Public Utilities 2026/06/24CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
June 24, 2026
The agenda having been posted on Thursday, June 18, 2026, the Regular Meeting of the Public Utilities Board
(Board) was called to order by Chairperson J. Seymour at 5:02 p.m. on Wednesday, June 24, 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, A. Lee, P. Starr, C. Parker, J. Lonneker, M. Pan, M. Avelino -
Walker, V. Tran, M. Seifen, B. Mendoza, J. Martinez, T. Chen, S. Chagolla,
C. Ghaby, G. Pacheco, J. Taulbee, S. He, A. Flores, L. Rios, E. Partida, M. Rivera,
J. Ramirez, Y. Calderon, R. Pinto, Y. Vasquez, M. Hwang, J. Mc Clintock, L. Glenn
Guests Present: R. Bengochea, S. Mercadante, M. Herbert
The Board recognized D. Lee, Public Utilities General Manager, who is retiring after 26 years of service
with Anaheim Public Utilities (APU). The Board wished D. Lee well in retirement.
AGENDA ITEM
ACTION TAKEN
1. RECOGNITION: ANAHEIM POLICE DEPARTMENT'S WIRE
THEFT INVESTIGATION EFFORTS.
J. Martinez, Electric Operations Manager, recognized members of the
Anaheim Police Department (APD) for their work supporting APU in
addressing streetlight wire theft and infrastructure theft.
J. Martinez mentioned that wire theft has caused repeated impacts to the
City's streetlight system, including dark areas, public safety concerns,
additional repair work, and significant replacement costs. J. Martinez
noted that APU has coordinated with APD to identify theft locations,
review surveillance footage, and support investigations.
J. Martinez indicated that APD's efforts included tracking suspect
activity, recovering evidence, and making arrests related to infrastructure
theft. J. Martinez thanked the officers for their coordination, follow-
through, and continued partnership in protecting City infrastructure.
Master Officer Hwang and Lieutenant McClintock were recognized for
their efforts. J. Martinez noted that Master Officer Woo was unable to
attend.
2026 - 47
2. RECOGNITION: CUSTOMER SERVICE STAFF WHO
SUPPORTED THE ANAHEIM EMERGENCY CALL CENTER
DURING THE GARDEN GROVE INCIDENT EVACUATION.
C. Ghaby, Customer Services Manager, briefed the Board on APU's
efforts during the Garden Grove incident over Memorial Day weekend.
Customer Service staff worked alongside the City Manager's office
responding to incoming phone calls regarding evacuation boundaries,
road closures, shelter availability and travel restrictions. Residents
expressed appreciation for staff that was available to provide
reassurance in such a trying time for the community.
C. Ghaby introduced the Customer Service Representatives and thanked
them for the support provided to the community.
3. PUBLIC COMMENTS. Following the public
comments, Chairperson J.
There being one electronic public comment submitted by the deadline, Seymour closed the
Chairperson J. Seymour opened the public comments portion of the public comments portion
meeting. of the meeting.
R. Bengochea thanked D. Lee for his dedication to the City of Anaheim
(City) and the Board for supporting the construction of the Gypsum
Canyon Veteran's Cemetery.
S. Mercadante voiced her concerns regarding water quality.
M. Herbert voiced his concerns regarding water quality and submitted
comments in writing.
4. APPROVE THE MINUTES OF THE REGULAR MEETING OF M. Lee moved the approval
MAY 27, 2026. * of the Minutes of the
Regular Meeting of May 27,
2026. A. McMenamin
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramani]
5. RECOMMEND APPROVAL OF THE PROPOSED FIVE-YEAR A. McMenamin moved the
UNDERGROUND CONVERSION PLAN FOR FISCAL YEAR
recommendation to approve
2026/27. *
the Five -Year Underground
Conversion Plan for fiscal
S. Chagolla, Principal Electrical Engineer, presented the proposed
year 2026/27. Vice -
Fiscal Year 2026/27 Underground Conversion Five -Year Plan (Plan) to
Chairperson A. Pham
the Board for consideration and provided an update on projects that
seconded the motion.
have been completed or are currently in progress within each City
MOTION CARRIED: 5-0.
Council District. Active projects include Beach Boulevard in District 1,
ABSTAINED: 0.
Cerritos/Nutwood in District 2, Wildfire Mitigation Undergrounding in
ABSENT: 2. [T. Ibrahim,
District 6, Olive/Vermont in Districts 3 and 4, La Palma/East in
S. Kewalramani]
2026 - 48
Districts 3 and 5, and Ball/Brookhurst in District 2. The proposed Plan
includes one new project, Ball/Walnut (Ball Road. from east of Euclid
Street to Walnut Street), located in District 4. S. Chagolla explained the
customer engagement and outreach efforts conducted throughout the
various stages of an underground conversion project, including the use
of customer surveys to gather feedback to improve future projects.
