HomeMy WebLinkAbout2023-09-06 Utilities Advisory Commission Agenda PacketUTILITIES ADVISORY COMMISSION
Regular Meeting
Wednesday, September 06, 2023
Council Chambers & Hybrid
6:00 PM
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference 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. Information on how the public may observe and
participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if
attending in person. The meeting will be broadcast on Cable TV Channel 26, live on
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)
Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
UACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available for
inspection on the City’s website. Please clearly indicate which agenda item you are referencing
in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Once
received, the Clerk will have them shared at public comment for the specified item. To uphold
strong cybersecurity management practices, USB’s or other physical electronic storage devices
are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Commission reserves the right to use more or less time on any item,
to change the order of items and/or to continue items to another meeting. Particular items may
be heard before or after the time estimated on the agenda. This may occur in order to best
manage the time at a meeting to adapt to the participation of the public, or for any other reason
intended to facilitate the meeting.
CALL TO ORDER 6:00 PM ‐ 6:05 PM
AGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PM
The Chair or Board majority may modify the agenda order to improve meeting management.
PUBLIC COMMENT 6:10 PM ‐ 6:25 PM
Members of the public may speak to any item NOT on the agenda.
APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM
1.Approval of UAC Draft Minutes from July 2023
UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PM
NEW BUSINESS (a 10 minute break will be imposed during this section)
2.Discussion and Presentation ‐ Overview of Drinking Water Quality (DISCUSSION 6:45 PM
– 7:30 PM) Staff: Matt Zucca
3.Overview of Palo Alto Fiber and Fiber Backbone Activities and Discussion of the Fiber
Expansion Plan (DISCUSSION 7:30 PM – 8:15 PM) Staff: Alex Harris
4.Overview of Sustainability and Climate Action Plan (S/CAP) Activities To‐Date and
Discussion of Reliability and Resiliency Strategic Plan Policy Guidelines (DISCUSSION
8:15 PM – 9:45 PM) Staff: Jonathan Abendschein
COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS
FUTURE TOPICS FOR UPCOMMING MEETING: October 11, 2023
ADJOURNMENT
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
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below 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 may 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 Clerk 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 will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a 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.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
1 Regular Meeting September 06, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
UTILITIES ADVISORY COMMISSIONRegular MeetingWednesday, September 06, 2023Council Chambers & Hybrid6:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toUACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available forinspection on the City’s website. Please clearly indicate which agenda item you are referencingin your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Oncereceived, the Clerk will have them shared at public comment for the specified item. To upholdstrong cybersecurity management practices, USB’s or other physical electronic storage devicesare not accepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Commission reserves the right to use more or less time on any item,
to change the order of items and/or to continue items to another meeting. Particular items may
be heard before or after the time estimated on the agenda. This may occur in order to best
manage the time at a meeting to adapt to the participation of the public, or for any other reason
intended to facilitate the meeting.
CALL TO ORDER 6:00 PM ‐ 6:05 PM
AGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PM
The Chair or Board majority may modify the agenda order to improve meeting management.
PUBLIC COMMENT 6:10 PM ‐ 6:25 PM
Members of the public may speak to any item NOT on the agenda.
APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM
1.Approval of UAC Draft Minutes from July 2023
UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PM
NEW BUSINESS (a 10 minute break will be imposed during this section)
2.Discussion and Presentation ‐ Overview of Drinking Water Quality (DISCUSSION 6:45 PM
– 7:30 PM) Staff: Matt Zucca
3.Overview of Palo Alto Fiber and Fiber Backbone Activities and Discussion of the Fiber
Expansion Plan (DISCUSSION 7:30 PM – 8:15 PM) Staff: Alex Harris
4.Overview of Sustainability and Climate Action Plan (S/CAP) Activities To‐Date and
Discussion of Reliability and Resiliency Strategic Plan Policy Guidelines (DISCUSSION
8:15 PM – 9:45 PM) Staff: Jonathan Abendschein
COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS
FUTURE TOPICS FOR UPCOMMING MEETING: October 11, 2023
ADJOURNMENT
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
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below 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 may 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 Clerk 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 will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a 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.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
2 Regular Meeting September 06, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
UTILITIES ADVISORY COMMISSIONRegular MeetingWednesday, September 06, 2023Council Chambers & Hybrid6:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96691297246)Meeting ID: 966 9129 7246 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toUACPublicMeetings@CityofPaloAlto.org and will be provided to the Council and available forinspection on the City’s website. Please clearly indicate which agenda item you are referencingin your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to UACPublicMeetings@CityofPaloAlto.org at least 24 hours prior to the meeting. Oncereceived, the Clerk will have them shared at public comment for the specified item. To upholdstrong cybersecurity management practices, USB’s or other physical electronic storage devicesare not accepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Commission reserves the right to use more or less time on any item,to change the order of items and/or to continue items to another meeting. Particular items maybe heard before or after the time estimated on the agenda. This may occur in order to bestmanage the time at a meeting to adapt to the participation of the public, or for any other reasonintended to facilitate the meeting.CALL TO ORDER 6:00 PM ‐ 6:05 PMAGENDA CHANGES, ADDITIONS AND DELETIONS 6:05 PM ‐ 6:10 PMThe Chair or Board majority may modify the agenda order to improve meeting management.PUBLIC COMMENT 6:10 PM ‐ 6:25 PMMembers of the public may speak to any item NOT on the agenda.APPROVAL OF MINUTES 6:25 PM ‐ 6:30 PM1.Approval of UAC Draft Minutes from July 2023UTILITIES DIRECTOR REPORT 6:30 PM ‐ 6:45 PMNEW BUSINESS (a 10 minute break will be imposed during this section)2.Discussion and Presentation ‐ Overview of Drinking Water Quality (DISCUSSION 6:45 PM– 7:30 PM) Staff: Matt Zucca3.Overview of Palo Alto Fiber and Fiber Backbone Activities and Discussion of the FiberExpansion Plan (DISCUSSION 7:30 PM – 8:15 PM) Staff: Alex Harris4.Overview of Sustainability and Climate Action Plan (S/CAP) Activities To‐Date andDiscussion of Reliability and Resiliency Strategic Plan Policy Guidelines (DISCUSSION8:15 PM – 9:45 PM) Staff: Jonathan AbendscheinCOMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTSFUTURE TOPICS FOR UPCOMMING MEETING: October 11, 2023ADJOURNMENTSUPPLEMENTAL 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
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments m a y b e s u b m i t t e d b y e m a i l t o
UACPublicMeetings@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below 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 may 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 Clerk 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 will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions B‐E above.
4. Spoken public comments using a 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.
CLICK HERE TO JOIN Meeting ID: 966 9129 7246 Phone:1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
3 Regular Meeting September 06, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
Item No. 1. Page 1 of 1
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: September 6, 2023
Staff Report: 2308-1931
TITLE
Approval of UAC Draft Minutes from July 2023
RECOMMENDATION
Staff recommends that the UAC consider the following motion:
Commissioner moved to approve the draft minutes of the July 5, 2023 meeting as
submitted/amended.
Commissioner seconded the motion.
ATTACHMENTS
Attachment A: Draft Minutes
AUTHOR/TITLE:
Janelle Kamian, Program Assistant I
Item #1
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Utilities Advisory Commission Minutes Approved on: Page 1 of 9
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF JULY 5, 2023 REGULAR MEETING
CALL TO ORDER
Vice Chair Scharff called the meeting of the Utilities Advisory Commission (UAC) to order at 6:01 p.m.
Present: Vice Chair Scharff, Commissioners Croft, Forssell (arrived 6:02 p.m.), Mauter and Phillips
Absent: Chair Segal and Commissioner Metz
AGENDA CHANGES, ADDITIONS AND DELETIONS
None
PUBLIC COMMENT
None
APPROVAL OF MINUTES
ITEM 1: ACTION: Approval of the Minutes of the Utilities Advisory Commission Meeting Held on June 7,
2023
Vice Chair Scharff invited comments on the June 7, 2023 UAC draft meeting minutes.
ACTION: Commissioner Croft moved to approve the draft minutes of the June 7, 2023 meeting as
submitted.
Commissioner Phillips seconded the motion.
Motion carried 5-0 with Vice Chair Scharff, Commissioners Croft, Forssell, Mauter and Phillips voting yes.
Chair Segal and Commissioner Metz absent.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Director's Report.
Water Quality Report: Each year, the Utilities Department publishes an annual Consumer Confidence
Report on water quality conditions for the previous year. The UAC received a copy. All customers
received a postcard with instructions to call Customer Service if they were interested in receiving a copy
of the water quality report or customers can view the report on the website.
0
Item #1
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Utilities Advisory Commission Minutes Approved on: Page 2 of 9
Beware of Scams: City of Palo Alto Utilities (CPAU) received numerous calls from customers in the last
1½ months about a person pretending to be from CPAU instructing them to press a number on their
phone to receive a rebate. All CPAU residential customers received a rebate automatically credited to
their utility bill for high winter energy costs. Customers do not need to take additional action. CPAU is
providing warnings against falling victim to fraud.
Outage Management System: CPAU’s goal is to launch a new Outage Management System (OMS) by
October. This system is an improved way to detect and respond to power outages as well as provide
timely notifications and updates to our customers via text messages, phone calls and emails.
Drought Update: The San Francisco Public Utilities Commission (SFPUC) 11% voluntary water use
reduction and State’s emergency regulations expired in June. Palo Alto lifted the 2-day per week
watering restriction. The State left some water waste restrictions in place, including no washing
hardscapes, no watering within 48 hours of a rain event and a ban on the use of drinking water to
irrigate decorative grass at commercial, industrial and institutional sites. Outreach over the coming
months will focus on making conservation a California way of life. Educational workshops will help
residents and businesses conserve water.
Recap of Spring Landscape Workshops: CPAU and the Bay Area Water Supply & Conservation Agency
(BAWSCA) co-hosted a series of spring landscape workshops. Topics included how to water trees, design
and conversion of lawns to drought-tolerant landscapes, installing rain gardens and available rebates.
Upcoming Events: Details and registration at cityofpaloalto.org/workshops.
• Thu, July 6: Save Money with an EV and EV Discount Campaign, 5 - 6 p.m.
• Sat, July 15: MSC Open House, 9 a.m. - 2 p.m. The City is hosting an Open House at the
Municipal Services Center (MSC) to display some of the work we do for the community. There
will be free ice cream. Approximately 350 attended last year.
NEW BUSINESS
ITEM 2: ACTION: Staff Requests the Utilities Advisory Commission Recommend the City Council Approve
Participation in the GoGreen Home Energy Financing Program in an Amount Not-to-Exceed $2 Million
over a Term of up to Five Years, Funded by the City’s Cap and Trade Reserve, by Authorizing the City
Manager or Their Designee to Execute a Memorandum of Agreement with the California Alternative
Energy and Advanced Transportation Financing Authority
Shiva Swaminathan, Senior Resource Planner, delivered a slide presentation on the GoGreen Home
Financing Program. The program is for residential customers to finance projects related to electrification
and energy efficiency. California Public Utilities Commission (CPUC) authorized the program. The Agency
of the State Treasurer’s Office and the California Alternative Energy and Advanced Transportation
Financing Authority (CAEATFA) administer the program. It was available to all Investor-Owned Utility (IOU)
residential customers but recently became available to publicly owned utilities.
