Anaheim is committing to a nearly billion-dollar clean-energy purchase that will power roughly 75,000 homes for two decades, a decision the City Council made Tuesday night along with appointing a new city manager.
The council approved a 20-year agreement with Heartland Solar 1 LLC to buy power from a 150-megawatt solar and 138.5-megawatt battery facility in Fresno County. The fixed-price contract will cost about $47 million a year and roughly $955 million over its term.
Janet Lonaker, acting general manager of Anaheim Public Utilities, told the council the project is “a major step” toward meeting the state’s mandate to produce 60% of power through renewable resources by 2030 and have a fully carbon-free energy portfolio by 2045.
The facility will occupy 2,362 acres of former farmland about 30 miles southwest of Fresno and is expected to begin construction in March 2027 and start operating by summer 2028.
APU Assistant General Manager Brian Beelner said ratepayers would not see an immediate change to their bills because the project slots into the budget of a Utah power plant coming offline in June 2027.
“The specific benefit of this project is that those (electricity storage) batteries will be dispatched exactly when those customers need it the most.” Beelner said. “When they’re coming home from work, when they’re turning on their stoves, when they are plugging their phones in, when they’re plugging their cars in, that’s when this battery will dispatch. So it adds extra resiliency into the grid that sometimes has been lacking in California.”
Council Member Ryan Balius asked whether the carbon-free energy would be cheaper than a natural gas-fired plant.
Beelner acknowledged “a gas plant would probably be cheaper” absent California’s renewable regulations, though he noted the negative externalities of fossil fuel would have to be recovered elsewhere.
Balius voiced frustration that the city faces “almost a billion dollars in long term obligation that we’re just supposed to figure out how to pay” without state funding and while navigating environmental restrictions that drive up costs.
The contract includes performance guarantees, including no payment for the battery if it falls below 90% capacity for three consecutive months and liquidated damages of $350,000 per megawatt if the project is late. The council voted 7-0 to approve the agreement, which is funded through the Anaheim Public Utilities enterprise fund rather than the city’s general fund.
Earlier in the meeting with another unanimous vote, the council approved an employment agreement appointing current Oceanside City Manager Jonathan Borrego as Anaheim’s top administrator at an annual salary of $409,000. Borrego is set to start his tenure in Anaheim on Dec. 28 following his final day with Oceanside on Dec. 18.
Human Resources Director Linda Andal said Borrego was selected through a nationwide search that drew about 160 candidates and that he previously served Anaheim for 29 years.
Borrego brings nearly 40 years of municipal government leadership and planning experience, including 29 years with Anaheim, according to a city statement announcing his appointment.
He has served as Oceanside’s city manager since 2022, becoming the first Latino to hold the position in the San Diego County city’s 138-year history. Borrego joined Oceanside in 2017 as director of development services and later served as deputy city manager. He was named interim city manager in early 2022 before being appointed to the permanent position.
Of his 38 years in local government, all but nine have been spent in Anaheim. He began his career there in 1988 as an entry-level planner in the Planning and Building Department and eventually became Planning Division manager.
During his earlier stint in Anaheim, Borrego helped lead zoning and planning updates for Beach Boulevard, the Platinum Triangle and Anaheim Canyon. He also oversaw a 2007 update of the city’s general plan, which provides a long-term framework for land use and development.
“Returning to Anaheim would be an honor,” Borrego said in a statement. “I owe so much to this city. ‘The Anaheim Way’ philosophy of going above and beyond for those we serve was instilled in me during my nearly three decades there. It is a spirit of service I carry forward to this day.”
Borrego said he would prioritize “a steady transition, continuity of city services, budget management and effective leadership for residents, businesses and visitors.”
His employment agreement calls for an annual salary of $409,000, along with benefits provided to other executive managers, officials reported. The maximum salary for the city manager position is $467,056.
Anaheim is the largest city in Orange County, and Borrego will oversee an annual budget of $2.6 billion, including a $573.7 million general fund supporting public safety, community services and other operations.
The city manager also oversees 14 departments and about 2,000 employees serving nearly 350,000 residents, 20,000 businesses and an estimated 26 million annual visitors, officials said.
Borrego will become Anaheim’s 14th city manager since the position was established in 1919.
He succeeds Jim Vanderpool, who retired in February after serving in the role since 2020. Borrego will take over from Interim City Manager Greg Garcia, who is expected to return to his previous position as assistant city manager.
Borrego was born and raised in Santa Paula in Ventura County. He earned a bachelor’s degree in political science and a master’s degree in public administration from California State University, Long Beach, according to the city. He has lived in Anaheim with his wife and family since the early 1990s and raised four children there. He is an Anaheim Ducks fan and enjoys hiking and live music.
In another action during the council meeting, members voted 6-1 to establish July 31, 2027, as the termination date for a long-running development agreement with PT Metro LLC for the A-Town project unless an amendment is adopted by then.
Planning and Building Director Heather Allen said the developer had not completed a milestone requiring 462 additional residential units, with 132 still outstanding.
Mayor Ashleigh Aitken opposed the extension, saying the council keeps granting extensions without affordable housing progress.
“If I was a betting woman, we’ll be back here in July 2027 with zero movement on this project,” she said. “If we are going to be serious about our affordable housing … we need to stop allowing developers to extend these agreements way out into the future and not have them keep up with any of the indicators, as parks get more expensive, fire and police get more expensive.”
Councilwoman Natalie Meeks supported it, calling a grocery store development tied to the agreement “critical for the Platinum Triangle”. She said the council should enable city staff “to give it that one last push before we would have to restructure a whole deal that might not provide those services to this community.”
The AI platform Civilio assisted this report.
