Public Utilities 2026/01/28CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
January 28, 2026
The agenda having been posted on Thursday, January 22, 2026, the Regular Meeting of the Public Utilities Board
(Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday, January 28, 2026, 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, S. Kewalramani
Board Members Absent: I. Castillo
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker, A. Lee,
P. Starr, M. Seifen, A. Nguyen, C. Pereyra, N. Le, D. Kim, C. Ghaby, J. Taulbee,
J. Sanks, A. Markis, M. Pan, P. Mendez, G. Cuevas, C. Looney, P. Garcia,
B. Mendoza, T. Castaneda, T. Mardikian
Guests Present: K. Maples; United States Environmental Protection Agency (EPA): A. Cruz,
Remedial Project Manager; J. Lane, Community Involvement Coordinator;
L. Sievers, Section Manager
AGENDA ITEM
1. OATH OF OFFICE:
ACTION TAKEN
A. Lee, Assistant City Attorney, administered the Oath of Office to the
newly appointed member of the Board, S. Kewalramani — At Large.
After the Oath of Office, the following recognitions were made:
C. Parker, Assistant General Manager — Water Services, recognized G.
Cuevas, Maintenance Pipefitter with Water Services, for his commitment
to the safety of the Anaheim community and assistance to an Anaheim
senior who fell on Ball Road. G. Cuevas pulled his truck over and
protected the woman from oncoming traffic. G. Cuevas then called
Anaheim Fire & Rescue for assistance and waited until they arrived and
rendered aid to the senior.
D. Lee, Public Utilities General Manager, recognized J. Lehman, Assistant
General Manager — Administration and Risk Services, who is retiring after
33 years of service with Anaheim Public Utilities (APU). The Board
wished J. Lehman well in retirement.
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2. PUBLIC COMMENTS.
3. APPROVE THE MINUTES OF THE REGULAR MEETING OF
DECEMBER 17, 2025.
4. PRESENTATION: NORTH BASIN GROUNDWATER CLEANUP
AND PUBLIC OUTREACH BY THE U.S. ENVIRONMENTAL
PROTECTION AGENCY.
A. Cruz briefed the Board on EPA's interim remedy and the proposed
plan. The proposed plan evaluated numerous alternatives and
recommended the fourth alternative; this alternative includes extracting
the groundwater, pumping the groundwater to a treatment plant, and then
pumping the treated water to injection wells back into the groundwater
basin. The interim remedy will cost about $250 million and will be funded
by the responsible parties — no Anaheim residents will be paying to fund
the project. The public has until February 19, 2026, to submit any
comments on the proposed plan.
The Board asked if the plume has grown. A. Cruz stated that the plume
has grown and is considered a relatively fast-moving plume. This is why
the interim remedy is needed to slow the plume down until the regional
solution is determined.
The Board inquired if the pollutants are in the air at the source sites.
A. Cruz replied that any vapor or soil mitigation is being managed by the
State Regional Water Board and State Department of Toxic Substances.
The Board also inquired are the polluters still contaminating the
groundwater basin. A. Cruz stated that contaminants are no longer being
released into the groundwater basin.
The Board asked how long the cleanup of the basin will last. A. Cruz
stated that it is unknown at this time considering there is an interim and a
regional long-term solution; however, it will probably be in excess of 30
years.
There being no electronic or oral
public comments, Chairperson
J. Seymour closed the public
comments portion of the
meeting.
M. Lee moved the approval of
the Minutes of the Regular
Meeting of December 17, 2025.
