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HomeMy WebLinkAbout2022-09-14 Utilities Advisory Commission Agenda PacketMATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE UTILITIES DEPARTMENT AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. UTILITIES ADVISORY COMMISSION – SPECIAL MEETING SEPTEMBER 14, 2022 – 6:00 PM Community Meeting Room / ZOOM Webinar NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956 Supporting materials are available online at https://www.cityofpaloalto.org/gov/boards/uac/default.asp on Thursday, 5 days preceding the meeting. Join Zoom Webinar Here Meeting ID: 966 9129 7246 Phone: 1 (669) 900-6833 Pursuant to AB 361 Utilities Advisory Commission meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on Midpen Media Center at https://midpenmedia.org, and live on YouTube at https://www.youtube.com/c/cityofpaloalto. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. I. ROLL CALL 6:00 pm – 6:05 pm II. AGENDA REVIEW AND REVISIONS 6:05 pm – 6:10 pm III. ORAL COMMUNICATIONS 6:10 pm – 6:25 pm Members of the public are invited to address the Commission on any subject not on the agenda. A reasonable time restriction may be imposed at the discretion of the Chair. State law generally precludes the UAC from discussing or acting upon any topic initially presented during oral communication. IV. APPROVAL OF THE MINUTES 6:25 pm – 6:30 pm Approval of the Minutes of the Utilities Advisory Commission Meeting Held on August 03, 2022 V. UNFINISHED BUSINESS 6:30 pm – 6:45 pm 1.Discussion and Consideration of the Remote Attendance Policy Ch airman: Lauren Segal Vice Chair: A.C. Johnston Commissioners: John Bowie, Lisa Forssell, Phil Metz, Greg Scharff, and Loren Smith Council Liaison: Alison Cormack MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE UTILITIES DEPARTMENT AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. VI. UTILITIES DIRECTOR REPORT 6:45 pm – 7:00 pm VII. NEW BUSINESS 2.Adoption of a Resolution Authorizing Use of Teleconferencing for Utilities Advisory Commission Meetings During Covid-19 State of Emergency (Action) 7:00 pm – 7:05 pm 3.Informational Update on Utilities Cross Bore Verification Projects (Discussion) 7:05 pm – 7:35 pm 4.Discussion and Overview of City Electric Vehicle Programs and Activities (Discussion) 7:35 pm – 8:05 pm 5.Staff Recommends the Utilities Advisory Commission Recommend the City Council Accept the Bylaws Amendment With Updated Annual Election Schedule, Meeting Times, and Agenda Additions (Action) 8:05 pm – 8:20 pm 6.Colleagues Memo From A.C. Johnston, Phil Metz, and Loren Smith: Implementation of a City-Owned FTTP network and City-Owned Internet Service Provider (Action) 8:20 pm – 8:50 pm VIII. COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS INFORMATIONAL REPORTS IX. FUTURE TOPICS FOR UPCOMING MEETING: Special Joint Study Session with City Council on Fiber – September 19, 2022 Next scheduled meeting – October 12, 2022 SUPPLEMENTAL INFORMATION - The materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. Code Section 54954.2(a)(3)). 12-Month Rolling Calendar Public Letter(s) to the UAC MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE UTILITIES DEPARTMENT AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to UACPublicMeetings@CityofPaloAlto.org. 2.Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Commission, click on the link below for the appropriate meeting to access a Zoom-based meeting. Please read the following instructions carefully. •You may download the Zoom client or connect to the meeting in-browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. •You will be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. •When you wish to speak on an agenda item, click on “raise hand.” The Attendant will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. •When called, please limit your remarks to the time limit allotted. •A timer will be shown on the computer to help keep track of your comments. 3.Spoken public comments using a smart phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. Join Zoom Webinar Here Meeting ID: 966-9129-7246 City of Palo Alto (ID # 14744) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: IV. APPROVAL OF THE MINUTES City of Palo Alto Page 1 Title: Approval of the Minutes of the Utilities Advisory Commission Meeting Held on August 03, 2022 From: Director of Utilities Lead Department: Utilities Recommended Motion Recommended Motion Staff recommends that the UAC consider the following motion: Commissioner ______ moved to approve the draft minutes of the August 3, 2022 meeting as submitted/Amended. Commissioner ______ seconded the motion. Attachments: • Attachment A: Draft Minutes Packet Pg. 4 Utilities Advisory Commission Minutes Approved on: Page 1 of 14 UTILITIES ADVISORY COMMISSION MEETING MINUTES OF AUGUST 3, 2022 SPECIAL MEETING CALL TO ORDER Vice Chair Johnston called the meeting of the Utilities Advisory Commission (UAC) to order at 6:02 p.m. Present: Vice Chair Johnston, Commissioners Bowie, Forssell, Metz, and Smith Absent: Chair Segal and Commissioner Scharff AGENDA REVIEW AND REVISIONS Vice Chair Johnston announced the September 7, 2022 meeting has been rescheduled to September 14, 2022 and the October 5, 2022 meeting has been rescheduled to October 12, 2022. ORAL COMMUNICATIONS None. APPROVAL OF THE MINUTES Vice Chair Johnston invited comments on the June 8, 2022 UAC draft meeting minutes. Commissioner Metz moved to approve the draft minutes of the June 8, 2022 meeting as presented. Commissioner Bowie seconded the motion. The motion carried 5-0 with Vice Chair Johnston and Commissioners Bowie, Forssell, Metz, and Smith voting yes. Chair Segal and Commissioner Scharff absent. UNFINISHED BUSINESS None. UTILITIES DIRECTOR REPORT Dean Batchelor, Utilities Director, delivered the Director's Report. Water Supply Update: The San Francisco Regional Water System storage is in relatively good shape as of July 5, with total reservoir storage about 72%. Normal system storage for this time of year is about 91%. In May, the San Francisco Public Utilities Commission (SFPUC) managed releases from runoff to fulfill ecological wetland inundation goals on the upper Tuolumne River. On May 24, SFPUC increased its call for regional statewide water use reductions. We are at about 2% but the State goal is 8%, so we need to get the word out to the community. On June 20, the City Council implemented new water use a Packet Pg. 5 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 2 of 14 restrictions, including limiting irrigation to two days per week except to ensure the health of trees and other non-turf plantings, requiring restaurants to serve water to customers only upon request, and hotels and motels to provide guests with the option of not having linens laundered daily. Sustainability and Climate Action Plan (S/CAP) Progress: The Sustainability Leadership Team continues to move forward efforts focused on the S/CAP update. As a result of meetings with the S/CAP Ad Hoc Committee, its Working Group and community members who joined the Working Group teams, staff are assessing program options to spur heat pump water heater adoption. Staff is making progress on the Sea Level Rise Vulnerability Assessment, implementing the updated tree ordinance and supporting outreach during the drought. Business Electrification Technical Assistance Program: The City will soon launch a Business Electrification Technical Assistance Program to offer free consultation and on-site assessment to business customers. With CLEAResult, the City will support the customer’s electrification journey with contractor and equipment selection, assist with building permits and utility rebate applications. Page Mill Pastures: The City is beginning an investigation on the equestrian facility, Page Mill Pastures, on potential use of unpaid, unmetered water through their fire hydrant use. The City received an anonymous tip from a resident that they were pumping water into a water truck from a fire hydrant. Pastures rents land from Stanford, so Stanford has been involved with the City to work out a resolution. An update will be provided once the investigation is complete. Outage Management System (OMS): The City’s current OMS, National Information Solutions Cooperative (NISC), was purchased in 2011. The system has not been upgraded and no longer meets the staff needs. The City received two RFP responses and upon evaluation, a contract with Milsoft is being recommended to Council at the September 12 meeting. Once implemented, the new OMS will improve the CPAU’s ability to mobilize resources. Outage updates can be sent to customers by text message, emails and social media outlets. Estimate six to eight months to remove the old OMS and connect the new OMS to our GIS platform and SAP. In reply to Council Liaison Cormack’s question about what citizens should do when they see watering, Mr. Batchelor responded that citizens should call 311. Mr. Batchelor confirmed Council Liaison Cormack’s belief that the 311 app only works on iPhones. Council Liaison Cormack suggested using 311 from your desktop computer if you have Android. In answer to Vice Chair Johnston’s query about our plans to encourage further water reduction, Mr. Batchelor replied more outreach is needed. Email blasts can be sent to customers. We are in the process of hiring a temporary water person to knock on doors and get the word out to the neighborhoods. In response to Vice Chair Johnston’s inquiry if we have seen any impact from the City Council’s restrictions enacted in June, Mr. Batchelor answered no. More outreach and community education is needed regarding watering two days a week. In answer to Commissioner Forssell’s question regarding the point of reference for the 10% reduction, Mr. Batchelor responded we would measure against 2019 usage because that was a high year. a Packet Pg. 6 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 3 of 14 Mr. Batchelor addressed Commissioner Forssell’s query if it was the City or State who picked 2019. The State went down to 10% and used 2019. Upon review, the highest usage timeframe was 2019. In reply to Commissioner Forssell’s questions regarding how this reduction compares to what we achieved last drought and if businesses and residents have picked all the low-hanging fruit off their water-saving measures, Mr. Batchelor responded no. Customers are watering in the middle of the day, so there is plenty of opportunity. We reduced by 36% the last time we were in a drought, so we should be able to at least achieve 8% to 10%. We need to educate the community better. NEW BUSINESS ITEM 1: ACTION: Adoption of a Resolution Authorizing Use of Teleconferencing for Utilities Advisory Commission Meetings During COVID-19 State of Emergency ACTION: Commissioner Metz moved Staff recommendation that the Utilities Advisory Commission (UAC) Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government Code Section 54953(e) for meetings of the Utilities Advisory Commission (UAC) and its committees due to the COVID-19 declared state of emergency. Seconded by Commissioner Forssell. Motion carries 5-0 with Vice Chair Johnston, and Commissioners Bowie, Forssell, Metz, and Smith voting yes. Chair Segal and Commissioner Scharff absent. ITEM 2: DISCUSSION: Discussion and Presentation on Sea Level Rise Julie Weiss, Watershed Protection Manager, Public Works, delivered the presentation. Diana Edwards of AECOM and Dr. Kris May were consultants on the project. The Vulnerability Assessment is a 200-page technical document that examines how five asset categories could be exposed to 12-84 inches of sea level rise during daily high tides, 100-year storm tides and changing shallow groundwater conditions and when action is needed to prevent damage. The inundation and groundwater work was done in consultation with the San Francisco Estuary Institute as well as City staff. Palo Alto is one of two Bay Area cities to consider groundwater hazards as part of sea level rise. The final report will be posted soon, which reflects peer review comments and changes. The San Francisquito Creek Downstream Project widened the creek channel and built new levees, which provides protection from a 100-year creek flood and 3 feet of sea level rise. This project was a partnership with the San Francisquito Creek Joint Powers Authority. The South San Francisco Bay Shoreline II Study looked at needed improvements for the levee system surrounding Palo Alto. Portions of South Palo Alto are in the FEMA floodplain and subject to flood insurance requirements because the older levee system does not meet current FEMA accreditation standards. The Shoreline II team is working on a hydrology model, met with permitting agencies and anticipates having a study completed by fall 2024. a Packet Pg. 7 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 4 of 14 The Palo Alto Tide Gate is going to be repaired. It provides protection from creek flooding and sea level rise changes. The tide gate regulates the water between the bay and the Palo Alto Flood Basin, which holds the downstream water levels from Matadero, Adobe and Barron Creeks during large storms. The Horizontal Levee Pilot Project will provide protection from sea level rise as well as habitat benefits. As this project would be the first to connect hydrologically to the bay, it could change Bay Area levee approaches. The Watershed Protection team presented to the Parks and Recreation Commission about this project last week and the video can be viewed on the Parks and Recreation Commission website. We have begun physical adaptation efforts, such as raising equipment at the wastewater treatment plant. Another effluent outfall will be built so treated effluent can get out to the bay with the 3 feet of sea level rise anticipated around the turn of the century. Education is a critical part of our future planning. We developed K-6 curricula on sea level rise that we provide to our teachers. We have also done several webinars on sea level rise planning. Our plan’s two goals are to protect and expand habitat and protect the community and City assets. The three strategies are protect, adapt and retreat. We protect by using levees and tide gates. We adapt our existing infrastructure by raising or waterproofing equipment. We need to consider possible retreat after 2050, especially for assets outside of future levees such as our Baylands habitat, ranger station, interpretive center and Sailing Station. The plan will tell us when we need to start planning these projects and a rough cost estimate. At 36 inches of sea level rise, we anticipate our Municipal Services Center (MSC) would see high tides (HT) and storm tides (ST). We would see shallow groundwater within 6 feet of the surface at Mitchell Park. As the decades move forward, we might start seeing emergent groundwater at Mitchell Park. We usually see a small amount of overtopping near the Baylands Interpretative Center during our annual high tides in December and January, so we use sandbags. At 36 inches of sea level rise, our transportation system could be exposed to bay water along 30 miles of streets and 5 miles of evacuation routes in the Palo Alto Airport. Caltrain would not be impacted. About 2700 residential parcels, two schools and two senior centers could be exposed. Marshes would begin to transition to a different habitat. Urban forests could be damaged, so we may need to change the tree species. This scenario would also pose some hazards to our wastewater treatment plant, pump stations and other utilities. Increasing shallow groundwater can mobilize contaminants closer to the surface and expose underground utilities such as water, recycled water, sanitary sewer lines and electrical equipment. Maps shown of anticipated shallow and emergent groundwater elevation with 36 inches of sea level rise. Liquefaction can be exacerbated in vulnerable areas. The Vulnerability Assessment will be released in early fall or late summer. Staff, public and Commission meetings will be held over the next 1½ years. Council approval of the Adaptation Plan is anticipated at the beginning of 2024. The plan will be updated every five years along with the Sustainability and Climate Action Plans. Vice Chair Johnston invited public comments. Mr. John Petrilla stated he visited the Netherlands and they have carved out large amounts of land for the North Sea for centuries, so there are tested solutions a Packet Pg. 8 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 5 of 14 available that will be useful to us. He is concerned about groundwater rise because a lot of the bay is landfill, so he wanted someone to speak about contamination seeping up. Commissioner Forssell stated she wanted Mr. Petrilla’s question be addressed about concerns of contaminants from our landfill. Dr. Kris May, Pathways Climate, stated she worked on the groundwater report and they looked at the landfill near Palo Alto. The landfill is safe and there are measures in place to prevent or early-detect escaping contaminants. Palo Alto is in a much better situation than other landfills around the bay. Dr. May addressed Commissioner Forssell’s inquiry as to the reasons we are in a good position, if there were barriers in place or better sorting of waste when it was put in the landfill. There is a sophisticated leachate collection and monitoring system. Per the wells’ monitoring records, there has not been any detection of leaked contaminants, although contamination extends below ground. Ms. Weiss responded to Commissioner Smith’s query if we were having conversations with Mountain View about how we might mitigate some of these issues together as a community. Santa Clara County’s Department Of Sustainability has started coordinating meetings with cities to look at sea level rise planning, which Mountain View and Palo Alto are attending. We have had conversations with Mountain View relating to the Shoreline II project. In answer to Commissioner Smith’s questions if we can adopt the same tactic for Adobe Creek as San Francisquito Creek and if it would make any difference, Ms. Weiss responded that Commissioner Smith could talk to one of the engineers working on the shoreline levee improvements. Commissioner Bowie stated he did not see liquefaction mentioned on the slide but it was mentioned in the presentation. Ms. Weiss confirmed that is correct, closer to the shoreline. Dr. May responded this study did not address the increasing liquefaction hazard but the USGS and Dr. Anne Wein have been researching how a rising groundwater table will increase liquefaction risks. The USGS produced a set of story maps for the public that can be shared after the meeting. Dr. May agreed with Commissioner Bowie’s comment that as we are considering infrastructure placement moving forward, we should be building to what we think the seismic risk is going to be in 2050 based on liquefaction changes. In response to Vice Chair Johnston’s understanding that it is harder to protect from groundwater rise than from sea level rise, Ms. Weiss responded we can waterproof and have design standards for underground features to be raised up and adaptable for changing conditions. Dr. May responded it depends how much you are willing to pay to manage the groundwater table. In answer to Vice Chair Johnston’s question regarding rethinking or redesigning the fiber network, sewer replacement and undergrounding our electrical utilities, Ms. Weiss responded it is important to keep these considerations in mind. Vice Chair Johnston commented we are putting facilities in the ground, so the sooner we have a plan we can start making allowances for it. Ms. Weiss said we could start addressing these issues in our scopes of work with the people designing these projects. a Packet Pg. 9 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 6 of 14 In response to Commissioner Forssell’s queries about where the peer-reviewed report was published and who are considered our peers, Ms. Weiss responded the Vulnerability Assessment includes an attachment on shallow groundwater which was peer reviewed by Dr. Kristina Hill. ACTION: None ITEM 3: DISCUSSION: Discussion of Preliminary Financial Business Models for Palo Alto Fiber and Internet Survey Results Vice Chair Johnston invited public comments. Mr. Jeff Hoel stated he supports citywide municipal fiber to the premises. He believes staff should report the survey questions and flow chart. Since he did not have home internet, he feels he did not have a chance to participate fully in the survey. He wants a discussion regarding concern about the CPAU brand. He thought that since participants were not asked where they lived, the results would not show where AT&T already had fiber. He hopes the survey data confirms you do not have to do TV. He was interested to know how many residential and business surveys invitees there were and if people could take the survey multiple times. Dave Yuan, Strategic Business Manager, stated we are about 90% complete with the FTTP engineering design, community engagement and ISP business models. On June 23, the Palo Alto Internet Survey and deposit program was launched. Tonight’s presentation includes survey results as of July 13. The preliminary results were shared with the UAC Fiber Subcommittee on July 20. The survey results and competitive market analysis will be updated for the Joint Council UAC Study Session in September. Three business models were evaluated (insource, outsource, hybrid of 70% insource and 30% outsource). The total staffing and vendor cost for the hybrid model was almost the same as the insource model. It is planned as an action item for the UAC in October and recommendation to Council. John Honker, Magellan Broadband, delivered a presentation on Preliminary Internet Survey Results and Financial Business Models for Fiber to the Premises (FTTP). The pro forma financials are 90% complete. The pricing for materials and labor will be updated for September’s Joint meeting. The fiber engineering design is 90% complete. At 100% completion, it can be put out to bid for network construction RFPs. There were 21,925 emails send to individual Palo Alto households, 3241 completed surveys were received, which is an almost 15% response rate. About 700 deposits of $50 were received for Palo Alto Fiber. For statistical validity, the goal was 380 surveys to achieve a 95% confidence interval with a 5% margin of error. Currently, we have a 99% confidence interval with a 2.2% margin of error. Before the Joint