The Board inquired how projects are selected for underground
conversion. S. Chagolla explained that each year, the Underground
Subcommittee reviews eligible projects within each Council District
and prioritizes based on five criteria: project coordination with other
concurrent city projects, improvements to electric system reliability,
high concentration of overhead wires with heavy roadway use,
geographic diversity, and available funding. Based on the evaluation
and project rankings, the Underground Subcommittee determines
whether to recommend adding one or more new projects to the Plan.
6. RECOMMEND APPROVAL OF THE ANAHEIM PUBLIC
UTILITIES 2026 PHYSICAL SECURITY PLAN TO PROTECT
THE ELECTRIC DISTRIBUTION SYSTEM. *
A. Flores, Associate Power Engineer, provided the Board with an
overview of APU's proposed 2026 Physical Security Plan (2026 Plan)
A. Flores explained the multiple governing directives on the physical
security of critical infrastructure put in place following an attack on a
northern California substation, which damaged critical substation
equipment. One of which, Senate Bill (SB) 699, directed the California
Public Utilities Commission (CPUC) to require publicly owned and
investor -owned utilities to develop and implement physical security
plans to mitigate physical attacks on certain electrical distribution assets
that serve high priority facilities with regional implications. A. Flores
mentioned that after review of thirteen distribution facilities and one
transmission facility, the substation serving the Metro Cities Fire
Authority Dispatch Center (Metro Net) was deemed high priority. A.
Flores noted that the substation, which serves Metro Net, is enclosed
and has multiple security provisions in place such as security cameras
and alarm systems. Metro Net is also served by redundant power
sources and has a backup generator.
A. Flores briefed the Board on APU's ongoing efforts to implement and
strengthen security measures across multiple substations. New security
walls and modernized security cameras and alarm systems are
systematically being installed at each site. The 2026 Plan was
independently reviewed by a qualified consulting firm, NV5, with
certified American Society for Industrial Security (ASIS) — Physical
Security Professional (PSP) expertise, who has determined that APU's
existing mitigation measures are comprehensive and meet the CPUC's
objectives. The 2026 Plan was also reviewed by APD who deemed the
2026 Plan adequate. A. Flores explained that NV5 offered three
recommendations as part of their findings, however, APU declined two
M. Lee moved the
recommendation to approve
the Anaheim Public Utilities
2026 Physical Security Plan.
Vice -Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramanil
2026 - 49
of those recommendations citing that no additional facilities within
Anaheim have regional impact on the electrical grid, and therefore
should not be included in this 2026 Plan, and have opted to not include
critical infrastructure identification preferring to keep this information
secure.
The Board inquired how often APU utilizes backup generators. D. Lee
mentioned that they are tested monthly. The Board asked if SB 699
outlines specific physical security requirements, and if APU is meeting
these requirements. J. Lonneker, Assistant General Manager — Electric
Services, explained that the requirement under SB 699 is specific to one
facility in Anaheim that has regional implications; however APU is
going above and beyond to protect the local electric grid with measures
that are not specific to SB 699.
The Board inquired if the designation of a high priority facility opens
the possibility for additional funding beyond what APU can allocate for
these security upgrades. D. Lee clarified that APU is always seeking
grant opportunities that will be the most economically beneficial.
The Board asked if there is anything APU must do that has not been
done regarding physical security. D. Lee responded there are six
remaining sites to address over the next six years to replace fencing and
add the upgraded cameras. APU prioritizes sites that have experienced
security incidents.
7. RECOMMEND (I) APPROVAL OF THE MASTER
CONSTRUCTION AGREEMENT — HIGH VOLTAGE ELECTRIC
FACILITIES (MASTER AGREEMENT) FOR HIGH VOLTAGE
ELECTRIC UTILITY CONSTRUCTION, MAINTENANCE,
REPAIR, AND IMMEDIATE RESPONSE PROJECTS, WITH A
FIVE-YEAR TERM (2026-2031) AND A ONE-YEAR OPTIONAL
EXTENSION TO COMPLETE IN -PROGRESS WORK, TO BE
USED WITH PREQUALIFIED CONTRACTORS; (II) APPROVAL
OF A NOT -TO -EXCEED AMOUNT OF $1,000,000 PER WORK
ORDER PACKAGE OR REQUEST FOR IMMEDIATE RESPONSE
SERVICES WITH A LIMIT OF $4,000,000 IN TOTAL AWARDS
PER CONTRACTOR PER FISCAL YEAR DURING THE TERM
OF THE MASTER AGREEMENT, WITH CHANGE ORDER
AUTHORIZATION UP TO 10% OF EACH WORK ORDER
PACKAGE OR REQUEST FOR IMMEDIATE RESPONSE
SERVICES, CAPPED AT $100,000 IN TOTAL CHANGE ORDERS;
AND (III) A DETERMINATION THAT SUCH PROJECTS TO BE
PERFORMED UNDER THE MASTER AGREEMENT ARE
CATEGORICALLY EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
CEQA GUIDELINES (CAL. CODE REGS., TITLE 14, CH. 3)
SECTIONS 15301, 15302, 15303, AND 15304 AND THAT NONE OF
THE EXCEPTIONS TO THE CATEGORICAL EXEMPTIONS SET
FORTH IN CEQA GUIDELINES § 15300.2 APPLY.
