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Public Utilities 2025/08/27CITY OF ANAHEIM PUBLIC UTILITIES BOARD MINUTES August 27, 2025 The agenda having been posted on Thursday, August 21, 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, August 27, 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 A. Pham, M. Lee, A. McMenamin, T. Ibrahim Board Members Absent: (Two Board Member seats are currently vacant) City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker, A. Lee, B. Mendoza, M. Seifen, M. Muttaraid, C. Ghaby, A Boone, J. Reyes, N. Medeiros, A. Kanzler, P. Bogdanoff, V. Tran, D. Kim Guests Present: A. Berhow, Charter Communications; M. Rezai, InfoSend, Inc. AGENDA ITEM ACTION TAKEN 1. RECOGNITION: WATERSMART LANDSCAPE AWARDS. A. Kanzler, Senior Resource Programs Specialist, provided an overview of the selection process for the 2025 WaterSmart Landscape Award recipients, in which an ad hoc selection committee of the Board selected the winning landscapes. The Board recognized InfoSend, Inc. from District 6 as the commercial winner for the landscape's cohesive design and drought -tolerant species. The residential winner and runner- up were unavailable to attend the meeting but were recognized by the Board for their landscape designs and placement of drought -tolerant plants. 2. PUBLIC COMMENTS. There being no electronic or other oral public comments, Chairperson J. Seymour invited the public to speak on agenda items or Chairperson J. Seymour closed matters within the jurisdiction of the Board. the public comments portion of A. Berhow, Director of Government Affairs for Charter the meeting. Communications, provided oral comments regarding Item 5. 3. APPROVE THE MINUTES OF THE REGULAR MEETING OF M. Lee moved the approval of JULY 23, 2025. * the Minutes of the Regular Meeting of July 23, 2025. A. McMenamin seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 0. 2025 - 54 4. PRESENTATION: FRAUD PREVENTION. C. Ghaby, Customer Service Manager, briefed the Board on Anaheim Public Utilities' (APU) Fraud Prevention Program and the common scams that customers face and how to combat these scams. Scammers may attempt to impersonate APU employees to pressure customers into making quick payments to avoid disconnections, especially during heatwaves, holidays, and weekends. C. Ghaby shared that APU will never call, email, or show up on a customer's doorstep demanding payment, especially with a gift card. C. Ghaby shared that the Grove of Anaheim was recently targeted by a scammer impersonating a Southern California Edison (SCE) employee demanding immediate payment to avoid disconnection. The Grove's employee knew APU serviced the facility and contacted APU's Customer Service team immediately to confirm account status. Customer Service confirmed there was no outstanding payment due, and the utilities would not be disconnected. The most common form of scamming is called Caller ID Spoofing, where a scammer manipulates the caller ID to show APU's phone number to call, text or e-mail customers. C. Ghaby provided an overview of the average amount of `spoofing' reports APU receives in a year. On average 2.4 reports per month are reported and resulted in shutting down 19 fraudulent Toll -Free Numbers (TFN). APU responds swiftly to fraud by immediately updating social media platforms, updating the Interactive Voice Response (IVR) message, and updating staff with frequently asked questions (FAQs) and account tools. M. Muttaraid, Communications Specialist, shared how APU educates customers on identifying fraudulent attempts and how to report fraud incidents. APU's Scam Alert webpage was updated to offer a streamlined experience for customers concerned about fraud. M. Muttaraid shared that APU partners with other City departments and outside organizations to meet with community members who may be affected by fraud attempts. APU hosts Community Resource Fairs and provides free document shredding services to assist with fraud prevention. M. Muttaraid shared the types of public messaging that APU utilizes, such as collateral materials, social media channels, and newsletter articles to effectively amplify fraud awareness. M. Muttaraid demonstrated how a Radio -Frequency Identification (RFID) card can prevent fraudulent activity by blocking electronic pickpocketing attempts. The Board thanked APU for distributing RFID cards to customers because it provides APU's contact information to report fraudulent activity. Additionally, the Board thanked APU for reaching out to senior citizens to build credibility in the community and for the updates made to the Scam Alert webpage. 