Public Utilities 2026/08/26CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
August 26, 2026
The Secretary posted the agenda on Thursday, August 20, 2026, and Chairperson J. Seymour called the Regular
Meeting of the Public Utilities Board (Board) to order at 5:00 p.m. on Wednesday, August 26, 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, T. Ibrahim
Board Members Absent: S. Kewalramani
City Staff Present: B. Beelner, A. Lee, P. Starr, C. Parker, J. Lonneker, J. Sanks, M. Avelino -Walker,
M. Seifen, B. Mendoza, A. Nguyen, D. Agrawalla, P. Bogdanoff, B. Fruchter,
P. Mendez, G. Ludesirishoti, T. Penson
Guests Present: None
AGENDA ITEM
1. PUBLIC COMMENTS.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
JULY 22, 2026.
3. PRESENTATION: GYPSUM CANYON MEMORIAL PARK
DEVELOPMENT WATER AND ELECTRIC UTILITIES
UPDATE.
D. Agrawalla, Principal Civil Engineer, presented an update on the
Water and Electric Utilities for the Gypsum Canyon Memorial Park
development. D. Agrawalla briefed the Board on the Electric and
Water Added Facilities Financing Agreement with the Orange County
Cemetery District (OCCD) to construct water and electric line
extensions to the proposed Memorial Park at the intersection of Santa
Ana Canyon Road and Gypsum Canyon Road.
ACTION TAKEN
Chairperson J. Seymour closed
the public comments portion of
the meeting with no comments
made by members of the public.
Vice -Chairperson A. Pham
moved the approval of the
Minutes of the Regular
Meeting of July 22, 2026. A.
McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [S.
Kewalramanil
2026 - 63
D. Agrawalla also provided a brief update on the electric line
construction, which began at the end of August, and the water line
construction, which is anticipated to begin in summer of 2027. Other
updates included the undergrounding of poles by Southern California
Edison (SCE) and AT&T, planned to be completed by 2027, and the
work by California Department of Transportation (Caltrans) and
Transportation Corridor Agencies (TCA) to upgrade the California
State Route 91 and California State Route 241 interconnector.
Construction for the latter is scheduled to begin in early 2027 and
continue through 2029. D. Agrawalla emphasized the necessity for
coordination with the various agencies and both APU's Water and
Electric divisions continue to work with them on a regular basis.
The Board asked if the work would begin east of Weir Canyon Road.
D. Agrawalla responded that the work starts about one block east of
Weir Canyon Road. The Board asked if the street will need to be
excavated for the electric work. D. Agrawalla noted that the line will
be installed in the street on the south side and once the water line is
constructed on the north side, the entire stretch will be paved curb -to -
curb. OCCD will reimburse half of the cost incurred to pave the street.
The Board asked how APU plans to mitigate traffic issues during
construction, as there can be significant traffic there. J. Lonneker,
Assistant General Manager — Electric Services, noted that APU is
coordinating with the Department of Public Works (PW) to determine
if the work should be done during the day or at night to avoid potential
traffic issues. D. Agrawalla noted that the water line will be
constructed after the electric line work is done. Traffic control for the
construction will be coordinated with PW and flagmen will be used as
needed to direct traffic.
The Board asked if the development will receive water from the
Lenain Water Treatment Plant. C. Parker, Assistant General Manager —
Water Services, confirmed that it would.
The Board asked if SCE and AT&T will be upgrading the internet or
will they be going wireless. D. Agrawalla mentioned that APU is not
aware of their plans.
The Board asked if OCCD will need a sewer connection from the City.
D. Agrawalla noted that OCCD will not need a connection as they will
have an on -site septic system.
The Board asked how APU will be reimbursed by OCCD. D.
Agrawalla explained that the downpayment of $1 million (M) is due
within a month of start of construction of the electric line extension. J.
Lonneker mentioned that the electrical line work is $6M; thereafter,
monthly payments will be made through the term defined in the
Electric and Water Added Facilities Financing Agreement.
2026 - 64
The Board asked why APU decided to use ductile iron for the water
line considering the corrosive nature of the soil in the area. C. Parker
noted that polyvinyl chloride (PVC) pipelines larger than 12 inches in
diameter have a propensity for unreliability, so ductile iron has proven
itself as a more reliable option for this 20-inch line. D. Agrawalla
mentioned that the design -build entity will conduct soil testing and
provides corrosion protection for the pipeline based on the test results.
