HomeMy WebLinkAbout2022-04-06 Utilities Advisory Commission AgendaMATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA
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UTILITIES ADVISORY COMMISSION – SPECIAL MEETING
APRIL 6, 2022 – 6:00 PM
CHAMBERS / ZOOM Webinar
NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956
Supporting materials are available online at https://www.cityofpaloalto.org/gov/boards/uac/default.asp on Thursday, 5 days
preceding the meeting.
Join Zoom Webinar Here Meeting ID: 966 9129 7246 Phone: 1 (669) 900-6833
Pursuant to AB 361 Utilities Advisory Commission meetings will be held as “hybrid” meetings with the
option to attend by teleconference or in person. To maximize public safety while still maintaining
transparency and public access, members of the public can choose to participate from home or attend in
person. Members of the public who wish to participate by computer or phone can find the instructions
at the end of this agenda. Masks are strongly encouraged if attending in person. The meeting will be
broadcast on Cable TV Channel 26, live on Midpen Media Center at https://midpenmedia.org, and live
on YouTube at https://www.youtube.com/c/cityofpaloalto. Members of the public who wish to
participate by computer or phone can find the instructions at the end of this agenda.
I. ROLL CALL (6:00 pm – 6:05 pm)
II. AGENDA REVIEW AND REVISIONS (6:05 pm – 6:10 pm)
III. ORAL COMMUNICATIONS (6:10 pm – 6:25 pm)
Members of the public are invited to address the Commission on any subject not on the agenda. A reasonable time
restriction may be imposed at the discretion of the Chair. State law generally precludes the UAC from discussing or acting
upon any topic initially presented during oral communication.
IV. APPROVAL OF THE MINUTES (6:25 pm – 6:30 pm)
Approval of the Minutes of the Utilities Advisory Commission Meeting held on March
2, 2022
V. UNFINISHED BUSINESS
VI. UTILITIES DIRECTOR REPORT (6:30 pm – 6:45 pm)
VII. NEW BUSINESS
1. Adoption of a Resolution Authorizing Use of Teleconferencing for Utilities Advisory
Commission Meetings During Covid-19 State of Emergency (6:45 pm – 6:50 pm)
2. Discussion of Status Update and Preliminary Financial Busine ss Models for Palo Alto
Fiber (6:50 pm – 7:50 pm)
Chairman: Lisa Forssell Vice Chair: Lauren Segal Commissioners: John Bowie, A.C. Johnston, Phil Metz, Greg Scharff, and Loren Smith Council Liaison: Alison Cormack
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE UTILITIES DEPARTMENT AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the
City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
3. Discussion of Wastewater CIP and Update on Utilities' Quarterly Programs Report for
Q2 of FY2022 (7:50 pm – 8:10 pm)
4. Discussion of UAC Recruitment and Term Changes Resulting From the City Council's
Adoption of Ordinance 5529, Establishing Term Limits and Consolidating
Appointments to March of Each Year (8:10 pm – 8:20 pm)
5. Indication of Interest Among UAC Commissioners to Serve on S/CAP Working Groups,
Including: Finance, Engagement, Technology and/or Community Scaling (8:20 pm –
8:30 pm)
VIII. COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS
IX. FUTURE TOPICS FOR UPCOMING MEETING - May 04, 2022
SUPPLEMENTAL INFORMATION - The materials below are provided for informational purposes, not for
action or discussion during UAC Meetings (Govt. Code Section 54954.2(a)(3)).
Informational Reports 12-Month Rolling Calendar Public Letter(s) to the UAC
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA
PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE UTILITIES DEPARTMENT AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the
City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to
UACPublicMeetings@CityofPaloAlto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Commission, click on the link below for the
appropriate meeting to access a Zoom-based meeting. Please read the following
instructions carefully.
• You may download the Zoom client or connect to the meeting in-browser. If
using your browser, make sure you are using a current, up-to-date browser:
Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality
may be disabled in older browsers including Internet Explorer.
• You will be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify
you that it is your turn to speak.
• When you wish to speak on an agenda item, click on “raise hand.” The Attendant
will activate and unmute speakers in turn. Speakers will be notified shortly
before they are called to speak.
• When called, please limit your remarks to the time limit allotted.
• A timer will be shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone use the telephone number listed below.
When you wish to speak on an agenda item hit *9 on your phone so we know that you
wish to speak. You will be asked to provide your first and last name before addressing
the Council. You will be advised how long you have to speak. When called please limit
your remarks to the agenda item and time limit allotted.
Join Zoom Webinar Here
Meeting ID: 966-9129-7246
City of Palo Alto (ID # 14231)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Approval of the Minutes of the Utilities Advisory Commission Meeting
held on March 2, 2022
From: Director of Utilities
Lead Department: Utilities
Recommended Motion
Commissioner ______ moved to approve the draft minutes of the March 2, 2022 meeting as
as submitted.
Commissioner ______ seconded the motion.
The motion carried 7-0 with Chair Forssell, Vice Chair Segal, and Commissioners Bowie, Johnston, Metz,
Scharff, and Smith voting yes.
Attachments:
• Attachment A: 03-02-2022 UAC draft minutes
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Utilities Advisory Commission Minutes Approved on: Page 1 of 12
UTILITIES ADVISORY COMMISSION MEETING
MINUTES OF MARCH 2, 2022 SPECIAL MEETING
CALL TO ORDER
Chair Forssell called the meeting of the Utilities Advisory Commission (UAC) to order at 6:03 p.m.
Present: Chair Forssell, Vice Chair Segal, Commissioners Johnston, Metz, and Smith
Absent: Commissioner Bowie and Scharff
AGENDA REVIEW AND REVISIONS
None.
ORAL COMMUNICATIONS
John Bowie announced that due to a sick family member, he will not be part of the discussion but will be
listening in.
APPROVAL OF THE MINUTES
Chair Forssell invited comments on the February 2, 2022 UAC draft meeting minutes.
Vice Chair Segal noted pg. 6, first paragraph, middle sentence, “of the bridge solution to help differ” should
read “differed”.
Commissioner Johnson moved to approve the draft minutes of the February 2, 2022 meeting as amended.
Commissioner Metz seconded the motion.
The motion carried 5-0 with Chair Forssell, Vice Chair Segal, and Commissioners Johnston, Metz,
and Smith voting yes.
Commissioners Bowie and Scharff absent.
Chair Forssell invited comments on the February 08, 2022 UAC draft meeting minutes.
Chair Forssell noted pg. 3, bottom, in the paragraph, Forssell appreciated “sense of the goal was to have a
single data set to be gathered from market survey to a fiber hub” sound like a fiber hub the idea was to gather
the same information so the data can be consolidated.
Commissioner Johnston moved to approve the draft minutes of the February 8, 2022 meeting as amended.
Vice Chair Segal seconded the motion.
DRAFT
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The motion carried 5-0 with Chair Forssell, Vice Chair Segal, and Commissioners Johnston, Metz, and Smith
voting yes.
Commissioners Bowie and Scharff absent.
UNFINISHED BUSINESS
None.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Director’s Report.
