Public Utilities 2023/08/23CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
August 23, 2023
The agenda having been posted on Thursday, August 17, 2023, the Regular Meeting of the Public
Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday,
August 23, 2023, 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 A. Abdulrahman, M. Lee,
A. Pham, T. Bilezikjian, A. McMenamin, T. Ibrahim
Board Members Absent: None
City Staff Present: D. Lee, A. Kott, J. Lehman, J. Lonneker, M. Avelino -Walker, C. Parker,
B. Beelner, B. Mendoza, M. Seifen, T. Castaneda, A. Nguyen,
Y. Saldivar, C. Pereyra, E. Krause, F. Barvarz, T. Chen, A. Lee
Guest(s) Present: None
AGENDA ITEM
1. PUBLIC COMMENTS.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
JULY 26, 2023. *
J. Lehman, Assistant General Manager — Administration and Risk Services,
requested a correction be made to the Minutes of the Public Utilities Board
Regular Meeting of July 26, 2023 for the Assembly Bill 1572 "Non -
Functional Turf' bill discussed in Item 12. J. Lehman clarified that it is the
common areas of the Homeowners Associations that would not be able to
irrigate with potable water.
3. PRESENTATION: FY 2022/23 UTILITIES SUCCESS INDICATORS.
Y. Saldivar, Utilities Analyst, presented an update on the Utilities Success
Indicators (USI) report for the Fiscal Year (FY) ending June 30, 2023. The
USI features 19 different metrics that measure Anaheim Public Utilities'
(APU) performance in meeting several key strategic objectives in areas
such as affordability, system reliability, and customer experience.
ACTION TAKEN
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
T. Bilezikjian moved the
Approval of the Minutes of
the Public Utilities Board
Regular Meeting of July 26,
2023, as amended. T.
Ibrahim seconded the
motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2023 - ss ITEM 9 01
APU met its wait time goal for the City's 311 calls, but not for APU's
Customer Service Call Center (Call Center) because of an influx of calls
following the resumption of disconnections. Call Center staff is dedicating
more time with customers to provide bill assistance and payment plans.
Temporary staff are available to help address the recent uptick in calls.
Reporting on APU's system reliability, Y. Saldivar noted how electric and
water service reliability was favorable in the past year when compared
against other benchmarks and prior historical results. Capacity at the
Intermountain Power Project (IPP) was impacted due to coal transportation
issues, affecting APU's generation availability performance. APU staff is
focused on increasing water maintenance activities in the next year to meet
valve and hydrant inspection goals.
APU provided income -qualified customers with $6.5 million in bill
assistance in the last year and helped the Anaheim community save 6.9
million kilowatts (kWh) of energy through various programs. Y. Saldivar
also described how a proactive focus on meeting safety inspection targets
will foster a stronger and safer organizational culture.
The Board commented about lower than optimal metrics and recommended Staff will provide updates on
an increase in staff to improve Call Center wait times, water maintenance methods employed to
of hydrants and valve turning, and the number of safety inspections. D. improve metrics in
Lee, Public Utilities General Manager, responded with additional context approximately six months.
about how the organization has tried to fill its vacancies in the current job
market, and how the organization scrutinizes candidates to find quality
employees. The Board requested a performance update for those metrics
requiring improvement.
4. APPROVAL OF AGREEMENT FOR OVERHEAD ELECTRIC
A. Abdulrahman moved the
SYSTEM INSPECTION SERVICES WITH INTEC SERVICES, INC.
Approval of the Agreement
IN AN AMOUNT NOT TO EXCEED $4,623,200, WITH A 15%
for Overhead Electric
CONTINGENCY FOR AS -NEEDED EXTRA SERVICES, FOR A
System Inspection Services
TWO-YEAR TERM WITH AN OPTION TO EXTEND THE
with Intec Services, Inc. T.
AGREEMENT UP TO 12 MONTHS; AND DETERMINE THAT THE
Bilezikjian seconded the
CONTRACTED SERVICES ARE CATEGORICALLY EXEMPT
motion.
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
MOTION CARRIED: 7-0.
