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CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
March 26, 2025
The agenda having been posted on Thursday, March 20, 2025, the Regular Meeting of the Public Utilities Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday, March 26, 2025, 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 M. Lee, A. Pham, A. McMenamin, T. Ibrahim, G. Dima-Smith
Board Members Absent: None (One Board Member seat is currently vacant) City Staff Present: D. Lee, P. Starr, C. Parker, J. Lonneker, J. Lehman, M. Avelino-Walker, A. Nguyen, B. Mendoza, B. Iglesias, D. Kim, M. Seifen, A. Lee, D. Aguon, R. Berry, N. Davis, R. Delgado, N. Enes, J. Estrada, M. Hernandez, J. Pedroza, J. Ramirez, J. Sanks, N. Burki, J. Martinez, P. Bogdanoff, E. Krause Guests Present: Council Member R. Balius, T. Bilezikjian, J. Baca (International Brotherhood of Electrical Workers (IBEW) Local 47)
Metropolitan Water District of Southern California (MWD): A. Ortega, Jr., Chair of the Board; S. Faessel, Director; D. Upadhyay, General Manager; L. Crosson, Sustainability, Resiliency and Innovation Officer; Y. Martinez, Section Manager, External Affairs
AGENDA ITEM ACTION TAKEN
1. RECOGNITION: TANYA BILEZIKJIAN FOR HER SERVICE TO
THE ANAHEIM COMMUNITY AS A PUBLIC UTILITIES BOARD
MEMBER.
D. Lee, Public Utilities General Manager, recognized T. Bilezikjian for her service on the Public Utilities Board. While on the Board, T. Bilezikjian participated in Board recognitions of students and schools, supported projects and programs that benefit the community, and participated in infrastructure tours. T. Bilezikjian thanked the Board and staff for the recognition and expressed that she appreciated her time on the Board.
2. OATH OF OFFICE: **
BOARD MEMBER GABRIEL DIMA-SMITH (DISTRICT 1)
A. Lee, Deputy City Attorney, administered the Oath of Office to the newly elected member of the Board, G. Dima-Smith – District 1.
ITEM # 03
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3. RECOGNITION: ELECTRIC FIELD CREW MEMBERS FOR
PROVIDING MUTUAL AID TO GLENDALE WATER AND POWER
DURING WILDFIRE EVENT.
J. Martinez, Electric Operations Manager, provided an overview of the windstorm and wildfire event that occurred in Los Angeles County, and shared that a mutual aid request was received from Glendale Water and Power for restoration efforts. J. Martinez recognized B. Iglesias, Chief Utilities Systems Operator, for his collaborative efforts to organize mutual aid assistance provided by Anaheim Public Utilities (APU) electric line crews. The electric field crew members who provided mutual aid were recognized for restoring power to those affected during the wildfire event.
D. Aguon, Electric Crew Supervisor, shared how the wind conditions impacted APU’s electric crews during the restoration efforts, and the value of providing relief to fellow electric crews who had already worked long hours to restore power. City of Glendale residents were appreciative of their efforts during difficult working conditions.
J. Lonneker, Assistant General Manager – Electric Services, thanked the electric crews for representing APU and introduced J. Baca, Assistant Business Manager of IBEW Local 47. The Board expressed their appreciation of the electric crews.
4. PUBLIC COMMENTS.
There being no electronic or
oral public comments,
Chairperson J. Seymour
closed the public comments
portion of the meeting.
5. APPROVE THE MINUTES OF THE REGULAR MEETING OF
FEBRUARY 26, 2025. *
Vice-Chairperson M. Lee
moved the approval of the
Minutes of the Regular
Meeting of February 26,
2025. A. McMenamin
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
6. METROPOLITAN WATER DISTRICT (MWD) UPDATE ON
CLIMATE ADAPTATION MASTER PLAN FOR WATER
(CAMP4WATER).
C. Parker, Assistant General Manager – Water Services, introduced members of the Metropolitan Water District of Southern California (MWD), who provided an update on the Climate Adaptation Master Plan for Water (CAMP4W). A. Ortega, Jr., Chair of the MWD Board, shared that MWD is the largest provider of drinking water in the United States.
Conservation efforts and water storage have helped MWD get ahead of future droughts. A. Ortega, Jr. explained the importance of navigating the challenges that come from climate change and finding the funding to continue working on projects.
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D. Upadhyay, MWD – General Manager, elaborated on the current challenges MWD is encountering, such as the erosion of water supply due to climate change. D. Upadhyay explained the changes MWD will see as climate change begins to impact the rainfall and snowpack seasons that would normally help store water in the Spring but are predicted to move up to the month of January.