2025 - 55 The Board inquired about APU's procedure following a report from a customer who was a victim of fraud. C. Ghaby explained that APU cannot refund money lost but offers programs to financially assist fraud victims. APU offers an Emergency Assistance Program and Income - Qualified Programs that are available to all APU customers. APU also offers payment extensions or payment plans to minimize service disruption. C. Ghaby concluded by sharing that APU's procedure informs customers of bill assistance programs that are not directly related to assisting with money lost due to fraud. 5. INFORMATIONAL ITEM: CORRESPONDENCE WITH CHARTER COMMUNICATIONS REGARDING CERRITOS/NUTWOOD UNDERGROUNDING PROJECT. A. Lee, Deputy City Attorney, provided an informational update regarding recent correspondence between APU and Charter Communications (Charter) concerning the undergrounding project in Underground District 69 — Cerritos Avenue and Nutwood Street (UD 69). A. Lee explained the City's longstanding program for establishing undergrounding districts that require utilities to underground or remove overhead facilities within district boundaries. APU's historic practice of offering joint trenching opportunities to telecom providers would reduce their undergrounding costs through shared construction. A. Lee outlined the timeline of UD 69: City Council formed UD 69 in early 2021; Charter submitted its construction designs and bid quantities to APU in mid-2023; and APU provided Charter with a draft Joint Trench Agreement (JTA) in mid-2024. Despite confirming receipt, Charter did not execute or comment on the draft JTA. A. Lee explained that Charter initially requested and asserted entitlement to access Anaheim's trench and construction area at no cost, which APU denied. APU cited the parties' longstanding cost -sharing practices, Charter's prior participation in numerous JTAs, and Charter's lack of objection to shared costs throughout the UD 69 process. Charter later expressed willingness to participate in the project and pay for its facilities construction but objected to paying joint trenching, repaving, and administrative costs. A. Lee reported that construction of UD 69 is about 90% complete, with conduits and vaults prepared for Charter, and reiterated APU's position that Charter must pay its proportional share of project costs. The Board inquired if Charter's facilities would be located in a joint trench with APU and other utilities' facilities for UD 69. A. Lee confirmed that under UD 69, Charter's facilities would share trench space with other utilities' facilities. 2025 - 56 6. RECOMMEND AWARD OF DESIGN -BUILD AGREEMENT TO BALFOUR BEATTY CONSTRUCTION, LLC FOR THE DESIGN AND CONSTRUCTION OF A FIELD MAINTENANCE BUILDING AT A NOT -TO -EXCEED COST OF $29,925,000, PLUS A 15% CONTINGENCY, AND DETERMINE THAT THE PROJECT IS CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15332 OF TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS. * C. Parker, Assistant General Manager — Water Services, briefed the Board on the design -build agreement for the proposed project in collaboration with the Public Work's Department (PW). Although APU will coordinate the design, PW will serve as the contract administrator and be responsible for the overall project administration. C. Parker described the existing field building that is occupied by APU's field staff, within the utility yard that also includes fleet vehicles, equipment, and warehouse. C. Parker shared the challenges with the existing field building, including that the building is now at the end of its useful life with older equipment, field staff has outgrown the facility, and that it would be cost prohibitive to retrofit for current needs. The proposed Field Maintenance Building (FMB) would accommodate current needs, maximize collaboration during working hours and promote efficiency among field personnel during emergency callouts. Through a competitive design -build evaluation process, APU recommends awarding Balfour Beatty Construction, LLC (Balfour Beatty) based on the best value determination that includes qualifications, relevant experience, quality of the proposed building, and project costs. The project's budget is $29.9 million, and the completion date is set for late 2027. The Board asked if construction would affect APU's field crews or facility operations. C. Parker explained that the facility operations would see a minimal impact due to the new building being located out of the flow of the existing building. The Board