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CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
October 22, 2025
The agenda having been posted on Thursday, October 16, 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, October 22, 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 A. Pham, M. Lee, I. Castillo Board Members Absent: A. McMenamin, T. Ibrahim, (One Board Member seat is currently vacant) City Staff Present: D. Lee, B. Beelner, J. Lonneker, J. Lehman, M. Avelino-Walker, A. Lee, P. Starr, P. Bogdanoff, E. Krause, M. Seifen, J. Sanks, J. Martinez, D. Steele, C. Thompson, O. Nunharay
Guests Present: Council Member R. Balius
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS. There being no electronic or oral
public comments, Chairperson
J. Seymour closed the public
comments portion of the
meeting.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
SEPTEMBER 24, 2025. *
M. Lee moved the approval of
the Minutes of the Regular
Meeting of September 24, 2025.
Vice-Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 2 [A. McMenamin,
T. Ibrahim].
3. PRESENTATION: ANNUAL EMERGENCY RESPONSE AND
PLANNING REPORT.
J. Sanks, Environmental and Safety Services Manager, provided an overview of Anaheim Public Utilities’ (APU) Emergency Response Planning (ERP) Program. The ERP Program provides APU staff guidance and information on actions to be taken before, during, and after major emergencies. Citywide efforts to prepare for and respond to emergencies are also included in the ERP Program. As part of the ERP Program, annual updates are provided to the Board on key events. 2025 - 72
J. Sanks began by explaining that APU must be ready to respond to natural disasters and other emergencies and described APU’s process for providing or receiving mutual assistance including how APU coordinates with other City of Anaheim (City) departments and outside agencies.
There were no significant emergency events that occurred in the City in 2025, though APU provided two electrical crews to assist Glendale Water and Power to restore electrical service following the Eaton Fire.
J. Sanks provided an overview of an emergency response drill that APU conducted in September which simulated a wildfire in East Anaheim.
The drill included participants from Anaheim Fire and Rescue. J. Sanks also highlighted the updates to APU’s Emergency Response Plan, which included how APU would comply on the Incident Command System (ICS), referenced Citywide disaster plans, and updated lists of critical contacts and emergency equipment.
The Board asked if APU is reimbursed for providing mutual assistance to other utilities. J. Sanks explained that these costs would be reimbursed afterwards. J. Lehman, Assistant General Manager – Administration and Risk Services, noted that the mutual assistance agreements have provisions for cost reimbursement, and D. Lee, Public Utilities General Manager, added that mutual assistance is voluntary and internal needs would be considered before offering assistance to other utilities.
The Board asked if APU participated in the Great California ShakeOut drill. J. Sanks confirmed that APU participated, and staff were encouraged to participate in the earthquake safety drill.
The Board inquired if national assistance would be available to APU during a major emergency. J. Sanks stated that APU maintains mutual assistance agreements with large organizations such as the American Public Power Association (APPA) and California Utilities Emergency Association (CUEA). These agreements could be used to bring in mutual assistance resources from outside of the Southern California area.
4. PRESENTATION: 2024 ELECTRIC SYSTEM RELIABILITY.
J. Martinez, Electric Operations Manager, presented Electric System Reliability Report for 2024 (Report) and provided an overview of APU’s electric system, reliability indices, and industry-standard reliability performance measurements. The Report highlighted that APU ranks in the top quartile (top 25%) among Publicly Owned Utilities (POUs) nationwide, demonstrating superior reliability in outage frequency, duration, and restoration times.
J. Martinez explained the major causes of power outages in the City, which include cable and transformer equipment failure, metallic balloons and animal contact.
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The Report also included major indices and benchmarks commonly used within the electric utility industry to track system performance during outages, the impact on customers, and comparisons with local and regional utilities.
The Board commented that there was a significant increase in overhead transformer failures. J. Martinez responded that two heat-waves in August 2024 contributed significantly to that number of outages. To mitigate these outages, capital projects for equipment replacement are included in the annual budget. The transformer replacement program goal of 250 replacements per year is back on track as supply chain delays are being managed. Additionally, the direct buried cable replacement program is 78% complete, helping to address underground incidents.
The Board asked about the average age of a transformer. J. Martinez responded that the life-cycle of a transformer depends on many factors including age, usage and exposure to weather. J. Lonneker, Assistant General Manager – Electric Services, added that the transformers that are getting replaced average 25-30 years old. Since technology has improved, APU is targeting transformer replacement of the obsolete technology.
The Board inquired whether the older transformer technology leads to increased failure. J. Lonneker responded that a combination of older technology and increased loading on the transformers, due to electrification, contributes to the transformer failures. D. Lee added that in addition to replacing the transformer, supporting infrastructure such as poles and wires are assessed and replaced as necessary to avoid additional equipment failures, which prolongs replacement time. J.
Martinez also highlighted new technologies being piloted to assist in locating power outages, noting that the City’s predominantly underground electric system has led to slightly longer restoration times.
Additionally, piloting dead-front pad-mounted switches requested by the electric crews will improve safety and reduce animal contact outages in the underground electric system. Even with these outages, the City’s electric system remains in the top quartile of all POUs for frequency and duration of power outages.
