Public Utilities 2023/09/27CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
September 27, 2023
The agenda having been posted on Wednesday, September 20, 2023, 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, September 27, 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
Board Members Absent: T. Ibrahim
City Staff Present: D. Lee, P. Starr, T. Chen, J. Lehman, J. Lonneker, M. Avelino -Walker,
C. Parker, B. Beelner, M. Seifen, T. Castaneda, K. Tran, Y. Ceniceros,
S. Whitlock, S. Barrera, S. Noble, V. Tran
Guest(s) Present: Aida Garcia, Heidi Hubbs, Peter Blair, Sasi Blair, Roberta Hayes, Sylvia
Ventura, Juan Ventura, Edgar Cisneros, Karla Cisneros, Mara Ignacio,
Cassandra Perez, Yosselin De La Cruz, Cyndy Johnson
AGENDA ITEM
1. RECOGNITION: SUSTAINABLE HOME AWARDS.
M. Avelino -Walker, General Services Officer, introduced S. Whitlock and
Y. Ceniceros, Resource Programs Specialists, to present the recognition of
the Sustainable Home Award recipients. S. Whitlock indicated that the
Sustainable Home Award Program was established due to feedback from
residents during the Integrated Resource Plan (IRP) process, who expressed
interest in making sustainable choices, but needed help.
S. Whitlock indicated that Anaheim Public Utilities (APU) created a survey
to help customers better understand their sustainable journey. Additionally,
the survey accomplished APU's goal of helping customers learn about
opportunities to incorporate sustainable choices that best suit their homes
and lifestyles. The survey was live from April 2023 through May 2023, and
received over 500 responses.
S. Whitlock shared that APU staff reviewed responses from the surveys
and did not focus on the score, but rather what residents are looking to do
to make improvements. APU contacted each of the top twelve finalists, and
nine respondents chose to continue participation in the award selection
process. S. Whitlock thanked the Board Members on the ad hoc selection
ACTION TAKEN
2023 - 64 ITEM 9 01
committee for their time reviewing the finalists and selection of our top
finalist.
S. Whitlock recognized the Sustainable Home Award recipients as Aida
Garcia, Heidi Hubbs, Peter Blair, Roberta Hayes, Silvia Ventura, Judy
Pinson, Laura Cresswell and Renee Haddad. The top finalist, Edgar
Cisneros, will receive $5,000 in sustainable home improvements from
APU's contractor and the other eight recipients will each receive $3,000
worth of sustainable improvements.
2. PUBLIC COMMENTS.
3. APPROVE THE MINUTES OF THE REGULAR MEETING OF
AUGUST 23, 2023. *
Prior to Item 4 of this Agenda, Board Member T. Bilezikjian announced that
she is choosing to, but is not required to, recuse herself from Item 4 due to a
potential conflict of interest arising from the proximity of her residence to the
boundary of the proposed underground district. Board Member T. Bilezikjian
then left the room.
4. PUBLIC HEARING: FORMATION OF UNDERGROUND DISTRICT
NO. 71— OLIVE/VERMONT (UD-71) AND DETERMINE THAT UD-
71'S FORMATION IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
SECTIONS 15301(B), 15302(C), 15302(D), AND 15303 OF TITLE 14
OF THE CALIFORNIA CODE OF REGULATIONS. *
Chairperson J. Seymour opened the public hearing and explained the public
hearing procedures.
D. Lee, Public Utilities General Manager, stated that the staff report and its
attachment will serve as his report under Chapter 17.24 of the Anaheim
Municipal Code (AMC). J. Lonneker, Assistant General Manager —
Electric Services, provided a brief overview of the Underground
Conversion Program, which included various projects throughout the City
of Anaheim (City) to improve electric reliability and visibility of roadways.
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
M. Lee moved the Approval
of the Minutes of the Public
Utilities Board Regular
Meeting of August 23, 2023.
T. Bilezikjian seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [T. Ibrahim]
A. Pham moved that the
Board recommend to the
City Council, by resolution,
that it approve the formation
of Underground District No.
71 — Olive/Vermont (UD-
71). A. Abdulrahman
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0
RECUSED: 1. [T.
Bilezikjian]
ABSENT: 1. [T. Ibrahim]
2023 - 65
V. Tran, Principal Electrical Engineer, provided the Board information on
the proposed underground district formation and discussed the project
details. V. Tran outlined the Underground Conversion Program's Five -
Year Plan (Plan) approval process and the number of projects that have
been approved under the current Plan. V. Tran discussed the proposed
project limits for OliveNermont, estimated cost, and coordination with
affected schools, railroads, and the Sustainability Education Center
development. V. Tran explained the various construction activities
associated with substructure and electrical installations, and the timeframe
and customer notification involved in completing these installations.