Hydro Production Forecast: For water year 2021 to 2022 which is October 2021 to September 2022, total
precipitation is currently 80-85% of average for the year to-date in the two watersheds that Palo Alto depends
on for hydroelectric generation. Total actual hydropower for FY 2021 was 38% below the long- term average.
Total forecasted hydropower for FY 2022 is 41% below the long-term average. Drier hydro conditions and
higher market prices for electricity have resulted in increased cost. Council will consider activating the Hydro
Rate Adjuster at its March 14 meeting.
Water Supply Update: Atmospheric rivers in October and December generated significant snowpack, but
January 2022 was the driest January on record for the Hetch Hetchy gauge and dry conditions continued
through February. Snowpack and total precipitation for the Hetch Hetchy system are both below normal.
Regional Water System storage, however, is in fairly good shape. As of February 27, 2022, total storage was
74% full (normal system storage for this time of year is 82%). The SFPUC declared a local water shortage
emergency on November 23 calling for voluntary systemwide 10% water use reductions. For January 2022,
Palo Alto’s water usage was almost identical to its water budget, but usage will exceed the budget in
February. Staff is planning more outreach to encourage residents and business to save water while still caring
for the urban canopy and to remind them of current water waste restrictions.
Drought Outreach: As a result of the dry conditions, CPAU is ramping up outreach about water supply
conditions, water use restrictions, and resources for water use efficiency. Staff are working with the Bay Area
Water Supply and Conservation Agency (BAWSCA) and Valley Water to coordinate public education events.
High Natural Gas Prices: Natural gas prices increased this winter and are currently higher than usual due to
changes in the market supply and demand. Gas prices are dependent on the gas market and can fluctuate
greatly from month to month due to factors such as national weather, gas production, storage levels, and
international trade. CPAU purchases gas from the market on a monthly basis, therefore fluctuations in pricing
can affect customers. CPAU is trying to inform customers about these higher gas prices and share ideas for
energy efficiency measures to keep utility costs down. Our webpage cityofpaloalto.org/efficiencytips
provides some no-cost and low-cost ways to help keep utility bill costs low.
Upcoming Events (details and registration at cityofpaloalto.org/workshops):
• EV Financial Incentives Clinic: Thursday, March 10, 07-8PM - Think you can’t afford an EV? Think
again! Learn about the many financial assistance programs available to income-qualifying residents,
including the Clean Cars for All grant, Driving Clean Assistance grant, and county-specific programs
in the San Francisco Bay Area. Afterwards, attendees may request a free consultation for additional
guidance in identifying the programs for which they qualify.
• Neighborhood EV Expos: Come talk with EV owners and drivers about their experiences driving and
charging electric. Ask questions, get answers about these topics including pricing and incentives.
• There are many dates throughout the year – check the online calendar at acterra.org/2022-ev. These
events are sponsored by the City of Palo Alto and Acterra, and hosted by EV Ambassadors in the
community. The events are planned to be in-person but are subject to change. EV101: Saturday,
March 26, 10-11 am - Online event - Is an EV Right for You? - We’ll review available models, charging
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Utilities Advisory Commission Minutes Approved on: Page 3 of 12
at home and on the road, incentives, total cost of ownership, and hear from EV owners what they
love most about driving electric.
In answer to Commissioner Johnston’s query regarding comments about utility bills made on NextDoor,
Batchelor concurred that the comments were related to high gas charges. Commissioner Johnston suggested
that Staff be proactive in outreach when prices will be high.
NEW BUSINESS
ITEM 1: ACTION: Adoption of a Resolution Authoring the use of Teleconference for Utilities Advisory
Commission Meetings During Covid-19 State of Emergency
ACTION: Commissioner Johnston moved Staff recommendation that the Utilities Advisory Commission (UAC)
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government Code Section
54953(e) for meetings of the Utilities Advisory Commission (UAC) and its committees due to the Covid-19
declared state of emergency.
Seconded by Commissioner Smith
Motion carries 5-0 with Chair Forssell, Vice Chair Segal and Commissioners Johnston, Metz, and Smith voting
yes.
Commissioners Bowie and Scharff absent
ITEM 2: DISCUSSION: Discussion and update on Palo Alto Fiber Community Engagement
Dave Yuan, Strategic Business Manager, shared that on February 24, 2022, the City hosted the Palo Alto Fiber
community information session. Approximately 80 folks attended the session and based on questions, there
was general support for the City to provide broadband. He invited John Honker to speak about the upcoming
residential and commercial broadband surveys that were launched in May of 2022. At the April 2022 UAC
meeting, Staff will provide another community engagement update as well as share preliminary financial
business plans for fiber-to-the-home (FTTH) and fiber to the premise.
Chair Forssell moved to Item 3 due to the technical difficulties with Item 2.
John Honker, Magellan Representative confirmed that the first Palo Alto Fiber community meeting was
positive and many folks expressed a want to sign up for service. The Community meeting focused on the
benefits of City-owned fiber as well as the local ownership and control. Residents left their information to
stay in touch about the project and were invited to participate in the coming surveys. The next community
meeting will be scheduled for May of 2022. Staff has been doing community engagement ahead of the
surveys to facilitate greater participation. The surveys will be sent out electronically to residents or businesses
via email and each will have a unique tracking link. The goal of the surveys was to understand the value that
consumers place on broadband and fiber as well as the value of the City providing services versus other
providers. A subcommittee made up of UAC Members previewed the surveys and provided feedback. Staff
predicted that the results of the surveys would be available in June of 2022, but the surveys will remain open
to collect more information. After preliminary data is collected, it will take 3-weeks to run the analyses and
establish final take rates, pricing, the elasticity curve and other components.
Commissioner Johnston agreed that the participants at the community meeting were enthusiastic about Palo
Alto Fiber. He stated it is very important to reach as many folks in the community as possible with the surveys.
Commissioner Smith was thrilled with the outcome of the first community meeting. He stated that the survey
will be the telling factor for Council. Honker predicted that there will be high participation numbers for the
surveys. Commissioner Smith believed that the ambassador program can play a major role in spreading the
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Utilities Advisory Commission Minutes Approved on: Page 4 of 12
word about the surveys. He expressed that the target for statistical results needed to be a lot higher than 1.3
percent. In answer to his question regarding having the survey results in June 2022 as well as a presentation
to Council in June of 2022, Batchelor confirmed that Staff planned to make a presentation to Council after
their summer break in August of 2022. Commissioner Smith appreciated the proposed timeline. He
recommended that the ambassador program be launched earlier than anticipated and begin having active
engagement with the neighborhoods. He encouraged Staff to provide Council with preliminary survey results
before their break. He emphasized that FTTH was not included in Council’s core program goals for Fiscal Year
2023 and that the community’s engagement was highly important.
Vice Chair Segal echoed the comments regarding the enthusiasm at the first community meeting. She
seconded Commissioner Smith’s concern regarding minimum responses to the survey.
Chair Forssell concurred with the previous statements and recommended that the survey be sent to folks
who have different service providers in the City.
In answer to Council Member Cormack’s inquiry regarding the questions asked at the community meeting,
Honker noted that there were no questions that stood out. The questions were focused on when would fiber
begin, pricing and how to sign up for service. Several questions were submitted after the meeting that Staff
was still evaluating. In reply to Council Member Cormack’s query regarding forwarding the survey, Honker
noted that 90 percent of the City will receive the survey and there was no option for folks to forward it to
friends and family. Council Member Cormack acknowledged that often multiple people live in one household
but there is only one name on the utility bill. She expressed concern about missing those folks in the survey
process.