The Board asked if there are advantages for APU to be leaders on the performance metrics. J. Lonneker responded that the metrics are used for reliability measures to drive investment, but the metrics are also used by financial institutions when rating APU’s credibility and resiliency. A higher credit rating will enable better financing terms and bond ratings.
5. RECOMMEND APPROVAL OF AN AGREEMENT WITH
ENERGY AND ENVIRONMENTAL ECONOMICS, INC. FOR
INTEGRATED RESOURCES PLAN CONSULTING SERVICES,
WITH A TWO-YEAR INITIAL TERM AND TWO ONE-YEAR
OPTIONAL EXTENSIONS, AT A NOT-TO-EXCEED COST OF
M. Lee moved the
recommendation to approve the
professional services agreement
with Energy and Environmental
Economics, Inc. Vice-
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$448,130, PLUS A CONTINGENCY OF UP TO 10% FOR AS-
NEEDED EXTRA SERVICES. *
B. Beelner, Assistant General Manager – Finance and Energy Resources, briefed the Board on the proposed agreement with Energy and Environmental Economics, Inc. (E3) to assist APU with the preparation of the 2026 Integrated Resources Plan (IRP). B. Beelner shared that an IRP was mandated in 2015 by the State of California’s (State) Senate Bill 350, which requires all electric utilities, including APU, to prepare a comprehensive plan and submit it to the state for approval. B. Beelner highlighted that an IRP is essentially a complex roadmap that shows how a utility will meet the State’s mandates for renewable power in a cost-effective manner considering multiple constraints over the next 10 to 30 years.
B. Beelner shared that E3 will assist APU in data collection, data modeling and IRP preparation in concert with APU’s Integrated Resources Division. The IRP will be brought forward to the Public Utilities Board and City Council for approval before it is submitted to the State of California.
Chairperson A. Pham seconded
the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 2 [A. McMenamin,
T. Ibrahim].
6. RECOMMEND APPROVAL OF AN AGREEMENT WITH
RESOURCE INNOVATIONS, INC. FOR DUSK-TO-DAWN
LIGHTS AND MAILING SERVICES OF ENERGY EFFICIENCY
KITS FOR RESIDENTIAL CUSTOMERS, WITH AN INITIAL
TERM OF FIVE YEARS AND UP TO TWO ONE-YEAR
OPTIONAL EXTENSIONS, AT A NOT-TO-EXCEED COST OF
$3,750,000 FOR THE INITIAL TERM AND AN ANNUAL NOT-
TO-EXCEED COST OF $750,000 FOR EACH EXTENSION TERM,
PLUS A 10% CONTINGENCY FOR AS-NEEDED EXTRA
SERVICES. *
M. Avelino-Walker, General Services Officer, outlined an agreement to provide the City’s residential customers with dusk-to-dawn lighting products and to conduct the fulfillment and mailing of energy efficiency kits to new electric customers. M. Avelino-Walker described the program and stated that staff recommended that the agreement be awarded to TechniArt Inc., for these services. M. Avelino-Walker clarified that Resource Innovations, Inc. submitted a request for the contracting entity to be changed to TechniArt Inc., a wholly owned subsidiary of Resource Innovations, Inc., after the Public Utilities Board meeting agenda had been posted. There were no other changes to the proposed agreement.
The Board inquired if the vendor or APU selects specific items to be included in the kit and the cost of each kit. M. Avelino-Walker responded that APU does select the items to be included in the kit and the cost is $15 per kit. The Board asked how many lights were distributed last year. M. Avelino-Walker shared that APU distributed approximately 2,000 Dusk-to-Dawn lights and 8,000 energy efficiency kits.
I. Castillo moved the
recommendation to approve the
professional services agreement
with TechniArt, Inc. M. Lee
seconded the motion.
MOTION CARRIED: 4-0.
ABSTAINED: 0.
ABSENT: 2 [A. McMenamin,
T. Ibrahim].
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A. Lee, Assistant City Attorney, confirmed that the motion before the Board was to recommend that the City Council approve the proposed agreement with TechniArt, Inc. rather than Resource Innovations, Inc.
7. QUARTERLY STATUS REPORT FOR PRE-QUALIFIED
PROFESSIONAL SERVICES, CONSTRUCTION, AND
MATERIAL PURCHASES (JULY - SEPTEMBER 2025).
D. Lee explained that APU utilizes agreements with pre-qualified contractors, and City Council approved the direct purchasing authority of equipment and services that are operationally needed. One award was issued for traffic management services. The second award was for chemicals used at the Lenain Water Treatment Plant.
J. Lonneker shared that the Quarterly Status Reports and Electric Capital Improvement Plan (CIP) dashboard reflect the first quarter of Fiscal Year (FY) 2025/26. The expenditure levels for the CIP are approximately 25% of average annual levels of total budgeted as expected in the first quarter. J. Lonneker highlighted the projects at Southwest Substation, APU’s utility yard on Vermont Avenue, and cable replacement on Serrano Avenue.
