Public Utilities 2025/05/28CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
May 28, 2025
The agenda having been posted on Thursday, May 22, 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, May 28, 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. McMenamin, T. Ibrahim
Board Members Absent: A. Pham, (Two Board Member seats are currently vacant)
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker,
P. Starr, A. Nguyen, M. Seifen, A. Lee, J. Sanks, C. Pereyra, K. Meland,
Y. Saldivar, E. Krause, T. Castaneda
Guests Present: None
AGENDA ITEM
1. PUBLIC COMMENTS.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
MARCH 26, 2025.
3. SET A PUBLIC HEARING DATE FOR THE 2025 PUBLIC
HEALTH GOALS REPORT.
J. Lehman, Assistant General Manager — Administration and Risk
Services, shared that Anaheim Public Utilities (APU) posted the 2025
Annual Water Quality Report and confirmed that the water served by
APU met all state and federal drinking water standards, and requested
approval to hold a Public Hearing on the 2025 Public Health Goals
(PHG) Report at the June 25, 2025 Board meeting.
ACTION TAKEN
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 March 26, 2025.
T. Ibrahim seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
Vice -Chairperson M. Lee
moved the approval of a
Public Hearing date for the
2025 Public Health Goals
Report. T. Ibrahim seconded
the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
2025 - 25
By way of background, J. Lehman indicated that every three years
California water utilities are required to compare their water quality to
the State's Public Health Goals and the Federal Government's
Maximum Contaminant Level Goals and hold a Public Hearing to allow
for comments on the results. Public Health Goals are set at the level at
which there is essentially no health risk to the most sensitive
populations. These levels are not enforceable, but results must be
reported by water agencies.
APU met 90 of the 99 Public Health Goals. The Public Health Goals
that were not met, with four exceptions, were all from naturally
occurring elements. The four exceptions were Bromate which is a by-
product of ozone disinfection of water that has naturally occurring
Bromine, Perchlorate, Perfluoro octane sulfonic acid (PFOS), and
Perfluoro octanoic acid (PFOA) which are from industrial sources.
J. Lehman shared that a hearing notice would be published in the
newspaper in June and the 2025 PHG Report would be posted on
APU's website and available at the Water Engineering counter located
on the 6th floor of the Anaheim West Tower.
4. APPOINT UP TO THREE BOARD MEMBERS FOR THE
WATERSMART LANDSCAPE AWARDS AD HOC SELECTION
COMMITTEE.
Chairperson J. Seymour indicated that he was seeking up to three Board
Members to serve on the WaterSmart Landscape Awards ad hoc
Selection Committee. J. Seymour stated that Board Member A. Pham
notified him of his interest in serving on the ad hoc selection
committee, and during the meeting, Board Member A. McMenamin
volunteered and agreed to be appointed. Chairperson J. Seymour
confirmed their appointments to the WaterSmart Landscape Awards ad
hoc Selection Committee.
5. RECOMMEND ADOPTION OF THE FISCAL YEAR 2025/26
PROPOSED BUDGET. *
C. Pereyra, Utilities Strategic Planning Manager, briefed the Board on
the Fiscal Year (FY) 2025/26 Strategic Budget Proposal including an
overview of APU's strategic priorities, budget cycle, and key
accomplishments from the current year. C. Pereyra reported that total
current year revenue is projected to be 3.7% below forecast, primarily
due to the Groundwater Treatment Project reimbursements that were
received ahead of schedule in the prior year. For electric revenue, a
decline in rate stabilization revenue is anticipated, though it is expected
to be offset by lower operating costs.
Capital expenses are projected to be 59.6% below the budget. The
Board inquired if the variance in the FY 2024/25 Amended and FY
2024/25 Projected budget was unusual and if it has to do with the
inability to spend the funds. D. Lee, Public Utilities General Manager,
T. Ibrahim moved the
recommendation to approve
the adoption of the FY
2025/26 Proposed Budget.
A. McMenamin seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
2025 - 26
noted that such variances are not unusual and are related to multi -year
projects that are budgeted in the year they are awarded and then carried
over until the project is complete. Key budget initiatives for FY
2025/26 include Wildfire Mitigation efforts and major capital
improvements across both the water and electric systems. Notable
capital projects highlighted include substation upgrades to support
growing demand in Anaheim, a new field maintenance facility for
crews, the undergrounding of electric lines, water main replacements,
and water storage.