ACTION: None.
Chair Forssell moved to Item 4.
ITEM 3: DISCUSSION: Discussion and Update on REC Exchange Program Results for 2021 and Projections for
2022-2027
Jim Stack, Senior Resource Planner, reported that the Renewable Energy Credit (REC) Exchange Program was
approved in the year 2020 by the Council. The program allowed the City to sell a portion of in-state renewable
resources and purchase less expensive out-of-state renewable resources. The revenue produced by the
programs was used to reduce rates and fund local decarbonization efforts. For the year 2021, the Bucket 1
REC sale volumes and revenue totals were in alignment with Staff’s projections. The net revenue for Bucket
1 and Bucket 3 sales and purchases combined was lower than Staff projected at $2.4 million instead of the
projected $2.8 million. Revenue was lower due to the hydro generation diminishing throughout the year.
Moving forward to the year 2023 and beyond, all revenue will be contributed to the City’s decarbonization
programs. Due to a low hydro season, the City had to purchase more market power than expected to comply
with the City’s Carbon Neutral Plan objectives. The City’s overall Renewable Portfolio Standards (RPS) level
dropped from 67 percent before the REC transactions to 32 percent due to the City not being able to count
most of its unbundled REC purchases towards RPS compliance. Also, the average emissions intensity went
from 26 kilograms (kg) CO2 per megawatt-hour (MWh) to 155 kg CO2 per MWh. The state-wide average for
emission intensity for the year 2020 was 466 kg CO2 per MWh.
In answer to Chair Forssell’s inquiry regarding the based portfolio being 26 kg CO2 per MWh when it should
be carbon neutral, Stack answered that the City would have been 4 percent short due to the poor hydro
conditions and the City had to purchase unbundled RECs, which the state does not count as carbon-neutral.
Stack continued to the year 2022’s REC Exchange projections. Staff has issued a Request for Proposal (RFP)
to sell a large quantity of Bucket 1 resources and then will purchase Bucket 3 resources for the year. Staff
projected the net revenue total to be $770,000 for the year 2022. The City had fewer Bucket 1 RECs to sell
due to one of the larger wind energy contracts expiring in the year 2021. The City acquired a new solar
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Utilities Advisory Commission Minutes Approved on: Page 5 of 12
contract to replace this wind energy but it will not come online until the year 2023. Staff also predicted that
hydro will have another low year and the City will have to purchase more Bucket 3 RECs. Staff projected that
the RPS level will be 61 percent before the transactions. Emissions intensity before the transactions was
projected to be 34 kg CO2 per MWh and after the transactions, it was projected to be 153 kg CO2 per MWh.
In response to Commissioner Metz’s query regarding the state’s RPS targets for future years, Stack confirmed
that the City was on course to reach the mandated targets.
Commissioner Smith recalled that when the program was adopted, the City was facing significant budget and
revenue shortfalls across the utilities. The program was to mitigate those shortfalls and then sunset at a later
time. Stack noted that Council did not establish a sunset date in their authorization, but directed Staff to
return to Council at a later time. Staff will be returning to Council within the year to review the authorization
and determine if the program should continue.
In reply to Chair Forssell’s question regarding which decarbonization programs are funded by the REC
Exchange Program, Jonathan Abendschein, Assistant Director of Utilities, stated that the funds were being
held in a reserve and the exact priorities of the funds are under discussion. In answer to Chair Forssell’s query
regarding why the wind contract and the new solar contract did not line up, Dean Batchelor, Director of
Utilities, mentioned that the energy purchased by the City will be from the second phase of the project which
resulted in a delay of a year.
In response to Vice Chair Segal’s query regarding how the City decides whether to contract for solar or wind
energy, Stack shared that Staff will soon be updating the 5-year Integrated Resource Plan which will evaluate
the City’s current resources and projected needs versus alternative supply options available in the market.
ACTION: None.
Chair Forssell moved back to Item 3.
ITEM 4: ACTION: Staff Recommends the Utilities Advisory Commission Recommend the City Council Adopt
Two Resolutions: 1) Approving an Amendment to the Amended and Restated Water Supply Agreement
Between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo
County, and Santa Clara County, and Authorizing the City Manager to Execute the Amended Agreement; and
2) Approving a Minimum Purchase Transfer From the City of Mountain View to the City of East Palo Alto
Lisa Bilir, Senior Resource Planner, reported that the Minimum Purchase Amendment was an amendment to
the Water Supply Agreement. The Water Supply Agreement was a contract that the City and 25 other
wholesale customers have with San Francisco Public Utilities Commission (SFPUC). The Bay Area Water
Supply and Conservation Agency (BAWSCA) has been hosting meetings with Staff throughout the 3 years to
draft the amendments. BAWSC is a government agency that was created by the legislature in 2003 and they
provided a representative voice for the City and the other wholesale customers before the SFPUC. Of the 25
wholesale customers, four have a minimum purchase requirement from SFPUC for water because they can
purchase water from other sources. The proposed Minimum Purchase Amendment protected the other
customers from volatility in the water sales and revenues. SFPUC had an obligation to provide 184 million
gallons of water a day (mgd) to the wholesale customers and that was called the Supply Assurance. The
Supply Assurance was allocated among the wholesale customers, and 23 agencies have a portion of that
Supply Assurance called an individual Supply Guarantee. Palo Alto does not have a Minimum Purchase
requirement and has sufficient Individual Supply Guarantee for its current and future needs. Staff was
confident that the amendment would not affect Palo Alto’s financial risk or water supply.
The first amendment allowed for a paired transfer of Minimum Purchase and Individual Supply Guarantee.
The Minimum Purchase could be transferred to wholesale customers with an Individual Supply Guarantee.
The transfers were limited to 6 million gallons of water per day and 50 percent of the original Minimum
Purchase for each Minimum Purchase Agency. Palo Alto will not be a participant in paired transfers of
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Utilities Advisory Commission Minutes Approved on: Page 6 of 12
Individual Supply Guarantee. One of the key benefits of the amendment was that removing the barrier to
potential transfers would allow SFPUC to develop new supplies for water.
The City of Mountain View and the City of East Palo Alto were requesting that the other customers approve
a second amendment that results in the conversion of 1.0 mgd Individual Supply Guarantee sold to the City
of East Palo Alto into a transfer of up to 1.0 mgd of the City of Mountain View’s Minimum Purchase plus
Individual Supply Guarantee, in 0.25 mgd increments. This proposal applies the process in the first
amendment to the transaction that took place between the two cities in 2017.
Commissioner Smith understood that there are some wholesale customers who no longer need the
mandated amount under the Minimum Supply and they are requesting an out clause. Palo Alto does not
need that type of amendment but Palo Alto must accept the amendment to allow the other agencies to move
forward. Bilir confirmed that is correct. In answer to his query regarding an oversupply of water, Bilir
confirmed that SFPUC is pursuing a water supply alternative while exploring additional water supplies. In
reply to Commissioner Smith’s question regarding SFPUC charging a higher rate to other customers if the
water supply is not sold, Bilir clarified that the amendment does not change the way the wholesale customer
rate is calculated. Staff believed that the amendment will not have a negative impact on Palo Alto and may
have regional benefits. Commissioner Smith did not understand how the amendment would remove barriers
for SFPUC to develop new water supplies.
