Public Utilities 2025/02/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
February 26, 2025
The agenda having been posted on Thursday, February 20, 2025, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday, February 26, 2025,
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 M. Lee, A. Pham, A. McMenamin,
T. Ibrahim
Board Members Absent: None (Two Board Member seats are currently vacant)
City Staff Present: D. Lee, P. Starr, B. Beelner, C. Parker, J. Lonneker, M. Avelino -Walker,
J. Lehman, B. Mendoza, F. Barvarz, M. Seifen, A. Lee, T. Castaneda,
J. Balandran, G. Ramirez
Guests Present: M. Olivarez, M. Ramirez, J. Colorado, M. Rodriguez, N. Sanchez, S. Moguel,
R. Luna, E. Carrera, Z. Zaragoza
Anaheim High School Students: Daniela P., George C., Steven P., David H.,
Santiago A., Vivian L., Luis M., Luis O.
AGENDA ITEM ACTION TAKEN
1. OATH OF OFFICE: **
BOARD MEMBER TALAB IBRAHIM (DISTRICT 4)
A. Lee, Deputy City Attorney, administered the Oath of Office for
the reappointment of T. Ibrahim — District 4.
2. ELECTION OF TWO UNDERGROUND CONVERSION
By voice vote, the Board
SUBCOMMITTEE MEMBERS. **
closed the nominations.
Chairperson J. Seymour
A. Lee opened the floor for nominations of three Underground
moved the election of Vice -
Conversion Subcommittee members. Chairperson J. Seymour
Chairperson M. Lee and
nominated Vice -Chairperson M. Lee and T. Ibrahim, who accepted
T. Ibrahim to serve on the
their nominations. There being no further nominations, the Board
Underground Conversion
unanimously voted to close the nominations. The Board unanimously
Subcommittee. Vice -
voted to elect Vice -Chairperson M. Lee, and T. Ibrahim to serve on the
Chairperson M. Lee seconded
Underground Conversion Subcommittee.
the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
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3. PRESENTATION: HIGH SCHOOL STUDENT MENTORSHIP.
M. Avelino -Walker, General Services Officer, provided an overview of
the Anaheim Public Utilities (APU) 2024 High School Mentorship
Program, in which APU collaborates with Anaheim Union High School
District (AUHSD) through their Anaheim Innovative Mentoring
Experience (AIMS) to mentor students in career -readiness. Students
from Anaheim High School participated in activities that focused on
teambuilding, resume building, interviewing, and interpersonal skills.
They also received tours of APU facilities and interacted with
employees to discuss the utility industry. M. Avelino -Walker
introduced seven students who volunteered to share their mentorship
experience with the Board.
4. PUBLIC COMMENTS.
5. APPROVE THE MINUTES OF THE PUBLIC
HEARING/REGULAR MEETING OF JANUARY 22, 2025. *
6. PRESENTATION: COMMUNITY AND SUSTAINABILITY
ANNUAL UPDATE.
T. Castaneda, Community and Sustainability Programs Manager,
briefed the Board on how APU provided community -focused and
sustainable programs over the past year.
T. Castaneda shared that as a community -owned utility, APU's goal is
to prioritize customers' needs while balancing an industry -wide
transition to carbon neutrality driven by state initiatives. T. Castaneda
stated that ensuring programs are positively received is essential, and
customer feedback indicates that customers want to be sustainable but
do not want bills to increase excessively. APU offers a variety of
residential energy -efficiency and bill assistance programs for residents,
which collectively saved $2.7 million in energy savings and $2.6
million in customer bill savings. Last year's Sustainable Footprint
Survey awarded nine winners with home efficiency upgrades.
T. Castaneda provided an overview of commercial and multifamily
programs and stated that participation in commercial programs
increased in 2023 as businesses recovered from the coronavirus
pandemic. Although energy savings slightly decreased in 2024,
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
A. McMenamin moved the
approval of the Minutes of the
Public Hearing/Regular
Meeting of January 22, 2025.
A. Pham seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
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481 businesses participated in programs, 100 more than the previous
year, indicating more participation from small businesses than large
businesses. The Small Business Direct Install Program remains popular
and offers a menu of efficiency upgrades such as light -emitting diode
(LED) lighting, smart thermostats, and toilet replacements. APU
improved lighting for residents, businesses, and multifamily properties
throughout the community through the Dusk -to -Dawn lighting
program.