(CEQA) PURSUANT TO SECTIONS 15301,15302, AND 15304 OF
ABSTAINED: 0.
TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS. *
ABSENT: 0.
F. Barvarz, Electric Transmission and Distribution Manager, provided the
Board with an overview of APU's Electric System Inspection program,
which has a five-year inspection cycle for overhead infrastructure, and a
three-year cycle for underground equipment. Details on inspection
methodology and wood utility pole structural integrity testing procedures
was reviewed. F. Barvarz discussed inspection data and imagery saved in
the City's Geographic Information System (GIS) repository for secure
storage and retrieval by the field crews performing maintenance and
emergent service restoration and planning electric infrastructure capital
upgrades.
2023 - 56
F. Barvarz also covered the customer outreach plan for work along City
streets and on private property, and the details of the scope of work for
inspection services to be performed. Intec Services, Inc. is recommended as
the highest rated firm for a proposal cost of $4.6 million.
The Board asked if the contractor would respond to inspect the poles in
case of a major seismic or windstorm event. J. Lonneker, Assistant General
Manager — Electric Services, responded that APU troubleshooters would
respond first to any reports of asset failures and request support from
contractor crews in case additional assessment is needed.
The Board asked if inspection using drones is part of the agreement scope.
D. Lee responded that due to privacy concerns, especially in residents'
backyards, inspections using drones have not been deployed. However, for
certain locations such as water storage tanks, drones are being considered.
The Board asked if email notification is being considered versus
distributing flyers. D. Lee responded that there are privacy concerns that
need to be managed with customer data. J. Lonneker added that, in addition
to flyers, door hangers are used as an additional outreach measure.
The Board asked about poles that might be leaning and intrusive testing
pass / fail parameters, and how long the poles would last following
inspection. D. Lee responded that the contractor would look for those
physical characteristics as part of their inspection. Generally, poles with
less than 70% remaining structural integrity are candidates for replacement
or buttressing.
5. APPROVAL OF THE GENERAL SERVICES AGREEMENT FOR
CIVIL AND ELECTRICAL ENGINEERING SERVICES BETWEEN
THE CITY OF ANAHEIM AND PREQUALIFIED CONSULTANTS,
FOR A FIVE-YEAR TERM WITH TWO OPTIONAL ONE-YEAR
EXTENSIONS; APPROVE A NOT -TO -EXCEED AMOUNT OF
$500,000 PER WORK ORDER PACKAGE, WITH CHANGE ORDER
AUTHORIZATION IN AN AMOUNT NOT TO EXCEED 15% OF
THE WORK ORDER PACKAGE AMOUNT, AND A PER -
CONSULTANT LIMIT OF $1,500,000 IN TOTAL AWARDS DURING
EACH FISCAL YEAR OF THE AGREEMENT'S TERM,
INCLUSIVE OF EXTRA WORK. *
J. Lonneker summarized the use of the General Services Agreement as a
method of pre -qualifying consulting firms to provide supplemental
professional and technical services, such as engineering design and testing.
The main changes from the previous agreement cycle include an increase
from a three-year term to a five-year term with the option for two
additional one-year extensions to complete ongoing projects. Also, the
award amount is recommended to be increased from $400,000 to $500,000
per work order in response to increased costs. Awards per consulting firm
would be limited to $1.5 million per fiscal year, which is an increase from
$1 million in the prior contract cycle. J. Lonneker emphasized the value
T. Ibrahim moved the
Approval of the General
Services Agreement for
Civil and Electrical
Engineering Services
between the City of
Anaheim and Prequalified
Consultants. M. Lee
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2023 - 57
these technical services provide for staff in completing complex capital
projects and assisting in maintaining a reliable electric system.
6. APPROVAL OF THE DESIGN -BUILD MASTER AGREEMENT
A. Abdulrahman moved the
FOR WATER PROJECTS FOR A FIVE-YEAR TERM WITH TWO
Approval of the Design -
EXTENSIONS NOT -TO -EXCEED 24 MONTHS, AS NECESSARY,
Build Master Agreement for
TO COMPLETE OUTSTANDING WORK ORDER PACKAGES IN
Water Projects for a Five -
PROGRESS, BETWEEN THE CITY OF ANAHEIM AND
Year Term. T. Bilezikjian
PREQUALIFIED DESIGN -BUILD ENTITIES; APPROVE A NOT-
seconded the motion.