C. Pereyra noted that total revenue for FY 2025/26 is projected to
increase by 7.6%, primarily driven by grant funding and developer
reimbursements. The proposed budget also includes the planned
issuance of a new electric bond to help fund capital projects and
supplement cash funding. The Board inquired if federal funds are no
longer available. D. Lee confirmed that federal funding is not readily
available, and that staff is prepared to proceed with projects if
previously awarded federal grants are not funded.
Proposed expenses reflect a decrease in supplies and equipment due to
the carryover of certain projects and purchases into the new fiscal year.
Power supply cost increases are expected to be modest, while water
supply costs will rise in response to wholesale rate increases. Debt
service costs are also projected to increase following scheduled bond
payments.
C. Pereyra highlighted that the FY 2025/26 proposed budget includes
five new full-time positions that includes one position to support water
system maintenance and four positions to meet growing Citywide
development activities that are offset by reimbursements. The Board
inquired if APU is understaffed given the increase to the city's
population over time. D. Lee stated that while APU does not often
request new positions, internal adjustments of vacancies have helped to
address the most pressing needs. B. Beelner, Assistant General Manager
— Finance and Energy Resources, added that APU's staffing doesn't
correlate to population as in other departments where labor is a larger
portion of their budgets. The Board inquired if APU offers seasonal
positions. D. Lee shared that APU does not offer seasonal positions;
however, APU does have part-time staffing for certain positions.
The Citywide budget will be presented at community district meetings,
City Council workshops and budget adoption is scheduled for June.
6. PRESENTATION: NAVIGATING FEDERAL -STATE ENERGY
POLICY DYNAMICS.
E. Krause, Integrated Resources Manager, provided an overview of
current Federal and State policy dynamics related to key energy
programs and potential impacts to Anaheim customers. E. Krause noted
an article on the Cap -and -Trade Program and reviewed the benefits of
supporting continuation of the program to support investment in
2025 - 27
renewable resources. Participation in the program provides for
maintaining affordable rates and is a way to buffer rate increases.
For context, E. Krause explained that several federal executive orders
have been introduced to limit state -level policies on emissions,
renewables, and traditional generation. Several programs under
California's climate policies have been established through legislation
and administered through state regulatory agencies and are at risk of
being blocked or having federal funding suspended. The current state
policies establish goals to reduce emissions and increase renewable
energy to reach 60% renewable portfolio by 2030 and by 2045 moving
to a carbon -free portfolio.
E. Krause elaborated that the different viewpoints between the federal
government and state causes uncertainty; however, there is an overall
global trend towards sustainability with corporate entities procuring
renewable resources themselves to reach sustainability goals and
investments are occurring in data centers to support artificial
intelligence (Al) and electrification. E. Krause explained that the
uncertainty from federal policies or market conditions may impact
individual resource projects and provided an example of the recently
terminated power sales agreement for solar and energy storage resource
between Southern California Public Power Authority (SCPPA) and the
City of Anaheim (City).
E. Krause shared APU's strategies to navigate conflicting policies, such
as releasing individual Request for Proposals (RFPs) for resources and
participating in joint projects to increase options for resources. In
addition, advocacy through industry organizations to collectively ask
representatives to support bill affordability for customers will continue.
Mid-term strategies include debt management used to provide financial
flexibility to participate in future projects or upgrades to existing
resources on the path to achieve a carbon -free portfolio by 2045. E.
Krause added that portfolio evaluations will be conducted through an
updated Integrated Resources Plan to navigate changing markets and
policies.
The Board commented on the importance of bill affordability that the
state needs to consider. D. Lee added that the pendulum is swinging in
that direction and at the state level there is a big push to get more
affordability factored into legislation. B. Beelner added that resiliency
in the grid is key so that resources are available when they are needed.
D. Lee provided a metric for RFPs indicating that since 2020 there has
been a significant decline in respondents since Community Choice
Aggregators (CCAs) entered the market. E. Krause added that contract
negotiations carried out with respondents to RFPs occur under separate
agreements to ensure that entities are not trying to negotiate with other
parties at the same time as APU.
The Board also inquired about solicitations for Small Nuclear Reactors
in other states. E. Krause elaborated that transmission considerations
2025 - 28
are factored into these projects to get power to California. B. Beelner
added that one of the roadblocks for nuclear in California is the inability
to build these resources in state until spent fuel issues are resolved.