T. Castaneda mentioned that with California's new regulation on
Making Conservation a Way of Life, APU enhanced the water
programs to meet the aggressive targets. Assembly Bill (AB) 1572 is a
new state law that prohibits potable water irrigation of non-functional
turf at commercial and industrial sites. APU will enhance the turf
replacement rebate and launch a landscape design assistance program to
help high outdoor water users such as homeowner associations (HOAs),
schools, and commercial complexes. Additionally, residents of master
metered complexes can participate in an income -qualified rebate
program when they provide proof of water bills from property
managers.
APU facilitated many educational and engagement programs for
students. The Sustainability Education Center (SEC) will increase
student and community engagement opportunities by offering seminars,
workshops, and career pathways. The SEC will include interactive and
inspiring learning exhibits on renewable energy and water conservation.
The SEC is currently under construction and is set to open later this
year.
T. Castaneda mentioned that future APU initiatives include enhancing
the myPower Demand Response Program to reduce peak demands
during statewide grid emergencies, supporting customer electrification,
improving the customer experience through smaller neighborhood
meetings, and enhancing water efficiency programs to mitigate the new
regulations' impact on customers.
7. PRESENTATION: GRANT AWARD TO UPGRADE AND
AUTOMATE DISTRIBUTION SWITCHES.
F. Barvarz, Transmission and Distribution Manager, briefed the Board
on the California Energy Commission's (CEC) Community Energy
Reliability and Resilience Investment (CERRI) Grant Award to upgrade
and automate distribution switches. F. Barvarz provided an overview of
the CERRI program's goals and grant award criteria, and funding
source from the United States Department of Energy (DOE). This
project would replace 40 distribution switches containing sulfur
hexafluoride (SF6) gas insulation with solid dielectric insulated
switches at various locations along APU's electric grid. In addition to
reducing the amount of S176 gas contained in electrical equipment, F.
Barvarz explained the additional benefits of adding automation which
would allow APU to remotely re-route power to reduce outage time for
customers.
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D. Lee, Public Utilities General Manager, made the Board aware that
APU is prepared to move forward with the upgrade project if funding
for the CERRI grant through the federal government does not
materialize; however, the project would take longer to complete.
The Board asked if the 40 high voltage surface mounted gas insulated
distribution switches all use SF6 and how many total switches use gas
insulation. F. Barvarz confirmed that the project would replace 40 SF6
gas switches. J. Lonneker, Assistant General Manager — Electric
Services, shared that APU has approximately 1,500 SF6 gas switches in
the electric system.
8. RECOMMEND APPROVAL OF A SOFTWARE SERVICES
AGREEMENT WITH ACCELERATED TECHNOLOGY
LABORATORIES, LLC FOR A WEB -BASED WATER QUALITY
MANAGEMENT SOFTWARE SOLUTION, WITH A ONE-YEAR
INITIAL TERM AND OPTIONAL ONE-YEAR EXTENSIONS
THEREAFTER, WITH ONE-TIME START-UP COSTS OF
$38,380 AND AN ANNUALSUBSCRIPTION COST OF $38,125
WITH AN ANNUAL CONSUMER PRICE INDEX ESCALATOR,
PLUS A 15% CONTINGENCY FOR AS -NEEDED EXTRA
SERVICES. *
C. Parker, Assistant General Manager — Water Services, provided an
overview of the software services agreement with Accelerated
Technology Laboratories, LLC (ATL). The agreement would
streamline manual processes used to manage water quality data reports
that are submitted to the State of California (State). APU issued a
Request for Proposals (RFP) and received one response to the RFP, and
the selection committee selected ATL per Council Policy 4.1. The term
of the Agreement is one year with annual renewals unless terminated by
either party.
The Board asked where ATL is located and if cyber security was
discussed. C. Parker shared that ATL is in Raleigh, North Carolina and
confirmed that cyber security features are provided with the software.
The Board inquired if APU received feedback from other firms that
were interested but did not submit proposals. C. Parker explained that
most firms do not offer software that can analyze, track, and then
submit data to the State, without the purchase of two software solutions.
The Board inquired whether APU frequently uses the contingency for
as -needed extra services on agreements. D. Lee shared that APU
utilizes the contingency as needed for services that arise during the
contract term to prevent the need for contract amendments or
ratifications. The contingency provides flexibility for APU to continue
working on projects without utilizing emergency procedures to
complete the work.
