Public Utilities 2026/02/25CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
February 25, 2026
The agenda having been posted on Thursday, February 19, 2026, 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,
February 25, 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,
I. Castillo
Board Members Absent: T. Ibrahim, S. Kewalramani
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, M. Avelino -Walker, A. Lee, P. Starr,
M. Seifen, A. Nguyen, J. Sanks, B. Mendoza, T. Castaneda, S. Noble, T. Chen
G. V. Ramirez, T. Penna, P. Bogdanoff, T. Mardikian, J. Duenas, C. Pereyra,
G. Ludesirishoti, M. Nguyen, Y. Saldivar
Guests Present: S. Faessel, Metropolitan Water District of Southern California Board Director;
D. Chavez, Court Reporter; J. Villasehor, Orange County Translation and
Interpretation Services; M. Parrish, Resident; D. Parrish, Resident
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS.
Members of the public were able to make comments on non-public
hearing items.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
JANUARY 28, 2026.
3. PRESENTATION: COMMUNITY & SUSTAINABILITY ANNUAL
UPDATE.
T. Castaneda, Community and Sustainability Programs Manager, briefed
the Board on how Anaheim Public Utilities (APU) provided community -
focused and sustainable programs over the past year. T. Castaneda
provided an overview of the residential and commercial programs
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 January 28, 2026.
Vice -Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramani]
2026-9
designed to help customers improve energy and water efficiency, lower
utility costs, and meet state regulatory requirements. Highlighted efforts
included the Dusk -to -Dawn lighting program, electric transportation
initiatives, senior outreach and bill assistance programs, planned
demonstration gardens, community events, student engagement initiatives,
and educational programs at the Sustainability Education Center.
4. PRESENTATION: WATER SYSTEM WILDFIRE PREPAREDNESS
AND RESILIENCY PLAN.
P. Bogdanoff, Water Engineering Manager, provided information on
APU's Wildfire Preparedness and Resiliency Plan (Plan), including
impacts from previous wildfire events throughout Southern California.
P. Bogdanoff provided a summary of operational and capital
improvements that APU has implemented since 2008. These
improvements included the installation of wildfire cameras, facility
hardening, mutual aid agreements, training exercises and various facility
improvements.
P. Bogdanoff explained APU's recent modeling and risk assessment
efforts to identify potential improvements to the water system. APU
coordinated with Anaheim Fire & Rescue to develop modeling scenarios
that were used to identify system improvements to further strengthen
APU's preparedness, redundancy and reliability related to wildfire events.
P. Bogdanoff shared improvements that were identified, including
estimated $30 million in costs to be spread over the next 2-5 years as part
of the capital improvement program.
The Board inquired about how mutual aid works, and P. Bogdanoff
explained how cost sharing of resources helps multiple agencies. The
Board asked about the modeling efforts and what it produced as
recommendations. P. Bogdanoff explained that the modeling was essential
in identifying the capital investments to improve operational flexibility
and mitigate potential wildfire impacts in the future.
5. PUBLIC HEARING: PROPOSED INCREASES TO THE WATER
COMMODITY ADJUSTMENT (WCA) AND WATER SYSTEM
RELIABILITY ADJUSTMENT (WSRA) RATES OF THE WATER
RATES CONTAINED IN THE WATER RATES, RULES AND
REGULATIONS.
Chairperson J. Seymour called the Public Hearing to order; interpretation
services were offered in Spanish; and the Court Reporter swore in APU
staff.
APU presented prepared and oral testimony supporting the proposed
modifications to the Water Rates, Rules and Regulations, increasing the
Water Commodity Adjustment (WCA) by approximately $0.17 per
hundred cubic feet (HCF) and the Water System Reliability Adjustment
(WSRA) by $0.10 per HCF.
Chairperson J. Seymour
confirmed that there was no
majority protest made against
the proposed rate increases to
the WCA and WSRA and stated
that the rate increases would
take effect per state law on
March 1, 2026, and April 3,
2026, respectively.