Session in September, you will see a quantitative analysis to determine the most effective pricing model, service tiers and speeds to warrant the greatest take rate. About 60% are paying $40-80 monthly and about 20% are paying $81-$100 monthly. Palo Alto’s high-speed internet market is a duopoly with Comcast dominating around 67%, AT&T at 24% and a few local providers around 6% of the total market share. The service, provider and where they are located will be determined from the survey data as addresses are known for each individual respondent. Cable TV is not a highly demanded service in Palo Alto and it would not adversely affect take rates for Palo Alto Fiber if it were not offered. Fewer than 30% of residents are purchasing cable TV with their internet service. Of those 30%, about 17% would cancel their cable TV and use internet streaming. a Packet Pg. 10 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 7 of 14 In response to the survey question about home internet satisfaction, about 30% are dissatisfied and typically will be early adopters for a new fiber-to-the-home provider that has better customer service, speeds, symmetrical service (same speeds up and down) and reliability. Almost 13% are neutral, so we have to think of how they can be incentivized to switch. About 60% are somewhat or very satisfied. In reply to the survey question on the top three reasons you would switch from your existing provider to Palo Alto Fiber, speed and price are very close with reliability third. To ensure strong take rates and community satisfaction, prices need to be at the right rate, deliver higher speeds and higher reliability. In answer to Commissioner Smith’s question if the slides were updated to reflect the 3200 responses, Mr. Honker responded the numbers may change but they are trending the same way. Not every survey question is required but they are adjusted for the margin of error and confidence interval. Commissioner Smith commented he is pleased our statistics show that half the population do not need a landline or Comcast for cable TV and are most concerned about broadband internet. In response to Vice Chair Johnston’s query if the survey shows what people are paying for which speeds, Mr. Honker answered that in the coming weeks a price per megabyte will be calculated and a competitive analysis will be made to ensure appropriate rate setting. Commissioner Forssell stated reliability is based on the survey respondent’s perception and asked if the survey data showed whether the perception of reliability comes from their internet service provider (ISP) or their in-home wireless setup not being configured well and if there were any insights on how that affects this process. Mr. Honker explained reliability is somewhat subjective but there are tools in the speed test to measure internet service performance. For quantitative data, there are tools on the internet to determine how often the existing ISPs have been down or had network issues. Commissioner Forssell commented it might be a differentiator if Palo Alto could provide in-home consulting to optimize the Wi-Fi setup. Mr. Honker stated most municipal utilities do. If an ISP has control over the wireless network inside the home, the environment can be controlled and preemptively improve reliability. The customer can be proactively called when there is an issue, which keeps your reputation strong with the customer. In some cases, it avoids an expensive truck roll (the Utility dispatching someone to fix a problem in the customer’s home). In response to Council Liaison Cormack’s question if the data showed specific areas within the city that might be more or less likely to participate in this program, Mr. Honker replied a heat map would be released in a couple weeks to reflect customers’ location, how much they are paying and providers. Council Liaison Cormack believes speed will be the opportunity because there is a great differentiation within the city in her experience and in talking to others. Mr. Honker presented a table on the staffing requirements for each business model. The outsource model requires five City full-time employees (FTEs). A 70/30 hybrid model requires 17 FTEs if the City is outsourcing 30% and insourcing 70%. The insource model requires 25 FTEs. A slide was shown to demonstrate the differences in staffing costs for the three models. Over a 10-year period, the insource staffing costs are estimated at $55M versus $38M for the outsource model but you lose some control when you move functions to multiple vendors. a Packet Pg. 11 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 8 of 14 In reply to Commissioner Smith’s understanding that the numbers in the Summary of Staffing Models are assuming a 32% take rate, Mr. Honker confirmed that is correct. Commissioner Smith commented it might be worthwhile to identify what a 32% take rate means in terms of number of lines we are delivering and how many FTEs are necessary to support X number of lines. Mr. Honker stated he could provide a graph with high, medium and low estimates. Commissioner Smith commented he wants to show Council and Palo Alto citizens that our capital investment assumes full rollout to Palo Alto, so that does not increase if our take rate goes from 32% to 65%. Mr. Honker explained that a higher take rate has variable capital costs for service drops and routers for those customers but the increased revenues will support higher operational costs. Mr. Honker addressed Commissioner Forssell’s question on why the estimates in 2025 for outsourced only requires $0.87M of vendor cost to complete tasks that require 23 FTEs if it is insourced. In the first few years of an insource model, the City has to hire new staff. In an outsource model, you pay as you go for connected customers. In the first couple years, the numbers are lower by a couple million dollars and then they catch up in the later years as the demand increases. Most vendors bill you by the customer, so if you only have a few customers in the first year it is going to be considerably less than staffing 19 FTEs. Vice Chair Johnston agreed that speed to market and scalability are vital to success. He believes we would want to do more outsourcing on the front end to have the expertise available on Day 1 and build the expertise in-house over time. In response to Vice Chair Johnston’s query if there is a way to model starting with more outsourcing and then ramping down the outsourcing over time, Mr. Honker replied they can provide a model and it is their recommendation to move in that direction, which is the way most municipal utilities do it. Mr. Honker presented the Financial Plan. About $12.5M of startup capital is needed. The most recent cost estimates went up from about $116M to $128M because of material shortages and inflation. Project cost estimates, which includes the fiber backbone and fiber to the home assuming they are built together with a potential $8.5M of savings is about $128M in total cost. The existing fiber fund had a balance of about $32.5M plus a $10M contribution from electric toward the fiber backbone gives us about $42.5M total funding available today, so a little less than $86M in new funding is required. Over the next couple weeks, pricing estimates are expected from two local contractors. Commissioner Smith stated $32.5M was the fiber fund balance in January, so he assumed in December 2022 the fiber fund would be $36.5M. Mr. Yuan explained the net income for FY22 was $1.2M whereas previously it was $2.5M, so conservatively the estimate is $1.5M yearly. In response to Commissioner Smith’s understanding that the fiber fund balance will be roughly $34M in December, Mr. Yuan responded that is correct. In reply to Commissioner Smith’s question if the contribution from electric to fiber backbone is a loan from the electric fund or a contribution because we are using the fiber backbone to support electric, Mr. Yuan answered it is a contribution because electric would own the fiber to the substations. Mr. Honker continued the presentation. A “Sample Pricing Bands” slide was presented with five pricing bands for residential and commercial. The top tiers are 10 Gbps and 2 Gbps. The competition is offering 2 Gbps and could offer 10 Gbps in the future, so it is important that Palo Alto Fiber be ready to serve a Packet Pg. 12 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 9 of 14 customers with next-generation broadband and market itself as a provider of the future in the City. The residential monthly packages are 2 Gbps $95-$150, 1 Gbps $85-$95, 600 Mbps $60-$80 and 200 Mbps $40-$60. The FCC definition of broadband is moving to 100 Mbps, so Palo Alto may want to offer 200 as the first tier to show you are giving a lot more to the community. The marginal cost of providing 200 Mbps versus 100 Mbps is close to zero. For commercial, the monthly packages are Premier Dedicated $500-$1000, 500 Mbps $300-$500, 250 Mbps $200-$250, 100 Mbps and 50 Mbps. The residential and commercial pricing bands will be refined over the coming weeks based on survey data. A pro forma for the insource model was presented. In 2028, a 32% take rate yields about 10,000 residential subscribers, $14M gross revenue minus $5M cost of providing services, with a gross profit margin of 67%. Typically, gross margins for ISPs are 65% to 75% for successful operations. Mr. Honker addressed Commissioner Bowie’s questions regarding if there was a data cap in the 2 Gbps and 10 Gbps packages and if not having a data cap would be a differentiator for Palo Alto Fiber. It is a value to the customer because some applications are over 1 Gbps. Palo Alto Fiber should be marketing no data caps, as do most municipal utilities. The price for every additional megabit goes down when buying more bandwidth wholesale from your suppliers. Commissioner Bowie commented more high-data applications are coming online, which may impact take rate as data caps become more relevant. Mr. Honker stated that marketing no data cap helps take rate because customers like it and it builds the combined value proposition but it is hard to quantify. Mr. Honker presented the slide “Financial Plan - Outsource.” There are relatively similar margins across outsourcing versus insourcing. It is important to determine the best business model that will drive the highest take rate because more customers will offset higher operational costs. The final pro formas will be available over the next couple weeks. Mr. Honker presented the slide “Sensitivity Analysis – Take Rates”, which demonstrates the balance of funds at different take rates over the first 10 years of the network. We have beginning contributions of $17.5M and $15M from the fiber fund, which will give us a strong balance of cash but in the first couple years it will be used to operate because expenses typically will be higher than revenues. Mr. Honker addressed Commissioner Metz’s questions regarding having a negative net income for about 10 years and the cash balance declines under most scenarios, how do we pay for or eliminate this loss because borrowing money for this business has an impact on Utilities borrowing for other businesses. Mr. Honker stated the business plan should address this question. Since operational expenses are higher than revenues in the front end of the operation, it is important to get revenues above expenses as quickly as possible. Driving higher take rates in the early years of the project creates higher sustainability versus having declining cash flows over a much longer term. With most utilities, the average take rate is around 40% to 45%, so 32% is a very conservative estimate. There need to be strategies to build Palo Alto Fiber and connect customers as quickly as possible. The crucial years are 2023-2026 where we need to get as high as we can in take rates. Mr. Honker took note of Commissioner Metz’s request for a future presentation to address whether we should consider wireless drops instead of fiber drops to accelerate receiving revenue. a Packet Pg. 13 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 10 of 14 In response to Commissioner Forssell’s request to understand the financial plan spreadsheet on Page 71 showing a take rate of zero and revenues of $1.7M in 2023, Mr. Honker explained it includes the existing revenues from the fiber business. In reply to Commissioner Forssell’s question as to why the revenues are different on the insource versus outsource financial plans, Mr. Honker answered the difference may have been a rounding issue in the model but they should effectively be the same. In response to Council Liaison Cormack’s understanding that this was to prepare for the study session with the Council, Mr. Yuan replied yes and to give the UAC a preview of what we are presenting. Council Liaison Cormack stated our other utilities are more regulated, we have cost of service issues, we cannot cross-subsidize between the different classes and we cannot charge certain things, which those differences need to be explained to the Councilmembers. She appreciates the emphasis on take rate. She thinks if prices are slightly above speed in the survey, she contests the belief that this is a random sample. She thinks the people who answered this survey are more likely to be interested, so they are not representative of the entire City’s population. In response to Council Liaison Cormack’s question if the financial models could reflect pricing based on expenses or if pricing should be flat, Mr. Honker replied the financial model has to be a bottom-up cost model to determine minimum pricing but rates are based on what the customer is willing to pay and what the competition charges. In answer to Council Liaison Cormack’s query if we should be making our decision based more on expenses driving the price, Mr. Honker responded that utilizing cost plus X percentage needs to be tested from a market perspective, which is an easy exercise to do. Council Liaison Cormack stated she asked about this last time and it is extremely important for her to have detailed information regarding who is issuing the $85M funding, what is the rate, how long and what it is being bonded against. She has received some emails from people who were very supportive of this project over the past couple years and are less so now. Mr. Yuan’s assumption was we would bond finance $85M and depreciation is either 10 or 20 years. Council Liaison Cormack stated the ratings would depend on how it is structured. If it is not the City but instead is a new governance structure, we will not have the City’s bond rating. Mr. Yuan commented they are still exploring if federal loans are available and is hoping for more information by September. In response to Commissioner Smith’s question regarding the Sensitivity Analysis – Take Rates chart if the 10M contribution from the electric fund was missing, Mr. Honker answered no. The $10M was set aside in capital for the fiber backbone, so it is not in the cash. Mr. Honker confirmed Commissioner Smith’s understanding that $10M was spent on Day 1. In reply to Commissioner Smith’s assumption that this represents end-of-year or end-of-fiscal-year capital available from 2023 to 2033, Mr. Honker responded it is the end-of-year fund balance. Commissioner Smith made several comments and questions. He asked if we have established a working capital base. As a public entity, we are not driven by a profit margin. We are driven by our ability to deliver service at the best quality and at a marginable rate. He argued that some of the working capital values at the end of the fiscal year may be too high and our assumptions should be closer to breakeven. He asked what we would do with $46M by the end of Year 10 if we could not spend it on anything else other than fiber. He is thrilled with Council Member Cormack’s comment about emails from the public a Packet Pg. 14 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 11 of 14 and hopes the City Council would make the emails available for discussion in the final report. Council Liaison Cormack stated those are public records and have been posted on the website. Commissioner Smith reemphasized that public discourse on this subject, given the great value we are talking about bringing to the City, is incredibly important and necessary. In reply to Vice Chair Johnston’s question if the $45M could be used to pay down the debt faster, Mr. Honker responded there is no principal repayment penalty, so if there is a fund balance available after reserves then retiring the debt early is an option. Vice Chair Johnston thinks paying down the debt faster would help us with financing for other projects. He stated if we can provide faster speeds at lower prices, which we should be able to do since we do not have to make a profit, we have an opportunity to capture a significant share of the market. In response to Council Liaison Cormack’s question about when this service could be available to buy, Mr. Honker replied that engineering would be complete by the end of 2022, construction begins in 2023 and potentially connect the first customers by the end of calendar year 2023. That is an aggressive but doable goal if the City can move forward in a relatively rapid progression from today. In reply to Council Liaison Cormack’s query on how long it would take until everyone in the City had the opportunity to purchase this service, Mr. Honker anticipates the citywide construction project would take three to four years, conservatively closer to four. Aerial construction could go quicker if the pole prep work is done efficiently. For the underground construction, City departments need to be aligned, have a high-quality construction contractor and a high-quality construction manager overseeing the construction contractor, schedule and production. Mr. Honker addressed Council Liaison Cormack’s question about focusing on areas where speeds are worse or competitors are not offering something. Mr. Honker explained that construction of the aerial plant will be easier than underground, so you could build more for less money and connect more customers. There is granular data on where customers have the most interest. He suspects we would want to build in aerial areas first where we have the most customer signups. Council Liaison Cormack said her questions are about whether to move forward, not the specifics of the various financial plans. We need to be sure we have asked and answered those questions before the study session. She is open to thoughts about how she can be helpful in preparing the staff report. ACTION: None. ITEM 4: ACTION: Staff Recommends the Utilities Advisory Commission Consider and Adopt an Attendance Policy Vice Chair Johnston was advised Staff did not have a presentation. He assumed the recommendation is based on a request from City Council that the UAC adopt an attendance policy. Tabatha Boatwright, Utilities Administrative Assistant, confirmed that Council is recommending all boards and commissions have an attendance policy, which there currently are none other than Council’s. The recommendation is based on Council’s attendance policy with UAC legal team revisions. Commissioner Metz’s understanding is if a commissioner attends a meeting remotely, they have to allow other people to show up at their vacation home or wherever, so he requests further explanation. a Packet Pg. 15 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 12 of 14 Vice Chair Johnston stated that if someone attends remotely, that person has to post an agenda and make sure the public is invited, which although cumbersome is required by California law. In response to Commissioner Forssell’s question regarding if this only applies when California is not in a declared a State of Emergency, Vice Chair Johnston replied that is his understanding. Vice Chair Johnston asked if City Council’s remote attendance policy is the same. Council Liaison Cormack stated the Brown Act requirement is to allow the public to see us doing our work, which applies when not in a State of Emergency. The Council has limited the number of remote participants, which staff would have to discuss. Someone could have moved from the city but be on video. Vice Chair Johnston is in favor of adopting the least cumbersome remote attendance policy that complies with the Brown Act. Commissioner Smith agrees with Vice Chair Johnston. He thinks the consequence of passing this attendance policy is most would choose not to participate, which would put in danger our ability to establish a quorum and have a meeting. He suggests extending the maximum number of meetings that UAC commissioners can miss during the course of their tenure but is very reluctant to endorse something so restrictive. He agrees with Council Liaison Cormack’s concern that people could live out of state while attending Palo Alto meetings. Vice Chair Johnston commented to Commissioner Smith that this might be what the law requires whether we like it or not. Commissioner Forssell’s understanding is the only thing up for debate is how many times a year we permit remote participation. Her suggestion is four times a year but between two to seven can be further discussed. She stated that being available on the first Wednesday of every month to attend Commission meetings is not supposed to be an issue. Vice Chair Johnston stated he participates remotely because his wife is immunocompromised, so he is not going to take unnecessary opportunities to expose himself to COVID unless it is critical. Assuming the Emergency is over, he does not have a problem with putting a number on meetings you can miss per year, four seems reasonable or even generous but he believes people will either attend in person or not attend. He asked a question to Ms. Boatwright and she received a response from the City Attorney confirming this requirement of the government code applied to the UAC because we are a legislative body as defined under the government code even though we just advise and cannot make decisions. Ms. Boatwright addressed Vice Chair Johnston’s request for confirmation that this is no more restrictive and cumbersome than what applies to City Council and that all boards and commissions will be required to follow. The drafted policy is based off the City Council’s policy. All the boards and commissions throughout the City have been requested to submit a policy for Council’s review. Our board meets once a month and typically we miss one during summer break, so that is 11 meetings yearly. She