4. RECOMMEND APPROVAL OF A DESIGN -BUILD
AGREEMENT WITH BIG BEN, INC. FOR THE SANTA ANA
CANYON ROAD WATER MAIN EXTENSION PROJECT
(PROJECT) FOR THE GYPSUM CANYON MEMORIAL PARK
DEVELOPMENT IN THE AMOUNT OF $9,263,000, PLUS A
10% CONTINGENCY; AND DETERMINE THAT THE
PROJECT IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
PUBLIC RESOURCES CODE SECTION 21080.62. *
C. Parker provided an overview of the proposed agreement with Big
Ben, Inc. to award a design -build contract for the water line serving the
cemetery. Per the Anaheim Municipal Code, APU requested a
Statement of Qualifications, followed by a Request for Proposals
(RFP). APU seeks the approval to award Big Ben, Inc. based on
project delivery, traffic control, schedule and other factors. Big Ben
Inc. has performed work for the City in the past and has worked for
neighboring agencies. The work includes use of the Community
Workforce Agreement.
5. RECOMMEND APPROVAL, IN SUBSTANTIAL FORM, OF A
SOFTWARE LICENSE AND SERVICES AGREEMENT WITH
IVOYANT LLC FOR SYSTEMS INTEGRATION SOFTWARE
LICENSES, IMPLEMENTATION SERVICES, AND SUPPORT
SERVICES WITH AN INITIAL TERM OF FIVE YEARS AND
UP TO TWO OPTIONAL FIVE-YEAR EXTENSIONS, AT A
NOT -TO -EXCEED COST OF $1,080,000 FOR THE INITIAL
TERM, AND AN ANNUAL SUPPORT -SERVICES COST OF
$60,000 WITH A CONSUMER PRICE INDEX (CPI)
ESCALATOR CAPPED AT THREE PERCENT FOR EACH
EXTENSION TERM YEAR, PLUS A CONTINGENCY FOR AS -
NEEDED ADDITIONAL SERVICES NOT -TO -EXCEED $100,000
PER YEAR (WITH UNUSED BALANCES CARRYING
FORWARD A MAXIMUM OF ONE YEAR). *
J. Sanks, Assistant General Manager — Administration and Risk
Services, briefed the Board on the proposed agreement with iVoyant
LLC (Ivoyant) to provide systems integration software and services. J.
Sanks described that APU has multiple individual software systems
that comprise the Customer Information System, which APU uses for
automated metering, issuing billing statements, receiving payments,
and managing customer accounts. These systems translate and transfer
data using specialized software.
M. Lee moved the
recommendation of approval of
a Design -Build Agreement with
Big Ben, Inc. for the Santa Ana
Canyon Road Water Main
Extension Project. A.
McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [S. Kewalramanil
I. Castillo moved the
recommendation of approval, in
substantial form, of a Software
License and Services
Agreement with iVoyant LLC.
T. Ibrahim seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [S. Kewalramanil
2026 - 65
The proposed agreement provides a perpetual license to use the
software for a one-time price of $300,000, includes one-time
implementation services for $480,000 to migrate existing data
connections to the new platform, and includes annual maintenance and
support services for $60,000, fixed for the initial agreement term of
five years and then subject to annual increases for the lesser of the
United States Consumer Price Index (CPI) or 3%.
The proposed agreement also includes an allowance for additional
professional services in an annual amount not -to -exceed $100,000,
plus any unused balance from the prior year. The agreement would
have an initial term of five -years with up to two optional five-year
extensions to allow for continuity of APU's technology systems.
The Board asked if the new software would take the place of the
existing system. J. Sanks answered that the current vendor no longer
supports the current software and is encouraging customers to a new
cloud -based system. Since APU procured the original software in
2010, APU submitted an RFP to look for new market offerings.
The Board asked if the new software would cost less to maintain than
the current software. J. Sanks confirmed that the costs would be lower,
and the project implementation team has experience with APU's
current software.
The Board asked if iVoyant would migrate existing integrations to the
new tool. J. Sanks confirmed that the agreement included requirements
to migrate the existing functionality and also included services to build
new integrations if necessary.
The Board asked if APU would lose any functionality with the new
tool. J. Sanks confirmed there would not lose any function. B. Beelner,
Acting Public Utilities General Manager, added there is an addition in
the contract that updates bugs for fixes to the services per year.