D. Lee indicated to the Board that the Notice of Public Hearing and the
City Clerk's Office mailings were conducted in accordance with Chapter
17.24 of the AMC and that the Affidavit of Publication of the Notice of
Public Hearing concerning this district formation was filed with the
Secretary of the Board.
The Board inquired about the reason why projects need to go through the
formal district formation process even though projects have been
previously approved as part of the Plan. D. Lee indicated that by forming
the underground district by Council resolution, it compels
telecommunication companies to work with the City to underground their
facilities within the district limits. The Board inquired about the cost of the
project, and whether the cost will decrease in the future. D. Lee explained
that construction labor and material costs continue to increase, and due to
increased congestion in Anaheim roadways, undergrounding is increasingly
complex.
Chairperson J. Seymour asked if there were any members of the public who
would like to speak either in favor of or in opposition to the proposed
Formation of Underground District No. 71 — OliveNermont. No public
comments were made.
Chairperson J. Seymour asked D. Lee whether the Secretary of the Board
received any correspondence concerning this public hearing. D. Lee
indicated to the Board that 1,063 notices were mailed to affected property
owners, and no protests were received. APU received three emails from
other utilities and one phone call from a resident with general questions.
Chairperson J. Seymour received the written correspondence into the
record and thereafter closed the Public Hearing.
After Item 4, and prior to continuing with Board business, Board Member T.
Bilezikjian rejoined the meeting.
RECOGNITION: SUSTAINABLE HOME AWARDS
After Item 4 and before Item 5, the Chair returned to Item 1— Recognition:
Sustainable Home Awards to recognize residents Guillermo and Aida Garcia,
who were not present at the time the Board addressed Item 1.
2023 - 66
A. AbduMI
lrahman moved the
Approval of Software
Services Agreement for
Water Protection
Compliance Systems with
SwiftComply, Inc. M. Lee
seconded the motion.
C. Parker, Assistant General Manager — Water Services, discussed the
proposed contract to purchase and implement water protection compliance
systems software for the APU Cross Connection Control Program. The
current software maintenance agreement will expire in April 2024 and not
be renewed as it will be discontinued. The successor software from the
current vendor will be cloud -based and improve communications through
automated features rather than the current manual methods, including
receipt and processing of backfiow testing reports, notification to backflow
owners, and reporting to the State. Staff evaluated other software systems
arvd' faune tha�,'
require extensive data migration and software integration, which would
significantly iiRpact APU's current compliance activities.
6. FISCAL YEAR UPDATE ON UNCOLLECTIBLE UTILITY
provided an informational update on the net uncollectible debt associated
with electric, water, sanitation and paramedic services collected through
utility bills. APU works very closely with customers to minimize
uncollectible debt to limit the burden on other ratepayers. During the
COVID- 19 pandemic, APU participated in State customer arrearage
programs that provided funds to cover customers' past due balance.
As a not -for -profit agency that is customer -owned, APU has a suite of
programs available to assist utility customers with their utility bill. The
programs include discounts for income qualified seniors, disabled and,
military veterans; payment extensions; monthly billing; level payment
ilans, courtei -mioid-di-seonneemn mid biH-assistante noti ications to el,,n
The net uncollectible debt over the past three years has averaged $1.76
million annually. This amount reflects approximately 0.38% of total
revenue. Following the pandemic, since disconnections were suspended,
customer past due balances have increased. However, with disconnections
resuming in 2023, staff
been impacted due to the COVID-19 pandemic, at this time they don't have
sufficient data to do a comparison. The Board asked what factors in the
decision to disconnect customers and if financial hardships are considered.
D. Lee reassured the Board that each account is scrutinized to make sure
we have exhausted every option before deciding to disconnect customers.
B. Beelner, Assistant General Manager — Finance and Energy Resources,
shared that even though the uncollectible debt is written off, these
customers are still subject to collection. The Board asked for clarification
regarding the residential and commercial uncollectible debt ratio. D. Lee
shared that historically the residential balances are higher.
The Board asked about the paramedic charges that appear on customers'
bills. D. Lee clarified that while APU bills for the services administered by
the Anaheim Fire and Rescue Department (AFRD), paramedic charges
would only affect AFRD's financial accounting.
