Public Utilities 2026/04/22CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
April 22, 2026
The agenda having been posted on Thursday, April 16, 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, April 22, 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, I. Castillo, S. Kewalramani
Board Members Absent: None
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, M. Pan, M. Avelino -Walker, M. Seifen,
A. Lee, B. Mendoza, J. Sanks, P. Bogdanoff, A. Nguyen, C. Pereyra, T. Castaneda,
S. Nelson, A. Diaz, S. Arredondo, J. Diaz, G. Cuevas, I. Carbajal, T. Chen, D. Kim,
J. Estrada, A. Nuesse, C. Looney, K. Meland, T. Mardikian, J. Duenas, J. Martinez,
Y. Saldivar, M. Nguyen, A. Kanzler, P. Mendez, P. Garcia, T. Penna
Guests Present: A. Uzcanga, Orange County Translation & Interpretation Services
AGENDA ITEM
1. PUBLIC COMMENTS.
There were no public comments on non -hearing items.
2. RECOGNITION: NATIONAL APPRENTICESHIP WEEK.
J. Martinez, Electric Operations Manager, shared that apprenticeship
programs are important to Anaheim Public Utilities (APU) because they
help build the next generation of skilled utility workers. J. Martinez
explained that these programs provide hands-on training, transfer
institutional knowledge, support consistent work practices, and reinforce
the standards, safety expectations, and accountability needed to operate
and maintain critical utility systems.
J. Martinez reviewed the apprenticeship classifications within APU
including Electric apprenticeships for Line Mechanic, Substation
Electrician, Substation Test Technician, and Electric Meter Technician,
as well as Water apprenticeships for Maintenance Pipefitter and Water
Production Technician.
J. Martinez emphasized that apprenticeship programs support safety,
reliability, emergency response, employee retention, and long-term
ACTION TAKEN
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
2026 - 28
workforce development. J. Martinez shared that the apprentices currently
in training represent the future quality of the utility and that continued
investment in training, mentorship, and high standards is necessary to
build the bench for future supervisors, foremen, mentors, and leaders.
The apprentices in attendance were recognized and invited to introduce
themselves by name, trade, and length of service with the City.
The Board asked about APU's Apprenticeship Program, including the
length, compensation, and steps leading to the completion of the program.
J. Martinez explained that apprenticeship programs vary by division and
classification, and include a combination of classroom instruction, field
training, hands-on experience, and demonstrated competency before
employees complete the program.
D. Lee, Public Utilities General Manager, asked J. Martinez to explain
the time it takes before a Line Mechanic apprentice can work on high
voltage lines. J. Martinez shared that after two and a half years the
apprentices are educated and trained to be able to perform high voltage
work. J. Lonneker, Assistant General Manager — Electric Services,
indicated that APU's Apprenticeship Program has helped apprentices
gain full-time employment and become journey -level line mechanics.
3. APPROVE THE MINUTES OF THE PUBLIC HEARING /
REGULAR MEETING OF MARCH 25, 2026.
4. PRESENTATION: FISCAL YEAR 2026/27 BUDGET
PROPOSAL.
C. Pereyra, Utilities Strategic Planning Manager, briefed the Board
on the Fiscal Year (FY) 2026/27 Strategic Budget Proposal,
including an overview of APU's six strategic priorities, budget cycle,
and accomplishments from the current year. Highlights included
receiving the Platinum Designation from the American Public Power
Association for electric reliability, noting a correction from Diamond
designation that was printed in the distributed agenda packet, the
Achievement Award from the National Safety Council, replacement
of over 14,000 linear feet of water mains, joint emergency response
training with Anaheim Fire & Rescue (AF&R), and continued
substation security and street light infrastructure improvements.
Affordability remains a priority, with electric rates significantly below
surrounding North Orange County cities and water rates 3 1 % below
the Orange County average. Since 2000, energy use has decreased
M. Lee moved the approval
of the Minutes of the Public
Hearing / Regular Meeting
of March 25, 2026. A.
McMenamin seconded the
motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2026 - 29
19% and water use 30%, despite 5% population growth. Outreach
efforts included 58 events reaching over 9,000 residents and 5,600
students. Current year revenue is projected 4.7% below forecast due
to lower industrial sales and energy market prices. Current Year (FY
2025/26) expenditures are projected at $758.4 million, with operating
costs below budget due to vacancies and carryovers, and capital
expenditures below budget due to multi -year project timing, including
the Vermont Substation and water main projects.