A. McMenamin moved the
recommendation to approve
the Master Construction
Agreement for High Voltage
Electric Utility Construction.
I. Castillo seconded the
motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim, S.
Kewalramani]
2026 - 50
J. Lonneker presented the proposed 2026-2031 Master Construction
Agreements (MAs) with pre -qualified high -voltage electrical
contractors and explained that the current MAs are nearing expiration.
APU is proposing new MAs for the next five-year term to provide
timely access to qualified contractors for routine and emergency
electrical work, including the repair and replacement of direct buried
cables, transformers, switches, and LED streetlighting.
J. Lonneker noted that the existing $500,000 per -project limit has
remained unchanged despite significant increases in labor and material
costs over the past five years. To address these increases, staff
recommend increasing the per -project not -to -exceed (NTE) amount to
$1,000,000, and the annual cap on work awarded to any single
contractor from $3,000,000 to $4,000,000 to reflect current construction
costs while maintaining a competitive distribution of work among pre -
qualified contractors.
J. Lonneker indicated that 85 firms viewed and downloaded the
solicitation, with 23 firms submitting proposals. Of those 23 firms, 17
met the minimum prequalification requirements to perform work on
APU's high -voltage electrical facilities for the 2026-2031 term. Staff is
seeking the Board's recommendation for City Council approval of the
2026-2031 MAs with the 17 pre -qualified contractors, including the
proposed $1,000,000 per -project NTE amount and the $4,000,000
annual cap per contractor.
The Board inquired whether any of the 17 vendors are currently
approved under the existing contracts. J. Lonneker indicated that 12 of
the 17 recommended contractors were included under the previous
agreements, with five new contractors added for the upcoming term.
The Board inquired if adding additional vendors is just for additional
bids or were the existing vendors not doing the greatest work. J.
Lonneker explained, APU has a lot of projects, increased visibility, and
additional contractors are interested to get on APU's qualified list.
The Board inquired whether any existing contractors had been removed
from the pre -qualified list. D. Lee explained that one contractor was not
recommended due to an ongoing safety review following a safety
incident. D. Lee emphasized that safety, particularly for high -voltage
work, is APU's highest priority and that contractors must meet the
utility's safety standards to remain eligible for work.
D. Lee further explained that, while 17 contractors are pre -qualified,
approximately seven or eight contractors consistently bid on and
perform work for APU. Participation by the remaining contractors
varies depending on market conditions, available work, and each
contractor's business priorities.
2026 - 51
8. RECOMMEND APPROVAL OF AN AGREEMENT WITH
SIEMENS INDUSTRY, INC. FOR WHOLESALE ENERGY RISK
MANAGEMENT QUANTITATIVE MODELING SERVICES,
WITH AN INITIAL TERM OF TWO YEARS AND A ONE-YEAR
OPTIONAL EXTENSION, WITH AN AGGREGATE NOT -TO -
EXCEED COST OF $188,754, PLUS A 15% CONTINGENCY FOR
AS -NEEDED SERVICES. *
M. Pan, Acting Assistant General Manager — Administration and Risk
Services, recommended approval of an agreement with Siemens
Industry Inc, for Wholesale Energy Risk Management (ERM)
quantitative modeling services. APU had been maintaining a
comprehensive risk management framework that was developed in
2006. Currently, APU requires consulting services to review and
develop updated quantitative models, which will address the changes
occurring in the wholesale market for the last 20 years, including
additional renewable resources and inclusion of other states and new
participants in California Independent System Operator (CAISO).
APU issued a Request for Proposals (RFP) in March 2026. Out of the
eight responses received, Siemens is recommended as they offer all the
required services at lowest overall cost. Additionally, they have offered
similar services to Los Angeles Department of Water and Power
(LADWP). The total, NTE amount is $188,754 for the term of the
Agreement plus 15% contingency for as needed basis. The initial term
is two years with 1-year optional extension.
The Board inquired about the cost for not having this service. M. Pan
shared that the consequences would be the unknown exposure to market
risks and uncertainties that are not properly evaluated. Examples
include extreme heat events, or the integration of new resources into the
existing portfolio, such as the 300 megawatt battery energy storage
system, a resource type that APU has not had before. The cost of this
agreement is reasonable compared to the cost of similar services APU
acquired 20 years ago.
9. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker updated the Board on an ongoing Southwest Substation
modernization capital project and shared pictures of the remaining large
switchgear and automation control house delivery which occurred
overnight this past weekend. APU staff maintained close coordination
with residents who were informed several weeks prior to the delivery
on what to expect, and for overnight street parking restrictions along
this narrow residential street. Setting the equipment in place at the
substation continued into the next day.
D. Lee and J. Lonneker recognized S. He, Principal Electrical Engineer,
and A. Flores for their diligent efforts to keep residence informed and
project management of a complex capital project.
I. Castillo moved the
recommendation to approve
the agreement with Siemens
Industry, Inc. for wholesale
energy risk management
quantitative modeling
services. A. McMenamin
seconded the motion.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 2. [T. Ibrahim,
S. Kewalramani]
2026 - 52
The Board inquired where the switchgear and automation control house
was manufactured. J. Lonneker confirmed Siemens is the manufacturer
and A. Flores mentioned it was made in Mexico.
10. UPDATE ON WATER SYSTEM ITEMS.
C. Parker, Assistant General Manager — Water Services, mentioned the
Orange County Water District (OCWD) Water Supply Exhibit and that
there was not much change from last month, an update will be provided
when the Colorado River conservation plan is decided.
C. Parker mentioned the APU Landscape Workshop that was conducted
on June 61h at the Sustainability Education Center. 35 residents
registered for the event, and it included modules on drought tolerant
landscaping and irrigation. Each participant was provided graph paper
to layout their yard and was provided a kit with drought tolerant plants
and other items to replace 100 square feet of their yard.
C. Parker shared that he reached out to meet with the residents who
provided water quality public comments at the May 27, 2026, Public
Utilities Board meeting. The parties declined the meeting and requested
a public meeting or a meeting that was recorded. C. Parker mentioned
that he will be bringing back an informational item next month to
address various water quality topics that have been the subject of public
comments.
11. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner, Assistant General Manager — Finance and Energy Resources,
informed the Board of an upcoming recommendation at the August 2026
Public Utilities Meeting to potentially refund Electric and Water bonds
originally issued in 2022 to capitalize on available interest savings.
12. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
M. Pan shared that APU tracks 99 bills in June, the bills are currently
going through 2nd house for policy committee review. Summer recess
will begin on July 2nd for a month.
M. Pan shared that legislative team has been tracking a few bills that
require data centers to submit energy and water usage to different agencies
or restrict their California Environmental Quality Act (CEQA)
exemptions. Although data center definitions vary between bills and
regulatory agencies may request utilities for usage data leading to
customer privacy concerns. APU is working with industry associations to
seek amendments where necessary.
M. Pan confirmed that there were no recordable injuries in May 2026.
M. Pan shared that Safety Services assisted Water Services with
conducting backhoe safety training. The training discussed Dig Alert,
pre -inspection, and communication or signal with spotters. Additional
backhoe training is also scheduled.
2026 - 53
M. Pan shared that APU and Public Works field employees hosted a
Safety Fair on June 1 lth along with City Safety staff. Vendors and
partners were invited to showcase work tools, personal protective
equipment, fire extinguishers and more.
M. Pan provided the Wholesale Energy Risk Management (ERM)
compliance report for January through March 2026. All transactions
were within the ERM requirements with no noted violation.
13. ITEMS BY SECRETARY.
D. Lee thanked the Board and shared that it has been a pleasure
working with a dedicated group that is committed to providing support
to Anaheim's customers.
Chairperson J. Seymour mentioned he is proud to be a part of the Board
and for D. Lee's contributions.
14. ITEMS BY BOARD MEMBERS.
The Board thanked D. Lee for his service to APU and added that D.
Lee would be missed and congratulated him on his retirement.
M. Lee thanked C. Parker and the Water Services Division for the quick
response and fix for the main water leak in District 5. He also thanked J.
Lonneker and the Electric team for the follow-up on the three hour
outage affecting the Anaheim Towne Center. M. Lee explained the
customer had an electrical issue on their end which prolonged power
restoration at their equipment. M. Lee appreciates being apprised of
what is going on so he can relay that to his neighbors.
15. ADJOURN: (NEXT REGULAR MEETING ON JULY 22, 2026, AT
5:00 P.M.)
Respectfully submitted,
r o 2 "sck,. Lee
Dukku Lee
Public Utilities General Manager
A. McMenamin moved to
adjourn the Regular Meeting in
the Gordon Hoyt Conference
Center at 6:10 p.m. to the
Board's Regular Meeting date
of July 22, 2026, at 5:00 p.m.
M. Lee 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 - 54