Public Utilities 2025/06/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
June 25, 2025
The agenda having been posted on Thursday, June 19, 2025, 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,
June 25, 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, B. Beelner, C. Parker, J. Lonneker, J. Lehman, P. Starr, M. Seifen,
G. V. Ramirez, J. Sanks, E. Krause, T. Castaneda, M. Pan, F. Barvarz,
S. Chagolla, B. Mendoza, V. Tran, J. Galvan, S. Jacobs, J. Martinez
Guests Present: J.C. Mathieson, NV5 Vice President of Distribution Operations; Samuel
Giordano, NV5 Project Manager, Stephanie Mercadante, Resident
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
MAY 28, 2025.
3. PUBLIC HEARING: RECEIVE AND FILE THE ANAHEIM
PUBLIC UTILITIES' 2025 PUBLIC HEALTH GOALS REPORT
AFTER RECEIVING AND CONSIDERING PUBLIC
COMMENTS.
The Public Hearing was called to order by Chairperson J. Seymour to
receive and file the Anaheim Public Utilities' (APU) 2025 Public
Health Goals (PHG) Report. J. Lehman, Assistant General Manager —
Administration and Risk Services, shared that APU's PHG Report is
available on APU's website and at the Water Engineering counter on
the 61h floor of the Anaheim West Tower, 201 South Anaheim
There being no electronic or
oral public comments,
Chairperson J. Seymour closed
the public comments portion of
the meeting.
T. Ibrahim moved the approval
of the Minutes of the Regular
Meeting of May 28, 2025.
Vice -Chairperson M. Lee
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 35
Boulevard, Anaheim, California 92805. A notice was placed in the
Anaheim Bulletin on May 29, 2025, informing the public of the hearing
date. J. Lehman indicated that no public comments had been received
regarding the PHG report.
J. Sanks, Environmental and Safety Services Manager, explained the
PHG report, and how these goals are not regulations that water agencies
must adhere to; rather, they estimate the level of contamination in
drinking water that would have virtually no health risk to the most
sensitive individuals. PHGs are different than Maximum Contaminant
Levels (MCLs), which are enforceable State and Federal drinking water
standards. J. Sanks shared that California water producers must
compare water quality data to PHGs every three years. City of Anaheim
(City) water did not exceed MCLs that establish drinking water
standards and reiterated that it met all state and federal drinking water
standards. If any regulated compound is detected in water above a PHG,
APU is required to prepare a report and hold a public hearing.
J. Sanks explained how the PHGs are calculated, noting that PHGs do
not consider treatment feasibility or cost. APU achieved PHGs for 90 of
99 substances tested over the last three years. These included naturally
occurring constituents, a disinfection byproduct, and industrial sources.
Such compounds are found at low levels in many parts of Southern
California. J. Sanks described that treatment to remove all the
compounds would be considered infeasible. Treatment would require
large reverse osmosis systems that could not fit in the available space
and would require disposal of resulting brine, and would also cost an
estimated $221 million to treat at wells, treatment plants and MWD
connections. However, treatment systems have already been installed at
nine well sites to remove Perfluorooctane Sulfonate (PFOS) and
Perfluorooctanoic Acid (PFOA), and other well sites are in the design
process. J. Sanks also noted that these same treatment systems are
effective for remediating other compounds such as perchlorate. APU, in
conjunction with its water wholesalers, continues testing and reporting
water quality and designs treatment systems to ensure compliance with
all regulations and MCLs.
The Board asked if household reverse osmosis systems would be
effective if individual residents wanted to improve water quality. J. Sanks
responded that reverse osmosis systems are generally effective. D. Lee,
Public Utilities General Manager, stated that residents who have
sensitivities may consult with their doctor regarding specific concerns.
The Board opened the hearing to the public, and asked if there
were any members of the public who wished to speak. There was
one public speaker for this item. Stephanie Mercadante voiced concern
regarding the public notification process, as well as the results from the
PHG Report and the Disneyland Resort firework show contributing to
perchlorate in the City's water supply. She stated that residents should
not have to pay for something caused by Disneyland fireworks. The
Board requested that staff respond to the public comments. C. Parker,
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Assistant General Manager — Water Services, responded that his
understanding is that Disneyland has ceased using perchlorate since
2004 as they use a different fireworks system. In addition, if someone
was to use perchlorate in fireworks, the state regulates this activity.
J. Sanks added that the levels of perchlorate detected in the City's water
supply are similar to levels observed in neighboring cities who draw
from the groundwater basin. J. Lehman shared that APU is constructing
groundwater treatment systems that are also effective at treating
perchlorate.