The proposed FY 2026/27 budget includes $53.9 million for water
supply, primarily from local groundwater, and $341 million for power
supply, supported by a diversified portfolio including new renewable
contracts aligned with the State's 60% renewable target by 2030.
Capital investments total $28 million for water mains, water storage,
development, field, and pump station projects, and $113 million for
electric system reliability, grid modernization, undergrounding,
development, and street light improvements.
Total proposed revenue is 13% lower as there was an electric bond
issued previously, and there is no planned bond issuance, while
expenditures increase 2.4%, driven by higher power supply, supplies
and equipment, and capital costs. Labor costs are pending completion
of negotiations, and three new electric positions are proposed to
support capital projects with internal staff, and to continue to
automate electric system equipment.
C. Pereyra shared that the budget will be agendized at the next Board
meeting for recommendation to City Council. D. Lee informed the
Board that staff will be available to answer any questions about the
budget prior to the next Board meeting.
The Board inquired about the increase in substation security
improvements. D. Lee explained it is an industry -wide issue driven by
copper theft and new state security plan requirements.
The Board inquired why APU imports water instead of fully relying
on groundwater. C. Parker, Assistant General Manager — Water
Services, explained that the eastern part of Anaheim does not have
access to groundwater, and APU is actively seeking to increase
groundwater supplies in the future. D. Lee explained that APU's
Lenain Water Treatment Facility plays a large role in wildfire
mitigation and maintaining water reliability, and being solely
dependent on one source may cause problems in the future.
The Board asked which projects are in the proposed water
development budget. D. Lee clarified that the Veterans Cemetery and
OCVIBE projects are included in the proposed water capital budget,
and are reimbursable by the respective developers.
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5. PUBLIC HEARINGS: RECEIVE AND CONSIDER PUBLIC
COMMENTS ON THE PROPOSED (A) 2025 WATER
SHORTAGE CONTINGENCY PLAN AND 2025 URBAN WATER
MANAGEMENT PLAN, AND (B) AMENDMENT TO CHAPTER
10.18 (WATER CONSERVATION AND WATER SHORTAGE
CONTINGENCY RULES AND REGULATIONS) OF THE
ANAHEIM MUNICIPAL CODE; RECOMMEND APPROVAL OF
SAME; AND DETERMINE THAT SUCH ACTIONS ARE
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT ("CEQA") PURSUANT TO CALIFORNIA
WATER CODE SECTION 10652 AND SECTIONS 15060(C)(2)-(3)
AND 15061(B)(3) OF THE CEQA GUIDELINES (TITLE 14,
DIVISION 6, CHAPTER 3 OF THE CALIFORNIA CODE OF
REGULATIONS). *
Chairperson J. Seymour opened the public hearing and explained the
public hearing procedures.
A. Lee, Assistant City Attorney, provided context for the public
hearing, noting that it is being conducted by the Board pursuant to
Section 909 of the City Charter. A. Lee explained that the Board is to
receive evidence and public input on the proposed 2025 Water Shortage
Contingency Plan (WSCP), proposed 2025 Urban Water Management
Plan (UWMP), and proposed ordinance amending Chapter 10.18 of the
Anaheim Municipal Code, and to recommend approval of the plans and
ordinance to City Council if the Board determined that the plans would
and the ordinance is necessary to further the public health, safety, and
welfare.
C. Parker provided a brief overview and introduced D. Kim, Principal
Civil Engineer, who provided the Board with a detailed overview of the
proposed 2025 UWMP and WSCP, and amendment to Chapter 10.18 of
Anaheim Municipal Code.
D. Kim explained the UWMP and the WSCP are state required long-
term planning documents ensuring long-term water supply reliability
and providing a tool that can be used during water shortages to amplify
water conservation, respectively. D. Kim explained that the UWMP
evaluated historical and projected water demands through 2050, and
although there is a historical decline in water use over the past 25 years,
largely due to conservation efforts, building efficiency standards, and
public outreach, the UWMP demonstrates that APU can support modest
increases to projected demands based on future growth over the 25-year
planning horizon.
D. Kim provided an overview of the City's water supply portfolio
consisting primarily of imported water and local groundwater, with
groundwater providing the majority of supply. D. Kim noted that the
UWMP finds that sufficient supplies are available under various
hydrologic conditions, including average, single dry and multi -year
drought scenarios.
I. Castillo moved the
recommendation to (a)
approve the proposed 2025
Water Shortage Contingency
Plan and 2025 Urban Water
Management Plan, and (b)
amend Chapter 10.18 (Water
Conservation and Water
Shortage Contingency Rules
and Regulations) of the
Anaheim Municipal Code.