TO -EXCEED AWARD AMOUNT OF $3,000,000 PER WORK
MOTION CARRIED: 7-0.
ORDER PACKAGE, PLUS CHANGE ORDER AUTHORIZATION IN
ABSTAINED: 0.
AN AMOUNT NOT -TO -EXCEED 10% OF THE WORK ORDER
ABSENT: 0.
PACKAGE AMOUNT; AND DETERMINE THAT THE PROJECTS
TO BE PERFORMED UNDER THE DESIGN -BUILD MASTER
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 OF REGULATIONS. *
C. Parker, Assistant General Manager — Water Services, discussed that the
use of Design -Build agreements have been successfully implemented to
accelerate Water Capital Projects. Over the previous cycle, a typical
savings of six to twelve months was achieved compared to the traditional
design -bid -build process. This has allowed APU to complete more water
pipeline projects, which directly relates to less water pipe breaks in the
field.
C. Parker described the selection process and process controls. All design -
build work order package awards are reported to the PUB on a quarterly
basis. Work order packages that meet the conditions of the Community
Workforce Agreement will be required to follow those terms.
The Board asked how the new agreements compare to the last agreements.
D. Lee indicated that this term is five years compared to the last term that
was three years. The monetary cap per work order package remains the
same.
7. APPROVAL OF FIRST AMENDMENT TO HIGH VOLTAGE
M. Lee moved the Approval
TRANSMISSION SOFTWARE ANALYTICS DATABASE AND
of the First Amendment to
RELATED SERVICES AGREEMENT WITH POWER MARKET
High Voltage Transmission
CONSULTING, INC., FOR A ONE-YEAR EXTENSION OF THE
Software Analytics Database
AGREEMENT IN AN AMOUNT NOT TO EXCEED $84,000. *
and Related Services with
Power Market Consulting,
B. Beelner, Assistant General Manager — Finance and Energy Resources,
Inc. T. Bilezikjian seconded
described how APU's electrical load is served from many different sources
the motion.
of energy in and around the western United States and that those sources of
MOTION CARRIED: 7-0.
energy require transmission paths to deliver power to Anaheim. B. Beelner
ABSTAINED: 0.
mentioned that thousands of pathways exist, each with their own costs -
ABSENT: 0.
tantamount to a toll. B. Beelner further explained that to choose the most
cost-effective pathway, APU contracted with Power Marketing Consulting,
2023 - 58
Inc. (PMCI) in 2018 to provide software services to help predict the least
costly pathway, following a competitive process.
APU has saved approximately $2 million per year in net transmission costs
by continually seeking out the least -costly pathways. This extension is
limited to $84,000 and would expire after one year, and during this one-
year extension APU will release a Request for Proposal (RFP) to seek out
similar software solutions to ensure APU continues to receive the best
transmission analytics software at the most reasonable price.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker summarized the measures taken in preparation for tropical
storm Hilary on Sunday, August 20th. Electric Operations secured
additional staffing throughout the weekend. J. Lonneker shared with the
Board that outages related to the storm began at approximately 2:30 pm
when Anaheim Fire and Rescue reported a smoking vault on Harbor Blvd.,
which was the result of a failed cable splice. Operators rerouted power to
partially restore customers, but crews had to make repairs before restoring
the remaining customers between Orangewood Avenue and Chapman
Avenue by 9:00 pm.
There were three other small area outages where crews needed to replace
transformers, and a pole fire which resulted in the pole needing to be
replaced. Line -crews worked for 20 hours straight on Sunday and into
Monday morning. Residents who were without power for an extended
period of time, related to equipment issues, will receive a bill credit.
J. Lonneker explained that over the past six months, APU has been
replacing the electrical infrastructure along Harbor Blvd. south of Katella,
including several underground switches and new cable. Additional
equipment is planned for replacement when materials are received in the
second quarter of 2024. J. Lonneker shared a chart showing a slight
improvement in the average outage duration by month for the year as
compared to the five-year average. These proactive measures in
anticipation of inclement weather are an example of actions taken to help
reduce the outage duration to customers.