Staff recommended joining the GoGreen program. Residential customers can finance up to 100% of the
project cost up to $50,000. No money down required. No collateral is needed because it is an unsecured
consumer loan. The maximum term is 15 years. Competitive rates are between 4% and 8% (4% for loans
Item #1
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Utilities Advisory Commission Minutes Approved on: Page 3 of 9
up to five years, higher interest rates for longer-term loans). There are more than 40 qualified contractors
enrolled in the GoGreen program. Customers can use up to 30% of the loan amount for unrelated
renovation costs. Customers submit their loan application online through California Coast Credit Union or
Matadors Credit Union, which are the only two credit unions servicing Santa Clara County. Work is
underway to enroll several other credit unions in the program. You do not have to be a credit union
member to apply for a loan. Once the credit union approves the loan, the contractor begins work. Upon
the customer certifying completion of the project, the credit union pays the contractor. GoGreen is a
potential financing source for our heat pump water heater program. In the future, we may have access to
CAEATFA’s suite of financing programs that include commercial and multifamily.
To participate in the program, Palo Alto has to pay a $50,000 start-up cost plus $40,000 per year in
administrative costs as well as contribute to the loan loss reserve 16% of total Palo Alto loans made. Credit
unions run credit checks to reduce the likelihood of losses. Upon UAC recommendation and Council’s
approval in August, GoGreen Home will be available to Palo Alto residents in Fall 2023.
Renters need an agreement with approval of the property owner for home improvement loans. The renter
applies for the consumer loan and the loan stays with the renter. CAEATFA provides data in aggregate but
not consumer-specific. Customers can use GoGreen loans for energy efficiency projects such as building
envelopes, pools, lighting, HVAC and heat pump water heaters. Loans cannot be used for EVs, EV chargers
or solar.
It is the credit union’s loan and they will follow their normal procedures. The credit reserve covers up to
90% of outstanding loan amounts up to 16%. GoGreen has a portfolio of 3000 loans worth $50 million.
There are $8 million in loan loss reserves. CPAU has to contribute 16% each time there is a Palo Alto loan.
Reserve funds are in an escrow account held between CAEATFA and the credit union.
Some of the benefits of this loan program are it is an unsecured loan, the loan amount and duration,
minimum credit score and lower interest rates. Typical unsecured loans are for a maximum term of five
years but GoGreen’s maximum term is 15 years. GoGreen provides lending to customers with credit scores
as low as 580. It is unknown how many people in Palo Alto might be interested or qualify.
CPAU would pay startup and administrative costs to CAEATFA per the MOU. There will be some startup-
related staff effort. Staff will promote electrification technologies to our customers through our existing
channels for promoting the heat pump water heater program, such as the Home Efficiency Genie.
GoGreen’s minimum loans are $2500. The average loan amount in their portfolio is $17,000. The State
outlined the projects GoGreen can and cannot fund. This does not involve on-bill financing. The lending
relationship is between the lender and the customer. The Utilities role is to promote this program.
Synergy is our installation contractor for the heat pump water heater program and is an approved
GoGreen contractor. This financing instrument will become more useful as our suite of programs expands
to include heat pump space heating, which could cost at least $20,000. There is no current plan for bill
inserts, mass emails or social media advertising. The GoGreen Multifamily program is only available to
IOU customers, but staff is monitoring for changes that would allow CPAU to participate.
Discussion ensued on the not-to-exceed (NTE) amount and administrative costs. Mr. Swaminathan
explained that CAEATFA’s administrative cost pass-through was based on the methodology outlined in
the contract on an incremental cost basis for the first two years to bring Palo Alto on plus the baseline
Item #1
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Utilities Advisory Commission Minutes Approved on: Page 4 of 9
cost to run the program. CAEATFA’s administrative cost for Years 3, 4 and 5 would be determined in the
future but could be $50,000 or $60,000 per year. CAEATFA’s administrative costs are to pay for their
contractors, people who promote the program, maintain the website and maintain the bank accounts.
Vice Chair Scharff opined it was more appropriate to approve what was needed for the MOU the first two
years. Staff can return to discuss Years 3, 4 and 5, as it is the job of the City Council and UAC to provide
more oversight.
Mr. Swaminathan addressed Vice Chair Scharff’s questions about interest rates. These are unsecured
loans. The credit risk increases as the duration of the loan term increases, so longer terms have higher
interest rates. In response to Vice Chair Scharff’s understanding that the State guaranteed the loans and
the credit unions were getting 100% of their money back, Mr. Swaminathan replied correct.
GoGreen publishes statistics and current interest rates on their website. The March 2023 report provided
by the State Treasurer’s Office showed an average interest rate of 4.1% for GoGreen loans made over a
60-month period. For comparison, the interest rate is 10.6% for a similar unsecured loan. Credit unions
typically do not provide loans for customers with credit scores lower than 640 but GoGreen can go as low
as 580. There are 127 loans out of 3000 with credit scores between 580 and 640. The most recent interest
rates published on the website were from March with loans at 4.99%, 5.99% and 7.99%, depending on
the term.
Mr. Swaminathan stated that the loan reserves cover 90% of the outstanding loan amount up to 16% of
all loans. If 100% of the loans default, the City is out-of-pocket for 16% but the credit union only receives
16%. There is $8.6 million in the reserve. Since 2017, $400,000 was used. Commissioner Phillips remarked
it is risk subsidization; the credit unions determine the underwriting limit and the loan rate they want to
offer. Vice Chair Scharff asked if there was a loss on one loan and it was less than 16% of all their loans,
Palo Alto covers it 100%. Mr. Swaminathan responded that was correct. Vice Chair Scharff clarified that
100% of the loan was covered, assuming the default rate was not more than 16% of their portfolio. Dean
Batchelor, Utilities Director, responded yes that was correct but they had to be Palo Alto loans. Vice Chair
Scharff pointed out that the credit unions were not taking a lot of risk and Mr. Batchelor agreed. Mr.
Swaminathan confirmed that the credit union loses money if the default rate is greater than 16%. The
historic default rate was 4%.
Vice Chair Scharff expressed his concerns about the City promoting this program as well as older seniors,
renters or people who cannot afford it applying for loans. He did not believe a renter should obtain a 15-
year loan. He asked if CPAU had any safeguards in place or if we had to rely on the credit union.
Commissioner Phillips remarked that most banks have an age limit for unsecured loans and asked how we
would communicate that it is not available to seniors or if credit unions were waiving that requirement
for this program. Vice Chair Scharff would be comforted if staff said that the credit unions’ credit and
income requirements were the same as they had for other loans, it will be well policed, the program’s
historical default percentage, if it was working well, how many cities in the Bay Area signed up and there
was nothing to worry about.
Vice Chair Scharff preferred trying this program as a pilot with up to $1 million worth of loans, then staff
report to the UAC the number of loans and provide an evaluation of the program. Mr. Swaminathan
replied that staff would provide a quarterly report. Vice Chair Scharff wanted staff to return to the UAC
and Council six months before MOA renewal to report the good and bad as well as the number of homes
electrified. Mr. Batchelor stated that staff could return to the UAC 18 months after starting the program
as well as provide periodic updates. Mr. Swaminathan remarked that there were no penalties to withdraw
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from the MOA and it does not automatically renew after two years. Commissioner Forssell felt it was
prudent to return to Council with a program update and obtain approval after two years.
Discussion ensued on the amounts in Table 1. If the NTE amount is reached, staff can ask the UAC and
Council for more money. Commissioner Phillips pointed out the administrative costs in comparison to the
amount of loans. Mr. Batchelor believed this program would be successful because the City is pushing
electrification. It costs $50,000 to $70,000 to electrify homes. Many people have a lot of investment in
their home but not a lot of cash on hand and other methods of financing have higher interest rates. Palo
Alto is converting from 4 kV to 12 kV in a pilot for about 500 to 600 customers. Overhead upgrades will
be completed by 2026 or 2027, which is about 55% of our customers.
Vice Chair Scharff suggested that staff set realistic expectations for the number of loans during the first
two years when making their presentation to Council. Mr. Swaminathan noted this program is growing. It
has financed $55 million since its existence in 2017. In March, GoGreen financed $2.39 million.
Commissioner Croft wondered if we should wait two years to begin the program or if there was a benefit
or need to start the program now. Mr. Batchelor replied that the pilot at the end of the year would allow
500 to 600 homes to electrify. Reserves funded the heat pump water heater program for this year’s
budget but the City will not subsidize it next year, so this is another avenue for customers.
Discussion ensued regarding the motion.
ACTION: Vice Chair Scharff moved to approve Staff recommendation to recommend Council approval of
a Memorandum of Agreement with California Alternative Energy and Advanced Transportation Financing
Authority (CAEATFA) for an Amount Not-to-Exceed $300,000 over a Term of up to Two Years to provide
Credit Enhancements for Palo Alto Residential Customer Home Energy Efficiency & Electrification Project
Loans Facilitated by CAEATFA through Registered Participating Financing Companies (PFCs), and approve
the use of the City’s Cap and Trade Reserve funds to cover the cost of the Program.
Seconded by Commissioner Phillips.
Motion carried 5-0 with Vice Chair Scharff, Commissioners Croft, Forssell, Mauter and Phillips voting yes.
Chair Segal and Commissioner Metz absent.
The UAC took a break at 7:22 p.m. and returned at 7:32 p.m.
ITEM 3: DISCUSSION: Discussion of Electric Supply Portfolio Modeling Results
Jim Stack, PhD, Senior Resource Planner, presented the Electric Integrated Resource Plan (IRP) Modeling
Results. He showed low, mid and high-scenario graphs of Palo Alto’s electric load projections through
2045. Dean Batchelor, Utilities Director, spoke about projected increased load from two new data centers.
Dr. Stack showed a table of resources in the City’s electric supply portfolio. One wind project and some
landfill gas projects have contracts expiring between the late 2020s and early 2030s. Solar resources have
contracts extending into the 2040s. The Calpine Geothermal contract starts in 2025 and runs for 12 years.
The City has two large hydroelectric resources and is a partial owner of the Collierville facility. The Western
Base Resource is a contract with the federal government and is the largest resource in the portfolio. A 30-
year contract was executed with Western Area Power Administration (WAPA) to start in 2025. A decision
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will be made by July 1, 2024 to maintain our full share of the contract, decrease our share or exit the
contract, which will be the subject of a future presentation.
Dr. Stack explained that each resource has a nameplate capacity, which is the maximum amount of power
it can produce. Net qualifying capacity (NQC) refers to the amount of capacity each resource qualifies for
under the State’s Resource Adequacy (RA) rules. For new solar and wind resources, the amount of NQC is
a small fraction of the nameplate capacity. The NQC amounts change yearly based on the resource’s
production and when the production occurred relative to when the grid was at its peak.
Commissioner Phillips asked about load curves and matching resources. Dr. Stack responded that it does
not have to match on a monthly basis, although it is preferred because of exposure to market price risk
when you have large surpluses and deficits offsetting each other. A generic product is bought at a trading
hub, so it is unclear where the energy is coming from, but it is assumed that the resource filling the gaps
in the winter comes from combined cycle gas turbines. CPAU puts our additional clean energy onto the
grid in the spring months to offset the environmental impact of the combined cycle emissions.
Commissioner Phillips queried about the matching of supply and demand load over 24 hours. Dr. Stack
does not have that slide with him tonight but he could provide that information. The City has large
surpluses of solar during the daylight hours and hydro resources peak in the evening hours. There are gaps
in the late night and early morning hours. The portfolio does not include nuclear but among the resources
under consideration are small modular reactors.
Solar and wind are the least costly resources. Due to the Inflation Reduction Act, prices are expected to
decrease and level off until about 2030 and then increase in the late 2030s. Small modular reactors and
offshore wind projects are a long way from commercialization. New hydroelectric resources were not
included in the portfolio analysis because there are no new dams expected in the west. Occasionally, an
opportunity could arise when an existing hydro resource has a contract expire.