A. McMenamin seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 1.
[S. Kewalramani]
ABSENT: 1. [1. Castillo]
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5. RECOMMEND APPROVAL OF A RENEWABLE POWER
M. Lee moved the
PURCHASE AGREEMENT (PPA) WITH CAMERON RIDGE LLC
TO PURCHASE WIND -GENERATED ENERGY AND
ASSOCIATED RENEWABLE AND CAPACITY ATTRIBUTES
FROM THE CAMERON RIDGE PROJECT, WITH A TEN-YEAR
TERM, AT AN AVERAGE ANNUAL COST OF $12.8 MILLION
AND APPROVAL OF A SECOND PPA WITH ALTA OAK
REALTY, LLC TO PURCHASE WIND -GENERATED ENERGY
AND ASSOCIATED RENEWABLE AND CAPACITY ATTRIBUTES
FROM THE ZEPHYR PARK AND OAK CREEK PROJECTS, WITH
A TEN-YEAR TERM, AT AN AVERAGE ANNUAL COST OF $5.7
MILLION. *
A. Markis, Senior Integrated Resources Planner, provided an overview on
the Legacy Wind Project, which was procured through a Request for
Proposals (RFP) issued by APU. The Legacy Wind Project was developed
by two Terra -Gen Development Company, LLC subsidiaries, Cameron
Ridge LLC and Alta Oak Realty, LLC., and are located near Tehachapi,
California. This resource has a total capacity of 78.47 Megawatts (MW)
and generates approximately 175,000 Megawatt -hours (MWh) annually,
providing enough energy to power roughly 29,000 Anaheim homes.
The proposed 10-year agreement has a fixed price of $105.85 per MWh
and an estimated annual cost of $18.5 million. However, APU estimates
that the net average annual cost will be $12.8 million after offsetting
revenues and avoided costs.
If approved, Anaheim would begin receiving energy and associated
attributes soon after the agreement is executed. The Legacy Wind Project
delivers renewable energy credits to comply with state legislative
mandates, and resource adequacy that provides grid reliability. A. Markis
summarized the expected energy output and highlighted seasonal and
daily production patterns with the peak generation occurring in spring and
early summer, and how wind energy complements solar energy as peak
production typically occurs opposite peak solar production. The
agreement's structure offers price stability, environmental compliance
benefits, and future flexibility to adapt to changing energy needs.
The Board inquired about the developer's choices for selling this power,
and A. Markis informed the Board that they sought a long-term contract.
recommendation to approve
the PPAs with Cameron Ridge
LLC and Alta Oak Realty, LLC.
Vice -Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [I. Castillo]
6. RECOMMEND APPROVAL OF AN AGREEMENT WITH EAGLE
Vice -Chairperson A. Pham
SYSTEMS INTERNATIONAL, INC. (DBA SYNERGY
moved the recommendation to
COMPANIES) FOR ENERGY AND WATER EFFICIENCY
approve of the agreement with
RESIDENTIAL PROGRAMS AND DIRECT INSTALLATION
Eagle Systems International, Inc.
SERVICES, WITH AN INITIAL TERM OF FIVE YEARS AND UP
(DBA Synergy Companies).
TO TWO OPTIONAL ONE-YEAR EXTENSIONS, AT AN ANNUAL
A. McMenamin seconded the
NOT -TO -EXCEED COST OF $1,395,220 (INITIAL -TERM
AGGREGATE EQUALS $6.97 MILLION), PLUS A 10%
CONTINGENCY FOR AS -NEEDED EXTRA SERVICES.
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [I. Castillo]
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M. Avelino -Walker, General Services Officer, provided an overview of a
new agreement for energy and water efficiency residential programs and
direct installation services. Based on a competitive bid process, APU
recommends awarding the agreement to Eagle Systems International, Inc.
(Synergy), citing its relevant experience and its lowest -cost proposal.
M. Avelino -Walker stated that the item authorizes the continuation of the
Home Utility Check -Up program and the Dusk -to -Dawn Lighting Direct
Installation program for income -qualified customers. In July 2025, the
City issued an RFP that resulted in two proposals. Synergy's proposal met
the required scope at a lower cost. Synergy is Anaheim's incumbent
provider and currently provides similar services to other publicly owned
utilities.
7. UPDATE ON PROPOSED MODIFICATIONS TO THE ELECTRIC
AND WATER RATES, RULES AND REGULATIONS.
A. Nguyen, Utilities Financial Planning Manager, presented the proposed
modifications to APU's Electric and Water Rates, Rules, and Regulations,
starting with an overview of key utility rate goals and strategies, including
affordable rates. A. Nguyen noted that the presentation focused on,
proposed updates to four rules out of APU's 29 electric rules and 26 water
rules.