Council Member Cormack explained that the City was evaluating the amendment not because it applied to
the City, but because the City was a partner in the BAWSCA system and the amendment applied to all
partners.
Commissioner Johnston stated he was comfortable with the amendments. He understood that Palo Alto
having a 6 million gallon per day surplus and Karla Dailey, Acting Assistant Director of Utilities, confirmed that
is correct. In answer to Commissioner Johnston’s inquiry regarding how much water would be needed if Palo
Alto fulfilled its Regional Housing Needs Allocation (RHNA) requirements, Bilir explained that the Urban
Water Management Plan used the Comprehensive Plan population growth calculations. Staff has confirmed
that Palo Alto will be under its allowable water supply usage to cover the additional needs in the future.
Commissioner Johnston wanted to know more about future housing production and the City’s water supply.
Chair Forssell requested that Staff email the chart that Council Member Cormack mentioned that was
provided in the Colleague’s Memo to the Commissioners.
In answer to Vice Chair Seagal’s query regarding maintenance cost across the system and how it is portioned
out, Bilir restated that there will be no change to Palo Alto’s portion. In reply to Vice Chair Seagal’s question
regarding drought restrictions and how that affects the City of Mountain View and City of East Palo Alto’s
agreement, Bilir noted that in a drought, SFPUC can waive the Minimum Purchase requirements. Through
an analysis of such a scenario, Palo Alto’s risk and financial impacts were unchanged.
ACTION: Vice Chair Segal moved Staff recommendation the UAC recommend the City Council adopt two
resolutions (Attachment A and Attachment B) as follows:
1) Approving the attached “2021 Amended and Restated Water Supply Agreement Between the City
and County of San Francisco Wholesale Customers in Alameda County, San Mateo County, and
Santa Clara County” (Attachment C) and authorizing the City Manager to execute such Agreement
when final execution copies are prepared and distributed by the Bay Area Water Supply and
Conservation Agency (BAWSCA);
2) Approving a Minimum Purchase Transfer from the City of Mountain View to the City of East Palo
Alto.
Seconded by Commissioner Johnston.
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Utilities Advisory Commission Minutes Approved on: Page 7 of 12
Motion carries 5-0 with Chair Forssell and Vice Chair Segal, Commissioners Johnston, Metz,
and Smith voting yes.
Commissioners Bowie and Scharff absent
The UAC took a break at 7:52 p.m. and resumed at 8:03 p.m.
Commissioner Smith left the meeting at 8:00 p.m.
ITEM 5: ACTION: Staff Recommendation That the Utilities Advisory Commission Recommend the City Council
Adopt a Resolution Approving the Fiscal Year 2023 Water Utility Financial Plan, Including Reserve Transfers,
and Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2
(Water Service From Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential MasterMetered and
General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service).
Dean Batchelor, Director of Utilities, introduced Lisa Bilir who presented the item to the UAC.
Lisa Bilir, Senior Resource Planner, stated the proposal is for a 4 percent distribution rate increase for Fiscal
Year (FY) 2023 with a 4 percent annual increase in subsequent years. The rate increases are to fund seismic
upgrades for three reservoirs, main replacements and generators for wildfire and emergencies. Due to
drought, the forecast assumed a net reduction of approximately $2.6 million in revenue in FY 2022. The San
Francisco San Francisco Public Utilities Commission (SFPUC) estimated in February 2023 that they will
increase their rates by 15.9 percent. Staff proposed to use the reserves to mitigate the distribution rate
increases. The Operation Reserve was at the maximum guideline level with an additional $7 million above
the maximum level. Those funds will be used within 1-year to pay for the operational cost and capital cost of
the Water Utility. The Rate Stabilization Reserve had an additional $9 million which will be used to mitigate
the rate increases on the distribution side of the utility. The recommendation for the Capital Improvement
Project (CIP) Reserve was to transfer $13.96 million out of the fund to pay the remaining balance for the CIP-
planned projects for the year 2022. Staff predicted that SFPUC will issue a notice of the rate increase in March
2022 and the rate increase will go to their Commission in May 2022. Staff will notify residents of the increase
and it will be a pass-through charge to Palo Alto customers. The driver for SFPUC to increase their rate was
due to the projected drop in sales for wholesale customers. Staff provided an alternative scenario with a
worsening drought for the year 2023. This scenario would result in an additional $4.2 million net reduction
in revenues in the year 2023 and require a 5 percent distribution rate increase. The average annual median
bill for customers will increase by 9 to 13 percent and commercial customers can expect an increase between
9 to 13 percent.
In answer to Chair Forssell’s request for the distribution rate increase percentage, Bilir confirmed that it is a
4 percent distribution rate increase.
Bilir continued with the monthly water bill comparison. The City of Palo Alto was 14 percent above
comparable cities averages for residential and 2 percent above comparable cities averages for commercial.
Commissioner Johnston remarked that the City has to increase its water rate due to SFPUC increasing its
water supply cost. Bilir agreed that in December 2021, SFPUC was looking at a 5 percent increase and now
they will be using a 15.9 percent increase. Another reason was Staff has refined the rate model, the CIP
Budget, and the assumptions to reflect the Long Range Financial Forecast. In answer to Commissioner
Johnston’s query regarding what opportunities the City has to push back on SFPUC’s proposed increase, Bilir
clarified that SFPUC was not changing its revenue requirement. SFPUC was experiencing a significant
reduction in sales. SFPUC would apply the credit of $86 million in the balancing account to the year 2022 and
2023 to help mitigate the rate increase. In response to Commissioner Johnston’s query regarding a 15.9
percent increase and customer’s bills, Bilir answered a customer’s bill will increase by 9.5 percent.
Commissioner Johnston stated it is helpful to look at the overall impact of all of the rate increases for all
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Utilities Advisory Commission Minutes Approved on: Page 8 of 12
utilities on a customer’s bill. He concluded that the rate increase is justified, but it would be helpful to see it
in context.
Commissioner Metz understood from Staff that the housing mandates that the City faces are not baked into
the financial plans. Those mandates could have a significant impact on all utilities and he requested that out-
year planning incorporate those mandates.
Vice Chair Segal commented that the City must do a better job of letting folks know there will be a large
increase in their water bill. Karla Dailey, Assistant Director of Utilities, concurred that Staff did do outreach
regarding the large increase in the gas commodity and suggested using those outreach methods to warn
customers about the water increases.
In response to Chair Forssell’s request for clarification regarding why $13.9 million has to be transferred from
the CIP Reserve, Bilir answered that the money cannot be spent directly from the CIP Reserve.
ACTION: Commissioner Johnston moved Staff requests that the Utilities Advisory Commission (UAC)
recommend that the Council:
1. Adopt a resolution (Attachment A):
a. Approving the Fiscal Year (FY) 2023 Water Utility Financial Plan (Linked Document);
b. Approving a transfer of up to $13.964 million from the Capital Improvement Program (CIP) Reserve to the
Operations Reserve in FY 2022; and
c. Increasing Water Utility Rates Via the Amendment of Rate Schedules W-1 (General Residential Water
service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-
Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service)
Seconded by Commissioner Metz.