Commissioner Forssell inquired about the drivers for investing in storage versus generation resources. Dr.
Stack replied that generation resources provide energy that adds to your resource mix. Because of
efficiency losses, storage is a net consumer of energy. The reasons for investing in storage are to meet
your capacity requirements, regulatory compliance for RA purposes, and its economic value. The cost of
the investment, in dollars per kilowatt-month, is compared to the RA revenue and energy arbitrage value
or the storage resource can be used for frequency regulation in the ancillary services market.
Commissioner Phillips asked for further explanation on why demand response (DR) was costly. He noted
that about 70% of the City’s consumption is commercial, so he wondered if there were any interruptible
contracts or priority commercial contracts. He thought we would have AMR by the end of the year and
the potential to use it creatively. Dr. Stack responded that he is not a DR expert. CPAU had a DR pilot
program in past years, and it was not cost effective because it required a lot of staffing and overhead cost
to maintain its reliability and for customer communication.
Commissioner Croft was very interested in seeing the hourly load curves. She thought the City wanted
clean energy so the purpose of batteries was to bank energy during the day to use during the night instead
of buying gas-powered energy; however, batteries were discussed as a financial play. Dr. Stack replied
that the portfolio does not include any batteries but the strategy for utilizing batteries was based on the
market price signal, so they were an energy play or a value play. If you have energy from a clean resource
stored in the battery, you want to put it onto the grid when market prices are highest. A 10-hour battery
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has a greater amount of capacity in RA requirements and more energy can be stored. A 10-hour battery
has to charge for 10 hours, so you do not get as large a price delta when buying and selling. With a four-
hour battery, you can buy in the four least expensive hours and discharge in the four most expensive
hours so you get the biggest price delta. Capacity is bought and sold monthly.
Commissioner Mauter asked if there was a plan to grow a DR program within the department or outsource
elements of DR management in the future. Dr. Stack does not know the DR long-term plan.
Commissioner Croft wondered if projects were under consideration in Palo Alto to generate our own
electricity, through investment in solar or harvested from wastewater treatment. Dr. Stack replied that
since 2012 or 2013 there has been a feed-in tariff program to buy energy from larger solar installations in
town over a long-term basis. About 3 megawatts of solar are under contract. The challenges are no open
land available in Palo Alto for a big generation resource as well as costs for infrastructure and land.
Installing something at the treatment plant or golf course parking lot may be considered in the future.
Our resources are profitable overall. Ascend’s preliminary modeling results recommended adding the
following to the portfolio to meet our gaps: 25 megawatts of solar in 2030 and another 25 the following
year, additional solar in the late 2030s and into the 2040s as well as some storage capacity in the 2040s.
Geothermal is a 12-year contract starting in 2025 with 5 megawatts for two years and 10 megawatts the
next 10 years. When the geothermal contract expires, it might be available for renewal, but it could be at
a higher price and would compete with other alternatives. The WAPA contract looks competitive and will
be the subject of a future presentation. The model preferred contracting for new low-cost resources using
stand-alone solar and adding storage in later years when we become capacity short. Solar is not the best
fit for the portfolio because it exacerbates our summer surpluses and does not help much with the winter
deficits. Staff is questioning whether the model might be overestimating the value of new standalone
solar. Solar, wind and storage costs were expected to come down over the next few years.
Staff will work with Ascend to refine the model results to reflect our portfolio preferences. Staff will
analyze the WAPA contract to determine its value. In the coming years, staff will seek new baseload or
flexible resources that better fit our load shape. Staff will explore demand-side programs. With AMR
coming online, staff wants to institute a time-of-use rate (TOU) to encourage load-shifting to solar hours
when we have surpluses and explore other programs such as DR to improve load flexibility. Dr. Stack will
return to the UAC in September or October with additional analysis results, including candidate portfolio
options and supply cost data. Staff will present the final Integrated Resource Plan (IRP) report to the
Finance Committee and City Council for approval by the end of the calendar year per State requirements.
Commissioner Mauter queried about planning for the mid-range load instead of the high-range scenario.
Dr. Stack replied that there is a risk in undershooting and not buying at attractive prices now if prices go
up in the future but there is the risk of overshooting and selling excess resources at a loss if you plan for
the high load scenario. The electrification and EV load numbers shown in the high scenario are extremely
aggressive and will be very difficult to achieve.
In reply to Commissioner Mauter’s asking what fraction of the load municipal services consumes, Dr. Stack
thought municipal was around 5% and Mr. Batchelor concurred it was about 5% to 6%.
The rates manager was not present at the meeting, so Mr. Swaminathan addressed Commissioner
Mauter’s questions regarding commercial customers and demand-side programs. CPAU had a couple
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large commercial customers on TOU rates. Commercial customers are charged average cost based but
you could provide a signal for marginal DR. The limits on capacity are small for DR.
Mr. Swaminathan answered Commissioner Phillips’ questions regarding batteries and DR. The assumption
was that the battery’s developer would own the batteries but CPAU would have control to dispatch it
according to our preferences through a long-term contract. Dr. Stack was bullish on the potential for using
TOU to incentivize EV customers to charge their cars during the day when they can take advantage of solar
rather than at night, although there is no data to determine the net impact. Maybe in a couple years the
analysis can be refined to provide that data.
Commissioner Croft was disappointed with the 2025 and 2045 monthly charts to see landfill gas and
geothermal, which are flatter energy sources throughout the year, replaced by solar and hydro that are
very seasonal. Keeping in mind the environmental impact of our actions, she would love to see generation
better matched with our load. She thought DR should be used to change the load. She suggested having
the S/CAP committee’s input on our energy resources. Generating closer to our load curve decreases our
exposure to market pricing. She was interested in seeing a model where load matched generation to
evaluate the cost of that approach. Dr. Stack replied that when the basic IRP is complete, the next step is
for Ascend to analyze the incremental cost of more fully matching our supply to our load on an hourly
basis and that analysis will be shared with the UAC in the coming months.
Commissioner Forssell queried what where our commercial TOU rates and the peak times in our current
rate structure. Dr. Stack thought the peak period was 4 to 9 p.m. Mr. Swaminathan clarified that was the
legacy rate and a new rate had not been developed. The peak for commercial customers was 4 to 6 p.m.
For residential, the rates under consideration for implementing in a couple years when AMI is in place
would have off-peak 10 a.m. to 2 p.m. and on-peak 4 to 9 p.m. Commercial has a capacity component.
Commissioner Forssell viewed EV charging as one of the greatest potentials for load-shifting by
incentivizing workplaces to offer onsite vehicle charging. Demand charges might be a disincentive for
employers to offer charging and should be evaluated during the Cost of Service Analysis (COSA).
Vice Chair Scharff inquired about the battery storage process. Dr. Stack replied that batteries could be
located anywhere on the grid, depending on the response when the City solicits for storage projects. The
City incurring the capital cost to own a storage facility may be considered. Mr. Swaminathan pointed out
that with residential TOU rate implementation, the delta in prices may justify energy storage at the
residential customer level to store during the daytime and dispatch at night.
ACTION: None
COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS
None
FUTURE TOPICS FOR UPCOMING MEETING
None
NEXT SCHEDULED MEETING: August 2, 2023
ADJOURNMENT
Vice Chair Scharff moved to adjourn.
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Commissioner Phillips seconded the motion.
Motion carried 5-0 with Vice Chair Scharff, Commissioners Croft, Forssell, Mauter and Phillips voting yes.
Chair Segal and Commissioner Metz absent.
Meeting adjourned at 8:46 p.m.
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Item No. 2. Page 1 of 1
2
4
5
1
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: September 6, 2023
Staff Report: 2306-1603
TITLE
Discussion and Presentation - Overview of Drinking Water Quality
RECOMMENDATION
Staff recommends that the Utilities Advisory Commission receive a presentation on the City of
Palo Alto’s drinking water quality.
ATTACHMENTS
Attachment A: Presentation
AUTHOR/TITLE:
Matthew Zucca, Assistant Director, Water Gas Wastewater
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1www.cityofpaloalto.org
Overview of
Drinking Water
Quality
September 4, 2023
•
CITY OF
PALO ALTO
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22
Brief History of Drinking Water Treatment
Overview of Current Water Laws and Regulations
Regional and Palo Alto Source Water Quality
Common Water Quality Complaints
Considerations for Additional Treatment
Anticipated Future Water Quality Challenges
Presentation Outline
~CITY OF
VPALO ALTO
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33
•1850-1900s - Advancement of science developed germ theory
•Added chlorine treatment for microorganisms (e.g., cholera, typhoid)
•Eliminated waterborne diseases with 30-50% mortality rates
•1970s - Advancement of science identified carcinogenic disinfection byproducts (DBPs) from the use of chlorine
•1979: Interim DBP Rule
•1998-2006: More regulatory changes (Stage 1 & 2 DBP Rule, LT2SWTR)
•Changed to monochloramine as a residual disinfectant to reduce DBPs
•2000s - Advancement of science identified, for some source waters, carcinogenic compounds resulting from the use of monochloramine and ozone (e.g., NDMA)
•For those source waters, changed primary disinfection techniques to UV light to prevent NDMA formation
History of Drinking Water Treatment
Ti
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~CITY OF
VPALO ALTO
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44
Federal Drinking Water Regulations by
Contaminant Type
Target Regulation
Chemical contaminants
•Arsenic rule
•Chemical contaminant rules
•Lead and copper rule
•Radionuclides rule
•Variance and exemptions rule
•Stage 1 disinfectant/disinfection byproducts rule
•Stage 2 disinfectant/disinfection byproducts rule
Microbial contaminants
•Aircraft drinking water rule
•Groundwater rule
•Surface water treatment rules
•Total coliform rule and revised total coliform rule
Right-to-Know •Consumer confidence report rule
•Public notification rule
A c1rv OF
VPALO ALTO
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5
SFPUC Regional Water
System and Source
Water Quality
Crystal Springs Dam
~CITY OF
VPALO ALTO
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66
SFPUC Regional Water System
Sunss l
Aeseno:ur
Me11:11d Ma nor
Reservoi r
Sull58t
SUpl)I')'
PIPOlioe
la Mo~
Pl.imp S'lalion
/ / _,....,.,..-UriVllrSl!Y Mound
/ • Resen-01 r
Cri'S'lal Sil rna:J "
Sen Am1n!as
PlpP.ilne
Pl lgaa
Decllh1ramln11i,11
Faclllly
Cr,stal Spnngs
i'lpelll'l!!I NO!> f & 2
Cr:,i;lal Sprinos
~,pass Tu nr,;,
Slantr.Jrd
Tunri:i
Alame!la
Wel;l Por1al
~ l!ulancmg
J>.cSilr1101r t
l'Lanp Sla1ion
Bay lll·lis1on Pll)?iines
J&4
~CITY OF
VPALO ALTO
Cllil~lRance
S;n Am,nlo Tunnril
• T,
/1',mnu~r . • • Ii ~ --~~ ., •., . ["' v~~\_
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lda1rd Ea. Porlill TBSII T11 atm ant Fsacll lij
Sao M«)nlo l'l.lllP ~Ion
Sunoi liallll!j' Cllioramlnallon Facility lll~tn:as Sih3n
cw~m4 l'lpeune i\y poclllori!e Stalwn
~ .IOaQI R l'lpelllleS
1, 2 & 3
Cherrr-Bmoor Pu11l) SlaLion
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C.U,Jil,n Po1•111r TirinBI
Eao,fy lnlllke ~ Pipeline
Holm Pol'lelhoUSil
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77
Source Water Quality
•85 percent of SFPUC’s drinking water comes from Hetch Hetchy
(HH) Reservoir situated in a high-elevation, pristine granite rock
watershed
•HH water is of such exceptional quality that the US EPA granted the
SFPUC a Filtration Avoidance Waiver that allows disinfection
treatment without filtration of the surface water
•Only five (5) agencies in the country qualify for Filtration Avoidance
Waiver
ALO ALT
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88
•USEPA Surface Water Treatment Rule allows for filtration avoidance waivers of extremely pristine water sources
•In 1993, USEPA approved SFPUC’s ability to comply with federal filtration avoidance regulations
•Essentially, HH water meets all applicable treated water criteria without using filtration
•Prior to disinfection, source water must meet bacteriological requirements
•Turbidity must remain less than 5 NTU
•Disinfection must be sufficient to ensure that the total treatment process of the system achieves at least:
•99.9% (3-log) inactivation of Giardia lamblia
•99.99% (4-log) inactivation of viruses.