The Board asked if this software constitutes a lateral upgrade, or
downgrade. J. Sanks confirmed the new system would upgrade current
functionality and have additional features than the previous software.
6. RECOMMEND AUTHORIZING BY RESOLUTION THE
ISSUANCE OF NOT -TO -EXCEED $325,000,000 AGGREGATE
PRINCIPAL AMOUNT OF ANAHEIM HOUSING AND PUBLIC
IMPROVEMENTS AUTHORITY (AHPIA) ELECTRIC
REVENUE REFUNDING BONDS, SERIES 2026-A (ELECTRIC
UTILITY DISTRIBUTION SYSTEM REFUNDING) AND
SERIES 2026-B (ELECTRIC UTILITY DISTRIBUTION
SYSTEM REFUNDING) (FORWARD DELIVERY); AND NOT -
TO -EXCEED $225,000,000 AGGREGATE PRINCIPAL
AMOUNT OF AHPIA WATER REVENUE REFUNDING
BONDS, SERIES 2026-A (WATER UTILITY SYSTEM
REFUNDING) AND SERIES 2026-B (WATER UTILITY
M. Lee moved the
recommendation to authorize by
Resolution the issuances of not -
to -exceed $325,000,000
aggregate principal amount of
AHPIA electric revenue
refunding bonds and not -to -
exceed $225,000,000 aggregate
principal amount of AHPIA
water revenue refunding bonds.
Vice -Chairperson A. Pham
seconded the motion.
2026 - 66
SYSTEM REFUNDING) (FORWARD DELIVERY) TO MOTION CARRIED: 6-0.
REFINANCE OUTSTANDING ELECTRIC AND WATER ABSTAINED: 0.
REVENUE BONDS. * ABSENT: 1. [S. Kewalramani]
B. Beelner discussed the proposed plan of finance which
includes the potential refunding of up to $252M of electric revenue
bonds, and the refunding of up to $164M of water revenue bonds,
resulting in savings of approximately $19M in interest.
The Board inquired when APU plans to refund these bonds. B. Beelner
responded that rates are always changing and APU will act when
interest rates fall to a more appropriate level.
7. RECOMMEND ADOPTION BY RESOLUTION OF RULE NO. I. Castillo moved the
27 (FINANCIAL ASSURANCE STANDARDS FOR LARGE
recommendation to adopt by
ELECTRIC LOAD) OF THE ELECTRIC RATES, RULES AND
Resolution of Rule No. 27 —
REGULATIONS, WHICH DOES NOT INCREASE RATES OR
Electric Rates, Rules and
FEES, EFFECTIVE OCTOBER 1, 2026; AND DETERMINE
Regulations. Vice -Chairperson
THAT THE ACTION IS NOT SUBJECT TO CEQA PURSUANT
A. Pham seconded the motion.
TO CEQA GUIDELINES (CAL. CODE REGS., TITLE 14, CH. 3)
MOTION CARRIED: 6-0.
SECTIONS 15060(C)(2)-(3) AND 15378. *
ABSTAINED: 0.
ABSENT: 1. [S. Kewalramani]
A. Nguyen, Utilities Financial Planning Manager, presented a new
Electric Rule that would specify requirements for certain large load
customers, such as data centers, that may require significant
investment by APU and/or long-term financial obligations by APU in
order to serve these types of customers. A. Nguyen explained that the
rule does not increase rates or fees and solely addresses the financial
risk posed to APU's current customers by large load customers.
A. Nguyen noted that serving a customer of this scale may involve
sizable financial commitments, and if such a customer went bankrupt
or exited the territory before APU could recover its costs to serve
them, existing ratepayers may see a material rate impact to recover the
stranded costs.
A. Nguyen outlined three key financial protections in the proposed
rule: requiring customers to fund infrastructure built to serve them, a
prepayment account covering 6 to 18 months of service costs, and
collateral security to guard against stranded costs, all administered by
an independent third -party trustee. A. Nguyen explained that the rule's
criteria apply to customers with electric demand of 15 megawatts or
more, a load factor of 80% or greater, and a new or materially larger
power supply commitment by APU.
A. Nguyen then stated that APU intends the proposed rule to allow it
to fulfill its obligation to serve these customers while protecting
existing ratepayers from subsidizing the costs required to these large
load customers without compromising affordable, competitive rates.