With no further questions, J. Seymour closed the public hearing and
proceeded to receive and file the 2025 PHG Report. The Board thanked
APU staff for ensuring that the City's water meets all State and Federal
standards.
4. PRESENTATION: 2025 POWER SUPPLY SUMMER OUTLOOK.
E. Krause, Integrated Resources Manager, provided information on the
current power supply and reliability outlook for both the California
Independent System Operator (CAISO) and APU. E. Krause provided
an overview of Summer 2024, explaining that despite being the 6th
hottest Summer on record for California, there were no flex alert calls
for conservation, which showed marked improvement from Summer
2020 when CAISO asked member agencies throughout California for
load reductions which resulted in rotating outages within the City. The
statewide improvements are due to the new renewable resources and
battery energy storage systems coming online in recent years.
E. Krause discussed the available resources and the CAISO 2025
Summer Load forecast and how it compares to the past five years of
actual peak loads. E. Krause shared the similar outlook for APU, noting
that with the potential for extreme conditions as seen in Summer 2024,
APU procured short-term Resource Adequacy as a mitigation measure
to allow for flexibility within the resource portfolio. E. Krause then
discussed the various mitigation measures APU uses to avoid future
service disruption.
The Board commented on the CAISO forecast for 2025 and asked why
the forecast is lower than 2024's actual peak load. E. Krause provided
information on how the forecast is developed through the State of
California's Integrated Energy Policy Report based on projected
weather patterns. D. Lee asked for E. Krause to show APU's summer
peak projection, which shows a base case with normal weather patterns,
and a higher demand if elevated weather conditions materialize, which
is why APU has a 32% reserve margin for 2025.
The Board asked if there have been any peak loads outside of
September. E. Krause explained that in the past peak loads in Anaheim
have bounced around between August and September and that Anaheim
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has not experienced peak loads in October. The Board also asked if
APU limits Electric Vehicle (EV) charging during Flex Alerts. E.
Krause shared that the limits are placed on publicly accessible chargers
and private chargers are excluded. The Board commented that smoke
from wildfires impacts solar generation resulting in decreased power
output.
5. APPROVE AND ADOPT THE ANAHEIM PUBLIC UTILITIES
2025 WILDFIRE MITIGATION PLAN AND AUTHORIZE ITS
SUBMISSION TO THE CALIFORNIA WILDFIRE SAFETY
ADVISORY BOARD.
F. Barvarz, Transmission and Distribution Manager, provided an
overview of the 2025 Wildfire Mitigation Plan (WMP). F.
Barvarz shared the outcome of the wildfires that occurred throughout
California in 2024, resulting from increased vegetation fuel from a wet
winter and subsequent hot and dry summer. At the local level, one
incident within the City occurred due to an animal intrusion into an
energized surface -mounted switch, resulting in a small fire that was
quickly extinguished by Anaheim Fire & Rescue (AF&R). Brush
abatement surrounding equipment in Fire Threat Zones (FTZ) has been
enhanced to mitigate further occurrences. He stated that APU's WMP
updates meet the Wildfire Safety Advisory Board's (WSAB) 2025
recommendations.
F. Barvarz introduced J.C. Mathieson, Vice President of Distribution
Operations at NV5, who prepared the 2025 WMP. J. C. Mathieson
discussed the Cal -Fire March 2025 FTZ map representing the expanded
FTZs within the City by 646 acres or 9%, including a 0.3-mile APU
distribution line on La Palma Avenue, north of State Route 91. This
12,000-volt line is co -located on jointly -owned poles with Southern
California Edison's (SCE) sub -transmission line and will be considered
for covered conductor upgrades and requires SCE coordination. J.C.
Mathieson then reviewed a $21.8 million undergrounding project
adjacent to elevated FTZs with construction beginning Summer 2025.
Additionally, J.C. Mathieson discussed enhancements to APU's brush
abatement program around surface -mounted equipment and APU's
wildfire camera and weather station network.
F. Barvarz discussed mutual aid provided to Glendale Water and Power,
as part of the January 2025 wildfire restoration efforts, APU's
community engagements over the past year, and APU's Mobile
Neighborhood Utility Center dispatched during significant events.
The Board asked if Linda Vista and Walnut Canyon reservoirs would
be available for helicopters responding to wildfires. D. Lee responded
that helicopters have used Walnut Canyon for wildfires on multiple
occasions, and Water Services is working on a wildfire study, specific
to the water system, and will report back to the Board at a future
meeting.
A. McMenamin motioned to
approve and adopt the 2025
Wildfire Mitigation Plan. A.