inquired if input from APU's field staff was solicited for the design of the project. C. Parker stated that there was a thorough process to consider input from field staff. The Board suggested that the design should consider future staffing needs due to workforce changes, such as restroom facilities. The Board asked if the existing building would continue to be utilized after completion of the FMB. D. Lee, Public Utilities General Manager, explained that the existing building will continue to be utilized by the meter shop and warehouse, among other purposes. The Board inquired if APU checked for chemical contamination at the FMB's site. C. Parker stated that there is no known contamination, but a thorough analysis of the soil will be conducted. D. Lee explained that the required testing and steps will be taken before construction begins. The Board thanked APU for addressing the need for a new FMB to meet current and future operations, noting this was long overdue. A. McMenamin moved the recommendation to award the design -build agreement to Balfour Beatty Construction, LLC. T. Ibrahim seconded the motion. MOTION CARRIED: 5-0. ABSTAINED: 0. ABSENT: 0. 2025 - 57 7. RECOMMEND APPROVAL OF THE FORM OF THE GENERAL M. Lee moved the SERVICES AGREEMENT — WATER ENGINEERING FOR recommendation to approve the PROFESSIONAL ENGINEERING AND CONSULTING form of the General Services SERVICES, WITH A FIVE-YEAR TERM AND UP TO TWO ONE- Agreement — Water Engineering YEAR EXTENSIONS, TO BE USED WITH PREQUALIFIED for professional engineering and CONSULTANTS AND APPROVAL OF A NOT -TO -EXCEED consulting services. AMOUNT OF $500,000 PER WORK ORDER PACKAGE WITH A Vice -Chairperson A. Pham 15% CONTINGENCY FOR AS -NEEDED EXTRA WORK, WITH seconded the motion. A PER -CONSULTANT LIMIT OF $1,500,000 IN TOTAL AWARDS MOTION CARRIED: 5-0. PER FISCAL YEAR. * ABSTAINED: 0. ABSENT: 0. C. Parker provided an overview of the proposed professional engineering and consulting services agreement for APU's Water Engineering division and shared that the agreement includes 29 prequalified consulting firms for engineering and technical services to support capital and maintenance projects. The agreement allows staff to efficiently execute projects using the standard General Service Agreement (GSA). Consulting firms on the list participate in a competitive process for each specific project and are selected per Council Policy 4.1. The GSAs have been updated to include an increased task order limit from $400,000 to $500,000 due to inflation, a $1.5 million limit per year per consultant to foster competition, and an extended term from three to five years. This is in line with the GSAs for the Electric Services Division. The Board asked how many pre-existing consultants remained on the list compared to the new consultants added. C. Parker stated that nine did not submit proposals for consideration and fifteen new consultants were prequalified and added to the new list. The Board inquired why pre- existing consultants chose not to submit proposals. C. Parked shared that although the firms are prequalified and added to the list, it is not guaranteed that they will be awarded a project. 8. UPDATE ON ELECTRIC SYSTEM ITEMS. J. Lonneker, Assistant General Manager — Electric Services, shared an overview of outages experienced during August's five-day heatwave. Nine outages occurred, with the largest affecting two circuits and approximately 1,100 customers due to a cable splice failure in east Anaheim for about three hours. Other smaller area outages resulted from overloaded transformers which have been replaced and upsized to accommodate for future electrification. APU's Electric Operations anticipated high temperatures over the Labor Day weekend, and prepared standby, troubleshooting, and electric operator crews to maintain timely restoration efforts. J. Lonneker provided an update on the seven segments of wildfire related undergrounding currently underway. Construction is challenging with poles and wires along narrow private roadways and where construction crews are trenching and installing vaults while maintaining access to residents. There is heightened concern that the Federal Emergency Management Agency (FEMA) grant funding timeline may not align with 2025 - 58 the construction schedule and therefore APU staff is working with the contractor to accelerate the civil construction. J. Lonneker provided updates on several APU street -lighting projects that provide improvements throughout the City. First, Modjeska Park where dual arm lights were installed in response to residents' safety concerns in the area; these lights are part of the undergrounding project on Cerritos Avenue and Nutwood Street. Additionally, residents expressed concern regarding the late -night activities around George Washington Park, and along Santa Ana Canyon Road, where lighting was installed at very dark locations at the end of cul-de-sacs. The Board inquired if APU has an update on wire theft activity throughout the City. J. Lonneker explained that wire theft has slowed down recently, but APU anticipates a rise in theft activity and staff is preparing by utilizing the mobile and street light cameras. 