trip and noted
the comradery between the participants. He requested that APU
conduct public outreach and education when the well treatment
systems come online. M. Lee asked if APU is monitoring the
response to the recent large earthquake in Northern California, and
how the utilities there managed the effects. D. Lee responded that
there was a transmission alert in the area, and many people lost
power; however, since Anaheim does not receive much power from
Northern California, it did not have a large affect locally. Staff does
monitor emergencies and conducts exercises to help prepare for local
events. M. Lee also commented that he appreciates the presentations
made by staff.
Board Member N. Campos Kurtz recognized APU's work with the
community during a planned power outage, ensuring residents that
they would have everything they need. She wished all APU
employees happy holidays.
Board Member J. Seymour noted the quality and participation of the
members of the Board, and thanked the Board for their efforts over
the course of the year.
J. Seymour closed the meeting in memory of Patti Faraone.
Staff will prepare outreach
efforts following activation of
groundwater treatment.
2022 - 101
13. ADJOURNMENT: (NEXT REGULAR MEETING ON
JANAURY 25, 2023 AT 5:00 P.M.)
Respectfully su j"itted,
Dukku Lee
Public Utilities General Manager
N. Campos Kurtz moved to
adjourn the Regular Meeting
in the Gordon Hoyt
Conference Center at 6:39
p.m. to the Board's Regular
Meeting date of January 25,
2023 at 5:00 p.m. M. Lee
seconded the motion.
MOTION CARRIED: 4-0-0.
ABSTAINED: 0.
ABSENT: 2.
[VICE CHAIRPERSON V.
BAROLDI, A.
ABDULRAHMAN].
* 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 - 102