supported Council for 10 years and every time a councilmember was not physically present, their address was on the posted agenda and the City Clerk’s Office had to verify posting. If they were on vacation, she called the hotel to verify the agenda was posted and had to ask for photo confirmation. It is cumbersome but it is for the benefit of the citizens who may happen to be in that location. Dean Batchelor, Director of Utilities, stated that if the Commission has concerns, he could ask an attorney to attend next month’s meeting to answer questions. Vice Chair Johnston stated the only reason he believes to defer it is if anybody had any suggestions about how to make it the least cumbersome but still comply with the law. a Packet Pg. 16 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 13 of 14 Commissioner Smith commented he would love to hear alternatives. He wondered if there was any reason why we cannot allow Zoom meetings going forward unless the Brown Act does not allow it. We all certify we are Palo Alto citizens when we took the oath of office for the Commission. It seems sensible to him that we continue Zoom particularly for those like Vice Chair Johnston and himself (his son is also immunodeficient) who are not in a state where they can come back. Ms. Boatwright stated the Brown Act did make a temporary adjustment to allow visual attendance during COVID. She can verify with the attorney’s office if that is a consideration. Commissioner Bowie shares the sentiment that thinking through options seems to be a prudent course. He would appreciate more information on Brown Act compliance. He wondered if different technologies were being applied to this problem. There is geolocation technology to confirm where we are. Things have changed fundamentally in how we interact with one another without physically being in the same space. He thinks a complete reversion loses a degree of access and equity that we have established through this Emergency. We have learned a lot, so he is curious if there are new paths to compliance. Commissioner Forssell commented we should table this until next month as Mr. Batchelor suggested. She thinks everybody is making very good points but their points need to be made to our State Legislators. If the attorney comes to next month’s meeting, she would like insight into how much longer the State of Emergency is likely to last. Vice Chair Johnston stated it is something we have no control over because when the emergency is declared over we will have a policy in place. Commissioner Forssell thinks we should all write our State Legislators as members of a commission grappling with these issues because it does not helps us to raise these points with each other. Council Liaison Cormack feels she does not need to represent the Brown Act and what the Council has done. She thinks more education needs to be provided. The UAC is welcome to look at the recent report from our State lobbyist. Two bills are proposing to reform the Brown Act. Members of the press are strong advocates for everyone coming back in person where it could be seen what they are doing. Vice Chair Johnston stated the Commission should defer this and have more education. It would be helpful to have someone from the City Attorney’s office explain to the UAC what is required under the Brown Act and then we can discuss the number of absences. Commissioner Forssell commented we are talking about participating remotely via teleconference Zoom, which is different from a complete absence. ACTION: Commissioner Forssell moved that Staff return to the UAC on September 14 with a City Attorney for a clearer discussion. Seconded by Commissioner Bowie. Motion carries 5-0 with Vice Chair Johnston, and Commissioners Bowie, Forssell, Metz, and Smith voting yes. Chair Segal and Commissioner Scharff absent. COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS None. a Packet Pg. 17 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) Utilities Advisory Commission Minutes Approved on: Page 14 of 14 FUTURE TOPICS FOR UPCOMING MEETINGS: Commissioner Metz requests that the Resiliency Update in October be tied in with emergency response. He suggested a date be set to discuss distributed energy resources because he has received requests from City Council to address that topic. He requested that building the electrical infrastructure for S/CAP be added to the calendar. Vice Chair Johnston replied to Commissioner Metz that grid modernization will be scheduled for September or October and he thinks it is critical it is addressed in that timeframe. Commissioner Metz stated that because past grid modernization discussions did not address S/CAP, he thinks it is important to have it on the agenda. Dean Batchelor, Director of Utilities, stated a consultant is looking at a high-level portion of the grid. The Commission will be given an overview of the early findings at the grid modernization update next month, including a discussion on the plan. Vice Chair Johnston stated he is now more interested to hear about the underground process and progress because we have to think about how aggressively we want to be undergrounding given the potential risk of groundwater issues. Mr. Batchelor replied he would talk to the engineers and come up with a timeline by next month’s meeting. NEXT SCHEDULED MEETING: September 14, 2022 Commissioner Smith moved to adjourn. Commissioner Bowie seconded the motion. The motion carried 5-0 with Vice Chair Johnston, and Commissioners Bowie, Forssell, Metz, and Smith voting yes. Chair Segal and Scharff absent. Meeting adjourned at 9:33 p.m. a Packet Pg. 18 At t a c h m e n t : A t t a c h m e n t A : D r a f t M i n u t e s ( 1 4 7 4 4 : D R A F T U A C M i n u t e s ) City of Palo Alto (ID # 14661) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: V. UNFINISHED BUSINESS City of Palo Alto Page 1 Title: Discussion and Consideration of the Remote Attendance Policy From: Director of Utilities Lead Department: Utilities Recommended Action Delay discussion of a remote attendance policy for the Utilities Advisory Commission (UAC) until the UAC’s next meeting. Background and Discussion During the City Council meeting on April 4, 2022, it was suggested the UAC, as a City Commission, should establish a remote attendance policy. The Council’s Final Motion was: Council Member Tanaka motioned, seconded by Mayor Burt, to direct staff to continue to present the findings for AB 361 for the Council, Commissions and Boards and a) Council Members can participate remotely in Council Committee meetings up to 3 times per year; b) Board Members and Commissioners can participate remotely, but are encouraged to meet in person, and the Boards and Commissions should establish a remote attendance policy. MOTION PASSED: 7-0 Section 8.4 of the UAC Bylaws provides that the UAC may, by a majority vote of its members, adopt or amend any rules and procedures to be followed at UAC meetings and study sessions, to the extent such rules and procedures are not in conflict with the UAC’s Bylaws or other applicable law. Staff has thus brought forward a recommended attendance policy for the UAC’s consideration and adoption. When the UAC adopts a remote attendance policy , staff will, in accordance with Section 10.1 of the UAC Bylaws, transmit a copy to each member of the Commission, to the Council, and to the City Clerk. Copies of the Bylaws and any other rules and procedures shall be made available to the public, upon request, and at each meeting of the Commission. At its meeting on August 3, 2022, the UAC considered establishing a remote attendance policy, per Council direction. Staff presented a remote attendance policy for the UAC’s consideration. Several Commissioners requested legal advice regarding whether the remote attendance policy presented 1 Packet Pg. 19 City of Palo Alto Page 2 would be the most minimally restrictive policy possible under the Brown Act for Commissioners who wish to attend meetings remotely. Staff recommends that Commissioners delay their discussion of the UAC’s remote attendance policy until the UAC’s October meeting so that staff may be certain of any changes to state law before providing Commissioners with additional advice. At the time of this writing, the state legislature is considering Assembly Bill 2449, Open meetings: local agencies: teleconferences (Linked Document). This bill seeks to amend the Brown Act’s remote attendance requirements beginning in 2023. If Commissioners wish to adopt a remote attendance policy that imposes no more restrictions than the Brown Act does, staff recommends waiting until it is certain whether the Brown Act’s remote attendance rules will change. By September 30, 2022 it will be certain whether AB 2449 will be passed into law this year, at which time staff can prepare more accurate legal advice. Environmental Review The adoption of this policy does not meet the definition of a project under Public Resources Code Section 21065, thus no environmental assessment under the California Environmental Quality Act is required. Attachments: • Attachment A: AB 2449 1 Packet Pg. 20 AMENDED IN SENATE AUGUST 8, 2022 AMENDED IN SENATE JUNE 30, 2022 AMENDED IN SENATE JUNE 23, 2022 AMENDED IN SENATE JUNE 15, 2022 AMENDED IN ASSEMBLY MAY 23, 2022 california legislature—2021–22 regular session ASSEMBLY BILL No. 2449 Introduced by Assembly Member Blanca Rubio February 17, 2022 An act to amend, repeal, and add Section Sections 54953 and 54954.2 of the Government Code, relating to local government. legislative counsel’s digest AB 2449, as amended, Blanca Rubio. Open meetings: local agencies: teleconferences. Existing law, the Ralph M. Brown Act, requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. The act generally requires posting an agenda at least 72 hours before a regular meeting that contains a brief general description of each item of business to be transacted or discussed at the meeting, and prohibits any action or discussion from being undertaken on any item not appearing on the posted agenda. The act authorizes a legislative body to take action on items of business not appearing on the posted agenda under specified conditions. The act contains specified provisions regarding the timelines for posting an 94 1.a Packet Pg. 21 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) agenda and providing for the ability of the public to observe and provide comment. The act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that the legislative body notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allowed to address the legislative body at each teleconference location, that the legislative body post an agenda at each teleconference location, and that at least a quorum of the legislative body participate from locations within the boundaries of the local agency’s jurisdiction. The act provides an exemption to the jurisdictional requirement for health authorities, as defined. Existing law, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with those specified teleconferencing requirements in specified circumstances when a declared state of emergency is in effect, or in other situations related to public health. This bill would revise and recast those teleconferencing provisions and, until January 1, 2026, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements that each teleconference location be identified in the notice and agenda and that each teleconference location be accessible to the public if at least a quorum of the members of the legislative body participates in person from a singular physical location clearly identified on the agenda that is open to the public and situated within the local agency’s jurisdiction. Under this exception, the bill would authorize a member to participate remotely under specified circumstances, including participating remotely for just cause or due to emergency circumstances. The emergency circumstances basis for remote participation would be contingent on a request to, and action by, the legislative body. body, as prescribed. The bill, until January 1, 2026, would authorize a legislative body to consider and take action on a request from a member to participate in a meeting remotely due to emergency circumstances if the request does not allow sufficient time to place the proposed action on the posted agenda for the meeting for which the request is made. The bill would define terms for purposes of these teleconferencing provisions. This bill would impose prescribed requirements for this exception relating to notice, agendas, the means and manner of access, and procedures for disruptions. The bill would require the legislative body 94 — 2 — AB 2449 1.a Packet Pg. 22 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) to implement a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with federal law. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. Vote: majority. Appropriation: no. Fiscal committee: no.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 54953 of the Government Code, as line 2 amended by Section 3 of Chapter 165 of the Statutes of 2021, is line 3 amended to read: line 4 54953. (a)  All meetings of the legislative body of a local line 5 agency shall be open and public, and all persons shall be permitted line 6 to attend any meeting of the legislative body of a local agency, line 7 except as otherwise provided in this chapter. line 8 (b)  (1)  Notwithstanding any other provision of law, the line 9 legislative body of a local agency may use teleconferencing for line 10 the benefit of the public and the legislative body of a local agency line 11 in connection with any meeting or proceeding authorized by law. line 12 The teleconferenced meeting or proceeding shall comply with all line 13 otherwise applicable requirements of this chapter and all otherwise line 14 applicable provisions of law relating to a specific type of meeting line 15 or proceeding. line 16 (2)  Teleconferencing, as authorized by this section, may be used line 17 for all purposes in connection with any meeting within the subject line 18 matter jurisdiction of the legislative body. If the legislative body 94 AB 2449 — 3 — 1.a Packet Pg. 23 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 of a local agency elects to use teleconferencing, the legislative line 2 body of a local agency shall comply with all of the following: line 3 (A)  All votes taken during a teleconferenced meeting shall be line 4 by rollcall. line 5 (B)  The teleconferenced meetings shall be conducted in a line 6 manner that protects the statutory and constitutional rights of the line 7 parties or the public appearing before the legislative body of a line 8 local agency. line 9 (C)  The legislative body shall give notice of the meeting and line 10 post agendas as otherwise required by this chapter. line 11 (D)  The legislative body shall allow members of the public to line 12 access the meeting and the agenda shall provide an opportunity line 13 for members of the public to address the legislative body directly line 14 pursuant to Section 54954.3. line 15 (3)  If the legislative body of a local agency elects to use line 16 teleconferencing, it shall post agendas at all teleconference line 17 locations. Each teleconference location shall be identified in the line 18 notice and agenda of the meeting or proceeding, and each line 19 teleconference location shall be accessible to the public. During line 20 the teleconference, at least a quorum of the members of the line 21 legislative body shall participate from locations within the line 22 boundaries of the territory over which the local agency exercises line 23 jurisdiction, except as provided in subdivisions (d) and (e). line 24 (c)  (1)  No legislative body shall take action by secret ballot, line 25 whether preliminary or final. line 26 (2)  The legislative body of a local agency shall publicly report line 27 any action taken and the vote or abstention on that action of each line 28 member present for the action. line 29 (3)  Prior to taking final action, the legislative body shall orally line 30 report a summary of a recommendation for a final action on the line 31 salaries, salary schedules, or compensation paid in the form of line 32 fringe benefits of a local agency executive, as defined in line 33 subdivision (d) of Section 3511.1, during the open meeting in line 34 which the final action is to be taken. This paragraph shall not affect line 35 the public’s right under the California Public Records Act (Division line 36 10 (commencing with Section 7920.000) of Title 1) to inspect or line 37 copy records created or received in the process of developing the line 38 recommendation. line 39 (d)  (1)  Notwithstanding the provisions relating to a quorum in line 40 paragraph (3) of subdivision (b), if a health authority conducts a 94 — 4 — AB 2449 1.a Packet Pg. 24 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 teleconference meeting, members who are outside the jurisdiction line 2 of the authority may be counted toward the establishment of a line 3 quorum when participating in the teleconference if at least 50 line 4 percent of the number of members that would establish a quorum line 5 are present within the boundaries of the territory over which the line 6 authority exercises jurisdiction, and the health authority provides line 7 a teleconference number, and associated access codes, if any, that line 8 allows any person to call in to participate in the meeting and the line 9 number and access codes are identified in the notice and agenda line 10 of the meeting. line 11 (2)  Nothing in this subdivision shall be construed as line 12 discouraging health authority members from regularly meeting at line 13 a common physical site within the jurisdiction of the authority or line 14 from using teleconference locations within or near the jurisdiction line 15 of the authority. A teleconference meeting for which a quorum is line 16 established pursuant to this subdivision shall be subject to all other line 17 requirements of this section. line 18 (3)  For purposes of this subdivision, a health authority means line 19 any entity created pursuant to Sections 14018.7, 14087.31, line 20 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare line 21 and Institutions Code, any joint powers authority created pursuant line 22 to Article 1 (commencing with Section 6500) of Chapter 5 of line 23 Division 7 for the purpose of contracting pursuant to Section line 24 14087.3 of the Welfare and Institutions Code, and any advisory line 25 committee to a county-sponsored health plan licensed pursuant to line 26 Chapter 2.2 (commencing with Section 1340) of Division 2 of the line 27 Health and Safety Code if the advisory committee has 12 or more line 28 members. line 29 (e)  (1)  The legislative body of a local agency may use line 30 teleconferencing without complying with the requirements of line 31 paragraph (3) of subdivision (b) if the legislative body complies line 32 with the requirements of paragraph (2) of this subdivision in any line 33 of the following circumstances: line 34 (A)  The legislative body holds a meeting during a proclaimed line 35 state of emergency, and state or local officials have imposed or line 36 recommended measures to promote social distancing. line 37 (B)  The legislative body holds a meeting during a proclaimed line 38 state of emergency for the purpose of determining, by majority line 39 vote, whether as a result of the emergency, meeting in person line 40 would present imminent risks to the health or safety of attendees. 