Pham seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
APU staff will report back to
the Board at a future meeting.
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The Board asked how APU communicates with surrounding emergency
response agencies. F. Barvarz explained that APU's wildfire cameras
are accessible by all emergency agencies and equipped with artificial
intelligence capabilities for early detection. J. Lonneker, Assistant
General Manager — Electric Services, added that the APU cameras are
integrated into a statewide network of cameras for emergency crews to
access.
The Board asked J.C. Mathieson if APU's WMP has potential
weaknesses. J.C. Mathieson explained that the undergrounding progress
in FTZs is a significant factor in addressing wildfire risks.
6. RECOMMEND APPROVAL OF THE PROPOSED FIVE-YEAR
UNDERGROUND CONVERSION PLAN FOR FISCAL YEAR
2025/26. *
S. Chagolla, Senior Electrical Engineer, presented the proposed
Underground Conversion Five -Year Plan (Plan) for Fiscal Year
2025/26 and provided an overview of the Underground Conversion
Program (Program), including the process to add a new project, and the
completion status of projects that are in progress within each Council
District. The proposed Plan includes adding one new project, Nohl
Ranch/Nohl Canyon, within District 6.
S. Chagolla also provided updates on the progress of
telecommunication facility removals that were in violation of the
Telecommunications Ordinance (Ordinance). Telecommunication
companies completed their removals for all four projects that were sent
Notices of Violation (NOV) in December 2024, and pole removals are
currently in progress. S. Chagolla summarized how APU informs
residents and businesses of upcoming undergrounding through mailed
notifications about District formations, as well as community outreach
events throughout the various stages of a project and explained how
community feedback collected through surveys is incorporated to
improve on future projects.
The Board asked how much the Program receives annually from the 4%
surcharge that residents pay on their electric bills, and how the program
intends to fund the various projects if the Federal Emergency
Management Agency (FEMA) grant for the Wildfire Mitigation
Undergrounding Project is cancelled. D. Lee explained that the program
receives approximately $14 million annually and that APU anticipates
receiving partial FEMA funding, although the full amount has yet to be
confirmed. Additionally, the projects can be funded by a combination of
the available underground funds, currently about $20 million in cash
reserves, and/or utilize bond proceeds. After the wildfires that occurred
in Los Angeles County in January 2025, APU understands that this
Project is a priority that will need to be completed to mitigate the risks.
Vice -Chairperson M. Lee
moved the recommendation to
approve the Five -Year
Underground Conversion Plan
for Fiscal Year 2025/26.
T. Ibrahim seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 39
7. RECOMMEND APPROVAL OF A PROFESSIONAL SERVICES A. Pham moved the
AGREEMENT WITH RICHARD HEATH & ASSOCIATES, INC., recommendation to approve the
FOR THE SMALL BUSINESS ENERGY AND WATER DIRECT Professional Services
INSTALL PROGRAM, WITH AN INITIAL TERM OF FIVE Agreement with Richard Heath
YEARS AND UP TO THREE OPTIONAL ONE-YEAR & Associates, Inc. for the Small
EXTENSIONS, AT AN ANNUAL NOT -TO -EXCEED COST OF Business Energy and Water
$1,500,000, WITH A CONSUMER PRICE INDEX ESCALATOR Direct Install Program. A.
CAPPED AT 3% FOR SERVICE FEES FOR EACH EXTENSION McMenamin seconded the
YEAR, PLUS A 20% CONTINGENCY FOR AS -NEEDED EXTRA
SERVICES. *
T. Castaneda, Community and Sustainability Manager, provided an
overview of the professional services agreement for the Small Business
Energy and Water Direct Install Program (SBDI Program) with Richard
Heath & Associates, Inc. (RHA). The scope of work includes providing
small businesses and multifamily properties with on -site energy and
water usage assessments, followed by the direct installation from a
menu of efficiency measures such as LED lighting, programmable
thermostats, high -efficiency toilets, and dusk -to -dawn exterior lighting.
Through a competitive bid process, APU recommends awarding the
agreement to RHA based on their comprehensive approach, industry
experience with similar municipal utilities, and lowest -cost proposal.
RHA is the current provider for the City. The proposed agreement term
is five years, with three optional one-year extensions.
The Board inquired whether customers could access a list of authorized
firms that implement programs to provide services to small businesses
to ensure that they are associated with APU. D. Lee indicated that APU
provides documentation that the firm is authorized to work with APU.
Customers typically reach out to APU to participate, which helps
address concerns of scams and fraud. D. Lee stated that in cases of hot -
spots identified by Anaheim Police Department or other city staff, APU
may mail outreach materials to customers, and work with the vendor to
improve lighting in the area.