7. FISCAL YEAR 2022/23 REPORT FOR DEPARTMENT ORDER 310 —
EXTRA WORK/CHANGE ORDERS.
D. Lee, Public Utilities General Manager, provided the Board with an
overview of the completed extra work/change order projects totaling
approximately $30 million for the past Fiscal Year. Total expenditures
were approximately 3.2% less than estimated. APU did not exceed the
authorized change order authority on any of the projects. Reasons for
expense changes during a project include a change in scope of work, or in
the difference between estimated and actual quantities of bid items.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker updated the Board that the recent transformer deliveries were
received from a new manufacturer. APU successfully tested 69 of the 150
transformers received. The significance of this delivery is that it allows
reliability work that was on hold to continue.
J. Lonneker explained that some manufacturing defects from other
transformer manufacturers were discovered by the electrical inspection
team. The equipment is under warranty and the manufacturer representative
will inspect and determine the course of action of whether to repair or
replace it.
J. Lonneker shared that approximately 30 East Anaheim residents
experienced a long duration outage recently where direct buried cable
faulted. Crews attempted to repair the cable, only to find there was more
damage downstream from their repair. After a ten-hour outage, generators
were installed until repairs were completed. Staff hosted an outreach event
two weeks after the outage to inform the residents that the long-term
improvements have been accelerated with design underway and
construction scheduled to start in Spring 2024.
2023 - 68
J. Lonneker shared that a recent vehicle hit a wood pole causing damage to
the pole, as well as to an adjacent water service line. Water crews stopped
the water flow from a broken two-inch service line having to work back to
the main line located in the middle of Ball Road near East Street. Electric
crews covered and supported the energized wires above while replacing the
pole. The accident did not result in a power outage, but repairs took most of
the day.
J. Lonneker discussed the continued wire theft issues, highlighting recent
activity on Sunkist Street, south of Lincoln Boulevard, and on Cerritos
Avenue, near State College Boulevard. Staff met with the Anaheim Police
Department to discuss options for monitoring high incident areas and have
switched to tamper -resistant bolts to secure the electrical box lids in areas
where repairs were made and installed in new construction locations. Staff
will pilot solar lights as a temporary measure until repairs are made.
J. Lonneker announced to the Board that the annual Public Power Week
celebration will be held on Thursday, October 5a', on Center Street
Promenade. This event is open for the public to visit booths and learn about
energy conservation and opportunities to save on their bill. Approximately
200 students from Juarez and Roosevelt Elementary Schools will learn how
power is delivered, safety around power lines, and future career
opportunities in the energy field.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker, Assistant General Manager — Water Services, shared the Water
Supply Dashboard that includes the current precipitation levels, which
exceeded average levels in Orange County, Northern California, and the
Colorado River Basin. C. Parker stated that Metropolitan Water District of
Southern California (MWD) had a record low demand in August due to the
cooler weather and rain received. Two large groundwater replenishment
projects are currently being planned by MWD and the City of Los Angeles
called Pure Water and Operation Next, respectively. C. Parker also
mentioned that MWD is currently preparing a Climate Change Adaptive
Plan to address future climate change issues.
The Board asked about the status of the APU Groundwater Treatment
Project. C. Parker shared that the project has experienced supply chain
delays to electrical equipment but should have additional plants online
before the end of the calendar year and the remaining plants online between
the first and second quarter of next year. The Board also asked the
percentage of groundwater and imported water for APU currently. C.
Parker indicated that it is about 50% each at this point.
10. UPDATE ON FINANCE & ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance and Energy Resources,
discussed the monthly Finance Dashboard for year-to-date Fiscal Year
2023/24 through August 2023. B. Beelner mentioned that year-to-date
2023 - 69
electric revenue was 1.4% ($1.1 M) above budget due to slightly higher
than projected wholesale energy revenue. Electric operating costs were
below budget by 15.7% ($11.5M) primarily due to lower energy costs
driven by much lower than typical natural gas costs causing a net positive
budget variance of $12.6 million.
B. Beelner then mentioned that the year-to-date water revenue was 4.6%
below budget ($0.9M) due to the drop in water consumption by APU's
customers, most likely due to the milder than normal summer temperatures
leading to less outdoor irrigation. Coincidingly, water costs for the fiscal
year were also below budget by 13.5% ($2.1 M) causing a net positive
budget variance of $1.2M.