94 AB 2449 — 5 — 1.a Packet Pg. 25 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (C)  The legislative body holds a meeting during a proclaimed line 2 state of emergency and has determined, by majority vote, pursuant line 3 to subparagraph (B), that, as a result of the emergency, meeting line 4 in person would present imminent risks to the health or safety of line 5 attendees. line 6 (2)  A legislative body that holds a meeting pursuant to this line 7 subdivision shall do all of the following: line 8 (A)  In each instance in which notice of the time of the line 9 teleconferenced meeting is otherwise given or the agenda for the line 10 meeting is otherwise posted, the legislative body shall also give line 11 notice of the means by which members of the public may access line 12 the meeting and offer public comment. The agenda shall identify line 13 and include an opportunity for all persons to attend via a call-in line 14 option or an internet-based service option. line 15 (B)  In the event of a disruption that prevents the legislative body line 16 from broadcasting the meeting to members of the public using the line 17 call-in option or internet-based service option, or in the event of line 18 a disruption within the local agency’s control that prevents line 19 members of the public from offering public comments using the line 20 call-in option or internet-based service option, the legislative body line 21 shall take no further action on items appearing on the meeting line 22 agenda until public access to the meeting via the call-in option or line 23 internet-based service option is restored. Actions taken on agenda line 24 items during a disruption that prevents the legislative body from line 25 broadcasting the meeting may be challenged pursuant to Section line 26 54960.1. line 27 (C)  The legislative body shall not require public comments to line 28 be submitted in advance of the meeting and must provide an line 29 opportunity for the public to address the legislative body and offer line 30 comment in real time. line 31 (D)  Notwithstanding Section 54953.3, an individual desiring to line 32 provide public comment through the use of an internet website, or line 33 other online platform, not under the control of the local legislative line 34 body, that requires registration to log in to a teleconference may line 35 be required to register as required by the third-party internet line 36 website or online platform to participate. line 37 (E)  (i)  A legislative body that provides a timed public comment line 38 period for each agenda item shall not close the public comment line 39 period for the agenda item, or the opportunity to register, pursuant 94 — 6 — AB 2449 1.a Packet Pg. 26 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 to subparagraph (F), to provide public comment until that timed line 2 public comment period has elapsed. line 3 (ii)  A legislative body that does not provide a timed public line 4 comment period, but takes public comment separately on each line 5 agenda item, shall allow a reasonable amount of time per agenda line 6 item to allow public members the opportunity to provide public line 7 comment, including time for members of the public to register line 8 pursuant to subparagraph (F), or otherwise be recognized for the line 9 purpose of providing public comment. line 10 (iii)  A legislative body that provides a timed general public line 11 comment period that does not correspond to a specific agenda item line 12 shall not close the public comment period or the opportunity to line 13 register, pursuant to subparagraph (F), until the timed general line 14 public comment period has elapsed. line 15 (3)  If a state of emergency remains active, or state or local line 16 officials have imposed or recommended measures to promote line 17 social distancing, in order to continue to teleconference without line 18 compliance with paragraph (3) of subdivision (b), the legislative line 19 body shall, not later than 30 days after teleconferencing for the line 20 first time pursuant to subparagraph (A), (B), or (C) of paragraph line 21 (1), and every 30 days thereafter, make the following findings by line 22 majority vote: line 23 (A)  The legislative body has reconsidered the circumstances of line 24 the state of emergency. line 25 (B)  Any of the following circumstances exist: line 26 (i)  The state of emergency continues to directly impact the line 27 ability of the members to meet safely in person. line 28 (ii)  State or local officials continue to impose or recommend line 29 measures to promote social distancing. line 30 (4)  This subdivision shall not be construed to require the line 31 legislative body to provide a physical location from which the line 32 public may attend or comment. line 33 (f)  (1)  The legislative body of a local agency may use line 34 teleconferencing without complying with paragraph (3) of line 35 subdivision (b) if, during the teleconference meeting, at least a line 36 quorum of the members of the legislative body participates in line 37 person from a singular physical location clearly identified on the line 38 agenda, which location shall be open to the public and situated line 39 within the boundaries of the territory over which the local agency 94 AB 2449 — 7 — 1.a Packet Pg. 27 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 exercises jurisdiction and the legislative body complies with all line 2 of the following: line 3 (A)  The legislative body shall provide at least one of the line 4 following as a means by which the public may remotely hear and line 5 visually observe the meeting, and remotely address the legislative line 6 body: line 7 (i)  A two-way audiovisual platform. line 8 (ii)  A two-way telephonic service and a live webcasting of the line 9 meeting. line 10 (B)  In each instance in which notice of the time of the line 11 teleconferenced meeting is otherwise given or the agenda for the line 12 meeting is otherwise posted, the legislative body shall also give line 13 notice of the means by which members of the public may access line 14 the meeting and offer public comment. line 15 (C)  The agenda shall identify and include an opportunity for all line 16 persons to attend and address the legislative body directly pursuant line 17 to Section 54954.3 via a call-in option, via an internet-based service line 18 option, and at the in-person location of the meeting. line 19 (D)  In the event of a disruption that prevents the legislative body line 20 from broadcasting the meeting to members of the public using the line 21 call-in option or internet-based service option, or in the event of line 22 a disruption within the local agency’s control that prevents line 23 members of the public from offering public comments using the line 24 call-in option or internet-based service option, the legislative body line 25 shall take no further action on items appearing on the meeting line 26 agenda until public access to the meeting via the call-in option or line 27 internet-based service option is restored. Actions taken on agenda line 28 items during a disruption that prevents the legislative body from line 29 broadcasting the meeting may be challenged pursuant to Section line 30 54960.1. line 31 (E)  The legislative body shall not require public comments to line 32 be submitted in advance of the meeting and must provide an line 33 opportunity for the public to address the legislative body and offer line 34 comment in real time. line 35 (F)  Notwithstanding Section 54953.3, an individual desiring to line 36 provide public comment through the use of an internet website, or line 37 other online platform, not under the control of the local legislative line 38 body, that requires registration to log in to a teleconference may line 39 be required to register as required by the third-party internet line 40 website or online platform to participate. 94 — 8 — AB 2449 1.a Packet Pg. 28 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (2)  A member of the legislative body shall only participate in line 2 the meeting remotely pursuant to this subdivision, if all of the line 3 following requirements are met: line 4 (A)  One of the following circumstances applies: line 5 (i)  The member notifies the legislative body at the earliest line 6 opportunity possible, including at the start of a regular meeting, line 7 of their need to participate remotely for just cause, including a line 8 general description of the circumstances relating to their need to line 9 appear remotely at the given meeting. The provisions of this clause line 10 shall not be used by any member of the legislative body for more line 11 than two meetings per calendar year. line 12 (ii)  The member requests the legislative body to allow them to line 13 participate in the meeting remotely due to emergency circumstances line 14 and the legislative body takes action to approve the request. The line 15 legislative body shall request a general description of the line 16 circumstances relating to their need to appear remotely at the given line 17 meeting. A general description of an item generally need not exceed line 18 20 words and shall not require the member to disclose any medical line 19 diagnosis or disability, or any personal medical information that line 20 is already exempt under existing law, such as the Confidentiality line 21 of Medical Information Act (Chapter 1 (commencing with Section line 22 56) of Part 2.6 of Division 1 of the Civil Code). For the purposes line 23 of this clause, the following requirements apply: line 24 (I)  The legislative body may take action on the member’s request line 25 to participate remotely at the earliest opportunity, including the line 26 beginning of the meeting at which the member has requested the line 27 ability to participate remotely. line 28 (II)  The member shall make such a request at each meeting that line 29 they desire to participate remotely pursuant to this clause. line 30 (I)  A member shall make a request to participate remotely at a line 31 meeting pursuant to this clause as soon as possible. The member line 32 shall make a separate request for each meeting in which they seek line 33 to participate remotely. line 34 (II)  The legislative body may take action on a request to line 35 participate remotely at the earliest opportunity. If the request does line 36 not allow sufficient time to place proposed action on such a request line 37 on the posted agenda for the meeting for which the request is made, line 38 the legislative body may take action at the beginning of the meeting line 39 in accordance with paragraph (4) of subdivision (b) of Section line 40 54954.2. 94 AB 2449 — 9 — 1.a Packet Pg. 29 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (B)  The member shall publicly disclose at the meeting before line 2 any action is taken, whether any other individuals 18 years of age line 3 or older are present in the room at the remote location with the line 4 member, and the general nature of the member’s relationship with line 5 any such individuals. line 6 (C)  The member shall participate through both audio and visual line 7 technology. line 8 (3)  The provisions of this subdivision shall not serve as a means line 9 for any member of a legislative body to participate in meetings of line 10 the legislative body solely by teleconference from a remote location line 11 for a period of more than three consecutive months or 20 percent line 12 of the regular meetings for the local agency within a calendar year, line 13 or more than two meetings if the legislative body regularly meets line 14 fewer than 10 times per calendar year. line 15 (g)  The legislative body shall have and implement a procedure line 16 for receiving and swiftly resolving requests for reasonable line 17 accommodation for individuals with disabilities, consistent with line 18 the federal Americans with Disabilities Act of 1990 (42 U.S.C. line 19 Sec. 12132), and resolving any doubt in favor of accessibility. In line 20 each instance in which notice of the time of the meeting is line 21 otherwise given or the agenda for the meeting is otherwise posted, line 22 the legislative body shall also give notice of the procedure for line 23 receiving and resolving requests for accommodation. line 24 (h)  The legislative body shall conduct meetings subject to this line 25 chapter consistent with applicable state and federal civil rights, line 26 language access, civil rights and other nondiscrimination laws. line 27 (i)  (1)  Nothing in this section shall prohibit a legislative body line 28 from providing the public with additional teleconference locations. line 29 (2)  Nothing in this section shall prohibit a legislative body from line 30 providing members of the public with additional physical locations line 31 in which the public may observe and address the legislative body line 32 by electronic means. line 33 (j)  For the purposes of this section, the following definitions line 34 shall apply: line 35 (1)  “Emergency circumstances” means a physical or family line 36 medical emergency that prevents a member from attending in line 37 person. line 38 (2)  “Just cause” means any of the following: line 39 (A)  A childcare or caregiving need of a child, parent, line 40 grandparent, grandchild, sibling, spouse, or domestic partner that 94 — 10 — AB 2449 1.a Packet Pg. 30 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 requires them to participate remotely. “Child,” “parent,” line 2 “grandparent,” “grandchild,” and “sibling” have the same meaning line 3 as those terms do in Section 12945.2. line 4 (B)  A contagious illness that prevents a member from attending line 5 in person. line 6 (C)  A need related to a physical or mental disability as defined line 7 in Sections 12926 and 12926.1 not otherwise accommodated by line 8 subdivision (g). line 9 (D)  Travel while on official business of the legislative body or line 10 another state or local agency. line 11 (3)  “Remote location” means a location from which a member line 12 of a legislative body participates in a meeting pursuant to line 13 subdivision (f), other than any physical meeting location designated line 14 in the notice of the meeting. Remote locations need not be line 15 accessible to the public. line 16 (4)  “Remote participation” means participation in a meeting by line 17 teleconference at a location other than any physical meeting line 18 location designated in the notice of the meeting. Watching or line 19 listening to a meeting via webcasting or another similar electronic line 20 medium that does not permit members to interactively hear, line 21 discuss, or deliberate on matters, does not constitute remote line 22 participation. line 23 (5)  “State of emergency” means a state of emergency proclaimed line 24 pursuant to Section 8625 of the California Emergency Services line 25 Act (Article 1 (commencing with Section 8550) of Chapter 7 of line 26 Division 1 of Title 2). line 27 (6)  “Teleconference” means a meeting of a legislative body, line 28 the members of which are in different locations, connected by line 29 electronic means, through either audio or video, or both. line 30 (7)  “Two-way audiovisual platform” means an online platform line 31 that provides participants with the ability to participate in a meeting line 32 via both an interactive video conference and a two-way telephonic line 33 function. line 34 (8)  “Two-way telephonic service” means a telephone service line 35 that does not require internet access, is not provided as part of a line 36 two-way audiovisual platform, and allows participants to dial a line 37 telephone number to listen and verbally participate. line 38 (9)  “Webcasting” means a streaming video broadcast online or line 39 on television, using streaming media technology to distribute a line 40 single content source to many simultaneous listeners and viewers. 94 AB 2449 — 11 — 1.a Packet Pg. 31 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (k)  This section shall remain in effect only until January 1, 2024, line 2 and as of that date is repealed. line 3 SEC. 2. Section 54953 of the Government Code, as added by line 4 Section 4 of Chapter 165 of the Statutes of 2021, is amended to line 5 read: line 6 54953. (a)  All meetings of the legislative body of a local line 7 agency shall be open and public, and all persons shall be permitted line 8 to attend any meeting of the legislative body of a local agency, line 9 except as otherwise provided in this chapter. line 10 (b)  (1)  Notwithstanding any other provision of law, the line 11 legislative body of a local agency may use teleconferencing for line 12 the benefit of the public and the legislative body of a local agency line 13 in connection with any meeting or proceeding authorized by law. line 14 The teleconferenced meeting or proceeding shall comply with all line 15 otherwise applicable requirements of this chapter and all otherwise line 16 applicable provisions of law relating to a specific type of meeting line 17 or proceeding. line 18 (2)  Teleconferencing, as authorized by this section, may be used line 19 for all purposes in connection with any meeting within the subject line 20 matter jurisdiction of the legislative body. If the legislative body line 21 of a local agency elects to use teleconferencing, the legislative line 22 body of a local agency shall comply with all of the following: line 23 (A)  All votes taken during a teleconferenced meeting shall be line 24 by rollcall. line 25 (B)  The teleconferenced meetings shall be conducted in a line 26 manner that protects the statutory and constitutional rights of the line 27 parties or the public appearing before the legislative body of a line 28 local agency. line 29 (C)  The legislative body shall give notice of the meeting and line 30 post agendas as otherwise required by this chapter. line 31 (D)  The legislative body shall allow members of the public to line 32 access the meeting and the agenda shall provide an opportunity line 33 for members of the public to address the legislative body directly line 34 pursuant to Section 54954.3. line 35 (3)  If the legislative body of a local agency elects to use line 36 teleconferencing, it shall post agendas at all teleconference line 37 locations. Each teleconference location shall be identified in the line 38 notice and agenda of the meeting or proceeding, and each line 39 teleconference location shall be accessible to the public. During line 40 the teleconference, at least a quorum of the members of the 94 — 12 — AB 2449 1.a Packet Pg. 32 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 legislative body shall participate from locations within the line 2 boundaries of the territory over which the local agency exercises line 3 jurisdiction, except as provided in subdivision (d). line 4 (c)  (1)  No legislative body shall take action by secret ballot, line 5 whether preliminary or final. line 6 (2)  The legislative body of a local agency shall publicly report line 7 any action taken and the vote or abstention on that action of each line 8 member present for the action. line 9 (3)  Prior to taking final action, the legislative body shall orally line 10 report a summary of a recommendation for a final action on the line 11 salaries, salary schedules, or compensation paid in the form of line 12 fringe benefits of a local agency executive, as defined in line 13 subdivision (d) of Section 3511.1, during the open meeting in line 14 which the final action is to be taken. This paragraph shall not affect line 15 the public’s right under the California Public Records Act (Division line 16 10 (commencing with Section 7920.000) of Title 1) to inspect or line 17 copy records created or received in the process of developing the line 18 recommendation. line 19 (d)  (1)  Notwithstanding the provisions relating to a quorum in line 20 paragraph (3) of subdivision (b), if a health authority conducts a line 21 teleconference meeting, members who are outside the jurisdiction line 22 of the authority may be counted toward the establishment of a line 23 quorum when participating in the teleconference if at least 50 line 24 percent of the number of members that would establish a quorum line 25 are present within the boundaries of the territory over which the line 26 authority exercises jurisdiction, and the health authority provides line 27 a teleconference number, and associated access codes, if any, that line 28 allows any person to call in to participate in the meeting and the line 29 number and access codes are identified in the notice and agenda line 30 of the meeting. line 31 (2)  Nothing in this subdivision shall be construed as line 32 discouraging health authority members from regularly meeting at line 33 a common physical site within the jurisdiction of the authority or line 34 from using teleconference locations within or near the jurisdiction line 35 of the authority. A teleconference meeting for which a quorum is line 36 established pursuant to this subdivision shall be subject to all other line 37 requirements of this section. line 38 (3)  For purposes of this subdivision, a health authority means line 39 any entity created pursuant to Sections 14018.7, 14087.31, line 40 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare 94 AB 2449 — 13 — 1.a Packet Pg. 33 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 and Institutions Code, any joint powers authority created pursuant line 2 to Article 1 (commencing with Section 6500) of Chapter 5 of line 3 Division 7 for the purpose of contracting pursuant to Section line 4 14087.3 of the Welfare and Institutions Code, and any advisory line 5 committee to a county-sponsored health plan licensed pursuant to line 6 Chapter 2.2 (commencing with Section 1340) of Division 2 of the line 7 Health and Safety Code if the advisory committee has 12 or more line 8 members. line 9 (e)  (1)  The legislative body of a local agency may use line 10 teleconferencing without complying with paragraph (3) of line 11 subdivision (b) if, during the teleconference meeting, at least a line 12 quorum of the members of the legislative body participates in line 13 person from a singular physical location clearly identified on the line 14 agenda, which location shall be open to the public and situated line 15 within the boundaries of the territory over which the local agency line 16 exercises jurisdiction and the legislative body complies with all line 17 of the following: line 18 (A)  The legislative body shall provide at least one of the line 19 following as a means by which the public may remotely hear and line 20 visually observe the meeting, and remotely address the legislative line 21 body: line 22 (i)  A two-way audiovisual platform. line 23 (ii)  A two-way telephonic service and a live webcasting of the line 24 meeting. line 25 (B)  In each instance in which notice of the time of the line 26 teleconferenced meeting is otherwise given or the agenda for the line 27 meeting is otherwise posted, the legislative body shall also give line 28 notice of the means by which members of the public may access line 29 the meeting and offer public comment. line 30 (C)  The agenda shall identify and include an opportunity for all line 31 persons to attend and address the legislative body directly pursuant line 32 to Section 54954.3 via a call-in option, via an internet-based service line 33 option, and at the in-person location of the meeting. line 34 (D)  In the event of a disruption that prevents the legislative body line 35 from broadcasting the meeting to members of the public using the line 36 call-in option or internet-based service option, or in the event of line 37 a disruption within the local agency’s control that prevents line 38 members of the public from offering public comments using the line 39 call-in option or internet-based service option, the legislative body line 40 shall take no further action on items appearing on the meeting 94 — 14 — AB 2449 1.a Packet Pg. 34 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 agenda until public access to the meeting via the call-in option or line 2 internet-based service option is restored. Actions taken on agenda line 3 items during a disruption that prevents the legislative body from line 4 broadcasting the meeting may be challenged pursuant to Section line 5 54960.1. line 6 (E)  The legislative body shall not require public comments to line 7 be submitted in advance of the meeting and must provide an line 8 opportunity for the public to address the legislative body and offer line 9 comment in real time. line 10 (F)  Notwithstanding Section 54953.3, an individual desiring to line 11 provide public comment through the use of an internet website, or line 12 other online platform, not under the control of the local legislative line 13 body, that requires registration to log in to a teleconference may line 14 be required to register as required by the third-party internet line 15 website or online platform to participate. line 16 (2)  A member of the legislative body shall only participate in line 17 the meeting remotely pursuant to this subdivision, if all of the line 18 following requirements are met: line 19 (A)  One of the following circumstances applies: line 20 (i)  The member notifies the legislative body at the earliest line 21 opportunity possible, including at the start of a regular meeting, line 22 of their need to participate remotely for just cause, including