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 0.
8. RECOMMEND APPROVAL OF AN AGREEMENT, IN
Vice -Chairperson M. Lee
SUBSTANTIAL FORM, WITH BLOOMBERG FINANCE L.P.
moved the recommendation to
FOR CREDIT ANALYTICS SUBSCRIPTION SERVICES, WITH
approve the Agreement, in
AN INITIAL DURATION OF FOUR YEARS AND UP TO THREE
substantial form, with
OPTIONAL TWO-YEAR EXTENSIONS, AT AN ANNUAL NOT-
Bloomberg Finance L.P. for
TO -EXCEED COST OF $35,000, WITH AN ANNUAL
credit analytics subscription
INFLATION ADJUSTMENT NOT -TO -EXCEED 10%. *
services. A. Pham seconded the
motion.
J. Lehman provided an overview of the agreement, in substantial form, MOTION CARRIED: 5-0.
for credit analytics subscription services (Agreement) with Bloomberg ABSTAINED: 0.
Finance L.P. (Bloomberg). J. Lehman shared that as part of APU's ABSENT: 0.
Wholesale Energy Risk Management program, APU works to ensure
that their counterparties are financially viable in order to minimize the
risks associated with wholesale energy transactions. J. Lehman
explained that a credit analytics tool helps to do this efficiently,
2025 - 40
thoroughly, and in a time sensitive manner. A Request for Proposals
(RFP) was issued for these services, and APU recommends awarding
Bloomberg for the ability to meet APU's full scope of services as the
highest -rated firm, with the lowest overall pricing.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker made the Board aware of the preventative measures APU
has taken to avoid power outages and shared a picture of a large plastic
wrap around one of APU's power wires. After receiving a customer call
to the APU's Electric Operations Center (EOC), an Electric Line Crew
was dispatched to remove it before causing an outage. The Board asked
how plastic wrap could cause an outage. J. Lonneker explained that the
plastic wrap could wrap around the powerlines and bring them into
contact with each other, or moisture can accumulate causing a fault.
J. Lonneker shared a progress update on the substation security walls.
First, at the Utility Yard where the new wall will extend north of the
existing block wall along the railroad tracks, excavation and
compaction is underway currently, then drilling for the pier supports
will occur in the next few weeks. Secondly, at Katella Substation the
steel beam supports on the south side have been set up, and the pre -
stamped wall panels will be installed.
J. Lonneker updated the Board regarding fiber optic theft occurring
regionally and shared information on recent reports of a large-scale
internet disruption in the Los Angeles area due to vandalism. J.
Lonneker explained that metal theft has not been isolated to electric
power cables within the City, but also to the fiber optic cables owned
and maintained by APU. Cut fiber cables during a recent incident did
not impact APU operations; however, it resulted in service disruption to
other City facilities. APU's engineering group and substation test
technicians have experience in troubleshooting, installation and repairs
of the fiber network, and restoring service. Additional measures were
taken to provide a redundant path to reduce further service disruptions.
APU continues to enhance the fiber system and harden both the electric
and fiber infrastructure with tamper resistant material to reduce these
incidents of vandalism.
The Board inquired if cut fiber network cable is easily identified. J.
Lonneker explained that although cut fiber network cable can be
located, the cable may need to be traced back to the hub to be replaced
in its entirety.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker provided an update on the Water Supply Dashboard, sharing
that the Orange County Groundwater Basin and the State Water Project
are in good condition, although the rainfall has only been about average
this rain season. In addition, the Governor is backing the Delta
Conveyance Project, a project that moves water around the Delta to
2025 - 41
minimize harm to the environment and species, by supporting a bill to
expedite moving the project forward. The Colorado River Basin is also
in adequate condition. The Lower Basin States, Nevada, Arizona and
California, conserved over two million acre-feet (MAF) of water last
year, which is good progress towards the three MAF goal. The
Metropolitan Water District of Southern California (MWD) has about
3.8 MAF in storage, which will provide about three to four years of
supply if needed during a drought.
11. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance and Energy
Resources, discussed the monthly Finance Dashboard for the period
ending May 31, 2025. B. Beelner mentioned that the operating budget
variance in the Electric Utility for May was due to the purchase of
short-term renewable products for compliance purposes. The variance
was mainly a timing issue while the Electric Utility still has an ample
positive operating budget variance. B. Beelner shared that the Water
Utilities' budget, revenue, and costs continued to remain stable.