Vice -Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2026 - 31
D. Lee reported that the Notice of Public Hearing was published as
required by applicable law in newspapers of general circulation within the
City including the Anaheim Bulletin and the Orange County Register on
April 2, 2026 and April 9, 2026, and in La Opini6n on April 8, 2026 and
April 15, 2026. The notice of the hearing on the proposed 2025 WSCP and
proposed 2025 UWMP was also provided to the County of Orange, and
the Cities of Stanton, Placentia, Buena Park, and Fullerton on March 30,
2026 and copies of the proposed Plans were made available for public
inspection before this hearing; and the Affidavits of Publication for the
Notice of Public Hearing were filed with the Secretary of the Board.
The Board asked why Anaheim's water consumption that has been
going down over the past 25 years is projected to increase over the next
25 years. D. Lee explained that the plan evaluates the level of demand
the system can support under non -drought conditions, rather than a
forecast of actual usage. D. Lee noted that the plan demonstrates that
the City can sustainably support approximately 13 tol5% increase in
demand by 2050 to satisfy state requirements for supply reliability.
The Board inquired about the types of enforcement and management in
place for water use, including how compliance is monitored at the
household level and what the overall enforcement process entails. D. Lee
explained that during the 2015 drought, the City emphasized education
and coordination with code enforcement, responding to water waste
reports, and initiating notification and outreach. D. Lee also noted that
staff would start with education and notification, but if it was either
excessive or continued to take place, it would result in a fine by the city's
Code Enforcement division.
The Board asked if there is a mechanism as part of the billing process,
where an uptick or a variance in the water usage may trigger an inspection.
D. Lee explained that the current billing system monitors water use over
each billing cycle (typically one to two months) and flags significant
deviations from normal usage and these reports are reviewed by billing
staff to determine whether the change reflects a potential issue, such as a
leak or diversion, or a one-time anomaly. D. Lee also noted, in some
cases, staff follows up with customers to confirm the cause, such as
temporary high usage due to activities like refilling a pool.
6. APPROVE THE POSTING OF THE 2026 WATER QUALITY
REPORT ON ANAHEIM PUBLIC UTILITIES' WEBSITE AND
PROVIDE A CERTIFICATION OF COMPLETION OF POSTING
TO THE STATE WATER RESOURCES CONTROL BOARD
DIVISION OF DRINKING WATER AS REQUIRED BY THE
CALIFORNIA CODE OF REGULATIONS. **
J. Sanks, Environmental and Safety Services Manager, shared the 2026
Annual Water Quality Report (Report), and requested the Board's
approval to post the Report on APU's website and certify to the State
Water Resources Control Board (State Water Board) when the posting is
completed.
Vice -Chairperson A. Pham
moved the approval and
authorization of posting the
2026 Water Quality Report
on Anaheim Public Utilities
website with the addition of
Vietnamese and Arabic
translations. T. Ibrahim
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2026 - 32
J. Sanks began by highlighting that water served in 2025 met or exceeded
State and Federal standards and described that the Report would be
available to customers by July 1, 2026 using bill notices, libraries, emails,
and APU's website. J. Sanks described how drinking water systems are
highly regulated and gave an overview of APU's groundwater and
surface water sources, and how these sources are disinfected with
chlorine and ozone. J. Sanks described APU's sampling program and
noted that one sample for disinfection by-products was inadvertently
missed last year. However, samples collected before and afterwards were
within typical limits. J. Sanks mentioned APU's state -certified water
quality laboratory and described that APU also uses contractors and
laboratories operated by the Metropolitan Water District of Southern
California and the Orange County Water District. J. Sanks described that
reservoir cleaning is important to maintain water quality and shared that
the La Palma Reservoir was recently cleaned. J. Sanks also described that
water system flushing is important to help ensure fire hydrants work as
designed but is also done to pull new water to the far ends of the water
system. J. Sanks described a few other water protection methods,
including backflow / cross connection inspections, groundwater well
permitting, sanitary surveys, and construction standards.
The Board inquired how language translations were selected for the
Report, and suggested additional translations in Vietnamese and Arabic
may be appropriate. J. Sanks explained that APU complies with State
translation requirements but can include additional languages. D. Lee
requested that the Board move the approval to post the Report on the
website, with the addition of Vietnamese and Arabic translations.
The Board inquired if any paper copies had been published by APU
already. J. Sanks noted that APU primarily distributes the Report
electronically and is printed only by request.