L. Crosson, Sustainability, Resilience and Innovation Officer, explained the process of preparing the implementation strategy of CAMP4W that includes evaluating projects based on current climate data in order to be more responsive and adaptable to future conditions.
D. Lee introduced Council Member R. Balius who joined the Board meeting.
7. PRESENTATION: CAP AND TRADE PROGRAM OVERVIEW AND
COMPLIANCE UPDATE.
N. Burki, Senior Integrated Resources Planner, provided an overview of greenhouse gas (GHG) emissions and the Cap-and-Trade Program (Program), sharing that approximately 73% of emissions are attributable to the transportation, industrial, and electric power sectors.
N. Burki reviewed California’s climate policies and legislation that established the goal to reduce emissions to 40% by 2030. The California Air Resources Board (CARB) is responsible for the Program implementation and N. Burki described APU’s participation in the Program. APU receives an annual allocation of free emission allowances and may sell any unused allowances in quarterly auctions to help offset renewable energy costs. These allocations have helped to lower power supply costs to keep customer rates affordable.
N. Burki summarized the Program’s compliance requirements, stating that utilities must surrender one allowance for every metric ton of emissions during each three-year compliance period. Penalties may apply if compliance requirements are not met. N. Burki indicated that CARB had deemed APU in full compliance for the fourth compliance period (2021– 2023), during which APU was below the threshold of surrendered allowances. N. Burki noted that discussions are underway regarding possible legislation to extend the Program beyond 2030, but such efforts remain in the early stages.
The Board inquired whether recent California Public Utilities Commission (CPUC) actions would affect APU. N. Burki explained that APU would not be affected because the CPUC jurisdiction applies to Investor-Owned Utilities (IOUs) and is separate from CARB’s regulatory process.
Chairperson J. Seymour excused himself from the meeting at 6:04 p.m., and M. Lee chaired the remainder of the Board meeting.
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8. PRESENTATION: PROTECTING EMPLOYEES AND THE PUBLIC
– ANNUAL SAFETY PERFORMANCE UPDATE.
J. Sanks, Environmental and Safety Services Manager, briefed the Board on APU’s Safety Program and performance during 2024. J. Sanks shared that APU’s Safety Program requires continuous improvement, including specialized training, conducting field inspections, incident reviews, and evaluating feedback from employees. J. Sanks shared an overview of APU’s safety performance in 2024, noting that the last three years were on trend with the goals provided by the U.S. Bureau of Labor Statistics based on industry averages established for Publicly Owned Utilities (POUs). The Lost Time Injury Rate (LTIR), which is comprised of the most severe injuries that result in at least one day away from work, has consistently remained below industry averages. J. Sanks described that the number of close calls / near misses remained high, due to staff identifying and discussing safety hazards. Investigating close calls or near misses allows APU’s safety team to identify potential safety hazards in the workplace.
APU will continue to provide training, job safety analyses, and job site visits to help minimize injuries.
J. Sanks shared that APU received the Diamond designation for the 2024 Electric Utility Safety Award of Excellence awarded by the American Public Power Association to recognize utilities’ incident rates and the overall state of their safety program and culture.
The Board asked if APU sets a goal for close calls / near misses based on industry averages and if this metric is used in other utilities. J. Sanks explained that while the Safety Program does not have a goal to target, the importance of reporting a close call / near miss is to improve the safety culture at APU. The Board thanked APU staff for continuously improving the Safety Program and identifying unsafe conditions that could result in an injury. Board Member A. Pham shared that the health care industry now uses the term “good catch” when recognizing an incident that did not occur to prevent future incidents. J. Lehman, Assistant General Manager – Administration and Risk Services, shared that APU’s safety team will likely begin using different terminology as the industry moves away from using terms like “close call / near miss”.
9. APPROVE UPDATES TO DEPARTMENT ORDER 410
(PROCEDURES FOR PUBLIC NOTIFICATION OF
CONSTRUCTION AND PLANNED MAINTENANCE);
DEPARTMENT ORDER 500 (INTERNAL COMPLIANCE PLAN);
AND DEPARTMENT ORDER 509 (PROCEDURES FOR PUBLIC
NOTIFICATION OF UNSAFE WATER).
M. Avelino-Walker, General Services Officer, made the Board aware that Department Orders (DO) establish and document guidelines and procedures for APU. The DOs are in concert with the City’s policies and facilitate staff efficiency, effectiveness, and accountability. M. Avelino- Walker explained that DOs are updated as needed to reflect changes in procedures, roles or responsibilities. DO 500, Internal Compliance Plan, A. Pham moved the
approval of Department
Order 410, Procedures for
Public Notification of
Construction and Planned
Maintenance; Department
Order 500, Internal
Compliance Plan; and
Department Order 509,
Procedures for Public
Notification of Unsafe
Water. G. Dima-Smith
seconded the motion.