7. RECOMMEND APPROVAL OF AN AGREEMENT WITH
RAILPROS FIELD SERVICES, INC. FOR RAILROAD SAFETY
TRAINING AND FLAGGING SERVICES, AT A NOT -TO -
EXCEED COST OF $500,000.
J. Lehman provided an overview of the specialized safety training
required for employees who work near railways. APU operates
electrical and water infrastructure near railroad lines owned by the
Southern California Railroad Authority (SCRRA), more commonly
known as Metrolink. In the past, this specialized safety training was
provided by Metrolink, as were the flagging services. However,
Metrolink recently outsourced these services and no longer provides
them in-house. Through a competitive bid process Metrolink selected
RailPros Field Services, Inc. (RailPros) as the exclusive vendor of these
services. All employees that work near SCRRA's right of way must
utilize this vendor for annual training. J. Lehman clarified that the
required safety training should be done annually, not every two years as
stated in the staff report.
This agreement will allow APU and other City Departments access to
these services for a five-year period, as needed. Each Department would
be responsible for the costs incurred for services. J. Lehman requested
the Board's recommendation that the City Council approve the
agreement with RailPros for railroad safety training and flagging
services, as needed. The Board inquired if the $500,000 is for the entire
5-year term, and J. Lehman confirmed the terms of the Agreement.
8. RECOMMEND APPROVAL OF AN AGREEMENT WITH
ALLIANCE PROJECT INC. FOR COMMERCIAL CUSTOMER
ENERGY EFFICIENCY CONSULTING SERVICES, WITH AN
INITIAL TERM OF FIVE YEARS AND UP TO TWO OPTIONAL
ONE-YEAR EXTENSIONS, AT AN ANNUAL NOT -TO -EXCEED
COST OF $376,250 WITH AN ANNUAL CONSUMER PRICE
INDEX ESCALATOR CAPPED AT 3%, PLUS A 20%
CONTINGENCY FOR AS -NEEDED EXTRA SERVICES.
M. Avelino -Walker, General Services Officer, provided an overview of
a new agreement to support non-residential facilities, including
businesses, schools, municipal buildings, non -profits, and multi -family
housing common areas, with energy efficiency programs. The scope of
work includes energy assessments, rebate assistance, electric usage
analysis, and customer training. Through a competitive bid process,
APU recommends awarding the agreement to Alliance Project Inc.,
citing their strong technical qualifications, relevant experience, and the
lowest -cost proposal. The proposed agreement has an initial term of
five years and up to two optional one-year extensions.
Vice -Chairperson M. Lee
moved the recommendation to
approve the agreement with
RailPros Field Services, Inc.
for railroad safety training and
flagging services. A.
McMenamin seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
T. Ibrahim moved the
recommendation to approve
the Agreement with Alliance
Project Inc. for Commercial
customer energy efficiency
consulting services. A.
McMenamin seconded the
motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
2025 - 29
9. RECOMMEND APPROVAL OF AN AGREEMENT WITH
BLUEBLOSSOM CONSULTING FOR EDUCATIONAL
CONSULTING SERVICES FOR THE SUSTAINABILITY
EDUCATION CENTER, WITH AN INITIAL TERM OF THREE
YEARS AND UP TO TWO OPTIONAL ONE-YEAR
EXTENSIONS, AT AN ANNUAL NOT -TO -EXCEED COST OF
$90,000, PLUS A 10% CONTINGENCY FOR AS -NEEDED
EXTRA SERVICES. *
M. Avelino -Walker briefed the Board on a consulting services
agreement for developing educational content to support student field
trips to the new Sustainability Education Center, scheduled for
completion later this year. Through a competitive bid process, APU
recommends awarding Blueblossom Consulting (Blueblossom) based
on their strength of scope, experience, and lowest pricing. The proposed
three-year agreement includes an option for up to two one-year
extensions.
D. Lee clarified that Blueblossom will develop educational content for
students that aligns with the curriculum taught at the schools to
complement student field trips. The Board inquired if APU staff will be
trained by Blueblossom and if there was a need to meet with the schools
to go over the curriculum. M. Avelino -Walker informed the Board that
Blueblossom has the standards and curriculum already set that aligns
with the state.