Motion carries 4-0 with Chair Forssell and Vice Chair Segal, Commissioners Johnston, Metz voting yes.
Commissioners Bowie, Scharff, and Smith absent
ITEM 6: ACTION: Staff Recommendation That the Utilities Advisory Commission Recommend the City Council
Adopt a Resolution Approving the FY 2023 Wastewater Collection Utility Financial Plan Including Reserve
Transfers and Increasing Wastewater Rates by Amending Rate Schedules S-1 (Residential Wastewater
Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater
Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger).
Lisa Bilir, Senior Resource Planner, announced that Staff proposes a 3 percent overall revenue increase in FY
2023 and a $5.33 million transfer from the CIP Reserve to the Operations Reserves in FY 2022. Staff expected
significant increases in the treatment plant debt service cost. To prepare for the debt service coming online,
the plan transfers $1 million in FY 2025 and FY 2026 to the Rate Stabilization Reserve and will use those funds
in FY 2027 to smooth the increase. The Wastewater Utility was experiencing revenue impacts associated with
reductions in usage for non-residents of $1 million in FY 2022. Revenues were recovering but were 12 percent
below pre-Covid-19 levels for commercial and 20 percent for restaurants. The Operation Reserve remained
within the guideline range but was expected to drop close to the minimum level in FY 2025. The rate impact
for customers was $1.30 for residents, $3.40 for commercial customers and $20.28 for restaurants.
Compared to nearby cities, Palo Alto was below the average wastewater bill by 28 percent for residents, 7
percent higher for commercial customers and 14 percent lower for restaurants. The CIP Reserve would dip
close to minimum levels but remained within guideline levels throughout the forecasted period.
In answer to Commissioner Johnston’s query regarding what percentage is used for salary and benefit costs,
Bilir clarified that the percentage is different for each utility and she estimated it was a 5 percent increase for
FY 2023. Dean Batchelor, Director of Utilities, noted that salary and benefit-cost is based on a 4 to 5 percent
increase which are spread across the operations for the Water, Gas, and Wastewater Utility. Dave Yuan,
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Strategic Business Manager, added that the Budget based the salary and benefits on employee salaries and
benefits those employees chose.
In reply to Commissioner Metz’s query regarding the large capital projects, Bilir disclosed that the capital
expenditures are shared and Palo Alto’s share is 33 to 34 percent of the total cost. Karin North, Assistant
Director of Public Works explained that new regulations are coming into play to remove nutrients and the
secondary treatment upgrade project will remove nitrogen before the water is discharged into the Bay. In
response to Commissioner Metz’s inquiry regarding the headworks facility capital project, North summarized
that the system protects the pumps and has to be rebuilt.
In answer to Chair Forssell’s request for Staff to define near terms for capital projects, North reported that
the sedimentation tanks are under construction, the new outfall pipeline has reached 90 percent for design,
the secondary treatment upgrades and the advanced water purification system are in the design phase, and
work has not begun on the headworks facility and the lab building. She noted it takes a year to design a
project and then begin construction.
ACTION: Commissioner Metz moved Staff requests that the Utilities Advisory Commission (UAC) recommend
that the Council:
1. Adopt a resolution (Attachment A) approving:
a. The Fiscal Year (FY) 2023 Wastewater Collection Financial Plan (Linked Document); and
b. Transfer amount of up to $5.33 million from the Capital Improvement Projects Reserve to the Operations
Reserve in FY 2022; and
c. Increases to Wastewater Collection Utility Rates Via the Amendment of Rate Schedules S-1 (Residential
Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant
Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial
Discharger) (Attachment B)
Seconded by Commissioner Johnston
Motion carries 4-0 with Chair Forssell and Vice Chair Segal, Commissioners Johnston, Metz, voting yes.
Commissioners Bowie, Scharff, and Smith absent
ITEM 7: ACTION: Staff Recommendation That the Utilities Advisory Commission Recommend the City Council
Adopt a Resolution Approving the Fiscal Year 2023 Gas Utility Financial Plan, Including Proposed Transfers,
and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-
Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural
Gas Service).
Dean Batchelor, Director of Utilities, introduced Eric Keniston who presented to the UAC the Gas Utility
Financial Plan.
Eric Keniston, Senior Resource Planner, reported that the proposal is to have a 4 percent overall increase for
FY 2023 and then a 4 percent rate increase for subsequent years. The Operating Reserves were projected to
remain near the targeted guideline levels. Gas commodity prices remain high, but future projections have
those prices decreasing slightly. The City continued to have a lower rate than Pacific, Gas and Electric
Company (PG&E) by 14 percent for residential customers.
Vice Chair Segal recalled that the City’s approach is to have larger capital projects done every other year, but
the budget has not increased to reflect that approach. Keniston noted that there are other CIP projects
besides main replacements. Dave Yuan, Strategic Business Manager, confirmed that Vice Chair Segal is
correct but the City budgets every year to smooth out the rates. In summary, the rates will raise $5 million
annually and then large capital projects will be constructed every other year. Batchelor added that the annual
$5 to $6 million is added to the $7 to $9 million for capital projects. Karla Dailey, Acting Assistant Director of
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Utilities, recalled that the every other year model was not able to be implemented over the last 2-years due
to the Covid-19 Pandemic. Keniston noted that is not true. The City continued to plan through the pandemic
a main replacement every other year.
Commissioner Metz suggested that the new housing mandates and the City’s push to electrify should be
baked into the financial forecast. Keniston noted that Staff is working on how to factor those two items into
the plan for the future.
In reply to Chair Forssell’s query regarding Council’s direction, Keniston remarked that until a template is
established on how to downsize mains and reduce the use of the Gas Utility. It is difficult to include the City’s
electrification plans in the financial forecast. Gas usage continued to decrease but at a slow rate.
Commissioner Metz remarked UAC could seek direction from Council to help Staff with the process. Keniston
added that Staff is working on components of the Sustainability and Climate Action Plan (S/CAP) and will be
bringing those forward soon. Batchelor agreed that through more discussion with Council the plan will
become clearer. Silvia Santos, Utilities WGW Manager, agreed that Staff could choose a block or
neighborhood to electrify and discontinue gas to that area. Staff must evaluate whether the transformer for
that block or neighborhood can accommodate the electrical load.
In answer to Chair Forssell’s question regarding the reserve transfers, Keniston confirmed that the Rate
Stabilization Transfer is to mitigate a large rate increase. The funds will be transferred from the Operations
Reserve to the CIP Reserve and held in the CIP Reserve. Then transferred back to the Operations Reserve
when the capital project is ready. In reply to Chair Forssell’s question regarding a time delay for the pass-
through commodity charge for the Gas Utility, Keniston explained that the gas price is published on the first
day of each month. Dailey added that the City purchases gas at the market rate and then passes that cost
through to customer for their usage that month.
Council Member Cormack appreciated the comments regarding S/CAP. She acknowledged that the City’s
infrastructure cannot accommodate electrification and the City must maintain the Gas Utility infrastructure
until the electrical grid is modernized. She mentioned that teams are working on different aspects of the
S/CAP and a UAC Member may be able to be involved in the work of the community scaling team looking at
electrification.