•In rare events where source water exceeds, water is treated at Sunol Valley WTP
SFPUC Filtration Avoidance Waiver
~CITY OF
VPALO ALTO
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99
SFPUC Water
Treatment
•Traditional surface water treatment for some sources of water
•Hetch Hetchy water has a Filtration Avoidance Waiver, so only chemical disinfection
•UV light and chlorine addition for primary disinfection
•Monochloramine residual disinfectant in the distribution system
•pH adjustment and fluoridation
•Water we receive can be a blend of filtered and unfiltered water from different sources
~CITY OF
VPALO ALTO
OZONATION
O&o n • (0 ,) 1$ lnJ tclltd
0 UMYHtt<I w.ltU
• ,t 1mm~<lliltoly
oxl.-Q1ze.s «gantt matt
Ii s In the me:mb-r.ant'!!
d bacteria, viru:s.H,
.and parasit~s
EAST BAY AND PEN ULA
WATER RLTER PLANTS
Wt mui,; M•r ~~r ~ • ii 1c0<e<:11 • our
ro1orvo0'1111 tho E@lt Bi!i lilnd tM P ,o$llla
Th~ treatment proces:s: at our Ei:lit say 911d
PeininY.J la Wa~r ~irtratioo Plants i s. si mi lar
U ntru.t 'ld wat,wit nl l'JS lh11 t raa tm1:nt pliant.
+
W tor 1ow1 fro m tll~ t 1,xcu1a11on Qr
sedimecma:loni ba9in110 the flters Thi!!
fitt ers :a~e made up of s.,eyerr:i fHr: Oif
anthrac:ll•c.oal and sand medilil t0 rem-ove
thiei sm.a er r em aining p.atticlea Hom tile
w.ateir . This p rocofJ'i-5 r~move,s firne: p.art,des
and dl•soh• •<I mat al• tha t 1neludo duot,
par~ oi. b ~to" _ Y rusu_ nd ~hom1ca11.
COAGUI.ATION/ RJXCULATION/ SEDIMENTATION
ou, ,,. mtnt ¢1)4'( 0,$ dd l),QSRl<•J1 charg,l<I Ch•ml~I$ c lod -.-obms
w tl>t untr• ~d W!l1•r Th • chon>l(III r•1,1;11on C3Ultl 1mal I parnclo$ linP•ndt<:I
,n t ho "'al r w gi¢1'1) Ollto olleh Ot hor to l<O'm llilrger P"1>CIU . ~•o""' a, t1oes
At SUnOI Valley Wliltor ll'•&t ment Prant, tn• IIOCS b<C<)Jl'I< ~••'IY and ~nl e at
me bottom o1 the sedi m e:ntac:loB bailn:s. wliuH.e: they are re:rno'l~d .
WATER FROM HETCH HETCHY
TBe ma,Joril!f Of the YratM W€1 s.@r«i comes f rom mowm@lt in a
go.ni t & b-is1n l n th• Si•,ra Novada mountain! ..:orod In H•tcll
Hoteily RoUNOlr . T uoureo 11 <>I tucil '!i1 qu Illy tM'I wo
do no1 nood 10 rlltt:r It prior to 1tr~1~9 it to our QJ$t¢fr)it$.
ilESLA TREATMENT PLANT
wed ttnft,c( t'. e wacer with ultir.a 1-01,ec l ight and dll(:f1ne: W,e ma 1nU1 n a
fo rm ot chlori nll!!, c hl oramin e:, in t h-e w-ace:r d1:s«ibution fySi:em t o ensure: dls::
it coMin ues to d -;iMt!!<:I the water while: 11: ia deli'tere:d to cu5t:omert. W~
al so ad<I • •m•II amount of flu on de t o tile '"'"'"' 10 promote dontol u th.
DISINFECTION
Wt drtinf.e<::t t hf! w.attr u-smg
chlo1111~ We: .mainta in &11 t am
Of 'lllorino, .......... ,.,. (N H,CO.
1n the wat~r <li'!trlbut.On system
to enwr,e th at it continues to
di slnrect t hEi w:iter 'Wtl ~l,e It
1$ d•liv<lredto CU!COfl10r!..
pH ADJUSTMENT
Corro:Si on -coot rd t r-t:1 atm ent
u 11n9 sod!~ m lll'dro:Nldo CNaOM).
FLUORDE
L &stly. oporaro ri Od,d a unall
amount c1' fl uoflde (F) t o cBe,
w.ate r 11:0 promott:! de ntal ht:!alth
NaOH F
Item #2
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1010
Palo Alto Consumer
Confidence Report
•Required annually by federal and state
regulations to all Palo Alto customers
•Provides a plain language explanation of
water sources and water quality
•Lists detected contaminants in drinking
water in 2021 as well as information about
their typical sources
~CITY OF
VPALO ALTO
City of Palo Alto Water Quality Data for Year 2021 l1l
This. report offers a snaps.hot of la,st year's w.ater qualfty. The ta bles belOIN llst detectt!d contaminants. rn our d r lnkrng water In 20-21
!S Y.o!ll uiinforrr·11!1t101.ab-out their' type.e l $0Uf'O!:S.. conuimina.nt!. th.!ure below deteenoo l imit! fot repo,m.gar~ nor:sh01.m, i n
acrordance wi th regulacorv gurdanoe.. The C1tv holds a SWRCB monitoring waiver for sane oonta.m lnants rn the surface water-supply
and therefore their monitoring fre quencies ara less tha:n mnual,
Ul llllrn IJml MU/1 r f-'t•H, I R,1n.:c .,_..,,. Ll~\lt.'I I J'..~t•.J:e lyp1("'l '!ouun;C"', ,n Dr 1f'l k1n..:
i ilN TAM INANT"'-111 I Mi I G) ro11nil ,., IM ... ,f \IIJ,..1 .. ,
lURBIOIT'I'
UNl'llte re d H~Cl"I H~Cl"rV NTU NIA. 0.2 • 0 .4 1:ic, (HJ Soil runof'f \vatcr
filtered w.uer f Klm Sund NTU 1 '" NIA. (0 .4] Soll runot'T
Valley Wi1er Treitmcnt Min 9-S'llio of w.n"9lcs NIA. 99.8'6-100\II Soll runoff IPl;a.nt(SW/JP) ::s0.3NTU l<il
11f'i.lNHC.: 1 ION ll'l'PRODUC~ ANI> JIR1UJ!l5DR
l otal Tr1h,a;k:im~ant!S ppb 80 NIA. 1.11 .46 34 .!i ~ Byproduet or drin kln, w-attr
d1 Solrife'1:110n
~ H.a.lo.aicehc Acids. ppb &O NIA 11 -3.9 1-fl lol;I Byproduct or d11nki11,1 water
dlSlflfemDn
18,om;;ite: ppt> 10 0-1 "1>-U (2.1 1" Byproduct cf drinkil\l wat~r
dl5'111'ecoon
lot.ii Orti!MC: C:irbQl'l 15:l ppm TT NIA. 1-2-22 J,8 V:arlcus!Yl:ur.a l .an.dm.a.n•
made10u1Cl!S
r ec.111 colrform .and f . CDli 0 Posib,,e S.amp l~ ◄O) 0 Human or u1ma1 !t.:al -·· G1.ardi.1 l.am'bh.a. cv,t/l TT ◄O) 0 -0.04 0.01 N&tut.allyPl't!~lil ir'l t tle
en~ron1N1n-1
"•'"'
Eros,k>n ofn~Yrildcipostts:
Fluoride (.soim:e water) 111 •pm 2.0 1 ~1)-0.8 0,4 1!0 w.a.ter ;idd.JtNe to promote
suon,.eteetl'I
CMOl"imlne 1.-s cMonne J ppm MRDl • .(1,0 MROlG • 4 0..(3 .3 74 2,75c m Ori11bng Wolter d15infech.nt
MOl!d lo r rreatlfto@n t
</• = lessth,1.n/ les.stt.an cre:qu.attc
All:all MV ◄••UCO ) Pl>"' N/A. U-79 37 AL ■ Att1on ll!-'W!I
80""' ppb JOO()(t<l) ND -lll NO Mu = M,11dmum
Calcill.lM(UC&) Pl>"' NIA 3.17 9.5 Min ■ Minimum
Ch br.-t,e :'1 ppb 800 (Nl) U-420 1,2 N/A = L'.lotAv.a.1l.1b~
Ha,dnes, (.ts caco j Pl>"' N/A 7.7-60 34 r.o • Non-.itte-ct
..,,~&J!Hlum Pl>"' NIA <0.2 -H ..s r,t_ = ~otdicirticn Level
p H N/A 8 .6"·9'.7 9.1 -■ t,h..1mber ct Col•orm·P"osltl'l!e Sample
Pt.o,pi,,tc ◄ortho) 01"" NIA <0.,-0.l <0-3 NTU = Nephdom~t nc Tur!luditv IJr'lit
PO'l.a1-~t1m Pl>"' N/A 0 .4-U 0.7 ORL ■ Otht!r Fleet1latorv tey·ef
$too, Pl"" NIA 3-S.9 4,8 pCJ/L = pk.ocur~ per h~e r
Sodlurn Pl>"' NIA 3.1-17 12 OO b ■ oanoer lbllllon
Strorm1Jm ppb NIA 14 • l!l Al ppm = p.art p~r miltDn
i>S/<m ■ miero s1eml!lns/cent1mete1
10 Cltvof Pao Al:o Publ Unll'1eS I 2CIU Ann .. 1 W•ter Q.uolty Report
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1111
Common Water Quality Concerns
•Dirty/Discolored Water (Rusty, Yellow, Brown) - rust or sediment from
piping materials from:
•Breaks in the water mains or hydrants
•High water flow situations such as system tests or maintenance, construction
activities or firefighting activities
•Rust from plumbing in the water mains, homes, or other buildings
•Milky/Cloudy Water - May indicate the presence of air bubbles in the
water.
•White Particles in Water - White particles that float to the surface may
indicate deterioration of the dip tube in the hot water heater
•Black Particles in Water - black particles that float to the surface,
degradation of rubber (elastomer) plumbing parts
•Sandy Water - can be caused by particles that have accumulated over
time in the distribution system or from unfiltered water systems
~CITY OF
VPALO ALTO
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1212
Water Quality Calls to
Utilities
Jan.Feb.Mar.April May June July Aug.Sept.Oct.Nov.Dec.