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B. Beelner, Assistant General Manager — Finance and Energy Resources,
presented oral testimony explaining that these increases are intended to
address rising wholesale water costs and continued investments in water
system infrastructure. The proposed increases would, for a residential
customer consuming approximately 12,000 gallons of water per month,
raise the monthly bill by approximately $4.32. Despite this increase,
Anaheim's water rates would remain approximately 3 1 % below the
average of Orange County water agencies.
D. Lee, Public Utilities General Manager, reported that Anaheim mailed
approximately 86,061 Notices of Public Hearing: 84,291 in English and
1,770 in Spanish. Of these notices, approximately 61,790 were mailed to
property owners and approximately 24,271 were mailed to customers of
record. In response to the notices, Anaheim received 23 customer service
phone calls and a total of seven written protests prior to the public hearing.
At the conclusion of the foundational testimony, the Board did not pose
any questions, and no members of the public made oral comments during
the public comment period. D. Lee concluded with remarks emphasizing
APU's commitment to affordable, reliable water service and its offering of
water conservation and bill assistance programs.
A. Lee, Assistant City Attorney, then requested that all evidence, oral and
written, submitted by staff, including the Prepared Testimony with
exhibits of B. Beelner, the Affidavits of Publication of the Notices of
Public Hearing, the Certificate of Mailing of the notices, and the written
protests filed with the Secretary of the Board, be moved into evidence and
made a part of the record. Chairperson J. Seymour granted the motion and
then closed the Public Hearing, since there were no further witnesses or
evidence to consider.
6. RECOMMEND: (i) INTRODUCTION AND ADOPTION OF AN
ORDINANCE REPEALING AND REPLACING CHAPTER 10.24
(WATER SYSTEM CROSS -CONNECTIONS) OF THE ANAHEIM
MUNICIPAL CODE; (ii) ADOPTION OF MODIFICATIONS TO
RULE NOS. 11 AND 16 OF THE WATER RATES, RULESAND
REGULATIONS; (iii) ADOPTION OF MODIFICATIONS TO RULE
NOS. 16 AND 22 OF THE ELECTRIC RATES, RULES AND
REGULATIONS; (iv) APPROVAL OF THE GENERATION
INTERCONNECTION AGREEMENT FOR THE
INTERCONNECTION OF GENERATING FACILITIES TO
ANAHEIM'S ELECTRIC SYSTEM; AND (v) A DETERMINATION
THAT THE FOREGOING ACTIONS ARE NOT SUBJECT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CEQA")
PURSUANT TO CEQA GUIDELINES (CAL. CODE REGS., TITLE
14, CH. 3) SECTIONS 15060(C)(2)-(3), 15061(B)(3), 15301-15304,
AND 15378. *
A. Nguyen, Financial Planning Manager, summarized the proposed
modifications to APU's Electric and Water Rates, Rules, and Regulations,
A. McMenamin moved the
recommendation to introduce
and adopt the Ordinance
amending AMC Chapter 10.24;
to adopt the proposed
modifications of the Electric and
Water Rates, Rules, and
Regulations; and to approve the
Generation Interconnection
Agreement.
M. Lee seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramani]
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noting that these proposed updates were first presented to the Board in
January 2026 and were now before the Board for consideration.
A. Nguyen described proposed updates to Water Rule 16 and Anaheim
Municipal Code Chapter 10.24 (Water System Cross -Connections) to
align with the State -required Cross -Connection Control Management Plan
(Plan). A. Nguyen noted that the proposed updates are intended to keep
the utility rules, local code, and Plan aligned, making the Plan easier to
implement once approved by the State and ensuring customers see
consistent requirements across all documents.
A. Nguyen outlined proposed modifications to Water Rule 11 to embed
State -required customer protections into the water service disconnection
rules. A. Nguyen explained that these protections include advance notice,
alternative payment plans, availability of the disconnection policy in
multiple languages, and additional safeguards for customers facing
financial or health -related hardships.
A. Nguyen described proposed updates to Electric Rule 16, which governs
how electric service connections and metering are designed and installed.