A. Nguyen stated that the intent of the presentation was to identify the
rules proposed for modification, explain the rationale for the changes, and
provide the Board an opportunity to ask questions in advance of receiving
rule language at next month's Board meeting.
A. Nguyen described proposed updates related to cross -connection control
to align Water Rule 16 and a chapter of the Anaheim Municipal Code
(AMC 10.24) with the State -required Cross -Connection Control
Management Plan currently under State review, which supports prevention
of contamination of the potable water system from medical, food waste, or
other hazards. A. Nguyen explained that additional modifications include
clarification of customer responsibilities for utility infrastructure located
on private property, eliminating plan check fees for basic service plans
requiring minimal review time, and incorporating State -mandated
customer protections into the water service disconnection rules (Water
Rule 11).
A. Nguyen outlined proposed updates to Electric Rule 16 to support
various housing configurations, including accessory dwelling units,
apartment complexes, or mobile homes. A. Nguyen explained that the
proposed updates would provide flexibility in service and metering design
while clarifying access requirements for utility equipment located on
private property. A. Nguyen described proposed clarifications to
interconnection requirements under Electric Rule 22 for customer -owned
generation to ensure safety, reliability, and system integrity. The changes
are to address larger systems in excess of 1 MW to ensure grid stability.
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A. Nguyen concluded by sharing there are no fee increases associated with
the recommendations and outlined next steps, including staff s plan to
return in February with proposed rule language for Board review and
request a recommendation to City Council.
The Board inquired about the key drivers for the proposed rule changes,
D. Lee explained that the updates reflect compliance with regulations and
evolving industry practices, including the increased adoption of customer -
owned generation, and that clear and consistent rules help support these
trends while maintaining safety standards.
8. QUARTERLY STATUS REPORT FOR PRE -QUALIFIED
PROFESSIONAL SERVICES, CONSTRUCTION, AND MATERIAL
PURCHASES (OCTOBER - DECEMBER 2025).
J. Lonneker, Assistant General Manager — Electric Services, shared that
there is progress made on the Electric Capital Improvement Plan (CIP)
and summarized that projects that fell within 50% or more of completion
for the Fiscal Year (FY) J. Lonneker noted that two areas, Electric Field
Capital and Substation Automation are multi -year projects where the
remaining budget allocation will carry-over to the next FY. J. Lonneker
highlighted ongoing projects including transformer and cable replacement
projects and undergrounding of Beach Boulevard.
The Board inquired if the tariffs will impact the ability to get equipment
from South Korea. J. Lonneker explained that there may be impacts in the
future, and the combination of new suppliers, accurate forecasting of
project demand, and stabilizing conditions with commodity pricing for
manufacturers has resulted in more reasonable delivery time for
distribution equipment such as transformers, switches and cable. However,
large substation type transformers remain difficult to procure, and subject
to dynamic market conditions.
C. Parker shared that the Water CIP is about 50 percent complete, and the
planned program is on schedule to be completed. C. Parker highlighted
three projects, the Groundwater Treatment Project, Phase C, this is above
schedule, the Coronet Avenue Water Main Replacement, construction will
start summer of 2026, and the Cerritos Avenue Water Main Replacement,
which will start construction spring of 2026.
D. Lee shared that the quarterly report highlights activities through
prequalified firms to support operations and capital projects.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker provided an update on the streetlight replacement project
where APU removed four wood streetlight poles and fixtures and installed
10 new concrete poles and a light -emitting diode (LED) fixtures within the
Diane Way neighborhood adjacent to Lincoln Avenue and east of
Brookhurst Street.
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J. Lonneker briefed the Board on a recent power outage due to a cable
failure affecting 645 customers in the area surrounding Weir Canyon Road
south of Santa Ana Canyon Road. APU will prioritize this area for cable
replacement to include in an upcoming construction package for the
ongoing cable replacement program.