0
1
2
3
4
5
6
7
8
Total Monthly Water Quality Calls
(2018-2023)
T&O Color Turbidity Suspended Solids Pressure
•Calls from Palo Alto residents
mostly related to taste & odor
and color
•All reported to SWRCB
•Most water quality calls related
to taste & odor and color
•Turbidity and suspended solids
are relatively infrequent I
■ ■ ■ ■ ■
~CITY OF
VPALO ALTO
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13
Considerations for
Additional
Treatment
~CITY OF
VPALO ALTO
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1414
Additional Treatment of
SFPUC Water
•Palo Alto is served via two
pipelines from five turnouts
•Additional City treatment would
require five separate systems
•Currently, no regulatory driver to
consider additional treatment
for SFPUC water
•Any treatment would require
property, infrastructure, staffing,
and additional energy
consumption
Palo Alto
Pipeline
Bay Division
Pipeline #3
C R
S 0
nSF UC
~CITY OF
VPALO ALTO
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1515
Conceptual Cost
Estimate – USEPA Model
•USEPA cost model for carbon
filtration ($2021)
•Simplistic model used for
evaluating costs of water
treatment as part of regulations
•Total model capital cost estimate:
~$50+ million
•Nationwide model that doesn’t
account for local costs
•Staff believes this likely
underestimates actual costs
~CITY OF
VPALO ALTO
OUTPUT SUMMARY
Parameter
Contaminant
System Size Category
Technology
Design Type
Design Flow
Average Flow
# of treatment trains
# of contactors in series
# of contactors
Total EBCT
EBCT per contactor
Carbon life
Bed depth
Vessel geometry
Height (straight)
Diameter
Component level
System automation
Retrofit (operational modification)?
New carbon life after retrofit
Resulting Costs (in year 2021 dollars)
Direct Capital Cost
Add-on Cost
Indirect Capital Cost
Total Capital Cost
Annualized Capital Cost (per year over 36.2 years at 7%)
Annual O&M Cost (per year)
Total Annualized Cost (per year, 54% capital, 46% O&M)
Annualized cost per 1,000 gallons average flow
$
$
$
$
$
$
$
$
Value Units
Gen X
large
GAC
Pressure
7.365 MGD (excludes bypass flow)
3.2 MGD (excludes bypass flow)
8 trains
2 (i.e., parallel or series operation)
18 (including redundancy)
25 minutes at design flow
12.5 minutes at design flow
13.4 months at average flow
7 feet
upright
11 feet
14 feet
low cost
fully automated
no
not applicable
4,459,194 Details
2,219,120 Details
2,882,982 Details
9,561,295 Details
732 ,553 Details
622,000 Details
1,354,553 Details
1.16
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1616
Point of Use (POU) vs. Point of Entry Treatment (POE)
0
Point of Entry (POE) Treatm e nt
~CITY OF
VPALO ALTO
To
lrrigatron
System
Frnm
Dishibutio
Sys em
u
Point of Use (IPOU) Treatment
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1717
Point-of-Use (POU) or Point-of-Entry (POE) Water
Treatment Devices
•City-provided tap water is considered safe to drink and meets or
surpasses state and federal standards
•For City, POU/POE water treatment not allowed by state and
federal regulations for compliance
•Customers may use POU/POE water treatment devices if they are
concerned about old plumbing in their residence, for personal
preference to improve the taste of the water, or for personal
health reasons
•Water treatment technologies include filtration, distillation,
activated carbon, ion exchange, ultraviolet radiation, and reverse
osmosis
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1818
Point-of-Use (POU) Or Point-of-Entry (POE) Water Treatment
Devices
•When a POU and POE water treatment device claims a health and safety benefit,
the manufacturer is required to register the device with the California Water
Treatment Device Registration Program.
•A list of registered Water Treatment Devices for specific contaminants such as
arsenic, chromium, lead, and nitrate, can be found at the following link:
waterboards.ca.gov/drinking_water/certlic/device/watertreatmentdevices.shtml.
~CITY OF
VPALO ALTO
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19
Future Water
Quality Challenges
~CITY OF
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2020
Unregulated Contaminant Monitoring Rule
(UCMR)
•The SDWA includes a process that EPA must follow to name
unregulated contaminants that may require regulation in the
future.
•EPA uses the Unregulated Contaminant Monitoring Rule (UCMR) to
collect data for contaminants that are suspected to be present in
drinking water and do not have health-based standards set under
the Safe Drinking Water Act (SDWA)
•EPA must publish the “Contaminant Candidate List,” or CCL, every
five years and decide whether to regulate at least five or more of
the contaminants on the list
•Currently preparing to sample for UCMR-5
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ALO ALTO
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2121
•Commonly referred to as “forever chemicals” given their environmental
persistence
•State Water Board Division of Drinking Water issued Order DW 2022-0001-DDW
to require certain water agencies to sample for PFAS based on the risk of their
source water
•SFPUC source water is not considered a risk for PFAS and no sampling is required under the
General Order
•UCMR 5 requires PFAS sampling by all regulated water suppliers. Palo Alto is
scheduled to sample four quarters starting September 2023
•UCMR 5 reporting is scheduled for completion by USEPA in 2026
•March 14, 2023, EPA announced the proposed National Primary Drinking Water
Regulations (i.e., enforceable regulations) for six PFAS compounds
Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)
~CITY OF
VPALO ALTO
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2222
Lead and Copper
•State law prohibits the use of any pipe, pipe or plumbing fitting or
fixture, solder, or flux that is not “lead free”, in the installation or
repair of any public water system (DTSC)
•Lead and Copper Rule and Revisions (SWRCB - DDW)
•Federal and state regulations intended to protect from metals that can
adversely affect public health
•USEPA issued Lead and Copper Rule Revisions:
•Develop inventory of service line materials connected to the water system
•Compliance deadline is October 2024 for service lines
•Adds LCR requirements in elementary schools and childcare facilities
•Sample at 20% of elementary schools and 20% of childcare facilities per year
•Sample at secondary schools on request for 1 testing cycle (5 years)
•Sample on request of all schools and childcare facilities thereafter
•Sampling starting 2025
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2323
Groundwater
•Currently only available for emergencies where pipes would
otherwise be empty
•Non-emergency use of groundwater will require disinfection and
treatment of some naturally occurring compounds
•Iron & Manganese:
•Present at greater than Secondary MCLs in groundwater
•Requires treatment typically involving use of greensand filters
•Dissolved Solids (TDS):
•Present at concentrations greater than Secondary MCLs
•Treatment requires reverse osmosis or blending with higher
quality water
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2424
Purified Water
•Indirect Potable Reuse (IPR)
•The planned use of purified water to replenish drinking water supplies with
a suitable environmental barrier.
•Two types of IPR projects: Groundwater Replenishment Reuse Projects
(GRRP) and Surface Water Source Augmentation Projects (SWSAP)
•Direct Potable Reuse (DPR)
•The planned introduction of purified water either directly into a public
drinking water system, or into a raw water supply immediately upstream of
a drinking water treatment plant
•Regulations still evolving and currently not allowed, but being considered by
the SWRCB
•Water quality concerns will be substantial prior to incorporation of
either IPR or DPR as a water supply
A c1rv OF
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25www.cityofpaloalto.org
QUESTIONS
September 4, 2023
•
CITY OF
PALO ALTO
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Item No. 3. Page 1 of 8
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: September 6, 2023
Staff Report: 2308-1933
TITLE
Overview of Palo Alto Fiber and Fiber Backbone Activities and Discussion of the Fiber Expansion
Plan
RECOMMENDATION
This memorandum and presentation are for discussion purposes only; no action is requested at
this time.
EXECUTIVE SUMMARY
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to
implement the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project. In
Phase 1, FTTP would be built out in selected areas of the city, and expanded gradually (Staff
Report ID # 14800)1. Construction of the fiber backbone and last mile infrastructure to provide
FTTP broadband internet to the community will be a significant undertaking for the City. Before
the City begins construction, staff needs to address the below items to control project costs,
minimize construction impacts to the community, and prevent major delays:
✓ Align fiber and grid modernization projects - The citywide engineering design for the electric
grid modernization project is currently underway. The grid modernization project will overlap
with the Fiber Expansion Plan in engineering make-ready work and construction. Staff will
analyze the projects to identify opportunities for alignment, which may help minimize costs and
reduce community disruptions, while trying to minimize impacts to the Fiber Expansion Plan’s
timeline.
✓ California Environmental Quality Act (CEQA) - The City must analyze and evaluate the
potential impacts of the project on various environmental factors and identify whether those
impacts can be mitigated.
1 Staf Report 14800 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf
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Item No. 3. Page 2 of 8
✓ Coordination with AT&T - The existing joint pole agreement with AT&T requires
coordination between the City and AT&T to relocate 3rd party telecom equipment on utility poles
and provide space for new fiber attachments, while remaining in compliance with California
Public Utilities Commission General Order 95 (GO 95) requirements for overhead electric line
construction to insure electric utility service and secure personnel safety.
PROJECT DESCRIPTION
The proposed Fiber Expansion Plan is to construct a new fiber optic backbone and implement
Phase 1 of fiber-to-the-premises (FTTP) infrastructure (passing ~ 20% of homes and businesses)
to provide communication services throughout the City of Palo Alto. However, the proposed plan
will be dynamic in nature as efforts to align grid modernization and fiber projects increase in
priority and impact the designs and timelines. For informational purposes, the initial plan for fiber
construction includes installation of approximately 83 miles of fiber optic cables, consisting of
about 48 miles of below-ground cable installations and 35 miles of aerial cable installations using
~6,000 existing utility poles; one fiber hut (20’ x 40’) for networking equipment; underground
utility vaults (36” x 48” x 34”); and above ground utility cabinets (17” x 17” x 36”).
BACKGROUND
City Council considered three courses of action for a City-owned FTTP service and directed staff
to proceed with the phased build approach. Under this approach, FTTP will be built out in
selected areas of the city using $34 million from the Fiber Fund and $13 million from the Electric
Fund, and the project will expand gradually from there to eliminate the need for debt financing.
Building the fiber backbone and last-mile infrastructure to provide FTTP broadband internet to
the community will require significant planning, coordination, communication and construction
over the next 18 – 24 months. With the electric grid modernization project approved in the FY
2024 budget, staff needs to determine how to align the grid modernization project and projects
under the Fiber Expansion Plan to help minimize utility engineering pole make-ready work, pole
replacements, noise disruption, and construction activity in neighborhoods.
On May 1, 2023, City Council approved Amendment Number 4 to Contract Number C20176363
with Magellan for Fiber program management, organizational change management, network
operations and technical support, and utility pole electric make-ready engineering (Staff Report
#2303-1215)2. Although the phased build approach to FTTP will decrease the City’s financial risk
and increase Council’s control over the velocity of the buildout, the City does not have the
inhouse staffing to fully pursue the fiber backbone project and first phase of FTTP while
coordinating with electrification grid modernization efforts. These projects require significant
staffing and specialized skill sets over the next few years. While it is economically prudent to
2 Staff Report 2303-1215 Item Number 8
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1455
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Item No. 3. Page 3 of 8
utilize available staffing resources, the City must also strategically invest in external resources for
a successful roll-out.
On May 30, 2023, the Finance Committee reviewed the FY 2024 Budget during the budget
approval process. The FY 2024 Budget included a new Capital Improvement Project, the Grid
Modernization for Electrification Project (EL-24000).
On June 19, 2023, the City Council approved the FY 2024 budget with the new Grid Modernization
for Electrification Project. The approval of the electrification project accelerated efforts to align
electrification and fiber construction, which has begun to impact the Fiber Expansion Plans.