2026 - 67
The Board asked several questions about how APU would determine
the prepayment size, what recourse APU has in recovering funds
during a customer bankruptcy, and whether APU could address risks
posed by customers who are under the load threshold. A. Nguyen and
B. Beelner explained how specified provisions in the rule tie to a
documented study to properly determine the prepayment and collateral
required, how required collateral protects APU when a customer
defaults, and how APU's existing rules provide protection for those
customers who do not fall under the rule's criteria, such as allowing
APU to collect a deposit when a new customer lacks adequate credit
history.
The Board inquired whether APU has considered a water -related rule,
whether any current customers meet the proposed rule's criteria, and
whether the rule addressed possible loopholes or evasion tactics from
potential customers. B. Beelner and A. Nguyen indicated that a water -
related rule was under development but staff prioritized release of the
electric rule first due to the greater risk to the Electric Utility than to
the Water Utility. They also confirmed that no current customer meets
the proposed rule's criteria, and that staff crafted the proposed rule
language to address possible evasion, such as providing the Public
Utilities General Manager discretion in requiring compliance with the
rule when material risks can be reasonably determined.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker updated the Board on Beach Boulevard undergrounding
progress. SCE removed high voltage wires and poles on Beach
Boulevard north of Lincoln Avenue. Crews proceeded with pole
topping on Beach Boulevard, south of Orange Avenue. APU sent
Notices of Completion to the various telecommunication companies
who will have up to 12 months to remove their lines before the poles
so that the contractor can remove the poles. Council Member R. Balius
visited the site to see the progress, as this is a major milestone for the
undergrounding project.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the current Water Supply Dashboard.
The Orange County Groundwater Basin is in good condition, and the
Orange County Water District (OCWD) continues to design and build
PFAS (per- and polyfluoroalkyl substances) treatment plants to
maintain the water supply in the basin. Additionally, C. Parker stated
that The State Water Project has ample supply. The Metropolitan
Water District of Southern California (MWD) is conducting studies to
construct storage south of the Northern California Delta to capture
water during wet periods.
The Colorado River Basin still suffers from drought conditions with
supply straining against demand. The United States Bureau of
Reclamation (USBR) has mandated a solution on the river due to the
2026 - 68
seven states not able to negotiate a conservation plan. The solution
includes a 10-year framework and guidelines every two years. The
southern Basin States (Nevada, Arizona, and California) have
mandated cuts. Currently, the cuts have not affected MWD, most cuts
are towards Nevada and Arizona. However, MWD has voluntarily cut
demand as it has in the past to assist in the solution.
C. Parker invited the Board to the Orange County Water Summit on
September 25, 2026, and to let P. Starr, Executive Assistant, know if
interested in attending.
The Board asked about the potential for an El Nino event this year that
could result in flooding. C. Parker stated that forecasters cannot predict
rainfall from El Nino with any degree of accuracy, but it is possible.
The Board asked about the future of the Colorado River and its ability
to supply future water needs. C. Parker stated that not all years will
suffer from this same level of dryness, so supply will still exist in
future years. However, offtakers will still need to conserve in the
future.
10. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly Electric Finance Dashboard for the
period ending July 2026. B. Beelner mentioned that the month ended
with electric revenue 4.6% ($2.M) below budget with operating
revenue coming in 6.2% ($34.3M) below budget.
B. Beelner then discussed the Water Finance Dashboard. B. Beelner
informed the Board that water revenue for the Fiscal Year 2026 to date
came in 0.3% ($0.3M) above budget and mentioned that the fiscal year
ended with water operating expenditures at 2.2% ($8.4M) below
budget.
B. Beelner informed the Board that APU has more than enough power
to supply with the heatwave and explained how the State was able to
ensure there was enough power supply.
B. Beelner also informed the Board that APU now has Unit 1 turbine
of the Canyon Power Plant (CPP) back in service.
B. Beelner informed the Board the J. Sanks was promoted to Assistant
General Manager of the Administration and Risk Services division.
11. UPDATE ON ADMINISTRATION AND RISK SERVICES
ITEMS.
J. Sanks, Assistant General Manager — Administration and Risk
Services, discussed the quarterly Internal Compliance Report, which
provides an overview of compliance activities for April through June
2026. J. Sanks noted that the State Water Resources Control Board
2026 - 69
Division of Drinking Water (DDW) conducted a routine on -site
sanitary survey at APU's facilities. DDW provided recommendations
for various maintenance activities, such as fixing vent screens, tank
cleaning, and valve maintenance and APU is working with DDW to
complete these tasks.