J. Lonneker discussed the increase in wire theft with up to nine additional
incidents this month causing significant impact to operations and cost for
the utility. APU continues with replacing damaged equipment with more
secure infrastructure and working with the Anaheim Police Department to
install cameras on streetlights placed in areas with repetitive incidents.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the Water Supply Dashboard, and shared
that rainfall is currently above average. The Orange County Groundwater
Basin is in good condition. The State Water Project (SWP) is in good
condition as well, with above average rainfall to date. The Colorado River
Basin rainfall has been under average to date. The conservation
negotiations of the seven Basin States are still ongoing, and will be
meeting with the Federal government in February to move negotiations
forward.
C. Parker provided an overview of the Orange County Water District
(OCWD) Water Supply Exhibit. OCWD staff are currently recharging
water from the holiday storms. OCWD has coordinated with the U.S.
Army Corps of Engineers to store water behind the Prado Dam to be
recharged slowly, in order to stay within capacity of recharge basins, over
time so little or no water is lost to the ocean.
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 December
2025 and mentioned that the Electric Utility revenue for the period
exceeded expectations mainly due to better-than-expected wholesale and
transmission revenue. B. Beelner also mentioned that electric expenses
were approximately 16% below budget mainly due to some timing
differences with various renewable energy contracts.
B. Beelner then discussed the Water Finance Dashboard and noted it was
below expectations due to the wet winter Anaheim has had so far reducing
outdoor water usage.
B. Beelner briefed the Board on the monthly Power Supply Dashboard
noting that coal is no longer in APU's power portfolio since the coal units
(Units 1 and 2) at the Intermountain Power Project have been taken offline
and replaced by natural gas.
B. Beelner then reminded the Board about the upcoming tour at the San
Onofre Nuclear Generating Station on February 4, 2026.
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12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman provided an overview of the Administration and Risk Services
dashboard, highlighted that this was the second year of the two-year
legislative session, and that the State of California continues to face
budget deficits, so that affordability will once again be a concern in the
legislature. J. Lehman highlighted the following bills:
AB 532 and SB 350 — Low -Income Rate Assistance (LIRA):
Water; these bills are being watched by APU; and
SB 332, SB 327, and SB 875 — Investor -Owned Utility (IOU)
Accountability Act: These bills are being watched in the event
public utilities such as APU are impacted.
J. Lehman then reviewed APU's safety metrics, which were being met,
and shared that APU had one reportable injury during the reporting period
when an employee closed their finger in a gate. J. Lehman said that APU
continues to provide training to help minimize injuries.
13. ITEMS BY SECRETARY.
D. Lee informed the Board that J. Sanks, Environmental Services
Manager, and M. Pan, Utilities Chief Risk Manager, will each serve as
interim Assistant General Manager — Administration and Risk Services for
two -month increments.
D. Lee shared agenda items planned for next month:
• Public Hearing to Consider Modifications to the Electric and
Water Rates, Rules and Regulations;
• Water Wildfire Mitigation Plan Update;
• Community & Sustainability Annual Update; and
• Substation Expansion Agreement.
D. Lee shared the following updates:
• APU staff provided an introductory overview and tour of APU for
Board Member S. Kewalramani;
• APU staff participated in the Katella High School Resource Fair
hosted by Council Member N. Campos Kurtz and Council Member
K. Maahs; and
• APU is supporting the City of Anaheim's Quality of Life Task
Force through landscaping and lighting improvements near
Brookhurst Street and Crescent Avenue.
14. ITEMS BY BOARD MEMBERS.
Vice -Chairperson A. Pham and Board Member M. Lee thanked J. Lehman
for serving APU for 33 years.
Chairperson J. Seymour welcomed new Board Member S. Kewalramani to
the Board.
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15. ADJOURN: (NEXT PUBLIC HEARING/REGULAR MEETING ON
FEBRUARY 25,2026, AT 5:00 P.M.)
Respectfully submi ed,
Dukku Lee
Public Utilities General Manager
Vice -Chairperson A. Pharn
moved to adjourn the Regular
Meeting in the Gordon Hoyt
Conference Center at 6:31 p.m,
to the Board's Public
Hearing/Regular Meeting date
of February 25, 2026, at 5:00
p.m. A. McMenamin seconded
the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [1. Castillo]
*Indicates voting item(s) that will be forwarded to City Council for action upon recommendation by the Board.
"Indicates voting item(s) that do not require further approval actions.
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