B. Beelner then discussed with the Board the Power Supply Dashboard and
the lower than typical wholesale power prices and natural gas prices across
California. The milder than normal summer has depressed demand for
power in California. The forced outage of Unit 1 at the Canyon Power
Plant continues and has reduced generation output by APU resources. B.
Beelner informed the Board that APU still does not have a timeline for Unit
1's return to service but will continually report back to the Board with
updates.
B. Beelner informed the Board that the conversion of the Intermountain
Power Project to natural gas may be slowed down as Los Angeles, the
Operating Agent, had found water intrusion in one of the newly constructed
foundations for the new gas plant slated to be put in service in 2025. The
Board asked what the impact of a delay in the conversion would be to
APU, and B. Beelner answered that APU is not responsible for any debt
service payments until the new natural gas plant is operational, so APU
would see reduced operational costs.
B. Beelner also informed the Board that Moody's Investor Services
affirmed APU's electric rating at Aa3 (equivalent to AA- with the other
agencies) with a stable outlook.
11. UPDATE ON ADMINISTRATION & RISK SERVICES ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk Services,
provided an update on the Wholesale Energy Risk Management (ERM)
Program's Quarterly Compliance report and shared that during this period
there were no violations of the ERM Program, and that all transactions
were within the ERM requirements.
J. Lehman shared that the PUB Legislative Working Group had met prior
to the PUB meeting and discussed how the Legislative session was
wrapping up. The safety metrics were under target this month.
2023 - 70
12. ITEMS BY SECRETARY.
D. Lee, Public Utilities General Manger, shared agenda items planned for
next month:
• Electric Reliability Update
• Sustainable School Award Recognition
• Line of Credit
• Renewable Hydroelectric Power Purchase Agreement
• Enterprise Business Software Agreement
D. Lee shared a photo of J. Lonneker at the Undergrounding Panel at the
Transmission and Distribution World Conference. J. Lonneker had the
opportunity to share about Anaheim's Undergrounding Program.
D. Lee shared photos from recent community and student engagement
events supported by APU. They included:
• A Small Business forum in District 2 hosted by Council Member C.
Leon;
• A mobile home resource event on Beach Boulevard hosted by
Congressmember L. Correa;
• A community meeting on Pauline Street hosted by Mayor Pro Tern
N. Rubalcava;
• A senior appreciation event hosted by Council Member C. Leon;
• A resource event and EV test drive at Imperial Elementary School
attended by approximately 200 residents;
• A suicide prevention event hosted by Mayor Pro Tern N. Rubalcava
in which APU staff provided a succulent planting booth; and
• High school student mentoring by APU staff supporting students
from Magnolia and Katella High Schools.
D. Lee highlighted P. Garcia, Water Field Superintendent, for going above
and beyond to assist Anaheim residents at a multi -family apartment
complex off Euclid Street. Half of the tenants had been without water for
two days due to a missing part preventing the private contractor from fixing
the issue on the customer's property. Although the contractor was
responsible for supplying materials and making repairs, P. Garcia provided
the part in order to allow the contractor to finish repairs at night and avoid
another day without water for the residents.
Lastly, D. Lee requested that the Board meeting be closed in memory of
Mark Mazak, a former APU Assistant General Manager of Finance &
Administration from 2001 to 2007. Chairperson J. Seymour asked for a
moment of silence in memory of Mark Mazak.
2023 - 71
13. ITEMS BY BOARD MEMBERS.
Board Member T. Bilezikjian thanked APU staff for their professionalism
and commitment to the community.
Board Member A Pham thanked J. Lonneker for representing APU at the
Transmission and Distribution World Conference.
Board Member M. Lee thanked APU for their involvement in the
community.
Vice -Chairperson A. Abdulrahman praised the Sustainable Home Awards
program and suggested expanding it to each district. D. Lee replied that
award finalists were selected across the City from each of the six Council
districts, but only those that responded to the invitation were in attendance.
Chairperson J. Seymour emphasized the importance of community
involvement.
14. ADJOURNMENT: (NEXT REGULAR MEETING ON OCTOBER 25,
2023, AT 5:00 P.M.)
Respectfully st i. i ted,
Dukku Lee
Public Utilities General Manager
M. Lee moved to adjourn
the Public Hearing/Regular
Meeting in the Gordon Hoyt
Conference Center at
6:37p.m. to the Board's
Regular Meeting date of
October 25, 2023, at 5:00
p.m. T. Bilezikjian seconded
the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [T. Ibrahim]
* 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 - 72