7. RECOMMEND APPROVAL OF AN AGREEMENT WITH
QLOGIC LLC TO DEVELOP AND MAINTAIN AN ENERGY
AND WATER EDUCATIONAL WEBSITE WITH A FIVE-YEAR
TERM AT A TOTAL NOT -TO -EXCEED COST OF $174,750,
PLUS A 10% CONTINGENCY FOR AS -NEEDED SERVICES.
M. Avelino -Walker, General Services Officer, provided an overview of
a proposed agreement with Qlogic LLC (Qlogic), to develop an energy
and water educational website. M. Avelino -Walker described the
website as an online platform that will deliver utility -focused
curriculum. Based on a competitive bid process, APU recommends
awarding the agreement to Qlogic, citing its relevant experience and its
lowest -cost proposal. A grant of $50,000 received from the American
Public Power Association's Demonstration of Energy & Efficiency
Developments Program, will offset part of the first -year development
costs.
APU staff will provide an
updated Water Quality
Report that includes the
additional translations
prior to posting on APU's
website.
M. Lee moved the
recommendation to approve
the agreement with Qlogic
LLC for an energy and water
educational website. Vice -
Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
2026 - 33
8. QUARTERLY STATUS REPORT FOR PRE -QUALIFIED
PROFESSIONAL SERVICES, CONSTRUCTION, AND
MATERIAL PURCHASES (JANUARY - MARCH 2O26).
D. Lee explained the pre -qualified contractors and consultants have
executed agreements in accordance with the City's standard terms and
conditions, and those contracts have been approved by City Council.
This process subsequently expedites the evaluation and selection
process and allows the work to be completed in an efficient manner.
Regarding equipment and material procurement and support services,
there were five bids awards for items such as cables and crane services.
J. Lonneker shared an update on the Electric Capital Improvement Plan,
highlighting the Vermont substation upgrade, underground conversion
project, and transformer and cable replacements.
C. Parker briefed the Board on the status of the Water Capital
Improvement Plan and shared that projects are underway with the
majority to be completed this fiscal year. C. Parker then highlighted
three projects: Redrock Street Water Main Replacement, replacing the
cast iron pipes with a synthetic versatile plastic known as PVC
(polyvinyl chloride); Onondaga Avenue Water Main Replacement,
replace water mains in cul-de-sacs; and Water Facilities Improvements,
proper safety devices at various facilities.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker discussed recent wire theft activity, including a video
provided by a resident near West Winston Road and Hickory Street.
The video showed how the theft occurred, although Anaheim Police
Department (APD) was not able to identify faces from the footage. J.
Lonneker shared that APU continues to coordinate with APD on wire
theft incidents, and that this coordination has led to several arrests.
Officers involved in these efforts will be invited to a future Board
meeting for recognition.
J. Lonneker shared that APU will post public service announcements
reminding the public about the hazards metallic balloons can create for
the electric system. J. Lonneker noted that current State law requires
metallic balloons to be weighted, and that Assembly Bill 847 establishes
a phase -in period for non-conductive metallic balloons beginning
January 1, 2027, with a full ban on conductive balloons by 2031.
J. Lonneker discussed that a neighborhood outreach event was held to
update the residents about a street light improvement project. Comments
were raised about safety, including increased criminal activity near the
cul-de-sac by the railroad tracks. In response to these concerns, APU
installed lights in the cul-de-sac and coordinated with APD to install a
camera and increase patrols.
2026 - 34
J. Lonneker recognized APU's Electric Division for receiving a
Diamond -level Electric Safety Award of Excellence awarded by the
American Public Power Association. More than 240 utilities entered the
annual Safety Awards for 2025. Anaheim was ranked in Group 6 for
mid -to -large utilities and received the highest award category within
that group. J. Lonneker credited the Electric Division and Safety staff
for prioritizing safety, maintaining strong safety practices, and sharing
best practices across the organization.
The Board asked whether solar streetlights could be used in areas where
additional lighting is needed. J. Lonneker explained that APU evaluates
lighting options based on site conditions, reliability, maintenance needs,
and available electric infrastructure. J. Lonneker shared that solar lighting
may be considered where appropriate, but permanent streetlighting
improvements are generally evaluated to ensure reliable lighting and
operational needs are met.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the Water Supply Dashboard sharing that
the Orange County Groundwater Basin is in good condition, with about
average rainfall to date. The State Water Project (SWP) is in good
condition, with slightly under average rainfall to date and significantly
under average snowfall to date. The Colorado River Basin is in a strained
condition, with rainfall under average to date and snowfall significantly
under average to date. The conservation negotiations have not progressed.
