Public Utilities 2025/03/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
March 26, 2025
The agenda having been posted on Thursday, March 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, March 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, G. Dima-Smith
Board Members Absent: None (One Board Member seat is currently vacant)
City Staff Present: D. Lee, P. Starr, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker,
A. Nguyen, B. Mendoza, B. Iglesias, D. Kim, M. Seifen, A. Lee, D. Aguon,
R. Berry, N. Davis, R. Delgado, N. Enes, J. Estrada, M. Hernandez, J. Pedroza,
J. Ramirez, J. Sanks, N. Burki, J. Martinez, P. Bogdanoff, E. Krause
Guests Present: Council Member R. Balius, T. Bilezikjian, J. Baca (International Brotherhood
of Electrical Workers (IBEW) Local 47)
Metropolitan Water District of Southern California (MWD): A. Ortega, Jr.,
Chair of the Board; S. Faessel, Director; D. Upadhyay, General Manager;
L. Crosson, Sustainability, Resiliency and Innovation Officer; Y. Martinez,
Section Manager, External Affairs
AGENDA ITEM
ACTION TAKEN
1. RECOGNITION: TANYA BILEZIKJIAN FOR HER SERVICE TO
THE ANAHEIM COMMUNITY AS A PUBLIC UTILITIES BOARD
MEMBER.
D. Lee, Public Utilities General Manager, recognized T. Bilezikjian for her
service on the Public Utilities Board. While on the Board, T. Bilezikjian
participated in Board recognitions of students and schools, supported
projects and programs that benefit the community, and participated in
infrastructure tours. T. Bilezikjian thanked the Board and staff for the
recognition and expressed that she appreciated her time on the Board.
2. OATH OF OFFICE: **
BOARD MEMBER GABRIEL DIMA-SMITH (DISTRICT 1)
A. Lee, Deputy City Attorney, administered the Oath of Office to
the newly elected member of the Board, G. Dima-Smith — District 1.
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3. RECOGNITION: ELECTRIC FIELD CREW MEMBERS FOR
PROVIDING MUTUAL AID TO GLENDALE WATER AND POWER
DURING WILDFIRE EVENT.
J. Martinez, Electric Operations Manager, provided an overview of the
windstorm and wildfire event that occurred in Los Angeles County, and
shared that a mutual aid request was received from Glendale Water and
Power for restoration efforts. J. Martinez recognized B. Iglesias, Chief
Utilities Systems Operator, for his collaborative efforts to organize mutual
aid assistance provided by Anaheim Public Utilities (APU) electric line
crews. The electric field crew members who provided mutual aid were
recognized for restoring power to those affected during the wildfire event.
D. Aguon, Electric Crew Supervisor, shared how the wind conditions
impacted APU's electric crews during the restoration efforts, and the value
of providing relief to fellow electric crews who had already worked long
hours to restore power. City of Glendale residents were appreciative of
their efforts during difficult working conditions.
J. Lonneker, Assistant General Manager — Electric Services, thanked the
electric crews for representing APU and introduced J. Baca, Assistant
Business Manager of IBEW Local 47. The Board expressed their
appreciation of the electric crews.
4. PUBLIC COMMENTS.
5. APPROVE THE MINUTES OF THE REGULAR MEETING OF
FEBRUARY 26, 2025.
6. METROPOLITAN WATER DISTRICT (MWD) UPDATE ON
CLIMATE ADAPTATION MASTER PLAN FOR WATER
(CAMP4WATER).
C. Parker, Assistant General Manager — Water Services, introduced
members of the Metropolitan Water District of Southern California
(MWD), who provided an update on the Climate Adaptation Master Plan
for Water (CAMP4W). A. Ortega, Jr., Chair of the MWD Board, shared
that MWD is the largest provider of drinking water in the United States.
Conservation efforts and water storage have helped MWD get ahead of
future droughts. A. Ortega, Jr. explained the importance of navigating the
challenges that come from climate change and finding the funding to
continue working on projects.
