Public Utilities 2025/09/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
September 24, 2025
The agenda having been posted on Thursday, September 18, 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, September 24, 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, I. Castillo
Board Members Absent: (One Board Member seat is currently vacant)
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker,
A. Lee, P. Starr, B. Mendoza, V. Tran, T. Castaneda, Y. Saldivar, M. Seifen,
A. Nguyen, C. Pereyra
Guests Present: None
AGENDA ITEM
1. OATH OF OFFICE: **
A. Lee, Assistant City Attorney, administered the Oath of Office to
the newly appointed member of the Board, I. Castillo — District 1.
2. PUBLIC COMMENTS.
3. APPROVE THE MINUTES OF THE REGULAR MEETING OF
AUGUST 27, 2025. *
4. PRESENTATION: SUSTAINABILITY EDUCATION CENTER
UPDATE.
T. Castaneda, Community and Sustainability Programs Manager, shared
that construction of Anaheim Public Utilities' (APU) new flagship
Sustainability Education Center (SEC) has been completed and will
serve as a hands-on learning hub for energy, water, and workforce
ACTION TAKEN
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 August 27, 2025.
M. Lee seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 1 [I. Castillo].
ABSENT: 0.
2025 - 63
development. T. Castaneda described that the project was recommended
by the Board, approved by City Council in 2023, and completed within
budget at $8.75 million. The presentation highlighted the facility
features, including the exhibit hall with ten renewable energy and water
exhibits, as well as a flexible "utility" learning lab. T. Castaneda
concluded by sharing that the dedication ceremony is scheduled for
October 13m.
The Board inquired about how the facility will be made available to the
public, and T. Castaneda explained that future open houses would be
scheduled for residents and students to explore opportunities at the SEC.
5. FISCAL YEAR 24/25 UTILITIES SUCCESS INDICATORS.
Y. Saldivar, Utilities Analyst, presented an update on the Utilities
Success Indicators (USI) for the Fiscal Year (FY) ending June 30, 2025.
The USI features 21 different metrics that measure APU's performance
in meeting several key strategic objectives in areas such as affordability,
system reliability, and customer experience.
Y. Saldivar reported that call wait times had improved to under two
minutes and that customer satisfaction, measured through Anaheim
Anytime, remained high.
Y. Saldivar also noted that two electric reliability metrics ranked in the
top 25% nationally, with restoration times slightly exceeding the target.
The Board asked how APU establishes its electric reliability goals and
what approach it takes to achieve them. Y. Saldivar explained that APU
benchmarks its performance against data from utilities nationwide, with
the goal of remaining in the top quartile. J. Lonneker, Assistant General
Manager — Electric Services, and D. Lee added that proactive
maintenance and continued investments have been key drivers of APU's
reliability results. The Board inquired if there were still supply chain
issues affecting materials, and J. Lonneker explained that the situation is
improving with more vendors being qualified, but there are still
nationwide shortages.
Y. Saldivar further reported that 4.5 main breaks per 100 miles of pipe
were recorded during the reporting period, meeting the USI target.
The Board inquired why this figure was noticeably higher than in prior
years. D. Lee, Public Utilities General Manager, and C. Parker, Assistant
General Manager — Water Services, explained that annual fluctuations
can occur and the prior year was exceptionally low, but that continued
investment and maintenance help mitigate such breaks and keep APU
well below the national average of 11 main breaks per 100 miles.
Y. Saldivar highlighted metrics related to generation resource
availability, risk mitigation, water quality, and ongoing pole inspections.
Y. Saldivar also reported progress on renewable energy targets, energy
and water savings, employee safety, and light -emitting diode (LED)
2025 - 64
streetlight conversions. Y. Saldivar noted that overall, APU met 18 of its
21 goals with the remaining three goals in the `watch' status.
The Board asked if APU plans on updating additional wells. C. Parker
shared that APU is finished with Phase A and B of the Groundwater
Treatment Projects and is working on the remaining wells as part of
Phase C with a timeframe of approximately three years.
The Board thanked staff for their efforts and emphasized the importance
of the information provided on the competitive rates for Anaheim
residents.
6. RECOMMEND APPROVAL OF A PROFESSIONAL SERVICES
AGREEMENT WITH HENKELS & MCCOY WEST, LLC FOR
INSPECTION SERVICES OF UNDERGROUND AND SURFACE -
MOUNTED ELECTRIC AND FIBER OPTIC SYSTEMS, WITH A
TWO-YEAR TERM WITH AN OPTION TO EXTEND UP TO ONE
ADDITIONAL YEAR, AT A NOT -TO -EXCEED COST OF
$4,988,294, PLUS A 10% CONTINGENCY FOR AS -NEEDED
EXTRA SERVICES. *
V. Tran, Transmission and Distribution Manager, provided an overview
of the professional services agreement for the Electric System Inspection
Program, which assesses electrical assets and prioritizes repairs and
replacements. V. Tran explained that APU's inspections utilize timelines
established by the State of California as best practice to proactively
identify degradation in electrical systems and correct equipment issues
before they affect electric service reliability. V. Tran noted that
inspection data and photos are stored in the City's Geographic
Information System (GIS), providing real-time access for engineering,
field crews, and operations staff to efficiently plan routine maintenance
and capital improvement projects.