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and DO 509, Procedures for Public Notification of Unsafe Water, were updated to reflect roles and responsibilities. DO 509 also includes new guidelines from the U.S. Environmental Protection Agency (EPA).
C. Parker briefed the Board on the updates pertaining to DO 410, Procedures for Public Notification and Construction and Planned Maintenance. The updated DO will now include both planned maintenance and Capital Improvement Projects (CIP). C. Parker explained that an additional section was added to address individual service disconnections, for instance where APU staff responds to customer inquiries, requests from other City departments, and evaluating utility equipment. DO 410 was also updated to ensure that appropriate staff are updating online outage maps to inform APU staff and customers of outages.
D. Lee thanked Board Member A. Pham for suggesting that APU notify customers of outages due to planned maintenance. D. Lee informed the Board about an incident between a customer and another utility, explaining that the customer declined access to the backyard because the maintenance was not previously communicated to her. Unfortunately, the employee of another utility proceeded to enter the property and began to perform the work. The updates on DO 410 will ensure consistency with notifying customers and are intended to prevent incidents like this from occurring.
The Board inquired if other utilities coordinate with APU prior to starting a project. D. Lee shared that roadway disruptions require other utilities to go through the Public Works Department’s permitting process; however, other utilities should communicate with the property owners directly when seeking to enter private properties since they are regulated by the State.
The Board inquired how APU determines the timeline for notifications regarding planned outages, and how APU alerts customers other than door hangers. D. Lee explained that customers that will be affected by the outage are notified by a door hanger. Unfortunately, electronic contact information on an account is not always the person residing at the premise. APU is planning on including the appropriate contact information for outages during the next upgrade of the customer information system. C. Parker shared that APU determines the timeline for notifications based on the project’s needs, as shown in DO 410, Section E – Timeline for Notifications.
Board Member G. Dima-Smith inquired about the notification process regarding a recent water outage in his neighborhood. C. Parker shared that he would follow up with staff and report back.
MOTION CARRIED: 5-0.
ABSTAINED: 0.
ABSENT: 1. [Chairperson
J. Seymour]
APU staff will provide an
update to G. Dima-Smith.
10. APPOINT UP TO THREE MEMBERS FOR THE HIGH SCHOOL
STUDENT SCHOLARSHIP AD HOC SELECTION COMMITTEE.
APU requested up to three Board Members to participate on the ad hoc Selection Committee for the 2025 High School Student Scholarship Program. Vice-Chairperson M. Lee appointed Board Members A. Pham, A. McMenamin, and G. Dima-Smith.
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11. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker briefed the Board on an incident regarding an electrical substation fire at London Heathrow Airport, explaining that three electrical substations serve the airport with each having a backup transformer. The transformer caught on fire, resulting in damage to the adjacent backup transformer. The airport was limited and lacked the capacity to run all airport systems, which resulted in temporary closure. J. Lonneker added that the delivery lead time for substation transformers is approximately two years and explained that APU, with 14 substations throughout the City, has the ability to reroute power through automated field switches to restore circuits. In addition, APU has a mobile substation and spare substation transformers as backup. Critical substations have firewalls between the transformers to contain one transformer from damaging adjacent equipment.
J. Lonneker announced that a new transformer is planned for delivery at Sharp Substation at the end of April. APU staff will invite the Board to view the new transformer once the delivery date is confirmed by the manufacturer.
J. Lonneker shared that the California Department of Forestry and Fire Protection (CAL FIRE) has completed the 2025 Fire Hazard Severity Zone (FHSZ) assessment and has a new comparison tool available showing the updated areas since 2011. This tool displays an interactive map of California that can indicate pre/post 2025 updates of high/very high fire threat zones (FTZs).
J. Lonneker provided a comparison of the changes to the Anaheim area, explaining that very minimal changes were made, and APU staff will include the updated map in APU’s 2025 Wildfire Mitigation Plan.
The Board asked if APU would have any regulatory impacts due to additional areas that were not previously covered. J. Lonneker explained that APU’s FTZs had minimal changes and should not see regulatory impacts, primarily due to majority of the electrical equipment in the FTZs being underground, with plans to underground the remaining electrical equipment in the future. D. Lee responded that APU anticipates that the California Wildfire Safety Advisory Board (WSAB) will inquire if APU used the updated maps upon submitting APU’s updated Wildfire Mitigation Plan.