ANALYSIS
Align fiber and grid modernization projects
The City recently conducted an electrification study to evaluate the impacts of projected
electrification loads on Palo Alto’s distribution and substation transformers, primary/secondary
distribution circuits, and to propose upgrades needed to mitigate overloads. The estimated cost
to construct the necessary electric system upgrades for a 100% electrification scenario is
between $220 million to $306 million, depending on the approach. Specifically, the grid
modernization project involves replacing and upgrading over a thousand single phase pole top
transformers. Approximately 300,000 circuit feet of open wire secondary conductors in the
distribution system will be replaced with aluminum aerial cable. The workplan for this project is
a staged, multi-year approached designed to accomplish the upgrade of the electric distribution
system to meet the City’s goal of being ready for full-scale electrification by 2030.
Currently, staff is in the process of implementing a pilot project (~600 customers) to convert a
4kV area to 12 kV and upgrade the transformers and secondary networks to facilitate
electrification. This work is expected to be completed by the beginning of 2024, depending on
other factors which impact project timelines, such as material lead times, pole make ready, and
alignment with the fiber projects. The purpose of the pilot project is to determine the feasibility
of electrification design and construction methods, explore opportunities to align with fiber
expansion, and implement best practices to facilitate the most cost-effective deployment of
resources.
After the pilot project, the first four years of the electrification project will make approximately
70% of the electric system ready to accept full-scale electrification by residents. This will be
accomplished by upgrading over one hundred miles of the overhead electric system that serves
these residents and upgrading substation transformers to meet the increased demand. After the
overhead electric system is upgraded, the City will upgrade underground residential systems for
additional capacity with tentative completion by 2030.
Given the hundreds of miles of overhead and underground construction activity between FTTP
and electric grid modernization, staff is exploring various construction phasing options to
minimize disruption, construction activity, and construction costs within neighborhoods while
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Item No. 3. Page 4 of 8
avoiding prolonged deployments. In addition to construction constraints, staff does not have
construction for both projects in parallel.
Staff is currently engaged in discussions with an electric engineering consultant to assess the
feasibility of utilizing the fiber engineering make-ready work previously prepared by Magellan for
the grid modernization project. If feasible, the City of Palo Alto Utilities (CPAU) may be able to
expand the pilot area of the grid modernization, accelerate the design, and align construction of
grid modernization with phase one of FTTP. Staff will be analyzing the cost savings, timeline, and
resources (staffing and contractors) required for project alignment.
California Environmental Quality Act (CEQA)
The preliminary assessment, or Initial Study, will evaluate the project’s potential impacts on
various environmental factors and identify whether those impacts can be mitigated. If the
project’s impacts can be mitigated to a less-than-significant level, then the City may issue a
Mitigated Negative Declaration (MND) or Negative Declaration (ND). If the preliminary
assessment of the project determines one or more significant impacts on the environment
despite mitigation, a full environmental impact report (EIR) will be required, which involves a
more comprehensive and detailed analysis of the project’s impacts and alternatives. CPAU is
seeking to retain a CEQA consultant to prepare a CEQA Initial Study in accordance with local,
state, and federal statutes. The Initial Study identifies physical, biological, social and economic
factors that might be affected by the fiber expansion project. Some environmental factors that
could potentially be affected by this project include aesthetics, air quality, geology/soils,
hazardous materials, noise, utilities services, and hydrology/water quality. Specific examples of
likely CEQA analysis include:
o Hydrological analysis to see if any proposed fiber lines would run through areas near bodies
of water and show that there would not be significant impacts to waters of the state or waters
of the US, as well as provide recommendations for how to protect nearby waterbodies even if
there are no direct impacts (e.g. through proper stormwater protection measures)
o Air quality analysis (including understanding how to run claimed calcs for the proposed
project to evaluate air quality emissions and GHG emissions)
o Noise modeling (including analysis of potential impacts on nearby sensitive receptors from
construction noise and vibrations)
o Hazardous materials analysis (including evaluation and mitigation if necessary, of potential
impacts to construction workers and sensitive receptors especially if any of the dark fiber runs
through areas of the city runs through a plume)
Coordination with AT&T
CPAU currently has a long-standing joint pole agreement with AT&T executed in 1918. The
current joint pole agreement and pole intent process (including billing) may not be feasible to
accommodate the increased volume of pole transactions expected with the grid modernization
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Item No. 3. Page 5 of 8
and Fiber Expansion Plan. This issue will likely cause significant delays in both projects, so CPAU
is reevaluating membership in the Northern California Joint Pole Association (NCJPA). The NCJPA
is a 100+ year old non-profit organization formed to support members and provide standardized
cost-sharing methodologies for utility poles. Members have “joint pole equity” and voluntarily
share expenses for pole ownership, maintenance, use, setting, replacement, dismantling,
relinquishment or removal of jointly owned poles. Municipalities that join the NCJPA are required
follow “NCJPA rules” for their pole assets. In the past, CPAU operated without membership with
the NCJPA because the volume of pole replacements was manageable by staff and there were
additional costs associated with becoming a member. Given the anticipated increase in pole
work, NCJPA membership may be necessary to ensure pole work related to the long-term fiber
and electrification projects is conducted in a methodical, timely and cost-efficient manner. CPAU
may need to add resources to manage the volume of pole make-ready work and replacements.
Other Updates
Make-Ready Engineering
Magellan completed the survey of approximately 6,000 utility poles in Palo Alto. The survey
identified the current load and condition of each pole in preparation for the new fiber backbone
and FTTP. The survey included detailed fielding and walk-out of all routes to validate running
lines, existing utilities, and constructability. For aerial construction, Magellan provided
makeready engineering pole data to determine pole preparation and pole replacement, as well
as timeframes for the work to be completed. For the new fiber backbone and phase one of FTTP,
CPAU will be passing 1750 existing poles, attaching to 1300 poles, replacing 100 poles, and
coordinating with third parties to move their telecom equipment lower on 325 poles. In addition
to the fiber expansion project, CPAU has a recurring Wood Pole Replacement capital
improvement project to replace approximately 100 deteriorated wood poles annually. Wood
poles are used to support overhead utility lines throughout the City of Palo Alto. Though poles
are inspected, tested, and treated to maintain their integrity, over time poles will deteriorate to
the point that they are no longer in compliance with GO 95 requirements or safe for community
and utility workers.
Fiber Hut Sites:
Fiber huts are usually a prefabricated building (10’ x 20’) containing electronics and network
equipment that connects fiber to neighborhoods. The hut also has backup generators and HVAC
systems to maintain equipment within its operating environmental specifications. Two fiber huts
are recommended for the citywide network for Palo Alto Fiber. Staff and Magellan evaluated
potential fiber hut sites and considered their proximity to strategic areas, planning/land use
requirements, and existing infrastructure. As a result, staff narrowed down the potential
locations to the Colorado substation and anticipated space at City Hall. The Colorado substation
was previously identified as an ideal location due to its proximity to the area it serves and its
current use for utilities. City Hall is anticipated to have vacated space after the Police Department
moves to the new Public Safety Building. City Hall would be an ideal location for a secondary hut.
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Item No. 3. Page 6 of 8
Due to the centralized location and potential square footage, this site may also be considered for
a future data center, further securing the future of the City‘s data infrastructure.
Equinix/Data Center:
Equinix is currently the City’s data center provider. They are a vendor-neutral multitenant data
center provider where numerous internet service providers and content delivery networks can
interconnect and exchange internet traffic between their networks. As the City expands its fiber
footprint, more data center space will be needed. For FTTP, the City will have to increase the
number of leasing cabinets (vertical racks sited next to each other, each capable of holding
multiple termination/switching boxes in stacked configurations) from five to 12 cabinets. The
City is undergoing discussions with Equinix to lease additional space available in their Palo Alto
location and to explore other Equinix locations. The City may also consider increasing the size
of the data center at City Hall.
Invitation for Bid (IFB) Construction Package:
If opportunities exist to align FTTP and grid modernization, CPAU and Magellan may gather and
consolidate all supporting documents to bid out construction of FTTP and grid modernization.
The IFB package will include construction-ready prints for fiber and power, construction details,
splice details, pole make-ready details, construction standards as well as all documentation
needed to complete the bid package. This shall include a written summary and scope of work,
estimated costs to construct, as well as labor estimates, bill of materials, and the vendor list.
Invitation for Bid (IFB) Construction Package:
If opportunities exist to align FTTP and grid modernization, CPAU and Magellan may gather and
consolidate all supporting documents to bid out construction of FTTP and grid modernization.
The IFB package will include construction-ready prints for fiber and power, construction details,
splice details, pole make-ready details, construction standards as well as all documentation
needed to complete the bid package. This shall include a written summary and scope of work,
estimated costs to construct, as well as labor estimates, bill of materials, and the vendor list.
Staffing:
As the City solidifies staffing plans in parallel with contracted services, the Director of
Information Technology will take on the responsibilities of an Assistant Director for Palo Alto
Fiber on an interim basis. In the FY 2024 adopted budget, four (4) new FTE positions for the
dark fiber expansion and implementation of FTTP were created. These positions will be
recruited and filled as needed during the various stages of the project.
•Assistant Director - To provide the vision and strategy for the new fiber business and
lead a high-performance team to quickly execute. Responsibilities include and are not
limited to: overseeing fiber enterprise fund budget timelines and milestones (including
the dark fiber optic business), managing the roll out and expansion of the fiber optic
network, Internet Service Provider (ISP) operations, customer service operations, and
business development.
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•Manager Utilities Telecommunications / "Outside Plant Manager" - To lead the
construction process, installation and repair service technicians, and ensure the
outside plant processes run efficiently and smoothly. Responsibilities include and are
not limited to: overseeing construction, managing engineers and contractors, achieving
construction budget timelines and milestones.
•Manager Information Technology / "Sr. Network Engineer/Architect” – To lead the
development process of the overall architecture of the broadband system and
manage the system. Responsibilities include and are not limited to: managing the
network and supporting technical needs across the organization.
•Manager Utilities Telecommunications / "Sales and Marketing Manager" - To
develop the marketing strategy and lead marketing initiatives. Responsibilities
include and are not limited to: meeting revenue objectives, cultivating strong
partnerships, and maintaining retention rates.
.
FISCAL/RESOURCE IMPACT
This report is for informational purposes so there is no resource impact. Based on Council and
UAC input, staff will return with specific actions associated with efforts to align the fiber
expansion and electric grid modernization projects.
STAKEHOLDER ENGAGEMENT
On November 2, 2022, the UAC unanimously recommended to build fiber backbone and FTTP
under a phased approach with existing funds ($34 million from Fiber and $13 million from
Electric). The UAC expressed the goal of FTTP is to provide ubiquitous or citywide high-speed
internet access to all residents and businesses in Palo Alto. If financially self-sustaining, and
deemed successful, the first phase of FTTP can become a springboard to a citywide FTTP
deployment within five years.
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to
implement the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project
without debt financing. Included in the Council’s motion was direction to: a) maximize number
of homes and businesses passed; b) consider promotional rates to increase take rate; c) define
leading indicators and metrics to determine success; and d) recommend future Council action
to accelerate expansion if metrics are positive, including a potential bond to streamline
construction and compress construction time as much as feasible.
ENVIRONMENTAL REVIEW
The UAC’s discussion of the fiber expansion project and its potential alignment with the grid
electrification project is not a project requiring California Environmental Quality Act review,
because it is an administrative governmental activity which will not cause a direct or indirect
physical change in the environment.
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Item No. 3. Page 8 of 8
ATTACHMENTS
Attachment A: Presentation
AUTHOR/TITLE:
Dave Yuan, Strategic Business Manager
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Palo Alto Fiber Update
September 6, 2023
PALO
ALTO
llill
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- 2
AGENDA
•Council-approved Project(s) Recap
•Fiber Backbone Expansion “Rebuild” Project
•Fiber-to-the-Premises (FTTP) Project
•Grid Modernization for Electrification Project
•Informational Updates
•Alignment of Fiber Expansion and Grid Modernization Analysis
•California Environmental Quality Act (CEQA) Initial Study
•Joint Pole Ownership Coordination with AT&T
•Other Updates
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- 3
HOW DID WE GET HERE?