Following a competitive bid process, APU recommends awarding the
agreement to Henkels & McCoy West, LLC (HMW) based off the
performance of high -voltage inspection services for regional electric
utilities, including Southern California Edison and San Diego Gas &
Electric. In 2022, HMW successfully completed underground inspection
services for APU. The proposed agreement term is two years, with an
optional one-year extension.
The Board inquired whether APU would be responsible for providing
materials if the inspection identifies repair needs. V. Tran explained that
most materials will be provided by the City for the contractor to perform
the repair work.
The Board asked when the last inspection contract was completed and
whether all high -priority repairs or replacements from the last inspection
cycle had been completed. V. Tran shared that the previous contract was
completed in December 2022 and that approximately 50 locations are
still awaiting material delivery before replacement work can be
A. McMenamin moved the
recommendation to approve the
professional services agreement
with Henkels & McCoy West,
LLC. A. Pham seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 65
scheduled, and that these remaining locations have been stabilized and
are not impacting electric reliability.
The Board asked if the City has experienced an increase in liability due
to broken vault lids or concrete issues. D. Lee explained that the purpose
of maintaining an active inspection program is to mitigate risks and
make necessary repairs based on the severity of the issues identified.
7. FISCAL YEAR 24/25 REPORT FOR DEPARTMENT ORDER 310
— EXTRA WORK/CHANGE ORDERS.
D. Lee provided the Board with an overview of the completed extra
work/change order projects totaling approximately $39 million for the
past Fiscal Year. Total expenditures were approximately 3.4% less than
estimated. APU did not exceed the authorized change order authority on
any of the projects. Reasons for expense changes during a project
include a change in scope of work, or in the difference between
estimated and actual quantities of bid items.
8. APPROVE UPDATES TO DEPARTMENT ORDER 350
A. McMenamin moved the
(PROCUREMENT OF LONG-TERM ENERGY RESOURCES), approval of Department Order
DEPARTMENT ORDER 511 (SPILL RESPONSE), AND 350, Procurement of Long -Term
DEPARTMENT ORDER 514 (ACCIDENT PREVENTION Energy Resources; Department
MANUAL). Order 511, Spill Response; and
Department Order 514, Accident
M. Avelino -Walker, General Services Officer, provided an overview of
APU's Department Orders (DO) that establish and document guidelines
and procedures. The DOs align with the City's policies and facilitate
staff efficiency, effectiveness, accountability, and include department -
specific procedures. M. Avelino -Walker explained that DOs are updated
as needed to reflect changes in procedures, roles or responsibilities that
can impact operational readiness in different areas throughout APU.
Three DOs were discussed for the Board's consideration: DO 350,
Procurement and Decommissioning of Long -Term Energy Resources;
DO 511, Spill Response; and DO 514, Accident Prevention Manual.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker shared with the Board a power outage that occurred
impacting the Super 8 Motel due to an underground cable failure. The
outage was from early morning and lasted until approximately 3pm, with
restoration made in time for returning guests. Anaheim has a higher
percentage of underground electric infrastructure compared with other
utilities, which can result in longer repair times during outages. This is
reflected in the standard Customer Average Interruption Duration Index
(CAIDI) performance metric measuring restoration time. Based on the
USI's shared earlier in the meeting, the CAIDI metric is still lower than
surrounding utilities.
J. Lonneker provided an update on the Transformer Replacement
Program and stated that 114 overhead pole -mounted transformers have
Prevention Manual. A. Pham
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 66
been replaced this year, totaling 504 overall since the beginning of the
program in 2022. After facing industry -wide supply chain issues, APU is
back on track with targeting replacement of 250 transformers per year.
Approximately 750 have been identified for replacement based on age
and type criteria. A number of transformers are replaced by APU crews
to develop their skills, provide hands-on apprentice training, and stay
prepared for emergencies, such as the assistance APU recently provided
Glendale Water and Power during the wildfires.
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, even though it was a dry year in Southern
California. The Delta Conveyance Project, the tunnel going around the
delta in Northern California to mitigate environmental issues, trailer bill
was not approved, which would have streamlined approvals so the
project could proceed faster. The project will still move forward but will
not be expedited. The Colorado River Basin had about an average year
in rainfall and snow but had a dry spring. Lake Mead continues to drop
in elevation. The Metropolitan Water District of Southern California
(MWD) will have increased storage to about 3.9-milli on -acre feet
(MAF) by end of this calendar year.
C. Parker shared that APU staff, MWD Director S. Faessel and Public
Utilities Board Members attended the recent Orange County Water
Summit this month. Topics discussed at the meeting were items such as
State regional issues, water storage and investing in the new water
systems.