P. Bogdanoff, Acting Assistant General Manager – Water Services, briefed the Board on the Water CIP and shared that the program was making good progress in the first quarter of the FY. Several pipeline projects had been encumbered toward the end of the last FY and are progressing in FY 2025/26. APU encumbered the Oak Hills Reservoir and is expected to encumber additional pipeline replacements in the FY 2025/26. APU will seek the City Council’s approval on a Well Rehabilitation construction award for the four wells included in APU’s Phase C Groundwater Treatment Project.
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker updated the Board that there has been a rise in copper wire theft. APU has had nearly 200 incidents this year, including 60 in the last three months. The Anaheim Police Department (APD) has increased patrols and is collaborating with APU to install security cameras.
Additionally, APU is piloting a device that will alert our operators when power is lost at the streetlight, which may help reduce these more widespread incidents.
J. Lonneker shared that APU hosted the annual Public Power Week Celebration, which included a field trip for 100 students from Rio Vista Elementary School to learn how electricity is delivered to their homes, how to remain safe around power lines, and about utility career opportunities available to Anaheim residents.
APU participated in the Wildfire Preparedness Open House in District 6 on October 11th. APU staff provided information on water conservation
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rebates and programs, demonstrations of how water is sourced, the wildfire threat zones adopted by the California Department of Forestry and Fire Protection (CAL FIRE), and information on APU’s overhead electric circuits in wildfire threat zones. J. Lonneker reported that the event was well attended and a good opportunity to collaborate on events with the other City departments to disseminate information to the community on the comprehensive efforts by the City for wildfire preparedness.
9. UPDATE ON WATER SYSTEM ITEMS.
P. Bogdanoff informed the Board on the water supply condition, stating that the precipitation numbers on the report were reset for the new water year starting on October 1st. The State is starting the new year in a good position with Lake Oroville being at 107% of normal storage capacity.
The Orange County Groundwater Basin remains in good condition. La Niña conditions are being predicted for this year, which comes with a higher probability of warmer and dryer conditions for the State. However, as observed in recent years, actual precipitation can vary significantly from year to year.
P. Bogdanoff briefed the Board on the Orange County Water Association’s Operator Expo that was held at Rattlesnake Reservoir on September 18th. The Operator Expo is a local event where operators can connect with other agencies, attend water related training and connect with industry vendors. The event was well attended by Southern California water agencies, with over 200 operators in attendance. APU staff also attended the event and participated in the Pipe Tapping Competition.
10. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner discussed the monthly Finance Dashboard for the period ending September 2025 and mentioned that the Electric Utility revenue fell below expectations due to a cooler than expected early summer. This drop in temperature also led to lower than budgeted operating expenses.
B. Beelner then discussed the Water Finance Dashboard and noted that the revenues and expenditures were largely in line with expectations with a slight drop in operating expenditures due to lower-than-expected supply and labor costs.
B. Beelner briefed the Board on the monthly Power Supply Dashboard noting that the Magnolia Coordinating Committee approved an uprating to the project providing an additional nine Megawatts (MW) of capacity to APU from the Magnolia Power Project in Burbank. B. Beelner informed the Board that approximately half the cost will be paid through a grant from the California Energy Commission and the uprating will have an approximate eight-year payback.
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11. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman provided an overview of the Administration and Risk Services dashboard and highlighted that the first year of the two-year legislative session had just wrapped up. J. Lehman shared that in addition to the Cap and Invest (AB 1207) and the Pathways Regional Organization (AB 825) mentioned last month, which was passed into law, there were three new laws that J. Lehman wanted to highlight:
• AB 476 – Junk Dealers and Recyclers - Scrap Metal
Requirements: this was supported by APU as it increases the requirements on the information that junk dealers and recyclers must collect;
• SB 394 – Water Theft - Fire Hydrants: this was supported by APU as it allows a utility to bring a civil action for hydrant damages or theft, and
• AB 1410 – Electric Service Outage Alerts and Notifications: this was initially of concern to APU as it requires electric utilities to auto-enroll customers into outage alerts and notifications by March 2026.
J. Lehman then reviewed APU’s safety metrics, which were being met, and shared that APU had one reportable injury during the reporting period related to an employee twisting their knee as they exited a truck.
J. Lehman said that APU continues to provide training to help minimize injuries.
12. ITEMS BY SECRETARY.
APU is in discussions with the LA28 Organizing Committee for the 2028 Olympic volleyball events that will be held at the Honda Center.
D. Lee shared agenda items planned for next month:
• Water System Reliability Update;
• Financial Update; and
• Three Agreements in Development: Production Cost Modeling Software, Residential Energy Efficiency Programs, and a Wind Power Sales Agreement.
D. Lee shared the following updates:
• APU participated in a Senior Outreach Event in District 2 to inform the senior community about assistance programs;
• The City implemented a new open-house-style format for Council-led community meetings to promote resident
engagement directly with City departments;
• APU hosted an Outage Resource Event to assist residents with bill assistance and resources following a prolonged outage; • APU staff participated in the Anaheim Innovative Mentoring Experience (AIME) with Anaheim Union High School District.