a line 23 general description of the circumstances relating to their need to line 24 appear remotely at the given meeting. The provisions of this clause line 25 shall not be used by any member of the legislative body for more line 26 than two meetings per calendar year. line 27 (ii)  The member requests the legislative body to allow them to line 28 participate in the meeting remotely due to emergency circumstances line 29 and the legislative body takes action to approve the request. The line 30 legislative body shall request a general description of the line 31 circumstances relating to their need to appear remotely at the given line 32 meeting. A general description of an item generally need not exceed line 33 20 words and shall not require the member to disclose any medical line 34 diagnosis or disability, or any personal medical information that line 35 is already exempt under existing law, such as the Confidentiality line 36 of Medical Information Act (Chapter 1 (commencing with Section line 37 56) of Part 2.6 of Division 1 of the Civil Code). For the purposes line 38 of this clause, the following requirements apply: line 39 (I)  The legislative body may take action on the member’s request line 40 to participate remotely at the earliest opportunity, including the 94 AB 2449 — 15 — 1.a Packet Pg. 35 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 beginning of the meeting at which the member has requested the line 2 ability to participate remotely. line 3 (II)  The member shall make such a request at each meeting that line 4 they desire to participate remotely pursuant to this clause. line 5 (I)  A member shall make a request to participate remotely at a line 6 meeting pursuant to this clause as soon as possible. The member line 7 shall make a separate request for each meeting in which they seek line 8 to participate remotely. line 9 (II)  The legislative body may take action on a request to line 10 participate remotely at the earliest opportunity. If the request does line 11 not allow sufficient time to place proposed action on such a request line 12 on the posted agenda for the meeting for which the request is made, line 13 the legislative body may take action at the beginning of the meeting line 14 in accordance with paragraph (4) of subdivision (b) of Section line 15 54954.2. line 16 (B)  The member shall publicly disclose at the meeting before line 17 any action is taken whether any other individuals 18 years of age line 18 or older are present in the room at the remote location with the line 19 member, and the general nature of the member’s relationship with line 20 any such individuals. line 21 (C)  The member shall participate through both audio and visual line 22 technology. line 23 (3)  The provisions of this subdivision shall not serve as a means line 24 for any member of a legislative body to participate in meetings of line 25 the legislative body solely by teleconference from a remote location line 26 for a period of more than three consecutive months or 20 percent line 27 of the regular meetings for the local agency within a calendar year, line 28 or more than two meetings if the legislative body regularly meets line 29 fewer than 10 times per calendar year. line 30 (f)  The legislative body shall have and implement a procedure line 31 for receiving and swiftly resolving requests for reasonable line 32 accommodation for individuals with disabilities, consistent with line 33 the federal Americans with Disabilities Act of 1990 (42 U.S.C. line 34 Sec. 12132), and resolving any doubt in favor of accessibility. In line 35 each instance in which notice of the time of the meeting is line 36 otherwise given or the agenda for the meeting is otherwise posted, line 37 the legislative body shall also give notice of the procedure for line 38 receiving and resolving requests for accommodation. 94 — 16 — AB 2449 1.a Packet Pg. 36 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (g)  The legislative body shall conduct meetings subject to this line 2 chapter consistent with applicable state and federal civil rights, line 3 language access, civil rights and other nondiscrimination laws. line 4 (h)  (1)  Nothing in this section shall prohibit a legislative body line 5 from providing the public with additional teleconference locations. line 6 (2)  Nothing in this section shall prohibit a legislative body from line 7 providing members of the public with additional physical locations line 8 in which the public may observe and address the legislative body line 9 by electronic means. line 10 (i)  For the purposes of this section, the following definitions line 11 shall apply: line 12 (1)  “Emergency circumstances” means a physical or family line 13 medical emergency that prevents a member from attending in line 14 person. line 15 (2)  “Just cause” means any of the following: line 16 (A)  A childcare or caregiving need of a child, parent, line 17 grandparent, grandchild, sibling, spouse, or domestic partner that line 18 requires them to participate remotely. “Child,” “parent,” line 19 “grandparent,” “grandchild,” and “sibling” have the same meaning line 20 as those terms do in Section 12945.2. line 21 (B)  A contagious illness that prevents a member from attending line 22 in person. line 23 (C)  A need related to a physical or mental disability as defined line 24 in Sections 12926 and 12926.1 not otherwise accommodated by line 25 subdivision (f). line 26 (D)  Travel while on official business of the legislative body or line 27 another state or local agency. line 28 (3)  “Remote location” means a location from which a member line 29 of a legislative body participates in a meeting pursuant to line 30 subdivision (e), other than any physical meeting location designated line 31 in the notice of the meeting. Remote locations need not be line 32 accessible to the public. line 33 (4)  “Remote participation” means participation in a meeting by line 34 teleconference at a location other than any physical meeting line 35 location designated in the notice of the meeting. Watching or line 36 listening to a meeting via webcasting or another similar electronic line 37 medium that does not permit members to interactively hear, line 38 discuss, or deliberate on matters, does not constitute remote line 39 participation. 94 AB 2449 — 17 — 1.a Packet Pg. 37 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (5)  “Teleconference” means a meeting of a legislative body, line 2 the members of which are in different locations, connected by line 3 electronic means, through either audio or video, or both. line 4 (6)  “Two-way audiovisual platform” means an online platform line 5 that provides participants with the ability to participate in a meeting line 6 via both an interactive video conference and a two-way telephonic line 7 function. line 8 (7)  “Two-way telephonic service” means a telephone service line 9 that does not require internet access, is not provided as part of a line 10 two-way audiovisual platform, and allows participants to dial a line 11 telephone number to listen and verbally participate. line 12 (8)  “Webcasting” means a streaming video broadcast online or line 13 on television, using streaming media technology to distribute a line 14 single content source to many simultaneous listeners and viewers. line 15 (j)  This section shall become operative January 1, 2024, shall line 16 remain in effect only until January 1, 2026, and as of that date is line 17 repealed. line 18 SEC. 3. Section 54953 is added to the Government Code, to line 19 read: line 20 54953. (a)  All meetings of the legislative body of a local line 21 agency shall be open and public, and all persons shall be permitted line 22 to attend any meeting of the legislative body of a local agency, line 23 except as otherwise provided in this chapter. line 24 (b)  (1)  Notwithstanding any other provision of law, the line 25 legislative body of a local agency may use teleconferencing for line 26 the benefit of the public and the legislative body of a local agency line 27 in connection with any meeting or proceeding authorized by law. line 28 The teleconferenced meeting or proceeding shall comply with all line 29 requirements of this chapter and all otherwise applicable provisions line 30 of law relating to a specific type of meeting or proceeding. line 31 (2)  Teleconferencing, as authorized by this section, may be used line 32 for all purposes in connection with any meeting within the subject line 33 matter jurisdiction of the legislative body. All votes taken during line 34 a teleconferenced meeting shall be by rollcall. line 35 (3)  If the legislative body of a local agency elects to use line 36 teleconferencing, it shall post agendas at all teleconference line 37 locations and conduct teleconference meetings in a manner that line 38 protects the statutory and constitutional rights of the parties or the line 39 public appearing before the legislative body of a local agency. line 40 Each teleconference location shall be identified in the notice and 94 — 18 — AB 2449 1.a Packet Pg. 38 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 agenda of the meeting or proceeding, and each teleconference line 2 location shall be accessible to the public. During the teleconference, line 3 at least a quorum of the members of the legislative body shall line 4 participate from locations within the boundaries of the territory line 5 over which the local agency exercises jurisdiction, except as line 6 provided in subdivision (d). The agenda shall provide an line 7 opportunity for members of the public to address the legislative line 8 body directly pursuant to Section 54954.3 at each teleconference line 9 location. line 10 (4)  For the purposes of this section, “teleconference” means a line 11 meeting of a legislative body, the members of which are in different line 12 locations, connected by electronic means, through either audio or line 13 video, or both. Nothing in this section shall prohibit a local agency line 14 from providing the public with additional teleconference locations line 15 locations. line 16 (c)  (1)  No legislative body shall take action by secret ballot, line 17 whether preliminary or final. line 18 (2)  The legislative body of a local agency shall publicly report line 19 any action taken and the vote or abstention on that action of each line 20 member present for the action. line 21 (3)  Prior to taking final action, the legislative body shall orally line 22 report a summary of a recommendation for a final action on the line 23 salaries, salary schedules, or compensation paid in the form of line 24 fringe benefits of a local agency executive, as defined in line 25 subdivision (d) of Section 3511.1, during the open meeting in line 26 which the final action is to be taken. This paragraph shall not affect line 27 the public’s right under the California Public Records Act (Chapter line 28 3.5 (commencing with Section 6250) of Division 7 of Title 1) to line 29 inspect or copy records created or received in the process of line 30 developing the recommendation. line 31 (d)  (1)  Notwithstanding the provisions relating to a quorum in line 32 paragraph (3) of subdivision (b), if a health authority conducts a line 33 teleconference meeting, members who are outside the jurisdiction line 34 of the authority may be counted toward the establishment of a line 35 quorum when participating in the teleconference if at least 50 line 36 percent of the number of members that would establish a quorum line 37 are present within the boundaries of the territory over which the line 38 authority exercises jurisdiction, and the health authority provides line 39 a teleconference number, and associated access codes, if any, that line 40 allows any person to call in to participate in the meeting and the 94 AB 2449 — 19 — 1.a Packet Pg. 39 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 number and access codes are identified in the notice and agenda line 2 of the meeting. line 3 (2)  Nothing in this subdivision shall be construed as line 4 discouraging health authority members from regularly meeting at line 5 a common physical site within the jurisdiction of the authority or line 6 from using teleconference locations within or near the jurisdiction line 7 of the authority. A teleconference meeting for which a quorum is line 8 established pursuant to this subdivision shall be subject to all other line 9 requirements of this section. line 10 (3)  For purposes of this subdivision, a health authority means line 11 any entity created pursuant to Sections 14018.7, 14087.31, line 12 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare line 13 and Institutions Code, any joint powers authority created pursuant line 14 to Article 1 (commencing with Section 6500) of Chapter 5 of line 15 Division 7 for the purpose of contracting pursuant to Section line 16 14087.3 of the Welfare and Institutions Code, and any advisory line 17 committee to a county-sponsored health plan licensed pursuant to line 18 Chapter 2.2 (commencing with Section 1340) of Division 2 of the line 19 Health and Safety Code if the advisory committee has 12 or more line 20 members. line 21 (e)  This section shall become operative January 1, 2026. line 22 SEC. 4. Section 54954.2 of the Government Code is amended line 23 to read: line 24 54954.2. (a)  (1)  At least 72 hours before a regular meeting, line 25 the legislative body of the local agency, or its designee, shall post line 26 an agenda containing a brief general description of each item of line 27 business to be transacted or discussed at the meeting, including line 28 items to be discussed in closed session. A brief general description line 29 of an item generally need not exceed 20 words. The agenda shall line 30 specify the time and location of the regular meeting and shall be line 31 posted in a location that is freely accessible to members of the line 32 public and on the local agency’s Internet Web site, if the local line 33 agency has one. If requested, the agenda shall be made available line 34 in appropriate alternative formats to persons with a disability, as line 35 required by Section 202 of the Americans with Disabilities Act of line 36 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations line 37 adopted in implementation thereof. The agenda shall include line 38 information regarding how, to whom, and when a request for line 39 disability-related modification or accommodation, including line 40 auxiliary aids or services, may be made by a person with a 94 — 20 — AB 2449 1.a Packet Pg. 40 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 disability who requires a modification or accommodation in order line 2 to participate in the public meeting. line 3 (2)  For a meeting occurring on and after January 1, 2019, of a line 4 legislative body of a city, county, city and county, special district, line 5 school district, or political subdivision established by the state that line 6 has an Internet Web site, the following provisions shall apply: line 7 (A)  An online posting of an agenda shall be posted on the line 8 primary Internet Web site homepage of a city, county, city and line 9 county, special district, school district, or political subdivision line 10 established by the state that is accessible through a prominent, line 11 direct link to the current agenda. The direct link to the agenda shall line 12 not be in a contextual menu; however, a link in addition to the line 13 direct link to the agenda may be accessible through a contextual line 14 menu. line 15 (B)  An online posting of an agenda including, but not limited line 16 to, an agenda posted in an integrated agenda management platform, line 17 shall be posted in an open format that meets all of the following line 18 requirements: line 19 (i)  Retrievable, downloadable, indexable, and electronically line 20 searchable by commonly used Internet search applications. line 21 (ii)  Platform independent and machine readable. line 22 (iii)  Available to the public free of charge and without any line 23 restriction that would impede the reuse or redistribution of the line 24 agenda. line 25 (C)  A legislative body of a city, county, city and county, special line 26 district, school district, or political subdivision established by the line 27 state that has an Internet Web site and an integrated agenda line 28 management platform shall not be required to comply with line 29 subparagraph (A) if all of the following are met: line 30 (i)  A direct link to the integrated agenda management platform line 31 shall be posted on the primary Internet Web site homepage of a line 32 city, county, city and county, special district, school district, or line 33 political subdivision established by the state. The direct link to the line 34 integrated agenda management platform shall not be in a contextual line 35 menu. When a person clicks on the direct link to the integrated line 36 agenda management platform, the direct link shall take the person line 37 directly to an Internet Web site with the agendas of the legislative line 38 body of a city, county, city and county, special district, school line 39 district, or political subdivision established by the state. 94 AB 2449 — 21 — 1.a Packet Pg. 41 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (ii)  The integrated agenda management platform may contain line 2 the prior agendas of a legislative body of a city, county, city and line 3 county, special district, school district, or political subdivision line 4 established by the state for all meetings occurring on or after line 5 January 1, 2019. line 6 (iii)  The current agenda of the legislative body of a city, county, line 7 city and county, special district, school district, or political line 8 subdivision established by the state shall be the first agenda line 9 available at the top of the integrated agenda management platform. line 10 (iv)  All agendas posted in the integrated agenda management line 11 platform shall comply with the requirements in clauses (i), (ii), line 12 and (iii) of subparagraph (B). line 13 (D)  For the purposes of this paragraph, both of the following line 14 definitions shall apply: line 15 (i)  “Integrated agenda management platform” means an Internet line 16 Web site of a city, county, city and county, special district, school line 17 district, or political subdivision established by the state dedicated line 18 to providing the entirety of the agenda information for the line 19 legislative body of the city, county, city and county, special district, line 20 school district, or political subdivision established by the state to line 21 the public. line 22 (ii)  “Legislative body” has the same meaning as that term is line 23 used in subdivision (a) of Section 54952. line 24 (E)  The provisions of this paragraph shall not apply to a political line 25 subdivision of a local agency that was established by the legislative line 26 body of the city, county, city and county, special district, school line 27 district, or political subdivision established by the state. line 28 (3)  No action or discussion shall be undertaken on any item not line 29 appearing on the posted agenda, except that members of a line 30 legislative body or its staff may briefly respond to statements made line 31 or questions posed by persons exercising their public testimony line 32 rights under Section 54954.3. In addition, on their own initiative line 33 or in response to questions posed by the public, a member of a line 34 legislative body or its staff may ask a question for clarification, line 35 make a brief announcement, or make a brief report on his or her line 36 own activities. Furthermore, a member of a legislative body, or line 37 the body itself, subject to rules or procedures of the legislative line 38 body, may provide a reference to staff or other resources for factual line 39 information, request staff to report back to the body at a subsequent 94 — 22 — AB 2449 1.a Packet Pg. 42 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 meeting concerning any matter, or take action to direct staff to line 2 place a matter of business on a future agenda. line 3 (b)  Notwithstanding subdivision (a), the legislative body may line 4 take action on items of business not appearing on the posted agenda line 5 under any of the conditions stated below. Prior to discussing any line 6 item pursuant to this subdivision, the legislative body shall publicly line 7 identify the item. line 8 (1)  Upon a determination by a majority vote of the legislative line 9 body that an emergency situation exists, as defined in Section line 10 54956.5. line 11 (2)  Upon a determination by a two-thirds vote of the members line 12 of the legislative body present at the meeting, or, if less than line 13 two-thirds of the members are present, a unanimous vote of those line 14 members present, that there is a need to take immediate action and line 15 that the need for action came to the attention of the local agency line 16 subsequent to the agenda being posted as specified in subdivision line 17 (a). line 18 (3)  The item was posted pursuant to subdivision (a) for a prior line 19 meeting of the legislative body occurring not more than five line 20 calendar days prior to the date action is taken on the item, and at line 21 the prior meeting the item was continued to the meeting at which line 22 action is being taken. line 23 (4)  To consider action on a request from a member to participate line 24 in a meeting remotely due to emergency circumstances, pursuant line 25 to Section 54953, if the request does not allow sufficient time to line 26 place the proposed action on the posted agenda for the meeting line 27 for which the request is made. The legislative body may approve line 28 such a request by a majority vote of the legislative body. line 29 (c)  This section is necessary to implement and reasonably within line 30 the scope of paragraph (1) of subdivision (b) of Section 3 of Article line 31 I of the California Constitution. line 32 (d)  For purposes of subdivision (a), the requirement that the line 33 agenda be posted on the local agency’s Internet Web site, if the line 34 local agency has one, shall only apply to a legislative body that line 35 meets either of the following standards: line 36 (1)  A legislative body as that term is defined by subdivision (a) line 37 of Section 54952. line 38 (2)  A legislative body as that term is defined by subdivision (b) line 39 of Section 54952, if the members of