T. Ibrahim moved the
recommendation of approval
of the Software Services
Agreement with Accelerated
Technology Laboratories,
LLC. A. McMenamin
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
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9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker shared details from an outage caused by a vehicle accident
that damaged the automation control cabinets of several underground
switches. The damage was repaired, but it took a considerable amount
of time and effort to rewire the control cabinets. A circuit outage was
reported by the Anaheim Police Department (APD) of electrical wires
that were down by Ball Road, near the railroad tracks. After patrolling
for the cause, APU staff discovered vandalism at the switch, from a
copper wire theft attempt. The APD did not receive any reports of
injuries nor was anyone apprehended for the vandalism. Extensive
damage required the replacement of the switch and overhead. wires.
J. Lonneker provided an update on the Wire Theft Tracking Dashboard
that shows the frequency of wire theft by month. Despite the hardening
measures in place, over 400 incidents of wire theft were reported in the
last twelve months, with majority of the incidents occurring along the
Interstate 5 Freeway (I-5). APU continues to implement alternative
mitigation methods to prevent wire theft in collaboration with the APD.
The Board asked what the colors of the dots were on the dashboard, and
J. Lonneker explained that red dots signified that repairs were in
progress.
The Board asked if APU is experiencing procurement delays for
electrical equipment as a result from the Santa Ana Windstorm in
January. J. Lonneker shared that many are experiencing delays and
explained that natural disasters supported by the Federal Emergency
Management Agency (FEMA) will receive priority.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the Water Supply Dashboard and shared
that the Orange County Groundwater Basin Storage is in good shape
even though rainfall has been under average this season. The State
Water Project storage levels are in good condition and received average
rainfall and snowpack. The allocation has been raised to 35%, which
will allow the Metropolitan Water District of Southern California
(MWD) to put water into storage. The Colorado River is in adequate
condition with the snowpack near average to date.
C. Parker shared that Catherine N., a student at Walt Disney
Elementary School, was selected by MWD for her water -wise artwork.
The artwork is included in the MWD 2025 Student Art Calendar for the
month of January.
C. Parker provided an overview of a main break on Big Sky Lane that
only affected about 60 customers and APU was able to get the water
back online. APU staff were on -site to repair the main break and
providing updates to customers on the projected timeline.
C. Parker informed the Board that the APD is requesting the use of
open space at the Nohl Canyon Water Storage Tank to train horses for
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their Mounted Enforcement Unit (MEU). C. Parker shared that a public
meeting will be conducted at the East Anaheim Community Center to
inform residents. At this time APU does not have any concerns with the
proposed use at this site. The Board asked for clarification on the
location of the proposed facility. D. Lee explained that the water
storage tank is surrounded by unused land near a residential area. APU
has requested that the APD minimize odors and noise that would be
disruptive to residents. The Board asked how long it has been since
APD has had an MEU. D. Lee shared that the MEU was previously
located behind the Yorba Linda Substation but needed to be relocated
when the substation was expanded. Since then, the MEU has been
searching for a new permanent location.
The Board asked if there is an update on the Colorado River Compact.
C. Parker explained that the Federal Infrastructure Investment and Jobs
Act funds the costs of farming used to keep water in the river. If the
Federal funding is discontinued, the surrounding seven states (Arizona,
California, Colorado, Nevada, New Mexico, Utah, and Wyoming) will
pay the farming costs.
11. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance and Energy
Resources, provided an update on the demolition of the Kraemer Power
Plant. The demolition began late January and is scheduled to be
completed by the end of March.
B. Beelner discussed the Finance Dashboard for the period ending
January 31, 2025, highlighting the $66.3 million positive electric
operating budget variance. This variance is largely due to continued
lower than expected fuel and power supply costs and may be used for
accelerated capital spending, bolstering cash reserves, a reduction in
planned bond issuance or a reduction in electric rates as APU has done
in the past. APU will provide an update on the Fiscal Year 2025/26
budget including the capital plan and the funding streams for that plan.
The water division's costs and revenue are in line with budget targets;
however, if the rain season continues to be below average those costs
could rise with a corresponding rise in revenue as water used due to
increased outdoor irrigation.
B. Beelner provided an update on the Power Supply Dashboard sharing
that APU will see a drop in power from coal in March as Intermountain
Power Project (IPP) will only operate at 50% to test energy from the
new natural gas plant. B. Beelner then highlighted the biofuel
renewable energy percentage and shared that the Pre -Paid Energy
Agreement that was approved by the Board and City Council in 2024,
is now saving APU customers 15% off the cost of the landfill gas
plants.