10. UPDATE ON TELECOMMUNICATION REMOVALS WITHIN
UNDERGROUND UTILITY DISTRICTS.
D. Lee informed the Board that progress has been made on existing
projects resulting from the Telecommunications Ordinance (Ordinance)
that was recommended by the Board and approved by City Council six
months ago. The Ordinance was approved because overhead lines
remained an average of 2.4 years after APU's portion was complete.
There are four projects that are outstanding, and the telecommunication
companies have removed most of the lines as identified in the staff
report.
The Board thanked Mayor Pro Tem N. Meeks and the City Council for
their support toward the efforts in place to accelerate the removal of
overhead telecommunications and asked if there are any lawsuits
against the City. D. Lee shared that while the City has not been served,
APU has only issued notices of violations, and no fines have been
issued.
J. Lonneker, Assistant General Manager — Electric Services, shared that
APU is holding bi-weekly meetings to assist the providers through the
City's permitting process.
Vice -Chairperson M. Lee
moved the recommendation to
approve the agreement with
Blueblossom Consulting for
educational consulting
services. T. Ibrahim seconded
the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
2025 - 30
It. QUARTERLY STATUS REPORT FOR PRE -QUALIFIED
PROFESSIONAL SERVICES, CONSTRUCTION, AND
MATERIAL PURCHASES (JANUARY-MARCH 2O25).
D. Lee provided an overview of the different strategies APU is utilizing
to procure materials while facing industry -wide supply chain issues. D.
Lee noted that the number of newly awarded Design -Build Master
Agreements (DBMA) for this FY 2024/25 is lower than previous years
as many of the previously awarded projects require multiple years to
complete the design, easement acquisition, construction and outage
coordination such as direct -buried cable and transformer replacements.
D. Lee emphasized that the DBMA process is a very useful tool to APU
to support efforts to accelerate these reliability projects.
J. Lonneker shared that the progress made on the Electric Capital
Improvement Program (CIP) fell within 73% of completion for the
fiscal year, also noting these are multi -year projects where the
remaining budget allocation will carry-over to the next fiscal year. J.
Lonneker highlighted ongoing electric projects including the
transformer and equipment upgrades underway at Southwest
Substation, the construction of a security wall along Katella Substation,
and the ongoing transformer replacement reliability project.
C. Parker, Assistant General Manager — Water Services, briefed the
Board on the Water CIP and shared that the program will be completed
as planned. C. Parker also highlighted three projects: the Gate Valve
Installation on Ball Road, State College Boulevard Water Main
Relocation, and Linda Vista Control Valve Installations.
12. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker shared highlights of the substation transformer delivery at
Sharp Substation earlier this month. The transformer took three months
to build and 25 days to ship to the Port of Long Beach. The 145,000-
pound transformer arrived on a truck and was lifted by a 350-foot crane
onto its foundation. The transformer will be tested and commissioned
by APU substation electricians and test technicians before being
energized.
13. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the current Water Supply Dashboard and
shared that rainfall was near normal this year, and the Orange County
Groundwater Basin remains in good condition. The State Water
Project's (SWP) storage is in good condition with the snowpack above
average. The SWP's allocation is at 50%, which will allow the
Metropolitan Water District of Southern California (MWD) to have a
200,000-acre-foot surplus. The Colorado River Basin is in adequate
condition, with the snowpack a little under average.
C. Parker shared that the 28th Annual Orange County Water District
Children's Water Education Festival was conducted in April. The event
2025 - 31
was attended by about 5,800 students (1,055 from Anaheim), 70
schools (11 from Anaheim), and 19 cities. APU staff and Mayor Pro
Tem N. Meeks participated in this opportunity to educate students about
local water issues and the environment.
C. Parker provided an update on APU's Water Awareness Month event
that was held at Center Greens Park. It was attended by 200 Anaheim
students in 4th-6th grade from Danbrook Elementary School. The event
provided demonstrations on pipe tapping, water filtration, and the water
cycle.
The Board inquired what the lowest level recorded was for the Orange
County Groundwater Basin Storage. C. Parker mentioned that it was
probably in the 1980s when it was about at 200,000-acre-feet level — the
capacity of the basin is about 500,000-acre-feet.
14. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly Finance Dashboard for the period
ending April 2025 and shared that the budget variances continued for
the electric utility. This additional cash flow will be used to fund
continued capital investment and bolster rate stabilization reserves. B.
Beelner then mentioned that the water division's costs and revenue are
relatively in line with budget.
B. Beelner briefed the Board on the monthly Power Supply Dashboard
noting that APU purchased more power from the wholesale market than
is typical due to major planned maintenance on the Magnolia Power
Project. B. Beelner stated that even with these additional wholesale
purchases power supply costs continue to remain under budget.
B. Beelner explained the recent refunding of Canyon Power Plant bonds
issued through the Southern California Public Power Authority
(SCPPA). Due to a temporary drop in interest rates APU was able to
step into the market and sell bonds to save approximately $4.2 million
on future interest costs. B. Beelner then mentioned that the interest and
bond market continue to remain challenging as the "One Big Beautiful
Bill Act" and tariff issues go through their respective negotiations
which may impact future planned bond issuances.
15. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman discussed the Quarterly Internal Compliance Report that
provided a high-level summary of some of the activities that the utility
undertakes on a regular basis to ensure compliance with the many laws
and regulations that it must meet. J. Lehman highlighted that a
settlement was reached with the South Coast Air Quality Management
District for a Notice of Violation that occurred at the Canyon Power
Plant in 2023 for not conducting a source test on one of the generators
that was offsite for repairs. In the future, a testing waiver will be
obtained if required sampling cannot be conducted.
2025 - 32
J. Lehman then provided a legislative update, sharing that it was the
first year of a two-year session, and that June 61h is the last day for a bill
to pass out of its House of Origin, and likely many of the bills we have
been watching will either die or have an expedited time frame in 2026
to pass.
J. Lehman highlighted the following bills:
• Proposed Budget Trailer Bill Package - Bay Delta Conveyance
Project Streamlining: This package will likely be supported once
released;
• SB 540 - Pathways: Independent Regional Transmission
Organization: This bill is of concern because of recent
amendments which undermine participation; and
• AB 261, AB 300, AB 367, AB 372, SB 90, SB 254, SB 256, SB
292, SB 326, SB 618, SB 629 - Various Wildfire Bills: These
bills are being watched by APU.
J. Lehman then shared the safety metrics, which were trending
positively, and APU had no reportable injuries for the third consecutive
reporting period. J. Lehman explained that APU continues to provide
training to help minimize injuries and shared that J. Sanks,
Environmental and Safety Services Manager, accepted the American
Public Power Association (APPA) Safety Award on behalf of APU in
Sacramento, California in April. APPA recognizes utilities that
demonstrate high proficiency in reliability and safety.
16. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• 2025 Public Health Goals Report Public Hearing;
• 2025 Summer Readiness Presentation;
• Wildfire Mitigation Plan Update;
• Five -Year Underground Conversion Plan; and
• Electric Bond Issuance.
D. Lee shared the following updates:
• Board Members joined APU staff at the Advanced Clean
Transportation Expo at the Anaheim Convention Center;
• APU continues to collaborate with the Anaheim Police
Department on wire theft mitigation efforts;
• Council Member N. Rubalcava joined APU's Earth Day tree
planting event in April at Franklin Elementary School;
• APU hosted a Dusk to Dawn lighting distribution community
resource event at Savanna High School, which included
electronic waste recycling and paper shredding; and
• APU participated in a Wildfire Symposium hosted by Anaheim
Fire and Rescue at the North Net Training Center.
2025 - 33
Lastly, D. Lee requested that the Board meeting be closed in memory of
Kay Lee, a former APU employee who started in 1989. K. Lee worked
in the Geographical Information Systems division and retired from the
Finance Department in 2021.
17. ITEMS BY BOARD MEMBERS. There being no items by Board
Members, Chairperson J.
Seymour moved to the
adjournment of the meeting.
18. ADJOURN: (NEXT REGULAR MEETING ON JUNE 25,2025, AT Vice -Chairperson M. Lee
5:00 P.M.) moved to adjourn the Regular
Meeting in the Gordon Hoyt
Chairperson J. Seymour asked for a moment of silence in memory of Conference Center at 6:31
Kay Lee. p.m. to the Board's Regular
Meeting date of June 25,
2025, at 5:00 p.m. T. Ibrahim
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 1. [A. Pham]
Re fully su ed,
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.
2025-34