B. Beelner provided an update on the monthly Power Supply
Dashboard and made the Board aware that the short-term renewable
purchases in May caused a larger than typical percentage of power
generated from renewable sources for the month. APU continues to see
increased prices in renewable projects with a current project under
negotiation experiencing a 40% increase in price due to tariff impacts
and the loss of tax credits provided by the Inflation Reduction Act. D.
Lee mentioned that this issue is not isolated to APU, but being
experienced across the industry.
The Board asked if there was a limit on price for renewable projects and
whether these increases would inhibit APU's ability to meet its
compliance targets. B. Beelner shared that APU's priority is to meet the
compliance targets referenced in the Integrated Resources Plan as long
as rates remain affordable for customers.
B. Beelner then informed the Board that Standard and Poor's (S&P) has
recently affirmed APU's AA- electric rating and AA+ water rating.
S&P mentioned in their report that APU's pro -active 2025 Wildfire
Mitigation Plan was a major factor in the decision.
The Board inquired about the repair status of Canyon Power Plant. B.
Beelner informed the Board that Unit 1 is currently under repair and is
expected to be placed back into service later this year. B. Beelner
mentioned that the negotiation on contract terms and conditions for the
repair of Unit 3 is in the final stages.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman provided an overview of the Wholesale Energy Risk
Management (ERM) Compliance report for the third quarter of fiscal
2025 - 42
year 2025 (Program) and shared that this Program helps ensure that
wholesale energy -related transactions can be conducted in a timely
manner while APU's interests are protected and risks are minimized. J.
Lehman highlighted that during this period there were no violations of
the ERM program and that all transactions complied with the ERM
program requirements.
J. Lehman provided updates on the Administration and Risk Services
Dashboard, and shared that APU is currently following approximately
160 bills, including:
SB 541 — Energy Load Shifting: this bill is being opposed by APU;
AB 261, AB 300, AB 367, AB 372, SB 254, SB 256, SB 292, SB
326, SB 629— Various Wildfire Bills: these bills are being watched
by APU; and
AB 532 — Low -Income Rate Assistance (LIRA): Water: this bill is
being watched by APU.
J. Lehman provided a review of the safety metrics, which were trending
well, and shared that APU had one reportable injury during the
reporting period. J. Lehman added that APU continues to provide
training to help employees minimize injuries and shared that APU
hosted the annual Safety Fair, which was attended by over 200 people,
23 vendors, and included safety demonstrations.
13. ITEMS BY SECRETARY.
D. Lee shared that next month's Board meeting will include elections
for board chair and vice -chair as well as various appointments. He also
shared that the commercial energy efficiency consulting firm
recommended by the Board was unable to meet the city's terms and
conditions, and staff will be bringing forward the second bidder for the
Board's consideration.
Other planned agenda items for next month include:
• 2025 WaterSmart Landscape Awards Recognition;
• Electric Bond Issuance and Refunding;
• General Services Agreements for Pre -Qualified Water Consulting
firms; and
• Update to various Department Orders.
D. Lee shared the following updates:
A tour of APU facilities for Council Member R. Balius, including
the Lenain Treatment Plant, Park Substation, and Canyon Power
Plant;
Mayor Pro Tem N. Meeks attended APU's Department Staff
meeting to provide an overview of her career progression during
her time with the City;
City Council recognized the students that were selected by APU's
Student Scholarship ad hoc Selection Committee;
2025 - 43
® APU hosted the OC Green Expo that educates the community
about the sustainable benefits of electric transportation, energy
and water efficiency improvements, and featured sustainability
initiatives by other City departments, local businesses, and public
agencies. The event was well attended with approximately 1,000
attendees, and test drives of EVs; and
e APU staff participated in community meetings to provide
information to residents about various programs.
A. Pham thanked APU staff for execution of the OC Green Expo and
commented that it was well attended and provided a variety of
engagement opportunities for the community. A. Pham asked if APU
staff could provide insight on how customers are informed about fraud
and APU's approach when customers are victims of fraud.
M. Lee thanked APU staff for the presentations on the agenda.
15. ADJOURN: (NEXT REGULAR MEETING ON JULY 23, 2025, AT
5:00 P.M.)
Respectfully subm' ed,
Dukku Lee
Public Utilities General Manager
APU staff will report back with
a presentation on fraud
awareness.
Vice -Chairperson M. Lee
moved to adjourn the Regular
Meeting in the Gordon Hoyt
Conference Center at 6:53 p.m.
to the Board's Regular Meeting
date of July 23, 2025, at 5:00
p.m. T. Ibrahim seconded the
motion.
MOTION CARRIED: 5-0.
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.
2025 - 44