the legislative body are line 40 compensated for their appearance, and if one or more of the 94 AB 2449 — 23 — 1.a Packet Pg. 43 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 members of the legislative body are also members of a legislative line 2 body as that term is defined by subdivision (a) of Section 54952. line 3 (e)  This section shall remain in effect only until January 1, 2026, line 4 and as of that date is repealed. line 5 SEC. 5. Section 54954.2 is added to the Government Code, to line 6 read: line 7 54954.2. (a)  (1)  At least 72 hours before a regular meeting, line 8 the legislative body of the local agency, or its designee, shall post line 9 an agenda containing a brief general description of each item of line 10 business to be transacted or discussed at the meeting, including line 11 items to be discussed in closed session. A brief general description line 12 of an item generally need not exceed 20 words. The agenda shall line 13 specify the time and location of the regular meeting and shall be line 14 posted in a location that is freely accessible to members of the line 15 public and on the local agency’s Internet Web site, if the local line 16 agency has one. If requested, the agenda shall be made available line 17 in appropriate alternative formats to persons with a disability, as line 18 required by Section 202 of the Americans with Disabilities Act of line 19 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations line 20 adopted in implementation thereof. The agenda shall include line 21 information regarding how, to whom, and when a request for line 22 disability-related modification or accommodation, including line 23 auxiliary aids or services, may be made by a person with a line 24 disability who requires a modification or accommodation in order line 25 to participate in the public meeting. line 26 (2)  For a meeting occurring on and after January 1, 2019, of line 27 a legislative body of a city, county, city and county, special district, line 28 school district, or political subdivision established by the state line 29 that has an Internet Web site, the following provisions shall apply: line 30 (A)  An online posting of an agenda shall be posted on the line 31 primary Internet Web site homepage of a city, county, city and line 32 county, special district, school district, or political subdivision line 33 established by the state that is accessible through a prominent, line 34 direct link to the current agenda. The direct link to the agenda line 35 shall not be in a contextual menu; however, a link in addition to line 36 the direct link to the agenda may be accessible through a line 37 contextual menu. line 38 (B)  An online posting of an agenda including, but not limited line 39 to, an agenda posted in an integrated agenda management 94 — 24 — AB 2449 1.a Packet Pg. 44 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 platform, shall be posted in an open format that meets all of the line 2 following requirements: line 3 (i)  Retrievable, downloadable, indexable, and electronically line 4 searchable by commonly used Internet search applications. line 5 (ii)  Platform independent and machine readable. line 6 (iii)  Available to the public free of charge and without any line 7 restriction that would impede the reuse or redistribution of the line 8 agenda. line 9 (C)  A legislative body of a city, county, city and county, special line 10 district, school district, or political subdivision established by the line 11 state that has an Internet Web site and an integrated agenda line 12 management platform shall not be required to comply with line 13 subparagraph (A) if all of the following are met: line 14 (i)  A direct link to the integrated agenda management platform line 15 shall be posted on the primary Internet Web site homepage of a line 16 city, county, city and county, special district, school district, or line 17 political subdivision established by the state. The direct link to the line 18 integrated agenda management platform shall not be in a line 19 contextual menu. When a person clicks on the direct link to the line 20 integrated agenda management platform, the direct link shall take line 21 the person directly to an Internet Web site with the agendas of the line 22 legislative body of a city, county, city and county, special district, line 23 school district, or political subdivision established by the state. line 24 (ii)  The integrated agenda management platform may contain line 25 the prior agendas of a legislative body of a city, county, city and line 26 county, special district, school district, or political subdivision line 27 established by the state for all meetings occurring on or after line 28 January 1, 2019. line 29 (iii)  The current agenda of the legislative body of a city, county, line 30 city and county, special district, school district, or political line 31 subdivision established by the state shall be the first agenda line 32 available at the top of the integrated agenda management platform. line 33 (iv)  All agendas posted in the integrated agenda management line 34 platform shall comply with the requirements in clauses (i), (ii), line 35 and (iii) of subparagraph (B). line 36 (D)  For the purposes of this paragraph, both of the following line 37 definitions shall apply: line 38 (i)  “Integrated agenda management platform” means an line 39 Internet Web site of a city, county, city and county, special district, line 40 school district, or political subdivision established by the state 94 AB 2449 — 25 — 1.a Packet Pg. 45 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 dedicated to providing the entirety of the agenda information for line 2 the legislative body of the city, county, city and county, special line 3 district, school district, or political subdivision established by the line 4 state to the public. line 5 (ii)  “Legislative body” has the same meaning as that term is line 6 used in subdivision (a) of Section 54952. line 7 (E)  The provisions of this paragraph shall not apply to a line 8 political subdivision of a local agency that was established by the line 9 legislative body of the city, county, city and county, special district, line 10 school district, or political subdivision established by the state. line 11 (3)  No action or discussion shall be undertaken on any item not line 12 appearing on the posted agenda, except that members of a line 13 legislative body or its staff may briefly respond to statements made line 14 or questions posed by persons exercising their public testimony line 15 rights under Section 54954.3. In addition, on their own initiative line 16 or in response to questions posed by the public, a member of a line 17 legislative body or its staff may ask a question for clarification, line 18 make a brief announcement, or make a brief report on his or her line 19 own activities. Furthermore, a member of a legislative body, or line 20 the body itself, subject to rules or procedures of the legislative line 21 body, may provide a reference to staff or other resources for factual line 22 information, request staff to report back to the body at a subsequent line 23 meeting concerning any matter, or take action to direct staff to line 24 place a matter of business on a future agenda. line 25 (b)  Notwithstanding subdivision (a), the legislative body may line 26 take action on items of business not appearing on the posted line 27 agenda under any of the conditions stated below. Prior to line 28 discussing any item pursuant to this subdivision, the legislative line 29 body shall publicly identify the item. line 30 (1)  Upon a determination by a majority vote of the legislative line 31 body that an emergency situation exists, as defined in Section line 32 54956.5. line 33 (2)  Upon a determination by a two-thirds vote of the members line 34 of the legislative body present at the meeting, or, if less than line 35 two-thirds of the members are present, a unanimous vote of those line 36 members present, that there is a need to take immediate action line 37 and that the need for action came to the attention of the local line 38 agency subsequent to the agenda being posted as specified in line 39 subdivision (a). 94 — 26 — AB 2449 1.a Packet Pg. 46 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 (3)  The item was posted pursuant to subdivision (a) for a prior line 2 meeting of the legislative body occurring not more than five line 3 calendar days prior to the date action is taken on the item, and at line 4 the prior meeting the item was continued to the meeting at which line 5 action is being taken. line 6 (c)  This section is necessary to implement and reasonably within line 7 the scope of paragraph (1) of subdivision (b) of Section 3 of Article line 8 I of the California Constitution. line 9 (d)  For purposes of subdivision (a), the requirement that the line 10 agenda be posted on the local agency’s Internet Web site, if the line 11 local agency has one, shall only apply to a legislative body that line 12 meets either of the following standards: line 13 (1)  A legislative body as that term is defined by subdivision (a) line 14 of Section 54952. line 15 (2)  A legislative body as that term is defined by subdivision (b) line 16 of Section 54952, if the members of the legislative body are line 17 compensated for their appearance, and if one or more of the line 18 members of the legislative body are also members of a legislative line 19 body as that term is defined by subdivision (a) of Section 54952. line 20 (e)  This section shall become operative January 1, 2026. line 21 SEC. 4. line 22 SEC. 6. The Legislature finds and declares that Sections 1 and line 23 2 of this act, which amend Section 54953 of the Government Code, line 24 impose a limitation on the public’s right of access to the meetings line 25 of public bodies or the writings of public officials and agencies line 26 within the meaning of Section 3 of Article I of the California line 27 Constitution. Pursuant to that constitutional provision, the line 28 Legislature makes the following findings to demonstrate the interest line 29 protected by this limitation and the need for protecting that interest: line 30 By removing the requirement for agendas to be placed at the line 31 location of each public official participating in a public meeting line 32 remotely, including from the member’s private home or hospital line 33 room, this act protects the personal, private information of public line 34 officials and their families while preserving the public’s right to line 35 access information concerning the conduct of the people’s business. line 36 SEC. 5. line 37 SEC. 7. The Legislature finds and declares that Sections 1 and line 38 2 of this act, which amend Section 54953 of the Government Code, line 39 further, within the meaning of paragraph (7) of subdivision (b) of line 40 Section 3 of Article I of the California Constitution, the purposes 94 AB 2449 — 27 — 1.a Packet Pg. 47 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) line 1 of that constitutional section as it relates to the right of public line 2 access to the meetings of local public bodies or the writings of line 3 local public officials and local agencies. Pursuant to paragraph (7) line 4 of subdivision (b) of Section 3 of Article I of the California line 5 Constitution, the Legislature makes the following findings: line 6 This act is necessary to ensure minimum standards for public line 7 participation and notice requirements allowing for greater public line 8 participation in teleconference meetings. O 94 — 28 — AB 2449 1.a Packet Pg. 48 At t a c h m e n t : A t t a c h m e n t A : A B 2 4 4 9 ( 1 4 6 6 1 : R e m o t e A t t e n d a n c e P o l i c y ) City of Palo Alto (ID # 14725) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: VII. NEW BUSINESS City of Palo Alto Page 1 Title: Adoption of a Resolution Authorizing Use of Teleconferencing for Utilities Advisory Commission Meetings During Covid-19 State of Emergency From: Director of Utilities Lead Department: Utilities Recommendation Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government Code Section 54953(e) for meetings of the Utilities Advisory Commission (UAC) and its committees due to the Covid-19 declared state of emergency. Background In February and March 2020, the state and the County declared a state of emergency due to the Covid-19 pandemic. Both emergency declarations remain in effect. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act, effective October 1, 2021, to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days. AB 361, codified at California Government Code Section 54953(e), empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act in any of the following circumstances: (A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing. (B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. 2 Packet Pg. 49 City of Palo Alto Page 2 (C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B) (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. (Gov. Code § 54953(e)(1).) In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider the state of emergency within 30 days of the first teleconferenced meeting after October 1, 2021, and at least every 30 days thereafter, and find that one of the following circumstances exists: 1. The state of emergency continues to directly impact the ability of the members to meet safely in person. 2. State or local officials continue to impose or recommend measures to promote social distancing. 2 Packet Pg. 50 City of Palo Alto Page 3 Discussion At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health Officer continues to recommend measures to promote outdoor activity, physical distancing and other social distancing measures, such as masking, in certain contexts. (See August 2, 2021 Order.) In addition, the California Department of Industrial Relations Division of Occupational Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures. Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using teleconferencing for public meetings of its policy bodies, provided that any and all members of the public who wish to address the body or its committees have an opportunity to do so, and that the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing are protected. To comply with public health directives and promote public safety, Palo Alto policy bodies have been meeting via teleconference since March 2020. On September 27, 2021, the City Council considered the format for future Council, committee, and Board and Commission meetings. Council determined that beginning November 1, 2021, Council meetings would be conducted using a hybrid format that allows Council Members and the public to decide whether to attend in person, following masking and distancing protocols, or participate via teleconference. Council directed that Council standing and ad-hoc committees and Boards and Commissions would continue meeting via teleconference through March 2022. Adoption of the Resolution at Attachment A will make the findings required by Section 54953(e)(3) to allow the continued use of teleconferencing for meetings of the Utilities Advisory Commission (UAC) and its committees. Attachments: • Attachment A: Resolution 2 Packet Pg. 51 NOT YET APPROVED Resolution No. ____ Resolution Making Findings to Allow Teleconferenced Meetings Under California Government Code Section 54953(e) R E C I T A L S A. California Government Code Section 54953(e) empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act so long as certain conditions are met; and B. In March 2020, the Governor of the State of California proclaimed a state of emergency in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state of emergency remains in effect; and C. In February 2020, the Santa Clara County Director of Emergency Services and the Santa Clara County Health Officer declared a local emergency, which declarations were subsequently ratified and extended by the Santa Clara County Board of Supervisors, and those declarations also remain in effect; and D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days; and E. While federal, State, and local health officials emphasize the critical importance of vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County Health Officer has issued at least one recommendation, on September 21, 2021 (available online here), that public bodies meet remotely to the extent possible, in addition to recommendations issued February 28, 2022,1 to continue social distancing measures, such as masking, in certain contexts; and F. The California Department of Industrial Relations Division of Occupational Safety and Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures; and G. The Utilities Advisory Commission has met remotely during the COVID-19 pandemic and can continue to do so in a manner that allows public participation and transparency while minimizing health risks to members, staff, and the public that would be present with in-person meetings while this emergency continues; now, therefore, The Utilities Advisory Commission RESOLVES as follows: 1 available online at https://covid19.sccgov.org/order-health-officer-02-28-2022-rescission-of-face-covering-order 2.a Packet Pg. 52 At t a c h m e n t : A t t a c h m e n t A : R e s o l u t i o n ( 1 4 7 2 5 : C o v i d - 1 9 R e s o l u t i o n ) NOT YET APPROVED 1. As described above, the State of California remains in a state of emergency due to the COVID-19 pandemic. At this meeting, the Utilities Advisory Commission has considered the circumstances of the state of emergency. 2. As described above, State and County officials continue to recommend measures to promote physical distancing and other social distancing measures, in some settings. AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Utilities Advisory Commission and its committees will occur using teleconferencing technology. Such meetings of the Utilities Advisory Commission and its committees that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address the body its committees and will otherwise occur in a manner that protects the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing; and, be it FURTHER RESOLVED, That the Utilities Advisory Commission staff liaison is directed to place a resolution substantially similar to this resolution on the agenda of a future meeting of the Utilities Advisory Commission within the next 30 days. If the Utilities Advisory Commission does not meet within the next 30 days, the staff liaison is directed to place a such resolution on the agenda of the immediately following meeting of the Utilities Advisory Commission. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: Staff Liaison Chair of Utilities Advisory Commission APPROVED AS TO FORM: APPROVED: City Attorney or designee Department Head 2.a Packet Pg. 53 At t a c h m e n t : A t t a c h m e n t A : R e s o l u t i o n ( 1 4 7 2 5 : C o v i d - 1 9 R e s o l u t i o n ) City of Palo Alto (ID # 14704) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: City of Palo Alto Page 1 Title: Informational Update on Utilities Cross Bore Verification Projects From: Director of Utilities Lead Department: Utilities Recommendation This report is for information only. No action is required. Executive Summary A “cross-bore” occurs when a pipe is installed by trenchless technology and inadvertently penetrates pre-existing pipe in its path. Cross-bores create an intersection of infrastructure that compromises the integrity of one or both pipes involved, with potentially severe consequences. In rare cases, if cross-bores have occurred between sewer laterals and gas lines, a potentially hazardous situation can be created during sewer lateral cleaning or plumbing work. Proactive investigation and prompt repair reduces risk. In 2011, the City of Palo Alto Utilities (CPAU) Department launched a proactive cross-bore verification program of all active sanitary sewer laterals in the City. The main purpose of the cross-bore verification program was to help ensure natural gas pipelines or other utilities were not unintentionally installed through sewer laterals. The first phase of the program (Phase I Cross-Bore Verification Program) concluded in 2013. During Phase I, the City’s contractor successfully inspected and cleared a total of 7,192 City and private sewer laterals and CPAU Operations identified and repaired 26 natural gas cross-bores. During August 2019, the City started the second phase of the cross-bore verification program (Phase II Cross-Bore Verification Program). Initially, 2,500 sewer laterals were scheduled for inspection, but the parties terminated the contract during the COVID-19 pandemic because the original bid price did not include the additional expenses to meet Santa Clara County’s COVID- 19 safety requirements and the contractor would not execute a contract change order for the additional expenses. As a result, the City’s contractor inspected 408 of the highest priority City and private sewer laterals, and no cross-bores were identified during Phase II of the program. The Phase III Cross-Bore Verification Program began during April 2021. Phase III of the program was completed during September 2022 and the City’s contractor inspected a total of 1,480 City 3 Packet Pg. 54 City of Palo Alto Page 2 and private sewer laterals. Only one natural gas cross-bore has been observed thus far during Phase III and CPAU Operations repaired the cross-bore on the same day it was identified. The final Phase IV Cross-bore project has not yet been scoped or budgeted. Staff will continue to assess the number of sewer laterals that meet the criteria for cross-bore inspection for cross- bore. Staff will prioritize the remaining sewer laterals, and prepare a cost estimate for subsequent phase(s) of the program. Staff will report the findings and recommendation at a future UAC meeting. 