The Board asked about the status and impacts to APU due to Canyon
Power Plant's Unit One and Unit Three being offline. B. Beelner shared
that agreements for the repairs are under review and that replacement
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parts for Unit Three are in procurement. The Canyon Power Plant is
owned by the Southern California Public Power Authority (SCPPA)
and APU is working on finalizing those agreements with SCPPA.
Currently, there haven't been any financial impacts due to units being
offline.
B. Beelner invited the Board to a tour of the California Independent
System Operator (CAISO) in Folsom, California and requested that the
Board Members inform staff if interested in attending.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk
Services, updated the Board on the Internal Compliance Plan that
provides a summary of activities that APU undertakes on a regular
basis to ensure compliance with applicable laws and regulations. J.
Lehman then highlighted that the Lenain Water Treatment Plant and the
Water Recycling Demonstration Plant were recognized by the Orange
County Sanitation District (OCSD) for exemplary compliance and
placed on their Pretreatment Honor Roll. Additionally, J. Lehman
shared that as part of statewide requirements for water utilities, a survey
of APU's water system confirmed that there were no lead service lines,
and that none were identified for the customer -owned lines that were
included in this survey.
J. Lehman provided an overview of the Administration and Risk
Services Dashboard and shared that that February 2 1 " was the last day
to introduce new bills. APU staff is working to identify bills that could
impact customers and/or operations. J. Lehman highlighted the
following bills:
• AB 476 — Junk Dealers and Recyclers: Scrap Metal
Requirements: this bill is being supported by APU;
• AB 99 and AB 286 — Investor -Owned Utility Rate Controls: this
bill is being watched by APU; and,
• AB 532 — Water Rate Assistance Program: this bill is being
watched by APU.
J. Lehman then reviewed the safety metrics and shared that APU had
one reportable injury during the reporting period, due to a strain that
occurred when a cement lid was being lifted. APU continues to provide
training to help minimize injuries. J. Lehman also shared that the two
hearing related injuries reported last month were reclassified to non -
work -related injuries, and that APU has a hearing protection program in
place.
13. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Recognition for former Board Member Tanya Bilezikjian;
• Electric Field Employees Appreciation for Providing Mutual
Aid during the Wildfire Event;
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• Climate Adaptation Master Plan for Water from MWD;
• Cap and Trade Program Compliance Update;
• Safety Services Presentation; and,
• Department Order Update for notifications on planned
maintenance outages.
D. Lee shared that APU staff participated in the annual Black History
Parade and Festival. Additionally, City Council Member Kristen
Maahs, District 5, joined APU to recognize the Workability students;
and APU staff provided a tour of the undergrounding project on Beach
Boulevard for City Council Member Ryan Balius. Lastly, APU is
currently working on a fencing project to deter homeless encampments
as part of the City of Anaheim's Homeless Taskforce.
D. Lee requested that the Board meeting be closed in memory of three
former APU employees who recently passed away:
• Gilbert Galvan, a 40-year employee who worked in the Electric
Services Division as a Field and Operations Superintendent;
• Tom Kirker, a 35-year employee who worked in the Electric
Services Division as an Electric System Design Supervisor; and,
• Dennis Urschel, a 26-year employee who worked in the Electric
Services Division as the Chief Utilities System Operator.
14. ITEMS BY BOARD MEMBERS.
Vice -Chairperson M. Lee thanked APU staff for the presentations and
professionalism.
Chairperson J. Seymour asked for an update on the two Board member
vacancies. D. Lee confirmed that the City Council will appoint a new
member for District 1 at their next meeting. A replacement for the At
Large vacancy is still to be determined by Mayor Ashleigh Aitken.
15. ADJOURN: (NEXT REGULAR MEETING ON MARCH 26, 2025, A. Pham moved to adjourn the
AT 5:00 P.M.) Regular Meeting in the
Gordon Hoyt Conference
Chairperson J. Seymour asked for a moment of silence in memory of Center at 6:41 p.m. to the
Gilbert Galvan, Tom Kirker and Dennis Urschel. Board's Regular Meeting date
of March 26, 2025, at 5:00
p.m. T. Ibrahim seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
_ectfully Lmitted,
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 the City Clerk and City Council for informational purposes.
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