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
Vice -Chairperson M. Lee
moved the approval of the
Minutes of the Regular
Meeting of February 26,
2025. A. McMenamin
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 17
D. Upadhyay, MWD — General Manager, elaborated on the current
challenges MWD is encountering, such as the erosion of water supply due
to climate change. D. Upadhyay explained the changes MWD will see as
climate change begins to impact the rainfall and snowpack seasons that
would normally help store water in the Spring but are predicted to move up
to the month of January.
L. Crosson, Sustainability, Resilience and Innovation Officer, explained the
process of preparing the implementation strategy of CAMP4W that
includes evaluating projects based on current climate data in order to be
more responsive and adaptable to future conditions.
D. Lee introduced Council Member R. Balius who joined the Board
meeting.
7. PRESENTATION: CAP AND TRADE PROGRAM OVERVIEW AND
COMPLIANCE UPDATE.
N. Burki, Senior Integrated Resources Planner, provided an overview of
greenhouse gas (GHG) emissions and the Cap -and -Trade Program
(Program), sharing that approximately 73% of emissions are attributable to
the transportation, industrial, and electric power sectors.
N. Burki reviewed California's climate policies and legislation that
established the goal to reduce emissions to 40% by 2030. The California
Air Resources Board (CARB) is responsible for the Program
implementation and N. Burki described APU's participation in the
Program. APU receives an annual allocation of free emission allowances
and may sell any unused allowances in quarterly auctions to help offset
renewable energy costs. These allocations have helped to lower power
supply costs to keep customer rates affordable.
N. Burki summarized the Program's compliance requirements, stating that
utilities must surrender one allowance for every metric ton of emissions
during each three-year compliance period. Penalties may apply if
compliance requirements are not met. N. Burki indicated that CARB had
deemed APU in full compliance for the fourth compliance period (2021-
2023), during which APU was below the threshold of surrendered
allowances. N. Burki noted that discussions are underway regarding
possible legislation to extend the Program beyond 2030, but such efforts
remain in the early stages.
The Board inquired whether recent California Public Utilities Commission
(CPUC) actions would affect APU. N. Burki explained that APU would not
be affected because the CPUC jurisdiction applies to Investor -Owned
Utilities (IOUs) and is separate from CARB's regulatory process.
Chairperson J. Seymour excused himself from the meeting at 6:04 p.m.,
and M. Lee chaired the remainder of the Board meeting.
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8. PRESENTATION: PROTECTING EMPLOYEES AND THE PUBLIC
— ANNUAL SAFETY PERFORMANCE UPDATE.
J. Sanks, Environmental and Safety Services Manager, briefed the Board
on APU's Safety Program and performance during 2024. J. Sanks shared
that APU's Safety Program requires continuous improvement, including
specialized training, conducting field inspections, incident reviews, and
evaluating feedback from employees. J. Sanks shared an overview of
APU's safety performance in 2024, noting that the last three years were on
trend with the goals provided by the U.S. Bureau of Labor Statistics based
on industry averages established for Publicly Owned Utilities (POUs). The
Lost Time Injury Rate (LTIR), which is comprised of the most severe
injuries that result in at least one day away from work, has consistently
remained below industry averages. J. Sanks described that the number of
close calls / near misses remained high, due to staff identifying and
discussing safety hazards. Investigating close calls or near misses allows
APU's safety team to identify potential safety hazards in the workplace.
APU will continue to provide training, job safety analyses, and job site
visits to help minimize injuries.
J. Sanks shared that APU received the Diamond designation for the 2024
Electric Utility Safety Award of Excellence awarded by the American
Public Power Association to recognize utilities' incident rates and the
overall state of their safety program and culture.