3 Packet Pg. 55 City of Palo Alto (ID # 14568) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: VII. NEW BUSINESS City of Palo Alto Page 1 Title: Discussion and Overview of City Electric Vehicle Programs and Activities From: Director of Utilities Lead Department: Utilities Recommendation This is a discussion item and no action is requested. Executive Summary The Utilities Advisory Commission has requested updates on the City’s progress in encouraging electric vehicle adoption in Palo Alto. The attached presentation provides an overview of the City’s current and prospective actions on electric vehicles. Additional information is provided in regular updates in the Utilities Quarterly Reports. The Q3 report is being published at the August UAC meeting. Section 6.1.2 contains a detailed overview of the City’s EV programs. Attachments: • Attachment A - Presentation 4 Packet Pg. 56 EV Status Update Utilities Advisory Commission September 14, 2022 www.cityofpaloalto.org/fiscalsustainability1 Staff: Jonathan Abendschein • CITY OF PALO ALTO 4.a Packet Pg. 57 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 2 Overview •City has several EV charger programs, mostly funded by Low Carbon Fuel Standard Funds •Primary focuses: citywide EV promotion, expanding charger access in multi-family buildings •Additional focuses: non-profit EV charger access, some workplace charging, some DC fast charging •Working on managing grid issues •Areas of future exploration: How to scale programs, additional services to provide, grid issues. ~CITY OF ~PALO ALTO 4.a Packet Pg. 58 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 3 S/CAP Impact Analysis Findings -Transportation •Transportation is 61% of total remaining emissions (53% with upstream emissions) •Estimated 29% resident emissions, 35% commuters, 36% visitors •Impact analysis assumed 63% transportation emissions reduction •Reduction pathway: 1) travel less (Mobility), 2) use single- occupancy cars less (Mobility), and 3) more electric car trips (EVs) •For the fleet of residential EVs, this means : •44% of vehicles in Palo Alto are EVs by 2030 (50% of single- family vehicles and 33% of multi-family vehicles) •To achieve this, we need 85% of new annual vehicle purchases to be EVs by 2030. Used EV supply must grow too. Buildings 32% Vehicles 61% Other Sources 7% Without Upstream Emissions Buildings 43% Vehicles 53% Other Sources 4% With Upstream Emissions* *20-year global warming potential ~CITY OF ~PALO ALTO 4.a Packet Pg. 59 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) Vehicle Turnover and Replacement Dip reflects lower vehicle sales during the recession Even if 100% of new car sales became EVs starting today, we would only reach 60-70% EV ownership by 2030 Vehicles older than 1975 Incomplete data for 2020+ ft C I TY OF W PALO, ALTO Palo Alto Reg·stered Vehicles (2020) by Model Year 6000 I 4000 - --,_ - 2000 --,_ -,_ -,_ -,_ - 0 --... -... -... -.... ... -... -.... - -lli ■■■•-----.... 2020 2010 2000 1990 1980 Model Year 4.a Packet Pg. 60 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 5 S/CAP Impact Analysis Findings -Transportation 2020 R1Q1AD J IRANSPORTATION EMIISS O S ■ Resad. n ■ Commut rs ■ Visito s ~CITY OF ~PALO ALTO uoooo 100000 ~. (5 u '6 1-80000 ~ .~ c::; 0 ·vi .!!! 60000 40000 20000 0 2019 to 2030 E SS ONS TARGE s Residents Commuters V11Sirtors 4.a Packet Pg. 61 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 6 Making Progress –Ideas and Programs •S/CAP EV policies not updated yet •Residents are the primary focus to-date, especially multi-family. Provide resources, outreach, incentives, EV charger program •Ideas for making progress in other ways: •Commuters -could we make progress w/ major employer partnerships? (New position approved) •Visitors -could we support regional action / regional partnerships? (FY 2023 approved new staffing could help) •Coordinate w/ Office of Transportation •Vehicle incentives/regulations driven by CA and US governments •EV charging network a great focus for local government ~CITY OF ~PALO ALTO 4.a Packet Pg. 62 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 7 EV Chargers –Grid Impacts (Preliminary Insights) •Average older mixed-fuel home = 3 kW peak load, whole home •Many Level 2 chargers can easily exceed 3 kW by themselves •5000+ EVs in Palo Alto (at least 60% are long-range vehicles), only 433 charger permits (including commercial). Likely indicates widespread unpermitted installation. •Per State law, single family charger permits are issued “over the counter,” meaning no utility review is allowed. Transformer impacts identified only after the fact •Discussions about these issues are happening internally and within the S/CAP Committee, no policies yet. Study in progress. •Grid modernization efforts will relieve these issues over time. ~CITY OF ~PALO ALTO 4.a Packet Pg. 63 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 8 Residential EV Promotion CCFR (California Clean Fuel Rewards) Statewide Point of Purchase rebates for new EVs CPAU pays into program with LCFS funds Participation: 1,336 Palo Alto residents Marketing, Education & Outreach Over 2 dozen online and in person workshops and events EV Brochure Updated EV Infographics Transformer Upgrade Rebate of up to $10,000 Upcoming: Community e-Bike Lending Library A c1TY OF ¥PALO ALTO 4.a Packet Pg. 64 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 9 Multi-Family Residential Charging Programs •EVs save money over gas vehicles, but home charging access is important. Multi-family charging is rare. •EV Charger Technical Assistance Program provides: •Incentives for chargers and system upgrade costs •Technical assistance •Funding source: Low Carbon Fuel Standard funds. Roughly $8.8 million available for 90 sites over 3 years •Program goal: expand charger access to 10% of multi- family households (about 1100 units) by 2025 ~CITY OF ~PALO ALTO 4.a Packet Pg. 65 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 10 Multi-Family Residential Charging Programs •108 enrolled and actively proceeding •Potential EV charging access for over 4,000 MF units (38% of MF households) •58 in the site evaluation, business case development, and project design phase •27 obtaining bids •14 ready to submit permits •9 permits submitted / not issued yet •6 completed projects → 13 L2 ports, serving 323 units ~CITY OF ~PALO ALTO 4.a Packet Pg. 66 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 11 Multi-Family Residential Charging Programs Marketing strategy •Focus on the top 5% of buildings (44 buildings of 803) represent 32% of the units (3800) •Also focusing on affordable housing. 1600 units exist at 35 sites, of which 5 properties have 100+ units •Most low-income Palo Altans live in multi-family buildings. The majority do not live in affordable housing. Value Proposition •Trusted, neutral advisory services •Comprehensive Technical Help (site evaluation -> permit submittal) •Incentives (both chargers and distribution system upgrades) ~CITY OF ~PALO ALTO 4.a Packet Pg. 67 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 12 Multi-Family Residential Charging Programs Ideas/issues for future exploration •Can program funding be reconfigured to be less reliant on incentive funds and scalable to all buildings? •How do we incorporate alternative transportation promotion and bicycle infrastructure? •Would direct installation services be valuable? •Can we “build for the future,” sizing upgrades to cover EV chargers + electrified units? •How much building electrification could we feasibly incorporate? ~CITY OF ~PALO ALTO 4.a Packet Pg. 68 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 13 Non-Residential Charging Access Programs •Focused on non-profits, with incentives, technical assistance provide •Limited funding for for-profit facilities via CALeVIP regional partnership •Up to 20 DC fast charger projects also funded •41 projects in progress → 56 L1, 419 L2, 14 DCFC •8 Completed projects → 79 L2 and 2 L2 @ 4 schools & 4 non-profits ~CITY OF ~PALO ALTO 4.a Packet Pg. 69 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) 14 Areas for Future Exploration •Various areas of exploration for multi-family programs •How to promote EV access to low-income residents •Regional partnerships to promote EVs in the Bay Area •How to promote EV charging in workplaces in a fiscally sustainable and scalable way •How to manage grid issues in single-family areas ~CITY OF ~PALO ALTO 4.a Packet Pg. 70 At t a c h m e n t : A t t a c h m e n t A - P r e s e n t a t i o n ( 1 4 5 6 8 : O v e r v i e w o f C i t y E V A c t i v i t i e s ) City of Palo Alto (ID # 14671) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: VII. NEW BUSINESS City of Palo Alto Page 1 Title: Staff Recommends the Utilities Advisory Commission Recommend the City Council Accept the Bylaws Amendment With Updated Annual Election Schedule, Meeting Times, and Agenda Additions From: Director of Utilities Lead Department: Utilities Recommended Motion Staff recommends that the Utilities Advisory Commission (UAC) recommend the Council approve the amended UAC Bylaws to reflect scheduling and agenda changes, which include the new election timeline, an earlier start time for regular meetings, and other associated scheduling changes. Background and Discussion The bylaws of the Utility Advisory Commission have required the UAC to meet on the first Wednesday of each month at a 7:00 pm start time since the UAC’s inception. According to section 2.23.050(c) of the Palo Alto Municipal Code, the UAC may request to change the Bylaws through a staff report to the City Council. The UAC Commissioners have had discussions with Staff regarding the desire to start the UAC’s regular meetings earlier in the evening. With the frequency of fully remote and hybrid meetings, it was noted the attendance of citizens increased significantly. Because the Council approved the City Clerk’s board and commission election timeline in 2021, Staff needed to change the Bylaws. Since Staff was working on changing the Bylaws to accommodate the new election timeline, and the UAC had requested to change the start time, Staff has incorporated both scheduling changes in one amendment. The amendments in Attachment A accommodate the new start time and election cycle. The amendments also allow a single Commissioner to add items to the UAC’s agenda, rather than requiring two Commissioners to do so. Stakeholder Engagement The UAC meetings are streamed live and recorded each month and the discussions of changing the time had occurred in multiple meetings in 2021 as well as 2022. Attachments: 5 Packet Pg. 71 City of Palo Alto Page 2 • Attachment A: Draft Bylaws 5 Packet Pg. 72 1 110106 jb 0073487 BYLAWS OF THE UTILITIES ADVISORY COMMISSION OF THE CITY OF PALO ALTO Section 1. Purpose. 1.1 The City of Palo Alto (the “City”) Utilities Advisory Commission (the “Commission”) desires to establish these bylaws and any other rules and procedures (the “Bylaws”) in order to facilitate and enhance public participation and Commission debate at the Commission’s meetings in accordance with the requirements of Palo Alto Municipal Code (the “Code”) section 2.23.060(c), other provisions of Chapter 2.23 of the Code, and applicable California law, including, without limitation, the Ralph M. Brown Act, California Government Code Section 54950 et seq. (the “Brown Act”). Section 2. Creation; Duties of Commission. 2.1 The Commission is created pursuant to Chapter 2.23 of the Code. The Commission shall perform the duties imposed upon it by applicable ordinances of the City and applicable California and federal laws. In addition, the Commission shall, as may be requested by the Council or the City Manager, provide advice on any matter pertaining to the purpose and duties of the Commission, as set forth in section 2.23.050 of the Code, and as the same may be amended from time to time by ordinance of the City. Section 3. Officers. 3.1 The officers of the Commission shall consist of a Chair and a Vice Chair. 3.2 The offices of Chair and Vice Chair shall be filled by the election of members of the Commission from among their members. Individuals so elected shall serve for a term of one (1) year, July April 1 through June 30March 31, or until such date when their successors are elected. The election shall be held at the first regular Commission meeting conducted on or after July April 1 of each year. In the event that either office becomes vacant during the regular term, the Commission shall elect a member to serve for the remainder of the term. 3.3 The Director of Utilities (the “Director”) or the Director’s designee shall serve as the secretary of the Commission and, acting in such capacity, shall keep minutes of all of the meetings of the Commission, shall maintain a twelve-month rolling calendar with tentative future agenda topics, shall accept and file in the name of the Commission documents and correspondence addressed to it, and shall present all such correspondence to the Commission. 3.4 The duties of the officers of the Commission shall be, as follows: 3.4.1 The duties of the Chair shall consist of presiding over all regular and special meetings, including special study sessions, of the Commission, appointing ad hoc 5.a Packet Pg. 73 At t a c h m e n t : A t t a c h m e n t A : D r a f t B y l a w s ( 1 4 6 7 1 : U A C B y l a w s ) 2 110106 jb 0073487 committees, calling meetings of the Commission as provided by the Brown Act, designating the date, time and place of such meetings, signing documents and correspondence in the name of the Commission, and representing the Commission before the Council, its committees and subcommittees, and such other groups and organizations as may be appropriate. The Chair may designate another member to act in his or her stead. The Chair shall have the same voting rights as other members of the Commission. 3.4.2 The duty of the Vice Chair is to assist the Chair and to preside over meetings of the Commission during the Chair’s absence. Section 4. Committees. 4.1 Standing and ad hoc committees may be appointed as required or desired in accordance with the Brown Act. Such committees shall be comprised of no more than three (3) Commission members. These committees shall be project-oriented. Standing committees may be appointed only with the approval of the Council. Ad hoc committees shall be dissolved and renewed every year, July 1 through June 30 meet for a term of one (1) year, April 1 through March 31, or until such date when they are dissolved. Ad hoc committees shall be renewed or dissolved at the first regular Commission meeting conducted on or after April 1 of each year. Section 5. Quorum. 5.1 Four (4) members of the Commission shall constitute a quorum for conducting its business. 5.2 When there is not a quorum at the commencement of or at any time during a meeting of the Commission, the Chair or the Vice Chair, or in such officers’ absences any present Commission member with the longest tenure on the Commission, shall adjourn the meeting, or if no Commission member is present, the Director shall adjourn the meeting, and all such actions shall be taken in conformity with the Brown Act. Section 6. Regular and Special Meetings; Study Sessions. 6.1 Regular meetings of the Commission shall be held at least once a month, on the first Wednesday of each and every month; provided, however, a regular meeting may be cancelled or held as a special meeting on another day of the month in accordance with the Brown Act. Regular meetings shall be held at 76:00 p.m. in the Council Conference Room or the Chambers of City Hall, 250 Hamilton Avenue, Palo Alto. 6.2 Special meetings, including special study sessions, may be called in accordance with the Brown Act. Notices of special meetings shall be provided in the manner required under the Brown Act. At the special meeting, the Commission shall consider only the business set forth in the notice. Special meetings, including, without limitation, field trips, may be held at locations other than City Hall, as may be specified in the meeting notices; provided, 5.a Packet Pg. 74 At t a c h m e n t : A t t a c h m e n t A : D r a f t B y l a w s ( 1 4 6 7 1 : U A C B y l a w s ) 3 110106 jb 0073487 however, no special meeting shall be held outside of the jurisdictional boundaries of the City, unless it is allowed by the Brown Act. 6.3 Any regular or special meeting of the Commission may be adjourned to a subsequent date for continuation or completion of the business on the Commission’s agenda at the meeting. Notice of such adjournment shall be provided in accordance with the Brown Act. 6.4 All regular and special meetings of the Commission shall be open to the public. 6.5 Special study sessions are meetings at which the Commission may receive information about the Department of Utilities’ business in an informal setting. The Commission may discuss the material freely and without following the formal rules of parliamentary procedure. Any oral communications and public comments will be received during the study session. The communications and comments of representatives of commerce, industry and not- for-profit groups, as those communications and comments relate to the subject matter of the study session, shall be encouraged. 6.6 Up to two joint study sessions a year will be held between the Commission and the City Council. Section 7. Agendas. 7.1 The agenda shall contain a brief general description of each item of business to be transacted or discussed at the meeting of the Commission or as required by the Brown Act. The agenda for all regular and special meetings, including special study sessions, of the Commission shall be prepared, in writing, by the Director or the Director’s designee, shall be based upon a twelve-month rolling calendar, and shall include any item of business that is carried forward from a prior regular meeting at the request of the Commission or the Director. The agenda shall be posted within the time and in the manner required by the Brown Act. The agenda for a regular meeting will generally be closed and no additional items accepted after 12:00 p.m. of the Wednesday preceding Monday that is nine days prior to the meeting. Additional items may be added to the agenda thereafter only in accordance with the Brown Act. 7.2 Whenever feasible, a complete copy of each regular meeting’s agenda and all supporting materials will be emailed, delivered, or mailed to each Commission member so as to reach the recipients by no later than 67:00 p.m. on the Monday preceding the meeting. 7.3 The agenda for a regular meeting shall make provision for the Commission to identify and briefly discuss any and all matters that the Commission desires to consider at any future regular meeting of the Commission. 7.4 Nothing in the Bylaws shall be interpreted to prohibit consideration of any item of business which fosters and facilitates engagement with the general public, which 5.a Packet Pg. 75 At t a c h m e n t : A t t a c h m e n t A : D r a f t B y l a w s ( 1 4 6 7 1 : U A C B y l a w s ) 4 110106 jb 0073487 consideration also shall not exclude any representative of commerce, industry or a not-for-profit advocacy group in regard to any utility matter falling within the purpose and duties of the Commission, as set forth in section 2.23.050(b)(1)(A) through (E) of the Code. 7.5 Public comments shall be generally limited to three minutes per person, but this time limitation is subject to the discretion of the Chair, which shall be exercised in accordance with agenda time management concerns. 7.6 Any two Commissioners may bring forward a commissioner memo on any topic to be considered by the Commission, but no more than three Commission members may sign a memo. Prior to the preparation of a commissioner memo, the Commission members who author a memo shall share a draft of the proposed memo with the Director prior to the finalization of such memo. Final commissioner memos shall be provided to the Director by noon seven days prior to the Commission meeting that the memo is intended to be agendized in order to afford the Director sufficient time to process the Commission’s agenda packet. The Commission shall not take action on the day that a commissioner memo is introduced if it will adversely impact staff resources or current work priorities which are not addressed in the memo, but the Commission may take action on the day that the memo is introduced if there are no impacts on staff resources or work priorities. 7.7 The agendas shall allow for Commission review of the twelve-month rolling calendar. Items can be added to the rolling calendar at the request of at least twoa Commissioners. Section 8. Conduct of Meetings. 8.1 The Chair, the Vice Chair, the temporary presiding officer appointed by the Chair, or, if necessary, whichever member of the Commission in attendance with the longest tenure on the Commission, shall take the chair at the time designated for the start of the meeting, and shall call the Commission to order. 8.2 The Chair, the Vice Chair, or in his or her absence the temporary presiding officer shall preserve order and decorum at all meetings of the Commission, announce the Commission’s decision on all subjects, and decide all questions of order subject to any appeal procedure set forth in the Bylaws. 8.3 The Chair shall call the roll of the Commission members. The Director or the Director’s designee shall record the names of those present and those absent. 8.4 The Commission may, by a majority vote of its members, adopt or amend any other rules and procedures to be followed at regular and special meetings and study sessions of the Commission to the extent such rules and procedures are not in conflict with the Bylaws, or any applicable Palo Alto ordinance, or California or federal law, rule or regulation. The other rules and procedures shall be deemed guidelines and failure to comply with any such rules and 5.a Packet Pg. 76 At t a c h m e n t : A t t a c h m e n t A : D r a f t B y l a w s ( 1 4 6 7 1 : U A C B y l a w s ) 5 110106 jb 0073487 procedures shall not be the basis for challenge to or invalidation of any action of the Commission, nor shall they be construed to create an independent remedy or right of action of any kind, except as may be authorized by applicable laws. Section 9. Amendment. 9.1 The Commission may recommend that the Council amend or repeal the Bylaws. Bylaws can be amended or repealed by the Council in accordance with section 2.23.050(c) of the Code. Section 10. Bylaws Available to Public. 