J. Sanks also described that APU received a notice of alleged violation
related to the CPP from the California Energy Commission. The
violation is related to not having documented quarterly inspections of a
portion of CPP's fire suppression system. Other required testing and
inspections of the fire suppression system, such as annual and
semiannual tests were conducted and documented, and described that
this was a recordkeeping violation rather than an operational issue with
the fire suppression system.
The Board asked if monetary penalties were possible. B. Beelner stated
that penalties may occur and negotiations will take place with the
California Energy Commission with the help of the City Attorney's
office.
J. Sanks shared that APU tracked 81 bills, and that the two-year
legislative session ends on August 31, 2026. APU will continue to
watch Assembly Bill (AB) 1820, which would cap city and county
permit fees on electric vehicle (EV) chargers.
J. Sanks described APU's safety performance for July, noting that the
overall injury rate increased slightly compared to last year, but the lost
time injury rate, which reflects serious injuries, dropped significantly
and is well below APU's target. J. Sanks also reported an uptick in
close call and good catch reporting. J. Sanks shared that one injury
occurred in July, when an employee cut his hand while splicing an
electric cable. APU's safety team continues to visit job sites.
12. ITEMS BY SECRETARY AND INFORMATIONAL UPDATE ON
WATER PRESSURE EVENTS THAT OCCURRED ON JULY 28,
2026.
B. Beelner shared the following updates:
• The City hosted its Sister City — Mito, Japan where students
joined staff for a tour of the Sustainability Education Center;
• APU's Sustainability Education Center was awarded first place
at the 2026 California Municipal Utilities Association (CMUA)
Impact Awards in the large -size utility category; and
• The Board will receive an invitation from the City Clerk's
office for the Boards and Commissions Appreciation Dinner,
which is scheduled for October 1, 2026.
2026 - 70
B. Beelner shared agenda items planned for next month:
• Quarterly Wholesale Energy Risk Compliance Report;
• Utilities Success Indicators;
• Customer Services Operational Efficiency Consulting Contract;
and
• Annual Uncollectible Customer Account Write-offs.
B. Beelner discussed the water pressure events that took place on July
28, 2026. He informed the Board that customers experienced low water
pressure twice that day, once at approximately 5 AM and once again at
approximately 6 PM. These events occurred while APU was in the
process of widening a pipe underground near North Tustin and East La
Palma Avenues. In order to complete the work, APU turned off six
pressure regulators during this process. With the regulators disabled,
pressure dropped in central and west Anaheim. This drop in pressure
did not put the community at risk, however, four APU wells had
automatic settings that forced the wells to go offline with the drop in
pressure. APU has since removed those settings so that operators may
operate the system manually if the water pressure drops below a safe
or operationally prudent level.
The Board asked how low the pressure fell. C. Parker stated the
pressure dropped to 20 PSI, and B. Beelner mentioned it is not
dangerous until it falls to 5 PSI. APU opened feeders from the
Metropolitan Water District to restore the pressure to normal levels,
which took approximately one to one and a half hours to restore
pressure back to normal levels.
The Board asked if APU is looking for other potential settings that
might be similar. C. Parker confirmed that APU reviewed all of the
settings, and stated APU will conduct an after action overview of the
event with recommended improvements to APU's internal processes.
The Board thanked APU for the briefing and asked that APU improve APU staff will provide an
communication with its customers during future incidents. The Board update to the Board.
would like APU staff to provide a future update on how APU plans on
improving communication with its customers, including a plan to
improve incoming calls to the water operators after hours.
13. ITEMS BY BOARD MEMBERS.
Board Member I. Castillo congratulated J. Sanks on his promotion to
Assistant General Manager of Administrative and Risk Services.
Board Member M. Lee stated the presentations were very helpful, the
design -build process is awesome, and refinancing bonds is a smart
thing to do.
2026 - 71
14. ADJOURN: (NEXT REGULAR MEETING ON SEPTEMBER 23,
2026 AT 5:00 P.M.)
Respectfully submitted,
Brian Beelner
Acting Public Utilities General Manager
T. Ibrahim moved to adjourn the
Regular Meeting in the Gordon
Hoyt Conference Center at 6:36
p.m. to the Board's Regular
Meeting date of September 23,
2026, at 5:00 p.m. A.
McMenamin seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 1. [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 - 72