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 August
31, 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 Los Angeles Department of Water and Power (LADWP)
has confirmed that Intermountain Power Project's (IPP) first new gas
unit (Unit 3) will commence commercial operation on October I stand
the second new gas unit (Unit 4) should commence commercial
operation around the end of November thereby eliminating coal from
APU's portfolio. B. Beelner reminded the Board that APU will exit the
new gas units by June 2027.
2025 - 67
The Board asked about the status of the repairs to Unit 1 of the Canyon
Power Plant. B. Beelner mentioned that it is still under repair in Canada
and is slated to return to service by the end of this calendar year.
The Board asked if the cost of repair eclipsed the cost of the Unit.
B. Beelner responded that it did not and that Canyon Power Plant
originally cost $300 million to build and this repair is estimated to cost
approximately $4 million.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided an update on the Wholesale Energy Risk
Management (ERM) program's Quarterly Compliance report. J. Lehman
highlighted that during this reporting period there was a violation of the
ERM program related to the submittal of a monthly supply plan report
one day late to the California Independent System Operator (CAISO)
and added that appropriate corrective actions were taken, including staff
training, to help ensure this does not occur again. All transactions
complied with the ERM program requirements.
J. Lehman gave a legislative update sharing that the first year of the two-
year legislative session was concluding, with the Governor having until
October 12m to either sign or veto the bills.
J. Lehman provided an update on the Administration and Risk
Dashboard and shared that currently there were approximately 160 bills
that APU is following, and the remaining bills will become two-year
bills that will not be active again until January 2026. J. Lehman then
discussed the following active bills:
• 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;
• AB 825 — Pathways: Independent Regional Transmission
Organization: This bill is being supported by APU; and
• SB 541 — Energy Load Shifting: This bill is being opposed by
APU due to cost and operational impacts.
J. Lehman provided a review of the safety metrics, which were trending
positively, and shared that APU had two reportable injuries during the
reporting period related to a strain from lifting a piece of equipment and
an employee tripping in a parking lot. J. Lehman explained that APU
continues to provide training, inspections and process reviews to help
employees minimize injuries.
13. ITEMS BY SECRETARY.
D. Lee shared that the Board received an invitation from the City
Clerk's Office for the Brown Act training that will be conducted by the
City Attorney's Office. D. Lee discussed the upcoming events memo
including the dedication of the Sustainability Education Center on
October 13, 2025.
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D. Lee shared agenda items planned for next month:
• Annual Update on Emergency Response Program;
• Electric System Reliability Update;
• Consultant Agreement for the Integrated Resource Plan; and
• Agreement for Energy Efficiency Kits for Residential Electric
Customers.
D. Lee shared the following updates:
• APU staff provided an introductory tour of APU facilities for
Board Member I. Castillo;
• APU staff participated in the Mental Health and Wellness
Resource fair hosted by Council Member N. Rubalcava at Center
Greens Park;
• APU staff attended a neighborhood meeting in which lighting
was one of the needs addressed, and the Dusk -to -Dawn program
details were provided;
• Council Member C. Leon and Council Member R. Balius, Vice -
Chairperson A. Pham, joined APU's Be Water Smart event at
Brookhurst Community Center; and
• APU partnered with Love Anaheim to provide painting supplies
that were used to paint fire hydrants as part of a service project.
14. ITEMS BY BOARD MEMBERS.
Vice -Chairperson A. Pham thanked staff for hosting the Be Water Smart
event and commented that it was a great event.
Board Member M. Lee thanked APU staff for the presentations and
information on APU's performance in affordability, system reliability,
and customer experience. M. Lee shared it was a great turnout by college
students at the Orange County Water Summit and mentioned the
students were amazed at all the information. M. Lee inquired how APU
manages the new electric vehicle (EV) charging stations that are being
put in. J. Lonneker responded plans need to be submitted and APU needs
to consider the load that is getting used to make updates to the
substations. M. Lee inquired if the developer and the City share the costs
of the new transformers. J. Lonneker responded the developer will
design and construct the plans, APU employees install the transformer,
the remaining costs are the responsibility of the developer.
Board Member A. McMenamin inquired on the timeline for the new
lights at Pearson Park. D. Lee responded that the civil work is complete;
however, there is a shipping delay for the poles and fixtures, which
should be installed following delivery.
Board Member I. Castillo thanked the Board Members and APU staff
for being so welcoming.
Chairperson J. Seymour welcomed Board Member I. Castillo.
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15. ADJOURN: (NEXT REGULAR MEETING ON OCTOBER 22,2025, M. Lee moved to adjourn the
AT 5:00 P.M.) Regular Meeting in the Gordon
Hoyt Conference Center at 6:24
p.m. to the Board's Regular
Meeting date of October 22,
2025, at 5:00 p.m.
A. McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
Respectfully sub itted,
Dukku Lee
Public Utilities General Manager
* Indicates item(s) that will be forwarded to City Council for action upon recommendation by the Board.
* * Indicates item(s) that will be forwarded to the City Clerk and City Council for informational purposes.
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