The Board asked if APU sets a goal for close calls / near misses based on
industry averages and if this metric is used in other utilities. J. Sanks
explained that while the Safety Program does not have a goal to target, the
importance of reporting a close call / near miss is to improve the safety
culture at APU. The Board thanked APU staff for continuously improving
the Safety Program and identifying unsafe conditions that could result in an
injury. Board Member A. Pham shared that the health care industry now
uses the term "good catch" when recognizing an incident that did not occur
to prevent future incidents. J. Lehman, Assistant General Manager —
Administration and Risk Services, shared that APU's safety team will
likely begin using different terminology as the industry moves away from
using terms like "close call / near miss".
9. APPROVE UPDATES TO DEPARTMENT ORDER 410
A. Pham moved the
(PROCEDURES FOR PUBLIC NOTIFICATION OF
approval of Department
CONSTRUCTION AND PLANNED MAINTENANCE);
Order 410, Procedures for
DEPARTMENT ORDER 500 (INTERNAL COMPLIANCE PLAN);
Public Notification of
AND DEPARTMENT ORDER 509 (PROCEDURES FOR PUBLIC
Construction and Planned
NOTIFICATION OF UNSAFE WATER).
Maintenance; Department
Order 500, Internal
M. Avelino -Walker, General Services Officer, made the Board aware that
Compliance Plan; and
Department Orders (DO) establish and document guidelines and
Department Order 509,
procedures for APU. The DOs are in concert with the City's policies and
Procedures for Public
facilitate staff efficiency, effectiveness, and accountability. M. Avelino-
Notification of Unsafe
Walker explained that DOs are updated as needed to reflect changes in
Water. G. Dima-Smith
procedures, roles or responsibilities. DO 500, Internal Compliance Plan,
seconded the motion.
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and DO 509, Procedures for Public Notification of Unsafe Water, were MOTION CARRIED: 5-0.
updated to reflect roles and responsibilities. DO 509 also includes new ABSTAINED: 0.
guidelines from the U.S. Environmental Protection Agency (EPA). ABSENT: 1. [Chairperson
J. Seymour]
C. Parker briefed the Board on the updates pertaining to DO 410,
Procedures for Public Notification and Construction and Planned
Maintenance. The updated DO will now include both planned maintenance
and Capital Improvement Projects (CIP). C. Parker explained that an
additional section was added to address individual service disconnections,
for instance where APU staff responds to customer inquiries, requests from
other City departments, and evaluating utility equipment. DO 410 was also
updated to ensure that appropriate staff are updating online outage maps to
inform APU staff and customers of outages.
D. Lee thanked Board Member A. Pham for suggesting that APU notify
customers of outages due to planned maintenance. D. Lee informed the
Board about an incident between a customer and another utility, explaining
that the customer declined access to the backyard because the maintenance
was not previously communicated to her. Unfortunately, the employee of
another utility proceeded to enter the property and began to perform the
work. The updates on DO 410 will ensure consistency with notifying
customers and are intended to prevent incidents like this from occurring.
The Board inquired if other utilities coordinate with APU prior to starting a
project. D. Lee shared that roadway disruptions require other utilities to go
through the Public Works Department's permitting process; however, other
utilities should communicate with the property owners directly when
seeking to enter private properties since they are regulated by the State.
The Board inquired how APU determines the timeline for notifications
regarding planned outages, and how APU alerts customers other than door
hangers. D. Lee explained that customers that will be affected by the outage
are notified by a door hanger. Unfortunately, electronic contact information
on an account is not always the person residing at the premise. APU is
planning on including the appropriate contact information for outages during
the next upgrade of the customer information system. C. Parker shared that
APU determines the timeline for notifications based on the project's needs,
as shown in DO 410, Section E — Timeline for Notifications.
Board Member G. Dima-Smith inquired about the notification process APU staff will provide an
regarding a recent water outage in his neighborhood. C. Parker shared that update to G. Dima-Smith.
he would follow up with staff and report back.
10. APPOINT UP TO THREE MEMBERS FOR THE HIGH SCHOOL
STUDENT SCHOLARSHIP AD HOC SELECTION COMMITTEE.