J. Lonneker updated the Board on two underground conversion projects
currently under construction. First, on Santa Ana Canyon Road final paving
has been completed with striping and manhole lid adjustments tentatively
planned over the next two weeks. Telecommunication companies are
currently working to install their equipment which will likely take twelve
to eighteen months to complete before the wood poles can be removed.
The second is on Sycamore Street east of Anaheim Boulevard, where
substructure work is close to 100% complete and the electrical equipment
installation is about 75% complete. Estimated completion for APU's
portion is planned for December 2023. Final paving will be done as part of
the Public Work's Department Sabina Neighborhood Improvement Project.
2023 - 59
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the recent tropical storm, which dropped
about two to three inches of rain across Orange County. Much of the
stormwater was captured behind Prado Dam and will be released slowly to
recharge the Orange County Groundwater Basin.
An update was given to the Board regarding the Delta Conveyance Project
(tunnel transporting water underneath the delta northwest of San Francisco)
that will complete the environmental permitting stage at the end of the
calendar year. C. Parker also mentioned that Lake Mead along the
Colorado River has risen to 1,063 feet in elevation.
The Board asked whether customers would receive a bill credit due to
recently reducing from Level 2 Water Shortage Contingency to Level 1. B.
Beelner indicated that there is a formula for rate determinations based on
costs of service, but specific amounts are unknown at this time.
The Board also asked if there was any damage to the Colorado River
Aqueduct due to the tropical storm. C. Parker indicated that he had not
heard of any damage. The Board asked if there are any predictions as to
whether it will be a wet or dry year starting with the new rain year in
October. C. Parker indicated that he has heard competing arguments
regarding this topic. The Board asked about the status of the Groundwater
Treatment Program. C. Parker mentioned that most of the treatment plants
should be producing water by the end of the calendar year with the
remaining treatment plants should be operational the first quarter of 2024.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly Finance Dashboard with the Board for
year-to-date FY 2023/24 through July 2023. B. Beelner mentioned that
year-to-date electric revenue was 0.6% ($0.2M) above budget due to
slightly higher than projected wholesale energy revenue. Electric operating
costs were below budget by 15.9% ($5.6M) due primarily to lower energy
costs driven by much lower than typical natural gas costs causing a net
positive budget variance of $5.8 million. B. Beelner then mentioned that
the year-to-date water revenue was 12.1 % below budget ($1.1 M) due to the
drop in water consumption by APU customers, most likely due to the
milder than normal summer temperatures leading to less outdoor irrigation.
Coincidently, water costs for the fiscal year were also below budget by
17.8% ($1.3M) causing a net positive budget variance of $0.2M.
B. Beelner then discussed the Power Supply Dashboard and the continued
forced outage of Unit 1 at the Canyon Power Plant. General Electric
Company (GE) has the unit in Houston and has diagnosed the problem with
an approximate $5 million cost to repair. APU currently has $6.5 million
set aside for major maintenance work on the Canyon Power Plant, so the
repairs will have no impact on the budget. The Board asked if APU had any
warranty protections on the affected unit. B. Beelner mentioned that GE is
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currently investigating the current warranty and the coverage of the
necessary repairs. If the warranty does in fact cover any of the repair costs,
APU could save up to $3 million, potentially bringing the net cost of
repairs down to $2 million.
11. UPDATE ON ADMINISTRATION & RISK SERVICES ITEMS.
J. Lehman updated the Board on the Internal Compliance Plan. APU has
received four Notice of Violations for the Canyon Power Plant (CPP) from
the South Coast Air Quality Management District (SCAQMD). Three were
related to minor incidents that occurred during operations, and the fourth
was related to running the power plant during a statewide grid emergency
in 2022 during a heat storm. J., Lehman shared that the Plant operators were
retrained, and that there have not been any similar occurrences. It is likely
that a penalty will be assessed by the SCAQMD.