A. Nguyen explained that the proposed updates provide greater flexibility
to design service connections and metering that reflect site -specific
conditions while maintaining system standards. A. Nguyen also noted that
the updates clarify customer responsibilities related to utility equipment on
private property, ensuring crews can access equipment when needed for
inspections or maintenance.
A. Nguyen presented the final set of updates relating to interconnection
requirements under Electric Rule 22. A. Nguyen explained that the
proposed rule updates clarify existing requirements and noted that in
conjunction with the proposed rule updates, the Generation
Interconnection Agreement was also updated to ensure clarity and
consistency with all applicable documents and rules. A. Nguyen reiterated
that these updates do not create new requirements or slow the process for
typical small residential solar installations and that the City's expedited
plan check for such requests remains unchanged.
7. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services, provided an
update on APU's restoration efforts following the outages from the recent
windstorm. APU's electric system experienced 11 outages in 24 hours,
with wind/vegetation (palm fronds, tree limbs, flying debris damage)
accounting for seven of the outages, one from lightning hitting the power
lines, and two outages where power lines came down from the force of the
wind. At peak, just under 10,000 customers were impacted across multiple
circuits. Over 50% experienced only a brief 10 second interruption after
palm fronds blew into and cleared the power lines. Approximately 1,500
customers remained without power for one hour and the remaining 500
customers experienced a longer duration outage, averaging just over nine
hours before power was restored.
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In addition to ongoing programs including transformer, wood pole and
cross -arm replacement to harden the electric system, APU will evaluate
the feasibility and cost of a future covered conductor overhead line rebuild
or partial undergrounding to enhance reliability in areas more susceptible
to high winds and animal contact.
J. Lonneker shared the completion of streetlighting upgrades on
Brookhurst Street, from Lincoln Avenue to the California State Route 91.
Quality of life concerns were submitted to APU for assistance addressing
the dark areas along the corridor.
The Board expressed appreciation for the email update provided regarding
the storm outages.
8. UPDATE ON (i) WATER SYSTEM ITEMS AND (ii)
INFORMATIONAL UPDATE ON THE EXCEEDANCE OF
NOTIFICATION LEVEL FOR PER- AND POLYFLUOROALKYL
SUBSTANCES (PFAS) AT WELL 51 (NEAR SCHWEITZER PARK).
C. Parker, Assistant General Manager — Water Services, 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 and slightly under average snowfall. The Colorado River
Basin rainfall has been under average.
All water captured behind Prado Dam during the last storm is currently
being recharged in the Orange County recharge basins in Anaheim. The
allocation is currently 30 percent, forecasting enough water to supply
customer needs this year. The conservation discussions between the seven
basin States have not progressed towards a solution. C. Parker provided an
update on the United States Environmental Protection Agency's (EPA)
North Basin Community Outreach event at the Brookhurst Community
Center, and shared that APU joined by hosting a WaterSmart event to
provide information to residents about water conservation, water quality,
and rebate programs.
C. Parker briefed the Board on APU's Demonstration Garden
Neighborhood Outreach event, including input from residents regarding
design alternatives to convert a grass area to drought tolerant plants
(demonstration garden) to promote water conservation.
C. Parker briefed the Board regarding the update sent to the Board and
City Council on the exceedance of notification level for Per- and
polyfluoroalkyl substances (PFAS) at Well 51 (near Schweitzer Park). The
State Division of Drinking Water (DDW) reduced the notification levels (a
precautionary health -based advisory level) for PFAS, which triggered the
notification. Although the PFAS levels at the well had not recently
increased, APU removed the well from operation while APU staff
evaluates the site. To date, Anaheim has invested approximately $170
2026 - 13
million in the construction of treatment for 14 wells (Phase A and B).
Phase C wells, which have been removed from service, are in design with
a planned award of the construction contracts later this year. The Orange
County Water District (OCWD) has reimbursed the City for most of the
cost, and both organizations joined a class action lawsuit to seek
reimbursement for the cost from the responsible parties.
The Board inquired about the negative value in the precipitation outlook
dashboard, and C. Parker explained that is the way it is presented. The
Board inquired about the location of Well 51, and C. Parker explained it is
near Schweitzer Park.
9. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner, discussed the monthly Finance Dashboard for the period
ending January 2026 and shared that the Electric Utility revenue for the
period exceeded expectations mainly due to better-than-expected
wholesale revenue. B. Beelner also mentioned that electric expenses were
below budget mainly due to timing differences with various renewable
energy contracts. B. Beelner then discussed the Water Finance
Dashboard, noting it was below expectations due to a reduction in outdoor
water usage as a result of the wet winter Anaheim has had so far.
B. Beelner then discussed the monthly Power Supply Dashboard and
mentioned that the Terra -Gen Legacy Wind project is now online and
providing wind power.
B. Beelner shared that Council Member Balius, District 1, and members
of the Board attended a tour of the San Onofre Nuclear Generating Station
(SONGS) to see the status of the decommissioning and demolish of the
plant. B. Beelner discussed APU's history with SONGS, and the timeline
and cost of its decommissioning. The Board commented about the amount
of time and complexity decommissioning and demolishing a plant of its
size and scale takes. Chairperson J. Seymour expressed interest in the
next tour of SONGS.
The Board inquired on the demolition completion date. B. Beelner
explained that several variables impact the timeline; the primary two
being the U. S. Navy's demands for below grade infrastructure removal,
and the Department of Energy's timeline to take possession of the spent
fuel stored on site.
10. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Sanks, Acting Assistant General Manager — Administration and Risk
Services, discussed the Internal Compliance Plan report for the fourth
quarter of 2025. J. Sanks described that the State Water Resources Control
Board issued a monitoring violation because a required water sample for
disinfection byproducts was inadvertently missed during the third quarter
of 2025. J. Sanks mentioned that samples collected before and after the
missed sample were within normal limits. There is no monetary penalty
2026 - 14
associated with the violation, but the incident will be reported in the
annual Consumer Confidence Report.
J. Sanks then shared that APU is tracking approximately 62 bills in the
State Legislature. The number dropped as many bills failed to meet
legislative deadlines, but new bills were being introduced so the number
fluctuates.
J. Sanks highlighted the following bills:
AB 532 and SB 350 — Low -Income Rate Assistance (LIRA):
Water; these bills are being watched by APU; and
SB 868 — Portable Solar Generation Devices "Balcony Solar"; this
bill is being watched by APU.
J. Sanks then gave an overview of APU's safety metrics, which are
trending lower than the previous year, and shared that APU continues to
provide training to staff.
11. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Public Hearing for Underground District Formation on Ball Road,
between Brookhurst and Euclid;
• Agreement to receive grant funding for eligible electric utility
customers;
• Safety Services Presentation; and
• National Consumer Protection Month Presentation.
D. Lee provided an update on the Council -led district community
meetings. APU staff promotes resident engagement by highlighting APU's
services, programs and resources, as well as addressing topics of concern
in each district.
M. Avelino -Walker, General Services Officer, shared that APU hosted a
student workshop at the Sustainability Education Center as part of the
City's Youth in Government Day. The students developed presentations
for a student led City Council simulation which included discussion and
vote of real -life scenarios and proposals.
12. ITEMS BY BOARD MEMBERS.
Board Member Castillo requested a copy of APU's latest Upcoming
Events Memo.
Chairperson Seymour requested a long-term outlook on power supply and
how much it could potentially cost to meet green power requirements. D.
Lee responded that there is a planned presentation to the Board on the
Resource Portfolio in the near future, and it would include the request.
APU staff will send a copy of the
memo to Board Member Castillo.
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13. ADJOURN: (NEXT REGULAR MEETING ON MARCH 25, 2026,
AT 5:00 P.M.)
%
jectfully bmitted,
Dukku Lee
Public Utilities General Manager
M. Lee moved to adjourn the
Public Hearing/Regular Meeting
in the Gordon Hoyt Conference
Center at 6:42 p.m. to the
Board's Regular Meeting date of
March 25, 2026, at 5:00 p.m. A.
McMenamin seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramani]
*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.
2026 - 16