APU requested up to three Board Members to participate on the ad
hoc Selection Committee for the 2025 High School Student Scholarship
Program. Vice -Chairperson M. Lee appointed Board Members A. Pham,
A. McMenamin, and G. Dima-Smith.
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I I. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker briefed the Board on an incident regarding an electrical
substation fire at London Heathrow Airport, explaining that three electrical
substations serve the airport with each having a backup transformer. The
transformer caught on fire, resulting in damage to the adjacent backup
transformer. The airport was limited and lacked the capacity to run all
airport systems, which resulted in temporary closure. J. Lonneker added
that the delivery lead time for substation transformers is approximately two
years and explained that APU, with 14 substations throughout the City, has
the ability to reroute power through automated field switches to restore
circuits. In addition, APU has a mobile substation and spare substation
transformers as backup. Critical substations have firewalls between the
transformers to contain one transformer from damaging adjacent
equipment.
J. Lonneker announced that a new transformer is planned for delivery at
Sharp Substation at the end of April. APU staff will invite the Board to
view the new transformer once the delivery date is confirmed by the
manufacturer.
J. Lonneker shared that the California Department of Forestry and Fire
Protection (CAL FIRE) has completed the 2025 Fire Hazard Severity
Zone (FHSZ) assessment and has a new comparison tool available showing
the updated areas since 2011. This tool displays an interactive map of
California that can indicate pre/post 2025 updates of high/very high fire
threat zones (FTZs).
J. Lonneker provided a comparison of the changes to the Anaheim area,
explaining that very minimal changes were made, and APU staff will
include the updated map in APU's 2025 Wildfire Mitigation Plan.
The Board asked if APU would have any regulatory impacts due to
additional areas that were not previously covered. J. Lonneker explained
that APU's FTZs had minimal changes and should not see regulatory
impacts, primarily due to majority of the electrical equipment in the FTZs
being underground, with plans to underground the remaining electrical
equipment in the future. D. Lee responded that APU anticipates that the
California Wildfire Safety Advisory Board (WSAB) will inquire if APU
used the updated maps upon submitting APU's updated Wildfire Mitigation
Plan.
12. UPDATE ON WATER SYSTEM ITEMS.
C. Parker provided an update on the Water Supply Dashboard, sharing that
the Orange County Groundwater Basin is in good condition although the
rainfall is below average. The State Water Project is also in good condition,
due to the above average rainfall and snowpack, which will allow MWD to
increase the stored water allocation from 35% to about 40%. The Colorado
River Basin is in adequate condition as a result of the under average
snowpack this rainy season.
APU staff will follow up
with an invite.
2025 - 21
APU is involved with MWD's Business Model, comprised of proposed rate
modifications and local water exchanges, that will strengthen MWD's
finance portfolio. MWD will seek approval by the MWD Board of
Directors in April.
13. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
A. Nguyen provided an overview of the Finance Dashboard, sharing that
the electric fiscal year-to-date utility revenue and expenses were below
budget. The electric operating expenditures budget variance was 21.5%
under budget, due to lower wholesale energy and gas prices. The cost
savings at the end of the fiscal year will support capital improvement
projects. A. Nguyen discussed the water operating expenditures budget
variance, stating that the variance was 5.4% below budget due to
groundwater pumping efforts to minimize water supply costs from
imported water.
A. Nguyen provided an overview of the Power Supply Dashboard, sharing
that APU has lower fuel and wholesale energy prices since the beginning of
this fiscal year. Additionally, one coal plant is in transition to natural gas.
The Board asked when the fiscal year ends. A. Nguyen shared that APU's
finance team will provide an overview of the current proposed budget in
anticipation of the fiscal year ending on June 30tn
The Board asked if APU has considered adjusting its share of renewable
energy due to financial cost. D. Lee explained that APU has gradually
increased its renewable portfolio to meet statewide compliance targets; and
is on track to meet the requirement of 60% renewables by 2030. D. Lee
made the Board aware of the challenges APU and other utilities are
experiencing to procure new renewable resources. APU is actively working
with other municipalities on this issue and remains committed to meeting
the State's Renewable Portfolio Standards.
14. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman updated the Board on the Wholesale Energy Risk Management
(ERM) program's Quarterly Compliance report. During this quarter, there
was a violation of the Wholesale ERM program due to the late submittal of
a newly required Hoover meter data audit report to the California
Independent System Operator (CAISO). The violation has been mitigated,
and appropriate corrective actions have been taken to ensure that it does not
occur again. J. Lehman shared that all other transactions were within the
ERM requirements.
J. Lehman provided an overview of the Administration and Risk Services
Dashboard, highlighting that APU is following approximately 131 bills but
staff is identifying additional bills that could impact APU customers and/or
operations. J. Lehman highlighted the following bills:
• SB 305 —Small Nuclear Reactor Exemption: this bill is being
watched by APU;
2025 - 22
• SB 540 — Independent Regional Organization - Pathways: this bill
is being watched by APU for potential impacts to California
entities;
• AB 261 — Wildfire: Fire Hazard Severity Zone: this bill is being
watched by APU as previously discussed during the Electric
updates; and,
• AB 532 and SB 350 — Low -Income Rate Assistance (LIRA): Water:
these bills are being watched by APU.
J. Lehman then reviewed the safety metrics, and shared that APU had no
reportable injuries during the reporting period. J. Lehman said that APU
continues to provide training and job site inspections to help minimize
injuries and identify areas for improvement.
15. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Annual Budget Presentation;
• Annual Water Quality Report;
• Department Order Updates; and,
• MWD's Water Conservation Agreement Amendments.
D. Lee shared the following updates:
• APU staff participated in community events at Katella High School,
Roosevelt Elementary School, and a mobile family resource center
to provide information on rebates and incentive programs to
residents;
• APU is coordinating with the Anaheim Police Department's
Mounted Enforcement Unit, who is proposing to use the unused
land around the Nohl Canyon Water Storage Tank to stage horses
during events;
• APU staff participated in a Rebuild Beach Outreach Event with
other City departments to provide Dusk to Dawn lights, and discuss
the underground conversion project on Beach Boulevard;
• APU staff provided a tour of the underground conversion project on
Nutwood and Cerritos for Council Member C. Leon;
• APU staff provided an introductory tour of APU facilities for Board
Member G. Dima-Smith; and,
• APU staff demonstrated the operations of a line truck to Council
Member R. Balius.
Lastly, D. Lee invited the Board to the 2025 Anaheim State of the City at
the Grove of Anaheim. If any Board members are interested in attending,
please inform P. Starr, Executive Assistant.
16. ITEMS BY BOARD MEMBERS.
Board Member G. Dima-Smith thanked the Board Members and APU staff
for being so welcoming and expressed that he is looking forward to
learning more about APU.
2025 - 23
Vice -Chairperson M. Lee inquired if APU's suppliers are impacted by
tariff tax. D. Lee explained that APU is monitoring tariff impacts, including
metals that could affect equipment pricing as well as theft of infrastructure.
Vice -Chairperson M. Lee inquired about Federal and State funding. D. Lee
shared that APU has been notified about potential grant awards but
understands that funding may not materialize, and APU would address
projects with other funding sources or adjust schedules.
17. ADJOURN: (NEXT REGULAR MEETING ON APRIL 23,2025, AT
5:00 P.M.)
Re=ctfully sub fitted,
Dukku Lee
Public Utilities General Manager
T. Ibrahim moved to adjourn
the Regular Meeting in the
Gordon Hoyt Conference
Center at 7: 11 p.m. to the
Board's Regular Meeting
date of April 23, 2025, at
5:00 p.m. G. Dima-Smith
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1. [Chairperson
J. Seymour]
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.
2025-24