9. UPDATE ON WATER SYSTEM ITEMS. C. Parker briefed the Board on the current water supply condition and shared that the Orange County Groundwater Basin is in good condition even though rainfall in Southern California has been below average this season. The State Water Project (SWP) is in good condition and is experiencing a surplus of water that needs to be stored. The Delta Conveyance Project is moving through the process with most of the legislature in agreement. The Colorado River Basin had below average rainfall and about average snowfall this year. The dry spring, however, has reduced the amount of water from the snow. Lake Mead is beginning to drop levels again. The Basin States are still negotiating a conservation plan to reduce Lake Mead from dropping further. C. Parker informed the Board of two upcoming events. The Orange County Water Summit hosted by the Orange County Water District (OCWD) and the Metropolitan Water District of Orange County (MWDOC), will take place in September. C. Parker also shared that the Metropolitan Water District of Southern California (MWD) Colorado River Aqueduct Inspection Trip will be taking place in October, during the regularly scheduled Board meeting week. Although Board Members are encouraged to participate in events, C. Parker shared the importance of having a quorum at the October meeting and reassured the Board that there will be opportunities for similar trips in the future. C. Parker provided an update on the Water Recycling Demonstration Plant (WRDF) that was recently decommissioned due to reaching the end of its useful life. A substantial capital investment would be required to keep it running. The plant accomplished its goal of demonstrating the technology used to recycle water while educating the public and other water agencies. C. Parker shared that the recent violation with Orange County Sanitation District for the WRDF was related to sewer discharges that resulted in a low potential hydrogen (pH) level. The WRDF contracted operator was cleaning the filters with an acidic 2025 - 59 solution and did not properly mix the waste with a basic solution to neutralize the wastewater before sending it to the sewer. Decommissioning the WRDF will eliminate the potential for future recurrence. The Board asked if the WRDF was decommissioned due to maintenance costs or if it had reached the end of its useful life. C. Parker confirmed that the WRDF is still in working condition but the cost to upgrade aging equipment within the facility would be over $2 million. D. Lee added that thousands of people, from local students to international visitors, benefited from touring the WRDF. 10. 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 July 2025. B. Beelner mentioned that the Electric Utility revenue fell below expectations due to a cooler than expected early summer. This drop in temperature also led to lower than budgeted operating expenses. B. Beelner then discussed the Water Finance Dashboard and noted that the revenues and expenditures were largely in line with expectations with a slight drop in operating expenditures due to lower -than -expected supply and labor costs. B. Beelner briefed the Board on the monthly Power Supply Dashboard noting that the Intermountain Power Project's (lPP) two new gas units, Units 3 and 4, set to replace the two coal units, Units 1 and 2, have experienced some delays as the new gas units continued to trip offline. B. Beelner mentioned that Units 3 and 4 are slated for commercial operation before the end of the year. IPP has enough coal for Units 1 and 2 to run through October. B. Beelner shared the results of the recent sales of the 2025 Electric Revenue Bonds A and B. The demand for the Anaheim bonds was 4.7 times higher than available supply. APU bonds received $980 million in orders for $210 million in available bonds. This allowed for a reduction in interest rates offered to investors due to the high demand. The refunded bonds doubled expected savings due to this high demand and will save customers over $14 million in future interest payments. B. Beelner then provided an update on Canyon Power Plant's Unit 3, sharing that it was now back in service after its repair. Unit 3 is currently being tested to resume operation soon. Unit 1 is still under repair and should be back in service at the end of the year. 11. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS. J. Lehman, Assistant General Manager — Administration and Risk Services, provided an update on the Quarterly Internal Compliance Report for the second quarter of 2025. As previously mentioned by C. 2025 - 60 Parker, the WRDF received a violation related to the contracted operator not properly neutralizing the wastewater when cleaning the filters. J. Lehman provided an update following a question from the Board at the July Board meeting regarding Assembly Bill 476 — Metal Theft and how the fine was applied. J. Lehman clarified that the potential fine was $5,000 per offense, not per transaction or item. J. Lehman then provided an update on the Administration and Risk Dashboard and shared upcoming key dates in the remaining weeks of the legislative session. J. Lehman then discussed the following active bills: • SB 445 — High Speed Rail: This is now a two-year bill, and APU will revisit in January 2026; • SB 541 — Energy Load Shifting: This bill is being opposed by APU due to cost and operational impacts; • SB 332 — Investor -Owned Utility (IOU) Accountability Act: This bill is being watched in the event public utilities such as APU are impacted; and • AB 1207 — Cap and Invest: Extension of Former "Cap and Trade" Program: This bill is being supported by APU with benefits from the current program continuing. J. Lehman then shared the safety metrics, which were trending positively, and APU had no reportable injuries during this reporting period. J. Lehman explained that APU continues to provide training to help minimize injuries. APU's Safety Services team recognized APU's electric crews for earning the American Public Power Association (APPA) Safety Award by demonstrating high proficiency in reliability and safety. J. Lehman thanked APU's electric crews for outstanding safety practices. 12. ITEMS BY SECRETARY. D. Lee shared that the Board would receive an invitation from the City Clerk's Office for the Annual City Boards and Commissions Recognition Dinner scheduled for later this year. Additionally, Council Member Balius appointed Board Member -Elect Ivan Castillo to represent District 1 on the Public Utilities Board. D. Lee shared agenda items planned for next month: • Annual Update on Department Order 310 — Extra Work/Change Orders Report; • Utilities Success Indicators; • Sustainability Education Center Update; and • Agreement for Inspection Services for Electric Underground Equipment. 2025 - 61 D. Lee shared the following updates: • APU staff participated in back -to -school events to support local students; • Vice -Chairperson A. Pham and Board Member M. Lee joined APU staff at National Night Out hosted by the Anaheim Police Department; • APU's Community and Sustainability Program's team hosted a Senior Outreach Event to inform the senior community about APU's assistance programs; • The City hosted one of its Sister Cities — Mito, Japan where Junior High students joined staff for a tour of APU facilities and built solar -powered cars; • APU hosted an Early Career Development training for staff that focused on career progression, networking, technical skills and collaboration among different divisions. Lastly, D. Lee requested that the Board meeting be closed in memory of Frank Carrillo, a former APU employee who worked in the Water Services Division and retired as a Maintenance Pipefitter. Board Member A. McMenamin shared memories of his time working with F. Carrillo. 13. ITEMS BY BOARD MEMBERS. Chairperson J. Seymour stated he received a save -the -date email, and asked to clarify the date of the Sustainability Education Center's dedication. D. Lee confirmed the date as October 131h, and shared that the Board would receive an invitation with further details. 14. ADJOURN: (NEXT REGULAR MEETING ON SEPTEMBER 24, 2025 AT 5:00 P.M.) Chairperson J. Seymour asked for a moment of silence in memory of Frank Carrillo. ectfully bmitted, 6 Dukku Lee Public Utilities General Manager T. Ibrahim moved to adjourn the Regular Meeting in the Gordon Hoyt Conference Center at 6:23 p.m. to the Board's Regular Meeting date of September 24, 2025, at 5:00 p.m. A. McMenamin 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 - 62