Additionally, in April there was a joint inspection at CPP by the Anaheim
Fire and Rescue Department (AFD) and the California Environmental
Protection Agency (CalEPA). While CalEPA had no findings, AFD issued
a notice to comply for four minor issues which have all been corrected.
J. Lehman then invited the Board's attention to the Administration and
Risk Services Dashboard and highlighted two bills of interest: Climate
Bond Bills Assembly Bill 1597 and Senate Bill 867, each about $16 billion.
Within them is $2 billion for energy infrastructure and $1.8 billion for
recycled water infrastructure. APU and industry groups are asking for
publicly owned utilities to be allocated 25% of these amounts.
J. Lehman then reviewed the safety metrics, noting that there had been no
reportable injuries during the reporting period. J. Lehman provided
additional information regarding an incident that was highlighted last
month. Specifically, the head laceration that occurred while one of the
electric services employees was working in a trench, and the question about
if the employee was wearing a hard hat and affirmed that the employee was
wearing a hard hat but struck an object just below the hard hat. J. Lehman
shared again that situational awareness is something that Safety Services
continues to emphasize.
12. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Public Hearing and Approval of an Underground District along
Olive/Vermont
• Low -Income Household Water Assistance Program (LIHWAP)
• Fiscal Year 2022 Write -Off of Uncollectible Utility Accounts
D. Lee informed the Board that Council Member Campos -Kurtz requested
a presentation on the City's Underground Conversion Program & Five -
Year Plan.
2023 - 61
D. Lee shared photos from community outreach events, the first of which
was held near Beach Blvd. and Lincoln Ave. APU staff were available to
offer resources and bill saving information to residents. A similar event
was held near Ball and Euclid Ave.
D. Lee then shared photos from Student Engagement events, first was the
OC United Way Back -to -School Event attended by over five hundred
students. Another Back -to -School event was hosted in District 2 and
attended by about five hundred students, as well.
D. Lee shared a photo of Vincent Lee who has completed his internship
with APU. Vincent expressed much appreciation for the opportunity to
learn at APU.
Lastly, D. Lee requested that the Board meeting be closed in memory of
Steve Halbert, a former APU employee and Anaheim resident. Steve
started his career in Anaheim Public Works in 1973 and retired from APU
in 2008 as a Water Production Technician Supervisor after 35 years of
service.
13. ITEMS BY BOARD MEMBERS.
Board Member T. Ibrahim expressed thanks to APU staff for providing
information on Anaheim's Small Business Direct Installation programs and
shared that others in Anaheim have taken advantage of these programs.
Board Member A. McMenamin commented on the APU internship
program and thanked employees for its positive impact on students.
Board Member T. Bilezikjian recalled earlier this month an APU employee
offered to assist backing her vehicle out of a driveway that was obstructed
and expressed appreciation for APU staff going above and beyond to assist
residents.
Board Member A. Pham gave special thanks to APU staff that kept
residents safe by remaining vigilant and prepared during the tropical storm
this month.
Board Member M. Lee expressed appreciation for APU's community
involvement, internship program, and helpful customer service staff.
Vice -Chairperson A. Abdulrahman thanked APU staff for the presentation
of the Utilities Success Indicators.
Chairperson J. Seymour mentioned that during a moderate duration power
outage this month, J. Lonneker and her team were readily available and
went above and beyond to resolve the issue and check on equipment; he
expressed thanks and appreciation for APU's effectiveness.
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After a moment of silence, Chairperson J. Seymour asked for a motion to
adjourn the meeting in memory of Steve Halbert.
14. ADJOURNMENT: (NEXT PUBLIC HEARING / REGULAR
MEETING ON SEPTEMBER 27, 2023, AT 5:00 P.M.)
Respectfully s ibmitted,
Dukku Lee
Public Utilities General Manager
T. Bilezikjian moved to
adjourn the Regular Meeting
in the Gordon Hoyt
Conference Center at 6:42
p.m. to the Board's Public
Hearing / Regular Meeting
date of September 27, 2023,
at 5:00 p.m. A. McMenamin
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
* 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 the City Clerk and City Council for informational purposes.
2023 - 63