ACTION: Vice Chair Segal moved Staff requests that the Utilities Advisory Commission (UAC) recommend that
the Council adopt a resolution (Attachment A):
a. Approving the fiscal year (FY) 2023 Gas Utility Financial Plan (Linked Document); and
b. Transferring up to $3 million from the Operations Reserve to the CIP Reserve in FY 2022; and
c. Transferring up to $2.766 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2022;
and
d. Increasing gas rates by amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-
Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural
Gas Service) (Attachment B)
Seconded by Commissioner Johnston
Motion carries 4-0 with Chair Forssell and Vice Chair Segal, Commissioners Johnston, Metz voting yes.
Commissioners Bowie, Scharff and Smith absent
ITEM 8: ACTION: Staff Recommendation That the Utilities Advisory Commission Recommend the City Council
Adopt a Resolution Approving the Fiscal Year 2023 Electric Financial Plan and Reserve Transfers, Amending
the Electric Utility Reserve Management Practices, and Amending Rate Schedules E-1 (Residential Electric
Service), E-2 (Residential Master-Metered and Small Non-Residential Electric Service), E-2-G (Residential
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Utilities Advisory Commission Minutes Approved on: Page 11 of 12
Master-Metered and Small Non-Residential Green Power Electric Service), E-4 (Medium Non- Residential
Electric Service), E-4-G (Medium Non-Residential Green Power Electric Service), E-4 TOU (Medium Non-
Residential Time of Use Electric Service), E 7 (Large Non-Residential Electric Service), E-7-G (Large Non-
Residential Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), E-14
(Street Lights), E-NSE (Net Metering Net Surplus Electricity Compensation), and E-EEC (Export Electricity
Compensation).
Eric Keniston, Senior Resource Planner, reported that the proposal is a 5 percent rate increase with projected
5 percent rate increases in the subsequent years. To accommodate a 5 percent rate increase, the Hydro
Stabilization Reserve will be depleted. The Hydro Rate Adjuster will be activated and will add $0.013 per
kilowatt-hour in revenue. Staff predicted that hydro conditions will not improve in FY 2023. Starting in FY
2024 and FY 2025, there may be a rate increase of 6 percent due to electrification and S/CAP implementation.
The Operating Reserve will increase due to the influx of funds from the Hydro Stabilization Reserve and then
will decrease rapidly. Staff requested that the Electric Special Project Reserve remain active through FY 2027
and not sunset at the end of FY 2022.
Commissioner Johnston appreciated that Staff did the work to spread the cost increases out and supported
the proposal. In response to his understanding that CIP projects are not to modernize the electrical grid,
Keniston confirmed that is correct. Commissioner Johnston emphasized that it is important to begin exploring
what the costs will be to modernize the grid to meet the S/CAP goals.
In reply to Chair Forssell’s inquiry regarding changes to the Hydro Rate Adjuster, Keniston explained that the
changes would allow Staff to active the Hydro Rate Adjuster quickly. In answer to Chair Forssell’s question
regarding local solar and if it is factored into the financial forecast, Keniston answered that local solar does
not affect the general load. More efficient technologies have accelerated the path of general load decline.
Chair Forssell requested that Staff provide a list of what districts have been undergrounded, which are
planned for undergrounding, and which substations are being upgraded. Batchelor confirmed that Staff will
provide that information in an email to the UAC.
In answer to Council Member Cormack’s question regarding who decides how to spend Cap and Trade
Program funds, Keniston shared historically the City used the funds for renewable resources. If the funds are
not spent, the City has 10-years to spend the funds on appropriate programs. Jonathan Abendschein,
Assistant Director of Utilities, added that how funds are spent is under the purview of the City Manager. In
response to Council Member Cormack’s request to explain Item 8 and 9 of Staff’s recommended motion,
Keniston explained that the changes reflected the avoided cost of electricity and is the same methodology
the City has used historically. The discussions in the news regarding NEM 3.0 do not affect the City. For folks
under the NEM1 Program, they are grandfathered in under a provision that the energy they generate. The
City compensates those folks at the full retail rate. Under the NEM2 Program, there is no subsidy.
In answer to Chair Forssell’s query regarding what the price for kilowatt-hour is for the electricity
compensation rate, Keniston predicted $0.10. In reply to Chair Forssell’s query regarding the difference
between the export electricity compensation and the net surplus electricity compensation rate, Keniston
answered that one is used for NEM1 customers and one is used for NEM2 customers.
ACTION: Commissioner Johnston moved Staff requests that the Utilities Advisory Commission (UAC)
recommend that the Council adopt a Resolution (Attachment A):
1. Approving the Fiscal Year (FY) 2023 Electric Financial Plan (Linked Document);
2. Amending the Electric Fund Reserve Management Practices, specifically amending Section 6: Electric
Special Projects Reserve, as follows:
a. Amend part e) setting the goal to commit ESP funds by the end of FY 2023; and
b. Amend part f) setting the date to revert uncommitted funds to the Electric Supply Operations Reserve to
five years after the commitment date (FY 2028)
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Utilities Advisory Commission Minutes Approved on: Page 12 of 12
3. Approving the following transfers at the end of FY 2022:
a. Up to $15 million from the Hydro Stabilization Reserve to the Supply Operations Reserve;
b. Up to $5 million from the Electric Special Projects (ESP) reserve to the Supply Operations Reserve; and
c. As discussed in Staff Report #11556i, approve an allocation of Cap and Trade funds up to 1/3 of REC revenue
to the Cap and Trade Program Reserve to be spent on local decarbonization programs;
4. Approving the following rate actions for FY 2023:
a. An increase to retail electric rates E-1 (Residential Electric Service), E-2 (Small Non-Residential Electric
Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU (Medium Non-Residential Time of Use
Electric Service), E-7 (Large Non-Residential Electric Service), E-7 TOU (Large Non-Residential Time of Use
Electric Service) and E-14 (Street Lights) of 5% effective July 1, 2022;
b. An update to the Export Electricity Compensation (E-EEC-1) rate to reflect current projections of avoided
cost, effective July 1, 2022;
c. An update to the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current projections of
avoided cost, effective July 1, 2022; and
d. An update to the Palo Alto Green program pass-through premium charge on the Residential Master-
Metered and Small Non-Residential Green Power Electric Service (E-2-G), the Medium Non-Residential Green
Power Electric Service (E-4-G), and the Large Non-Residential Green Power Electric Service (E-7-G) rate
schedules (Attachment B) to reflect current costs, effective July 1, 2022
Seconded by Commissioner Metz
Motion carries 4-0 with Chair Forssell and Vice Chair Segal, Commissioners Johnston, Metz voting yes.
Commissioners Bowie, Scharff, and Smith absent
COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS
None.
FUTURE TOPICS FOR UPCOMING MEETINGS: April 06, 2022
Commissioner Johnston requested a follow-up presentation regarding modernizing the electrical grid.
Tabatha Boatwright, Utilities Administrative Assistant, stated that Council accept an ordinance that adjusted
the terms for all City Boards and Commissions. The UAC’s terms have been changed from May 31st to March
31st. At the April 2022 meeting, the UAC will be electing a new Chair, Vice Chair and selecting members for
Ad Hoc Committees.