•What has Council Approved?
•Dec 19, 2022 approved staff to
•Proceed with dark fiber backbone
expansion “rebuild”
•Build FTTP Phase 01 in multi-
phased approach without debt
financing
•Jun 19,2023 approved staff to
•Proceed with new Grid Modernization for Electrification project in
the FY 2024 Adopted Budget
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- 4
PROJECT(S) RECAP
FIBER BACKBONE REBUILD FIBER-TO-THE-PREMISES GRID MODERNIZATION
Estimated cost $25.6M Estimated cost for Phase 1 $20M;
Citywide $102M
Estimated cost $220M to $306M
Funded by Electric and Fiber funds Funded by Fiber Fund Funded by the Electric Fund; debt
financing and/or grants
Supports the City’s fiber licensing
service and internal needs:
Improve fiber and electric
system reliability, security
and capacity
Enable more connectivity for
City departments
Internal communication
needs for SCADA, AMI, DA
and other critical
infrastructure
Supports the City’s high speed
broadband internet needs:
Provides City-owned
high-speed internet
service
Provides new capacity for
dark fiber licensing
Community investment in
its own broadband
network
Supports City’s S/CAP goals and
future demand
100% residential
electrification
Upgrade existing
substations,
replace transformers,
convert existing 4 kVa lines
to 12 kVa to increase
capacity and meet
future demand.
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- 5
INFORMATIONAL UPDATES
Topics to address prior to construction
Conduct analysis opportunities to align fiber and grid modernization
project
•Pole make-ready and replacement
•Construction phasing and timeline
•Material lead time and warehousing
•Shared costs (cost savings)
•Internal resources to implement and coordinate projects
Conduct CEQA Initial Study to evaluate potential impacts
•Identify physical, biological, social and economic factors
•Provide mitigation efforts
Joint Pole Ownership Coordination with AT&T
•Approximately 5,400 poles shared with AT&T
•Upcoming replacements and coordination will overwhelm staff
•Explore Northern California Joint Pole Association membership
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- 6
INFORMATIONAL UPDATES (cont’d)
•Other Updates
•Make-ready Engineering
•Pole survey conducted
•Fiber backbone rebuild and FTTP poles identified
•Fiber Hut Sites
•Colorado substation (previously identified)
•City Hall vacated space (newly identified)
•Equinix/Data Center
•Increase number of leasing cabinets from five to 12
•Consider expanding data center at City Hall
•Invitation for Bid (IFB)
•Identify opportunities to align projects and bid out construction for both
fiber expansion and electric grid modernization projects
•Staffing
•Four new Fiber positions added in FY 2024 budget
•Positions to be recruited as needed during various stages of the project
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Item No. 4. Page 1 of 6
Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: September 6, 2023
Staff Report: 2308-1934
TITLE
Overview of Sustainability and Climate Action Plan (S/CAP) Activities To-Date and Discussion of
Reliability and Resiliency Strategic Plan Policy Guidelines
RECOMMENDATION
This is a discussion item and no Utilities Advisory Commission (UAC) recommendation is
requested
EXECUTIVE SUMMARY
On June 5, 2023 the City Council adopted the S/CAP and the 2023 – 2025 S/CAP Work Plan (Staff
Report 2303-1158)1. Some background on the activities leading to adoption of these documents
is included below, as well as an overview of City programs currently in progress that contribute
to achieving the S/CAP goals, Work Plan items relevant to the City’s utilities, and an overview of
how the Work Plan is being implemented.
The S/CAP Work Plan includes a work plan item to complete an evaluation of the reliability and
resiliency of the electric infrastructure and systems necessary to support planned electrification
(1.B. Reliability and Resiliency Strategic Plan, see page 6 of the Work Plan). The UAC will be the
primary oversight body involved in this study. On June 5, 2023, as part of the Work Plan, Council
adopted the Policy Guidelines for Reliability and Resiliency Strategic Plan Development
(Appendix D of the Work Plan, page 40, also included in Attachment A). Staff intends to develop
the Reliability and Resiliency Strategic Plan in line with these Policy Guidelines. This staff report
describes how staff tentatively intends to proceed. Staff is seeking feedback from the UAC on
its implementation plan and any technologies, processes, or policies that it wants staff to ensure
are included in the plan, consistent with the policy guidelines.
1 Staff Report 2303-1158 Item 14
https://cityofpaloalto.primegov.com/meeting/document/1906.pdf?name=Item%2014%20Staff%20Report
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Item No. 4. Page 2 of 6
BACKGROUND
In April 2016, City Council adopted the goal of reducing GHG emissions 80 percent below 1990
levels by 20302 (the “80 x 30” goal), and in October 2022 Council adopted the ambitious goal of
achieving carbon neutrality by 20303. In November 2016 Council adopted the S/CAP
Framework4, which has served as the road map for achieving Palo Alto’s sustainability goals. In
December 2017, Council accepted the 2018-2020 Sustainability Implementation Plan “Key
Actions” as a summary of the City’s work program5.
In early 2020, the City launched an S/CAP update to determine the goals and key actions needed
to meet its sustainability targets, including the 80 x 30 goal. While GHG emissions reduction is
not the only goal of the S/CAP, it is the major one. On October 3, 2022 the Council accepted the
Goals and Key Actions recommended by the S/CAP Committee. Staff began California
Environmental Quality Act (CEQA) review of the S/CAP based on these Goals and Key Actions.
In parallel, the 2023-2025 Work Plan was reviewed by the Council Ad Hoc S/CAP Committee and
Working Group recommended approval to Council. On June 5, 2023 the S/CAP was approved,
including the Goals and Key Actions, along with the CEQA review and the 2023-2025 S/CAP Work
Plan. Attachment B provides a detailed history of the S/CAP to date.
The City already operates a variety of programs and projects that further the current S/CAP
goals. These include programs central to reducing GHG emissions, including active
transportation programs, the purchase of renewable energy, and programs to help residents
electrify their homes and vehicles. One prominent program is the Advanced Heat Pump Water
Heater Pilot Program. These programs have been operated using existing City staff augmented
by additional positions approved by Council in the FY 2022 Mid-Year Budget Amendment
Ordinance and the FY 2023 Budget. The programs use a variety of funding sources including the
General Fund, utility funds, grants, and dedicated revenue sources such as Low Carbon Fuel
Standard revenues and revenues related to the City’s participation in the State’s Cap and Trade
program.
The implementation of these programs is currently a cross-departmental effort led by the Office
of Sustainability, part of the City’s Public Works Department. The Utilities Department is heavily
involved in the community-focused aspects of the Climate Action section of the plan.
As a result of various City-led initiatives, programs, and activities focused on climate change and
sustainability, by the end of 2021 Palo Alto reduced GHG emissions an estimated 53.9 percent
from the 1990 baseline, despite a population increase of 19.5 percent during that same time.
2 Staff Report 6754 Item 10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2016/id-6754.pdf
3 Staff Report 14720 Item 9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131
4 Staff Report 7304 Item 9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131
5 2018-2020 Sustainability Implementation Plan
https://www.cityofpaloalto.org/files/assets/public/sustainability/policies-and-plans/2018-2020-sustainability-
implementation-plan-with-council-amendments.pdf
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Item No. 4. Page 3 of 6
ANALYSIS
Work Item 1.B. (Reliability and Resiliency Strategic Plan) in the 2023-2025 S/CAP Work Plan6 is
to
develop a Reliability and Resiliency Strategic Plan using the Policy Guidelines in Appendix D of
the Work Plan7. These Policy Guidelines include the following objectives:
•Maintain and improve electric system reliability
•Improve utility outage communication
•Prepare the electric system for increased penetration of solar, batteries, electric
vehicles and chargers, electrified building equipment, and similar new
technologies
•Optimize the use of local grid capacity in a cost-effective way
•Promote technologies and behaviors that contribute to the efficient and
reliable operation of the statewide and local electric system
The Policy Guidelines also includes a number of concepts to be explored as part of the Strategic
Plan. Based on these objectives and concepts staff expects to divide the work on the Reliability
and Resiliency Strategic Plan as follows, with the results of all tasks summarized in a final
document:
Task 1: System Reliability, Outage Response, and Capacity Building
This task includes evaluating measures to improve system reliability and outage
communication and prepare the electric grid for new technologies and widespread
electrification:
•Addressing utility workforce issues
•Replacing aging infrastructure as part of a grid modernization plan
•Installing additional switching and other solutions to improve reliability and
recovery from outages as part of a grid modernization effort
•Improving utility outage management system and communications protocol
•Increasing transformer capacity to accommodate higher loads
•Continuing to pursue a second transmission line and other grid-level
resiliency strategies.
These types of issues are already being addressed through workforce planning efforts, the
grid modernization effort, and other efforts. The Strategic Plan would summarize these
efforts and identify any gaps and potential mitigations.
Task 2: New Technology Integration
6 2023-2025 S/CAP Work Plan, page 6
7 2023-2025 S/CAP Work Plan, page 40, Policy Guidelines for Reliability and Resiliency Strategic Plan Development
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Item No. 4. Page 4 of 6
In this task staff would perform an analysis on what is needed to integrate new
technologies and prepare the electric grid for widespread vehicle and building
electrification. The results of this analysis will be integrated into the Reliability and
Resiliency Strategic Plan. This analysis is already in progress and is expected to be
completed in fall of 2023. It will include:
•An assessment of the grid impacts of high penetrations of distributed energy
technologies and any additional equipment that would need to be added to the
electric distribution system to accommodate them.
•A review of customer demand management technologies and the potential
distribution system benefits and impacts.
•A review of utility scale technologies to reduce peak system load and provide
other distribution system benefits.
Task 3: Customer and Neighborhood Resiliency
Several of the concepts listed in the Policy Guidelines address customer and neighborhood
resiliency. Staff’s goal in the Reliability and Resiliency Strategic Plan would be to review existing
literature on these types of solutions and identify possible projects for future follow-up and
the resources that would be needed to analyze them. Whether to move forward with any
individual project would require Council policy guidance (with recommendations from the
UAC):
•Technologies like vehicle to load or vehicle to home for home resiliency
•Equity in resiliency – how to provide resiliency to income-qualified residents
•Neighborhood-level resiliency solutions such as microgrids and local utility-scale
battery storage
•Community emergency center resiliency
•Mobile battery strategies, such as large electric vehicles that could double as
emergency resiliency solutions
Task 4: Efficient Electrification
And lastly, part of the Reliability and Resiliency Strategic Plan will be a review of low-wattage
electrification solutions and discussion of business process and regulatory changes that might
be needed to accommodate them, including any resource needs. This will include both
technological solutions (e.g. smart panels, right-sizing appliances, circuit pausers) and
behavioral solutions (e.g. encouraging equipment use at particular times of day, setting
equipment for efficiency, setting vehicles to charge at particular times or at lower rates of
charge)
Timelines
The tasks would be completed on the following timelines:
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Item No. 4. Page 5 of 6
•Task 1 (System reliability and outage management): In progress, staff would
summarize progress and identify any gaps by the end of 2023
•Task 2 (New technology integration): In progress, staff would complete the analysis
by early 2024
•Task 3 (Customer and neighborhood resiliency): Study to be completed by fall of 2024.
•Task 4 (Efficient electrification): Efficient electrification strategies to be identified
and programs / outreach implemented by fall of 2024.