APU staff will follow up
with an invite.
12. UPDATE ON WATER SYSTEM ITEMS.
C. Parker provided an update on the Water Supply Dashboard, sharing that the Orange County Groundwater Basin is in good condition although the rainfall is below average. The State Water Project is also in good condition, due to the above average rainfall and snowpack, which will allow MWD to increase the stored water allocation from 35% to about 40%. The Colorado River Basin is in adequate condition as a result of the under average snowpack this rainy season.
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APU is involved with MWD’s Business Model, comprised of proposed rate modifications and local water exchanges, that will strengthen MWD’s finance portfolio. MWD will seek approval by the MWD Board of Directors in April.
13. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
A. Nguyen provided an overview of the Finance Dashboard, sharing that the electric fiscal year-to-date utility revenue and expenses were below budget. The electric operating expenditures budget variance was 21.5% under budget, due to lower wholesale energy and gas prices. The cost savings at the end of the fiscal year will support capital improvement projects. A. Nguyen discussed the water operating expenditures budget variance, stating that the variance was 5.4% below budget due to groundwater pumping efforts to minimize water supply costs from imported water.
A. Nguyen provided an overview of the Power Supply Dashboard, sharing that APU has lower fuel and wholesale energy prices since the beginning of this fiscal year. Additionally, one coal plant is in transition to natural gas.
The Board asked when the fiscal year ends. A. Nguyen shared that APU’s finance team will provide an overview of the current proposed budget in anticipation of the fiscal year ending on June 30th.
The Board asked if APU has considered adjusting its share of renewable energy due to financial cost. D. Lee explained that APU has gradually increased its renewable portfolio to meet statewide compliance targets; and is on track to meet the requirement of 60% renewables by 2030. D. Lee made the Board aware of the challenges APU and other utilities are experiencing to procure new renewable resources. APU is actively working with other municipalities on this issue and remains committed to meeting the State’s Renewable Portfolio Standards.
14. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman updated the Board on the Wholesale Energy Risk Management (ERM) program’s Quarterly Compliance report. During this quarter, there was a violation of the Wholesale ERM program due to the late submittal of a newly required Hoover meter data audit report to the California Independent System Operator (CAISO). The violation has been mitigated, and appropriate corrective actions have been taken to ensure that it does not occur again. J. Lehman shared that all other transactions were within the ERM requirements.
J. Lehman provided an overview of the Administration and Risk Services Dashboard, highlighting that APU is following approximately 131 bills but staff is identifying additional bills that could impact APU customers and/or operations. J. Lehman highlighted the following bills:
• SB 305 – Small Nuclear Reactor Exemption: this bill is being watched by APU;
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• SB 540 – Independent Regional Organization - Pathways: this bill is being watched by APU for potential impacts to California entities;
• AB 261 – Wildfire: Fire Hazard Severity Zone: this bill is being watched by APU as previously discussed during the Electric updates; and,
• AB 532 and SB 350 – Low-Income Rate Assistance (LIRA): Water:
these bills are being watched by APU.
J. Lehman then reviewed the safety metrics, and shared that APU had no reportable injuries during the reporting period. J. Lehman said that APU continues to provide training and job site inspections to help minimize injuries and identify areas for improvement.
15. ITEMS BY SECRETARY.
D. Lee shared agenda items planned for next month:
• Annual Budget Presentation;
• Annual Water Quality Report;
• Department Order Updates; and,
• MWD’s Water Conservation Agreement Amendments.
D. Lee shared the following updates:
• APU staff participated in community events at Katella High School, Roosevelt Elementary School, and a mobile family resource center to provide information on rebates and incentive programs to residents;
• APU is coordinating with the Anaheim Police Department’s Mounted Enforcement Unit, who is proposing to use the unused land around the Nohl Canyon Water Storage Tank to stage horses during events;
• APU staff participated in a Rebuild Beach Outreach Event with other City departments to provide Dusk to Dawn lights, and discuss the underground conversion project on Beach Boulevard;
• APU staff provided a tour of the underground conversion project on Nutwood and Cerritos for Council Member C. Leon;
• APU staff provided an introductory tour of APU facilities for Board Member G. Dima-Smith; and,
• APU staff demonstrated the operations of a line truck to Council Member R. Balius.
Lastly, D. Lee invited the Board to the 2025 Anaheim State of the City at the Grove of Anaheim. If any Board members are interested in attending, please inform P. Starr, Executive Assistant.
16. ITEMS BY BOARD MEMBERS.
Board Member G. Dima-Smith thanked the Board Members and APU staff for being so welcoming and expressed that he is looking forward to learning more about APU.