NEXT SCHEDULED MEETING: April 06, 2022
Vice Chair Segal moved to adjourn. Commissioner Johnston seconded the motion. The motion carried 4-0
with Chair Forssell, Vice Chair Segal, and Commissioners Johnston, Metz voting yes.
Commissioners Bowie, Scharff, and Smith absent
Meeting adjourned at 9:40 p.m.
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City of Palo Alto (ID # 14199)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Adoption of a Resolution Authorizing Use of Teleconferencing for
Utilities Advisory Commission Meetings During Covid -19 State of Emergency
From: Director of Utilities
Lead Department: Utilities
Recommendation
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government
Code Section 54953(e) for meetings of the Utilities Advisory Commission (UAC) and its
committees due to the Covid-19 declared state of emergency.
Background
In February and March 2020, the state and the County declared a state of emergency due to
the Covid-19 pandemic. Both emergency declarations remain in effect.
On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act,
effective October 1, 2021, to allow local policy bodies to continue to meet by
teleconferencing during a state of emergency without complying with restrictions in State
law that would otherwise apply, provided that the policy bodies make certain findings at
least once every 30 days.
AB 361, codified at California Government Code Section 54953(e), empowers local policy bodies
to convene by teleconferencing technology during a proclaimed state of emergency under the
State Emergency Services Act in any of the following circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and
state or local officials have imposed or recommended measures to promote social
distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency for the
purpose of determining, by majority vote, whether as a result of the emergency,
meeting in person would present imminent risks to the health or safety of
attendees.
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(C) The legislative body holds a meeting during a proclaimed state of emergency and has
determined, by majority vote, pursuant to subparagraph (B) (B), that, as a result of
the emergency, meeting in person would present imminent risks to the health or
safety of attendees. (Gov. Code § 54953(e)(1).)
In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider
the state of emergency within 30 days of the first teleconferenced meeting after October 1,
2021, and at least every 30 days thereafter, and find that one of the following circumstances
exists:
1. The state of emergency continues to directly impact the ability of the
members to meet safely in person.
2. State or local officials continue to impose or recommend measures to
promote social distancing.
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Discussion
At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health
Officer continues to recommend measures to promote outdoor activ ity, physical distancing and
other social distancing measures, such as masking, in certain contexts. (See August 2, 2021
Order.) In addition, the California Department of Industrial Relations Division of Occupational
Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of
Regulations, which requires most employers in California, including in the City, t o train and
instruct employees about measures that can decrease the spread of COVID -19, including
physical distancing and other social distancing measures.
Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using teleconferencing for
public meetings of its policy bodies, provided that any and all members of the public who wish
to address the body or its committees have an opportunity to do so, and that the statutory and
constitutional rights of parties and the members of the public attend ing the meeting via
teleconferencing are protected.
To comply with public health directives and promote public safety, Palo Alto policy bodies
have been meeting via teleconference since March 2020. On September 27, 2021, the City
Council considered the format for future Council, committee, and Board and Commission
meetings. Council determined that beginning November 1, 2021, Council meetings would be
conducted using a hybrid format that allows Council Members and the public to decide
whether to attend in person, following masking and distancing protocols, or participate via
teleconference. Council directed that Council standing and ad-hoc committees and Boards
and Commissions would continue meeting via teleconference through March 2022.
Adoption of the Resolution at Attachment A will make the findings required by Section
54953(e)(3) to allow the continued use of teleconferencing for meetings of the Utilities
Advisory Commission (UAC) and its committees.
Attachments:
• Attachment A: Resolution
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NOT YET APPROVED
Resolution No. ____
Resolution Making Findings to Allow Teleconferenced Meetings Under California Government
Code Section 54953(e)
R E C I T A L S
A. California Government Code Section 54953(e) empowers local policy bodies to convene by
teleconferencing technology during a proclaimed state of emergency under the State Emergency
Services Act so long as certain conditions are met; and
B. In March 2020, the Governor of the State of California proclaimed a state of emergency
in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state
of emergency remains in effect; and
C. In February 2020, the Santa Clara County Director of Emergency Services and the
Santa Clara County Health Officer declared a local emergency, which declarations were
subsequently ratified and extended by the Santa Clara County Board of Supervisors, and those
declarations also remain in effect; and
D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act
to allow local policy bodies to continue to meet by teleconferencing during a state of emergency
without complying with restrictions in State law that would otherwise apply, provided that the
policy bodies make certain findings at least once every 30 days; and
E. While federal, State, and local health officials emphasize the critical importance of
vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County
Health Officer has issued at least one order, on August 2, 2021 (available online at here), that continues
to recommend measures to promote outdoor activity, physical distancing and other social distancing
measures, such as masking, in certain contexts; and
F. The California Department of Industrial Relations Division of Occupational Safety and
Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations,
which requires most employers in California, including in the City, to train and instruct employees
about measures that can decrease the spread of COVID-19, including physical distancing and other
social distancing measures; and
G. The Utilities Advisory Commission has met remotely during the COVID-19 pandemic and
can continue to do so in a manner that allows public participation and transparency while minimizing
health risks to members, staff, and the public that would be present with in-person meetings while
this emergency continues; now, therefore,
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NOT YET APPROVED
The Utilities Advisory Commission RESOLVES as follows:
1. As described above, the State of California remains in a state of emergency due to the
COVID-19 pandemic. At this meeting, the Utilities Advisory Commission has considered the
circumstances of the state of emergency.
2. As described above, State and County officials continue to recommend measures
to promote physical distancing and other social distancing measures, in some
settings.
AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Utilities Advisory
Commission and its committees will occur using teleconferencing technology. Such meetings of the
Utilities Advisory Commission and its committees that occur using teleconferencing technology will
provide an opportunity for any and all members of the public who wish to address the body and its
committees and will otherwise occur in a manner that protects the statutory and constitutional rights
of parties and the members of the public attending the meeting via teleconferencing; and, be it
FURTHER RESOLVED, That the Utilities Advisory Commission staff liaison is directed to place a resolution
substantially similar to this resolution on the agenda of a future meeting of the Utilities Advisory
Commission within the next 30 days. If the Utilities Advisory Commission does not meet within the next
30 days, the staff liaison is directed to place a such resolution on the agenda of the immediately following
meeting of the Utilities Advisory Commission.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
Staff Liaison Chair of Utilities Advisory Commission
APPROVED AS TO FORM: APPROVED:
City Attorney Department Head
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City of Palo Alto (ID # 14200)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Discussion of Status Update and Preliminary Financial Business Models
for Palo Alto Fiber
From: Director of Utilities
Lead Department: Utilities
This item is for discussion and no action is requested. Staff will present a status update on the
Palo Alto Fiber exploration and seeks input from the Utilities Advisory Commission (UAC) on the
preliminary financial business models. The presentation will include business planning process,
advantages and disadvantages of outsourcing core functions, post -deployment staffing for
insource and hybrid (insource /outsource) business models, updated high level cost estimates
and funding requirement.
Business Case
Magellan established the Fiber to the Home (FTTH) business case goals by asking key questions
such as:
• what are the minimum sustainable take rates for success citywide?