•
Staff is looking for feedback from the UAC on staff’s approach to implementation of this work
plan item. Possible questions to consider may be:
•Is staff’s implementation in line with the Policy Guidelines?
•Are the right topics included? Is there a need for any additions, deletions, or
clarifications?
•Are there any technologies, processes, or policies that UAC wants staff to ensure are
included in the plan?
•Are the timelines appropriate?
FISCAL/RESOURCE IMPACT
The total staff time and non-salary budget required to complete the Reliability and Resiliency
Strategic Plan is estimated to be 0.7 FTE and $80,000 to $130,000, respectively. This will be
fulfilled using previously approved budgets and staffing. Projects to fulfill the goals of
the Reliability and Resiliency Strategic Plan require more resources, much of which is already
budgeted. For examples, grid modernization and the utility outage management system
updates require significant staff time and capital / operating expenditures, some of which is
already budgeted and some of which will be included in future years. Other items are not yet
budgeted and would require additional resources to complete (e.g. resiliency projects
identified in Task 3). The resources needed to complete the Reliability and Resiliency Plan
include:
•Task 1 (System reliability and outage management): This includes a minimal amount
of staff time to summarize the following efforts already budgeted and in progress:
• Workforce recruitment and retention efforts
• The grid modernization, projected to cost up to $300 million and requiring about
5-8 FTE annually over seven years, which includes replacement of aging
infrastructure that would be required regardless of electrification ($100 million
to
$150 million based on very approximate estimates), expansion of capacity to increase
distribution system capacity to accommodate electrification, and addition of various systems
to improve reliability.
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Item No. 4. Page 6 of 6
• Utility outage management system updates (a project expected to cost
$630,000, including five years of annual maintenance, and requiring 0.65 FTE
up front and 0.25 FTE ongoing).
•Task 2 (New technology integration): $72,000 in consulting work and 0.1 FTE. This would
cover the analysis, not any subsequent implementation.
•Task 3 (Customer and neighborhood resiliency): This section is still being scoped, but is
expected to cost up to $50,000 to $80,000 and 0.25 FTE in staff time. This is just to do
the plan. Resources for project implementation would require additional salary and non-
salary budgets, which would be estimated as part of this task.
•Task 4 (Efficient electrification): This review is expected to cost up to $30,000 to $50,000
and take up to 0.25 FTE in staff time
STAKEHOLDER ENGAGEMENT
The 2023-2025 S/CAP Work Plan was reviewed by the Council Ad Hoc S/CAP Committee and a
variety of stakeholders working with the committee. Staff expects to solicit stakeholder feedback
on Tasks 3 and 4 of the Reliability and Resiliency Strategic Plan as they are developed. When the
Strategic Plan is complete it will require public communications and community support. Electric
system reliability and resiliency are routine topics of concern in public discussions of
electrification, and the measures identified in these studies are expected to provide information
that can be used in these discussions. Work on efficient electrification will also inform future
program design and communication of efficient electrification solutions to the community.
ENVIRONMENTAL REVIEW
Development of a Reliability and Resiliency Strategic Plan is exempt from the California
Environmental Quality Act (CEQA) because it can be seen with certainty that completing a study
will not result in any environmental impacts.
ATTACHMENTS
Attachment A: Reliability and Resiliency Strategic Plan Guidelines
Attachment B: Timeline of the Sustainability and Climate Action Plan to-date
Attachment C: Presentation
AUTHOR/TITLE:
Jonathan Abendschein, Assistant Director of Resource Management
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S/CAP Three-Year Work Plan – Updated Q1 2023 Page 40 of 42
Appendix D: Policy Guidelines for Reliability and Resiliency Strategic Plan Development
Work item 1B calls for the development of a reliability and resiliency strategic plan, which would guide implementation
of reliability and resiliency work items. This would be coordinated with development of an electric vehicle strategic plan.
Objectives
1. Maintain and improve electric system reliability
2. Improve utility outage communication
3. Prepare the electric system for increased penetration of solar, batteries, electric vehicles and chargers, electrified
building equipment, and similar new technologies
4. Optimize the use of local grid capacity in a cost-effective way
5. Promote technologies and behaviors that contribute to the efficient and reliable operation of the statewide and
local electric system
Concepts to explore adding to Strategic Plan
• Addressing utility workforce issues
• Replacing aging infrastructure as part of a grid modernization plan
• Installing additional switching and other solutions to improve reliability and recovery from outages as part of a
grid modernization effort
• Improving utility outage management system and communications protocols
• Technologies like vehicle to load or vehicle to home for home resiliency
• Equity in resiliency – how to provide resiliency to income-qualified residents
• Neighborhood-level resiliency solutions such as microgrids and local utility-scale battery storage
• Community emergency center resiliency
• Mobile battery strategies, such as large electric vehicles that could double as emergency resiliency solutions
• Promoting low-wattage electrification solutions to reduce grid impacts of vehicle and building electrification Time
of day pricing and other ways to encourage shifting electric use to times of day with lower emissions, lower utility
cost, and lower local grid impact
• Increasing transformer capacity to accommodate higher loads
Item #4
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Attachment B: Background on Sustainability and Climate Action Plan (S/CAP) Development
• April 18, 2016: City Council adopted the ambitious goal of reducing GHG emissions to 80
percent below 1990 levels by 20301 (the “80 x 30” goal) - 20 years ahead of the State of
California 80 x 50 target, and an interim step towards California’s statewide goal of achieving
carbon neutrality by 2045 2.
• November 28, 2016: City Council adopted the S/CAP Framework 3, which has served as the
road map for achieving Palo Alto’s sustainability goals.
• December 11, 2017: City Council accepted the 2018-2020 Sustainability Implementation Plan
“Key Actions” as a summary of the City’s work program 4.
• June 16, 2020: The City launched an S/CAP update to determine the goals and key actions
needed to meet its sustainability goals, including the 80 x 30 goal.5
• April 19, 2021: Staff presented a preliminary impact analysis and Council directed the Mayor
to form an S/CAP Ad Hoc Committee.6
• August 2021 to April 2022: The S/CAP Committee held several public meetings with City
staff.7
• November 17, 2021: The S/CAP Ad Hoc Committee held the first meeting of its S/CAP
Working Group, which assembled knowledgeable members of the community to consult with
Council members and City staff on S/CAP implementation priorities.
• December 13, 2021: Staff presented a Progress Report on the Sustainability and Climate
Action Plan Update and S/CAP Ad Hoc Committee Work 8 to Council.
• March 7, 2022: Council and the Utilities Advisory Commission (UAC) held a joint study
1 City Council, April 18, 2016; Agenda Item #10; SR #6754,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2016/id-6754.pdf
2 In September 2018, Governor Brown signed California Executive Order B-55-18, setting the goal of achieving
carbon neutrality as soon as possible, and no later than 2045. The state is to maintain net negative net emissions
after 2045, meaning that GHG sinks must exceed GHG sources. The Executive Order explains that the carbon
neutrality goal is layered on top of the state’s existing commitments to reduce greenhouse gas emissions 40%
below 1990 levels by 2030 (as codified in SB 32), and 80% below 1990 levels by 2050.
3 City Council, November 28, 2016; Agenda Item #9; SR 7304
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2016/id-7304.pdf
4 City Council, December 11, 2017; Agenda Item 15; SR #8487,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2017/id-8487.pdf
5 City Council, June 16, 2020; Agenda Item 1; SR #11404,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020/id-11404-climate_sustainability-and-climate-action-plan.pdf?t=59513.75
6 City Council, April 19, 2021; Agenda Item 7; SR #12009,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12009.pdf
7 S/CAP Ad Hoc Committee Website, https://www.cityofpaloalto.org/scapadhoc
8 City Council, December 13, 2021, Agenda Item 19; SR #13765
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2021/id.-13765-s-cap-update.pdf
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session 9 to discuss sustainability and utility related items.
• April 11, 2022: Staff presented the Earth Day Report 10 to Council on April 11, 2022. The Earth
Day Report described the work of the S/CAP Ad Hoc Working Group teams.
• June 14, 2022: The S/CAP Ad Hoc Working Group Teams held a public meeting to discuss their
progress on three areas that would advance residential building electrification goals:
• Engagement. The work of this team included fine-tuning messaging on residential
building electrification and developing a strategy and timeline for engagement.
• Technology. The work of this team included reviewing current and emerging technologies
and their feasibility for meeting the demands of a typical home and developing a strategy.
The team also considered the influence of electrification technologies that are
implemented on the electrical grid improvements that are needed.
• Finance. The work of this team included prioritizing the most feasible funding strategies
and developing a strategy for financing S/CAP Implementation.
The working group teams also discussed an outline of a proposed Advanced Heat Pump
Water Heater Pilot Program at the June 14 meeting. They agreed to have staff develop the
outline into a more defined proposal.
• September 27 and October 3, 2022: Staff and the S/CAP Committee recommended, and
Council accepted, the S/CAP Goals and Key Actions that would be used for environmental
review. Staff and the S/CAP Committee recommended the creation of an Advanced Heat
Pump Water Heater Pilot program and Council took several actions to enable the program to
be launched.11
• June 5, 2023: Staff and the S/Cap Committee recommended, and Council adopted, the S/CAP
(including the S/CAP Goals and Key Actions), the S/CAP environmental review, and the 2023-
2025 S/CAP Work Plan 12
9 City Council and Utilities Advisory Commission, March 7, 2022; Agenda Item 3; SR #14076
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220307/20220307pccsmamendedfinal-linked.pdf#page=42
10 City Council, April 22, 2022; Agenda Item 2; SR # 14174,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14174-earth-day-report-2022-edr22.pdf
11 City Council, October 3, 2022; Agenda Item #9; SR # 14720
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131
12 City Council, June 5, 2023; Agenda Item #14; SR # 2305-1158
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=2276&meetingTemplateType=2
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August 2, 2023 www.cityofpaloalto.org
Reliability and Resiliency Strategic Plan Guidelines
Utilities Advisory
Commission
Staff: Jonathan Abendschein .CITY OF
. PALO ALTO
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2
Context: Sustainability and
Climate Action Plan (S/CAP) History
•Council Ad Hoc S/CAP Committee established April 2021
•Involves community stakeholders via Working Group (and teams)
•UAC members have been / are part of the Working Group Teams
•March 7, 2022 Joint UAC / Council Study Session
•No specific action, but positive comments from Council about UAC
involvement in grid modernization and related infrastructure topics
•Agreed to include UAC members on Working Group Teams
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Reliability and Resiliency Strategic Plan Guidelines
•S/CAP (and 2023-2025 Work Plan) adopted June 6, 2023
•Was developed 2016-2023, various milestones along the way
•A lot of implementation proceeded in parallel
•2023-2025 S/CAP Work Plan included work item to develop
Reliability and Resiliency Strategic Plan
•Guidelines for plan development included in Appendix D
•Adopted with S/CAP on June 6, 2023
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4
Staff Approach to Plan Development
Plan development includes four semi-independent tasks
Reliability and Resiliency Strategic Plan Tasks:
•Task 1: System Reliability, and Outage Response, and
Capacity Building
•Task 2: New Technology Integration
•Task 3: Customer and Neighborhood Resiliency
•Task 4: Efficient Electrification
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5
Staff is requesting UAC feedback…
Staff is looking for feedback from the UAC on staff’s approach
to implementation of this work plan item. Possible questions to
consider may be:
•Is staff’s implementation in line with the Policy Guidelines?
•Are the right topics included? Is there a need for any
additions, deletions, or clarifications?
•Are there any technologies, processes, or policies that UAC
it wants staff to ensure are included in the plan?
•Are the timelines appropriate?
•How does the UAC want to be kept informed?
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