A seven state deal is not moving forward yet and the lower basin states
are now working on a deal.
The Board asked if the price changes for water on the Colorado River
when less is available. C. Parker noted that no, the cost of the water
does not change. There is no cost for the water, the cost is conveying
the water from the river to Southern California.
The Board asked if all APU customers' water rates are affected, or if those
who rely more on imported water should have higher rates. D. Lee shared
that when the Per- and Polyfluoroalkyl Substances (PFAS) issue arose in
central and west Anaheim and imported water was needed to be
purchased, the area effected did not pay a higher rate. A blended rate is
used for Anaheim water customers since the water supply mix can change.
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 in March
2026. B. Beelner mentioned that APU has several bond refunding
opportunities that have become available, but the market continues to be
too volatile to proceed due to continued geo-political instability. B.
Beelner informed the Board that if markets stabilize APU may propose a
bond refunding.
2026 - 35
The Board asked B. Beelner about the status of Canyon Power Plant's
Unit 1. B. Beelner responded that the Unit is still in Canada with an
estimated return to service this summer. B. Beelner mentioned that the
contractor had a difficult time sourcing a new spool as parts for turbines
have become scarce with the amount of gas generation being built for
data centers.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
M. Pan, Acting Assistant General Manager — Administration and Risk
Services, shared that APU is tracking approximately 126 bills in the
State legislature. APU works closely with industry groups for position
and where necessary, work on amending the proposed bills so that
utilities are not impacted by unintended consequences.
M. Pan discussed the bills related to invasive mussels, that invasive
mussels may clog water pipes and damage infrastructure. Mussels come
in through the Lenain Water Treatment Plant and are removed during
the treatment process. The industry supports bills that provide funding
and streamline the permitting and implementation of control plans.
M. Pan provided an update on a Senate bill about Accessory Dwelling
Unit (ADU) utilities services connection, which would implement strict
shot clock for response to application and completion of the connections,
and apply a fine up to $10,000 a day to utilities. This would create an
issue, as utilities connection is also pending on other stakeholders'
timeline. The industry groups met with the author's office and have
successfully removed POUs from proposed bill.
M. Pan reviewed APU's safety metrics and noted that two injuries
occurred during the reporting period. APU continues to provide training
to help minimize injuries. M. Pan also shared photos of a safety training
on the use of fire extinguishers.
M. Pan shared an environmental incident, where a third -party car accident
resulted in a transformer oil leak impacting a large area by Ball Road and
State College Boulevard. Environmental Services' contractor promptly
cleaned up and decontaminated the impacted area.
13. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Power Supply Outlook Overview
• FY 2027 Proposed Budget
D. Lee informed the Board that C. Parker, J. Dadakis, Orange County
Water District's Executive Director of Water Quality and Technical
Resources, and O. Pacifico, District Engineer with the State Water
Resources Control Board's Division of Water, provided an update on
water quality in response to a request made by City Council at a previous
meeting. The Board inquired if City Council requested the update due to
2026 - 36
a previous public comment regarding the Disneyland Resort firework
show contributing to perchlorate in the City's water supply. D. Lee
confirmed that the public comment received during the Board's previous
Public Hearing for the 2025 Public Health Goals were also made at City
Council meetings and contributed to the request by City Council.
D. Lee informed the Board that he is retiring and his last day in the
office will be in July. D. Lee will work with G. Garcia, Interim City
Manager, to develop a path going forward. D. Lee thanked Board for all
the continued support.
14. ITEMS BY BOARD MEMBERS.
The Board congratulated D. Lee on his service with APU.
Vice -Chairperson A. Pham requested an update to be included in the APU staff will include this
Power Supply Outlook presentation planned for next month regarding update in the upcoming
APU's usage of renewable resources throughout the course of the day Power Supply Overview.
and how they impact the procurement of renewable resources.
Chairperson J. Seymour thanked D. Lee for leading a well -run
organization and APU's dedication to the Anaheim community.
15. ADJOURN: (NEXT REGULAR MEETING ON MAY 27, 2026, AT T. Ibrahim moved to adjourn
5:00 P.M.) the Regular Meeting in the
Gordon Hoyt Conference
Center at 6:47 p.m. to the
Board's Regular Meeting
date of May 27, 2026, at
5:00 p.m. A. McMenamin
seconded the motion.
MOTION CARRIED: 7-0.
ABSTAINED: 0.
ABSENT: 0.
Res ectfuksumitted,
Dukku Lee
Public Utilities General Manager
*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 - 37