10.1 Upon the Council’s approval, the Bylaws and any other rules and procedures adopted by the Commission pursuant to Section 8.4 hereof shall be transmitted to each member of the Commission, to the Council, and to the City Clerk. Copies of the Bylaws and any other rules and procedures shall be made available to the public, upon request, and at each meeting of the Commission. THE FOREGOING BYLAWS WERE APPROVED BY THE COUNCIL AT A REGULAR MEETING HELD ON _________________, 20xx. THEY SHALL BECOME EFFECTIVE AS OF ___________________, 20xx. 5.a Packet Pg. 77 At t a c h m e n t : A t t a c h m e n t A : D r a f t B y l a w s ( 1 4 6 7 1 : U A C B y l a w s ) City of Palo Alto (ID # 14742) Utilities Advisory Commission Staff Report Meeting Date: 9/14/2022 Report Type: VII. NEW BUSINESS City of Palo Alto Page 1 Title: Colleagues Memo From A.C. Johnston, Phil Metz, and Loren Smith: Implementation of a City-Owned FTTP network and City-Owned Internet Service Provider From: Director of Utilities Lead Department: Utilities Discussion The purpose of this memorandum is to provide the results of the UAC sub-committee for FTTP Initiative investigation and work with city staff and 3rd party Magellan Advisors on the proposed implementation of a City-Owned FTTP network and a City-Owned Internet Service Provider (ISP). Attachments: • Attachment A: Colleagues Memo 6 Packet Pg. 78 MEMORANDUM Date: To: From: 14 September 2022 Utilities Advisory Commission, City of Palo Alto Utilities Advisory Commission, Sub-Committee on FTTP Initiative Vice Chair A.C Johnston, Commissioners Phil Metz and Loren M. Smith Subject:Implementation of a City-Owned FTTP network and City-Owned Internet Service Provider The purpose of this memorandum is to provide the results of the UAC sub-committee for FTTP Initiative investigation and work with City Staff and 3rd party Magellan Advisors on the proposed implementation of a City-Owned FTTP network and a City-Owned Internet Service Provider (ISP). Based upon our research, a complete review of the business and financial models, as well as the results of the City of Palo Alto survey, we recommend that the UAC recommend to the Palo Alto City Council that the Council authorize CPAU to proceed forward with plans to offer fiber- based broadband services through a City-Owned FTTP network and a City-Owned Internet Service Provider to all Palo Alto residents. We also provide some specific recommendations to address the risks inherent in establishing a city owned ISP. A Brief History of FTTP in the City of Palo Alto For more than 20 years, the City of Palo Alto has investigated, engineered, built and operated a dark fiber network. Originally conceived in the mid-1990s, the City’s initial telecommunications strategy was to build a dark fiber ring around Palo Alto that would be capable of supporting multiple network developers and/or service providers with significant growth potential. The first phase of the fiber network construction occurred in 1996 - 1997 and consisted of 33 route miles with 144 or more strands of single-mode fiber along most routes. After the “dot com bubble” burst in 2001, the City’s efforts were more subdued, but since the late 1990s, the fiber backbone has been expanded to approximately 49 route miles of mostly 144 or 288 count single-mode fiber. Page 1 6.a Packet Pg. 79 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) In 2000, the City began to license “dark fiber” for commercial purposes. Dark fiber is unused fiber through which no light is transmitted, i.e., installed fiber optic cable that is not carrying a signal. Today, the City currently licenses dark fiber connections to 99 commercial and City customers, including the following City accounts: IT Infrastructure Services, Utilities Substations, Utilities Engineering, Public Works, Water Quality Control Plant and Community Services (Art Center) yielding a total number of dark fiber service connections of 162 (serving commercial customers and the City). Over that same period, the Fiber reserve balance at the end of FY 2022 is approximately $34 million (Actuals anticipated end of September 2022). In this same period, going on 15 years, the City has studied, planned and worked to develop a business case to build a citywide Fiber-to-the-Premises (“FTTP”) network to serve homes and business (Reference: “History of the City of Palo Alto Dark Fiber Optic Backbone Network”, Ver 6.0, 7 August 2019). On June 24, 2019, the Utilities Advisory Commission (UAC) was directed by City Council to assume the primary advisory role and serve as the public input forum for fiber and wireless expansion initiatives by the City of Palo Alto. Since then, the UAC has devoted significant attention to how this underutilized asset can be used for the betterment of the City of Palo Alto population. On June 24, 2019, the UAC recommended and Council agreed to leverage the existing dark fiber network into benefiting its infrastructure, e.g., emergency services, city owned buildings and our pending AMI network. On June 1, 2020, the UAC recommended and Council agreed to engage Magellan Advisors (Ref.: https://www.magellanbroadband.com/) and on May 24, 2021, the UAC recommended and Council agreed to accelerate the consultant’s work, including to: 1) Design and engineer the expansion of the City of Palo Alto’s dark fiber network; 2) Engineer the incorporation of an AMI network into the network; 3) Engineer the incorporation of a FTTP solution into the network; and 4) Provide a business case and associated financial model for the development of a FTTP ISP service offering by the City of Palo Alto. The once-in-a-generation event that was the COVID-19 pandemic (declared a pandemic on March 11, 2020, by the World Health Organization) highlighted the many dependencies our population may have taken for granted, namely: 1) Our food supply; 2) Other necessary supplies, including bathroom tissue; 3) The resiliency of small businesses; and 4) The need for Broadband communication. Indeed, our experience during the initial months of the pandemic shed light on the fragile nature of our supply chain and our services. Not to be left out, as our offices were shuttered, and our population migrated to work-from-home (WFH) and our children attended school-from-home (SFH), the stresses on our broadband infrastructure eroded our ability to function routinely. In a matter of days, the necessity for broadband services moved from a convenience to an “essential Page 2 6.a Packet Pg. 80 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) service/public good,” similar to electricity, water and sewer, and became a non-negotiable requirement of our community. As if by luck, our City had already engaged Magellan Advisors, and a suitable, appropriate and deliberate response was already in the making. Why does the City of Palo Alto need to build a city-owned FTTP network? Broadband service to the City of Palo Alto’s population is currently dominated by two large companies: AT&T and Comcast/Xfinity. Recent survey results by Magellan Advisors reveals a population concerned with unreliable connectivity, reduced speeds and poor customer service. Digging deeper into the survey results reveals a clear opportunity for the City to create a successful City-owned broadband network (ref. Table 1 below). As shown in Table 1, survey results show that Palo Alto’s population is very sophisticated when it comes to an understanding of and the potential for a City-Owned FTTP network. Indeed, offering a service that provides superior speed, reliability and service at a competitive cost was shown to be a sufficient and compelling reason for support of such a City-wide initiative. Key Findings City Provided Fiber Based Internet Opportunity One third of households are dissatisfied with their current internet services Provide higher speed, affordable prices and more reliability Over half of the City has only one gigabit speed broadband provider Create additional ISP choice for households Price, speed and reliability are the most important aspects of internet services Provide a 100% fiber network with no data caps, symmetrical speeds and better reliability at a competitive price Over 50% of households already subscribe to internet service only Provide high-quality, reliable and expandable services to support streaming Table 1: City of Palo Alto Population Key Findings As highlighted in Magellan’s research, there are risks in developing a City-Owned FTTP network. Unlike current City-Owned utility services, developing a City-Owned FTTP network or City-Owned Internet Service Provider (ISP) would enter the CPAU into a “competitive business” whereby the City would engage directly with 3rd party competitors whose actions the City has limited ability to influence. As a service provider and as one of the few municipalities with a fully- owned utilities service capability, however, the City of Palo Alto’s Utilities Department (CPAU) is well-versed in managing a service organization that has provided quality services to the citizens and businesses of Palo Alto since 1896. Given CPAU’s service reputation and brand, as well as the survey results, it’s apparent the City’s population is confident in the CPAUs' ability. But more to the point, they are demanding better pricing, higher speeds, and more reliable broadband service. Given the opportunity to get all this AND keep dollars local to the City of Palo Alto, creating a provider owned and operated by the City is a risk worth taking. Page 3 6.a Packet Pg. 81 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) Another risk deserving of discussion is the reaction by existing ISP providers in Palo Alto to the introduction of a City-Owned ISP offering. It is entirely reasonable to expect a strong response to the City’s initiative, likely through the offering of incentives for new customers or bonuses for service extension by existing customers. Given the extent of the existing fiber network, as well as its substantial service capabilities, the City is well positioned to offer faster broadband speeds and lower monthly service costs while ensuring service reliability backed by the CPAU brand and years of performance as a service business. As per Magellan Advisors suggested initial product mix, the City would offer “synchronous” broadband services1 at both a higher speed and a lower price. That is, CPAU could offer a very competitive service for both residential and business particularly in terms of “speed-to-price” ratios as is highlighted in Table 2: Residential Service Offering below. Service Level Est. Monthly Rate (USD / Month) 5 Gigabit*USD 300 2 Gigabit*150 1 Gigabit*80 600 Megabit*65 300 Megabit*50 *Note: The City of Palo Alto’s service is based upon providing Synchronous Broadband access to subscribers, i.e., the same upload and download speeds. Table 2: Residential Service Offering An additional risk for a City owned and operated ISP is finding and hiring staff. Even before the Covid-19 pandemic, CPAU struggled to fill vacancies, and for this reason Magellan Advisors was asked to develop business plans and financial models based upon three assumptions with respect to staffing models: 1) insourced; 2) outsourced; and 3) hybrid. A review of these assumptions reveals that either a fully-outsourced model or a hybrid model could substantially reduce the need for CPAU staffing whereas a fully insourced model would likely add to CPAU's current staffing deficit. In reviewing Magellan’s output, both outsourced and hybrid models create a viable business without overburdening the existing CPAU staff. CPAU’s ability to create a viable business without overburdening the existing CPAU staff is supported even when employing a very conservative Take Rate (how many Palo Alto households are expected to subscribe to the City owned service). Under both the outsourced and hybrid models, using conservative assumptions, it was demonstrated that a minimum Take Rate needed for a City-Owned ISP’s revenues to exceed expenses is roughly 27% - 30% of 1 Synchronous service offers the same upload and download speeds whereas “asynchronous” connections offer faster download speeds and slower upload speeds and is the common and typical service offered by AT&T and Xfinity in Palo Alto. Unlike asynchronous, synchronous connectivity comes with guaranteed bandwidth services that are easy to manage and consistent in their speeds. If you pay for a 500 Mbps connection, you get 500 Mbps upload and download speeds across your entire home or office network. Page 4 6.a Packet Pg. 82 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) households. Interestingly, survey results indicate the City can comfortably assume a higher initial Take Rate, so current financial modeling assumes a 40% Take Rate. Indeed, some survey results indicate the Take Rate could be as high as 60%, but these have been discounted to a more conservative assumption for the purposes of financial modeling. As such, it’s realistic to assume the City’s Take Rate of 40% is highly likely and at least two of our business models are realistic, fully outsourced and hybrid. Finally, inherent in any technology investment is the risk of technology obsolescence. 5G has recently been launched but remains a limited viable option, even within the City of Palo Alto. Further and worthy of consideration, 5G and other mobile technology typically require a fiber “backhaul” of data and traffic from the wireless antennae back to the telecom carrier’s central office telecom switch. For future consideration, as 5G continues to roll out and as the City of Palo Alto builds out its fiber network further, the need for wireless backhaul by service providers may become another source of revenue for the City-owned fiber network. Satellite-based service offerings are also available but may not be as compelling as a source of competition to a City- owned ISP model given equipment costs of $599 for residential service and a high monthly subscription fee ($110 per month). Table 3 below summarizes key risks identified in our research and study. RISK Recommendation Competition CPAU would be entering a competitive business. Researching potential competitor reaction to a City-Owned ISP recommended Take Rate Assumptions Continuous monitoring and reporting of residential subscriptions recommended Technology Obsolescence Current mobile service providers are beginning to offer 5G services. 5G represents both a risk/threat as well as an opportunity. Researching the potential impact of 5G services in Palo Alto recommended Capital Investment Current financial models represent a $117 million capital investment. $32 million is available immediately. Deficit of $85 million be funded via a revenue bond. Monitoring of City’s Triple A credit rating recommended Table 3: Summary of Key Risks Why the time is right to build a City-Owned ISP in Palo Alto As highlighted in Table 4 below, a City-owned and operated ISP would likely provide significant value to Palo Alto residents. With more stable, synchronous broadband service at a reduced price, together with CPAU’s high quality service, the City of Palo Alto population will find it easier to work from home, to school from home and to access other services requiring stable, high-speed synchronous broadband services. Looking out further, and considering the impact of increased competition, it’s realistic to expect a projected 10% reduction in Internet spending Page 5 6.a Packet Pg. 83 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) community-wide amounting to $580 per residential household2. Importantly, the fees for this service stay local with the City of Palo Alto, and dollars earned can be used to reinvest, augment services, or reduce rates or offer additional service offerings. Value Proposition Benefit Improve reliability and speed Faster, more reliable internet makes it easier to work from home, increases access to virtual learning and healthcare Reduce community spend Over 10 years, projected 10% reduction in internet rates could reduce overall community-wide internet spending by $15 million or $580 per residential household (25,876 households) Equal access for all Next generation, high-speed internet available to all residents and businesses in Palo Alto Keep dollars local Fees for service stay local and dollars are reinvested to improve broadband services or reduce rates More control The community determines what services (immediate or future) are to be provided by a City-Owned ISP More choice Citizens have more broadband services options pushing providers to offer better services and compete on price Economic Tool Enhanced incentives for businesses to stay or relocate to the City Table 4: Value Proposition Any recommendation for providing a new service by the CPAU must recognize the strong history of accomplishment and capability of our CPAU staff. As all are aware, the City of Palo Alto Utilities Department currently manages all services associated with: electricity, water, sewer & stormwater, gas and dark fiber. With a service history going back to 1896, the CPAU has a strong “service first” mindset which has resulted in a strong brand and an appreciative population. Additionally the CPAU has been recognized by the professional community for its commitment to energy savings, sustainability, excellence, reliability and safety as is evidenced by the long list of awards received, Ref.Appendix: Table 5 - CPAU Awards attached. Finally, the CPAU has a demonstrated history of fiscal mindedness resulting in a well-run organization with reserves appropriate for pushing into additional services, including FTTP. As highlighted above, the City’s fiber reserve balance at the end of FY 2022 is approximately $34 million. These funds are immediately available to be used for operations and capital investment related to the City of Palo Alto’s fiber network.3 Additionally, CPAU staff and Magellan Advisors 3 Meeting Sept. 28, 2015. City of Palo Alto staff interpretation of use restriction of fiber funds. Referencing Part D of the motion, i.e., "wireless plans will not use fiber funds”. Sept 28, 2015 Action Minutes. Ref.: 2 According to the FY 2020 Utilities at a Glance, the City of Palo Alto has 25,876 residential and 3,973 commercial electric accounts. Source: https://www.cityofpaloalto.org/Departments/Utilities/Customer-Service/Utilities-at-a-Glance Page 6 6.a Packet Pg. 84 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) confirmed that funding the capital investment shortfall of $85 million for building a City-Owned ISP could come in the form of a “revenue bond” (also called municipal revenue bonds). Such a bond is supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. Revenue bonds that finance income-producing projects are thus secured by a specified revenue source, in this case, revenues from the City-Owned ISP business. These differ from general obligation bonds (GO bonds) that are repaid through a variety of tax sources. A key takeaway is that revenue bonds are a class of municipal bonds issued to fund public projects which then repay investors from the income created by that project. Unlike GO bonds, revenue bonds are project-specific and are not funded by taxpayers. A second key takeaway is that a decision to issue a revenue bond can come directly from the City Council and does not require a ballot measure. More importantly, however, we understand that City staff believes that the issuance of a fiber revenue bond will not impact the City of Palo Alto’s General Fund or other utilities triple A ratings. UAC Sub-Committee Recommendation It is therefore our recommendation that the UAC recommend to the City of Palo Alto City Council that the Council authorize CPAU to proceed forward with plans to offer fiber-based broadband services through a City-Owned FTTP network and City-Owned Internet Service Provider to all Palo Alto residents. https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-a gendas-minutes/00-archive/2015/09-28-15-approved-action-minutes.pdf Page 7 6.a Packet Pg. 85 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o ) Appendix: Table 5 - CPAU Awards Date Organization Giving Award or Recognition Person/Program Receiving Award or Recognition Title and Description of Award or Recognition 2021 American Public Power Association (APPA)City of Palo Alto Utilities Smart Energy Provider Award 2021 U.S. Environmental Protection Agency City of Palo Alto Utilities Champion Award for Responsible Appliance Disposal Program 2021 American Public Power Association (APPA)City of Palo Alto Utilities Reliable Public Power Provider (RP3) for industry-recognized leading practices in reliability & safety 2019 American Public Power Association (APPA)City of Palo Alto Utilities Smart Energy Provider Award 2019 American Public Power Association (APPA)City of Palo Alto Utilities Energy Innovator Award for the Home Efficiency Genie 2019 American Public Power Association (APPA)City of Palo Alto Utilities Reliable Public Power Provider -Utility designation for providing reliable and safe service 2019 Arbor Day Foundation City of Palo Alto Tree Line USA Utility - In recognition of quality tree care, annual worker training, tree planting, and public education 2018 National Research Center and International City/County Management Association (ICMA) City of Palo Alto Voice of the People Award for Excellence in Natural Environment 2018 American Public Power Association (APPA)City of Palo Alto Utilities Reliable Public Power Provider (RP3) “Diamond” level – the highest honor - for proficiency, sound business practices, and a utility-wide commitment to safe and reliable delivery of electricity, system improvement, energy efficiency and workforce development. 2018 Arbor Day Foundation City of Palo Alto Utilities Tree Line USA Utility – In recognition of quality tree care, annual worker training, tree planting and public education. 2017 Institute for Local Government City of Palo Alto 2017 Platinum Level Beacon Award Winner 2017 Smart Electric Power Alliance (SEPA)City of Palo Alto Utilities First place for Watts-per-Customer installed in 2016. Fourth time on Top Ten list of utilities integrating the most solar onto the grid. 2016 Moody's City of Palo Alto Water Enterprise Moody's upgraded the City's Water Enterprise bond rating from Aa2 to Aa1, a rare event for water operations. 2016 Solar Electric Power Association City of Palo Alto Utilities Top Ten list of utilities that integrated the most solar into the grid. #3 on the Watts-per-Customer list for 2015. 2016 Arbor Day Foundation City of Palo Alto Utilities Tree Line USA Utility - In recognition of quality tree care, annual worker training, tree planting, and public education 2015 Arbor Day Foundation City of Palo Alto Utilities Tree Line USA Utility - In recognition of quality tree care, annual worker training, tree planting, and public education 2015 Acterra City of Palo Alto Sustainability Award (Ref.:https://www.cityofpaloalto.org/Departments/Utilities) Page 8 6.a Packet Pg. 86 At t a c h m e n t : A t t a c h m e n t A : C o l l e a g u e s M e m o ( 1 4 7 4 2 : C o l l e a g u e s M e m o )