• What is the effect of market dynamics?
• What is the optimal fiber route and construction method to reduce cost of deployment?
• What is the ongoing impact of competition?
Magellan provided a high-level analysis of the construction methods and costs for the citywide
fiber backbone as follows:
• Total fiber backbone project:
o 65% underground construction
o 35% aerial construction
o 44 miles of total fiber construction throughout City
o 432-count loose-tube fiber cable for City departments, fiber enterprise and
broadband expansion
o 144-count loose-tube fiber cable for electric, to support reliability, redundancy,
and future grid modernization growth.
Construction sequencing will be determined in the detailed engineering design. Underground
Construction will utilize Directional Drilling for the vast majority of the project.
o 24” to 36” depth unless Palo Alto has a greater depth requirement
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City of Palo Alto Page 2
o 12” separation from other utilities unless Palo Alto has a greater separation
requirement
o Soft and hard surface restoration, erosion control per City standards . The
detailed engineering design will codify all City requirements.
Aerial Construction will be Strand and lash or the installation of fiber in aerial duct:
• Pros: Aerial duct may protect fiber better from squirrels or other environmental damage
• Cons: 1) More difficult to cut into for access along fiber routes; 2) May raise future costs
of expanding the network due to additional labor required to cut the aerial duct for new
access points and it’s more visible on pole lines as it is thicker than strand and lash (One
inch compared to two inches).
Utility pole surveys and analyses are continuing, and replacement costs need to be solidified to
determine additional costs for aerial installations.
Major Construction Cost Drivers
• Total backbone construction between $22M - $26M depending on the final engineering
design.
• Recent labor and materials rates from several qualified construction contractors with
experience in the Bay Area
• Underground directional drill labor – average rates
o 2 2” Duct - $78.85/foot
o 3 2” Duct - $97.59/foot
o 1 4” Duct - $86.35/foot
o 2 4” Duct - $131.41/foot
• Underground labor accounts for 60%-70% of the total project cost
• Total labor accounts for 85% - 90% of the total project cost.
In 2021, City Council and UAC approved Staff and Magellan to pursue an engineering design and
business plan to build out of the City fiber backbone in a manner designed to support citywide
FTTH. In addition, Council and UAC recommended establishing the City-operated Internet
Service Provider (ISP) instead of a Partner ISP due to loss of local control of service quality and
pricing and viability of partnership model.
The Business Case evaluates two City-operated ISP models. The City can provide ISP with either
(1) 100% in-house staffing or (2) hybrid of insource (in-house) and outsourced staffing. Some
broadband functions are core competencies and can be easily managed by the City, while other
functions are new and can be outsourced where the City doesn’t have the expertise in -house.
Subsequently, outsourced functions have the potential to slowly be brought in -house through
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City of Palo Alto Page 3
hiring and as City staff becomes more comfortable with the day -to-day operations of the fiber
network. Magellan has identified specific advantages and disadvantages for each model as
follows:
• 100% Insource
Pros: Total control; quality of service; institutional knowledge
Cons: Higher labor costs; higher learning curve
• Hybrid of Insource and Outsource
Pros: Lower labor costs; flexible start-up and scalability
Cons: Lower service levels; contract risks
Attachments:
• Attachment A: Presentation
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Preliminary Financial Review
Palo Alto Fiber
April 6, 2022
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- 2
AGENDA
•Status update
•Business planning process
•Develop alternatives
•Model costs
•Weigh pros and cons
•Review preliminary financials
•Next steps
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- 3
STATUS UPDATE
•Engineering Design –60% Complete
•Business Planning –75% Complete
•Engagement & Outreach –50% Complete
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- 4
BUSINESS PLANNING
Planning Area Focus
(Checkmark means complete)
Business Operations
Management
Customer Service
Billing & Finance
Sales & Marketing
Network Operations
Tech Support
Engineering
Regulatory Review •State Agencies: CPUC
•Federal Agencies: FCC, USAC
•Compliance & Reporting Requirements
Governance Models
•Legal Structure
•Board Powers
•Policies, Procurement, Rate Setting and Management Decision
Guidelines
Preliminary Pro Forma Financials
Capital Plan
Staffing Plan
Rate Sheets and Packages
Income Statement
Borrowing Schedules
Final Pro Forma Financials •Update Capital Plan Based on Final Engineering Design
•Update Take Rates and Income Statement Based on Survey Results
•Provide Final Set of Financials with Sensitivity Analysis
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- 5
BUSINESS PLANNING
Determine best mix of
existing resources, new
hires and strategic vendors
for Palo Alto Fiber
Existing
Resources
New
Hires
Strategic
Vendors
Finance &
Accounting
Sales &
Marketing
Tech
Support
General
Management
Operations
Management
Overnight
Customer Service
Billing Field
Services
Network
Design
Customer
Service
Customer
Service Construction
Legal Service Quality
Control
Construction
Management &
Inspections
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- 6
PROS & CONS OF OUTSOURCING
Pros Cons Can the Cons be
Mitigated?
Achieve lower costs due to private
sector overheads and shared staff
among multiple customer
accounts
Risk of lower service levels based
on vendor’s ability to scale and
management of the accounts.
Strong service level agreement
with penalties for non-
performance and incentives for
high performance
Flexible startup operations using
vendors that have the experience,
processes and personnel
No institutional knowledge
building within the organization,
which could lead to a lower overall
customer experience. Finding the
right cultural fit may create friction.
Keep high-touch customer
interactions inhouse. Consider
outsourcing other functions during
the first several years, then bring
inhouse. Ramp down vendor
contracts as insourcing occurs.
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- 7
INSOURCE ORG CHART
Assistant
Director
Palo Alto Fiber
Engineering &
Operations
Manager
Customer
Service
Supervisors (1)
Field Services
Manager
Sales &
Marketing
Manager
Senior Network
Engineers
(2)
Plant
Maintenance
Techs (2)
Installation &
Service Techs
(3)
NOC Techs
(4)
Customer
Service Reps
(3)
Res & Biz
Account
Manager
Billing Tech
Revenue &
Accounting
Manager
Network
Designers
(2)
24 Total FTE at Year 5
Share with existing utilities.
Allocate 25% of these costs to
broadband.
Utilize existing CSS, allocate
50% of the costs. Add 3 new
CSRs. Shift overnight calls to
3rd party.
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Share with existing utilities.
Allocate 25% of these costs to
broadband.
- 8
OUTSOURCE ORG CHART
Assistant
Director
Palo Alto Fiber
Engineering &
Operations
Manager
Customer
Service
Supervisors (0)
Field Services
Manager
Sales &
Marketing
Manager
Senior Network
Engineers
(1)
Plant
Maintenance
Techs (1)
Installation &
Service Techs
(2)
Customer
Service Reps
(2)
Res & Bus
Account
Manager
Billing Tech
Revenue &
Accounting
Manager
Network
Designers
(1)
NOC Techs
(2)
Outsource to Network Operator
Keep several key positions
internal
Insource, plant O&M, outsource
heavy lift and emergency repair
functions
17 Total FTE at Year 5
Utilize existing CSS, allocate
50% of the costs. Add 2 new
CSRs. Shift overnight calls to
Outsourced Network
Operator.
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- 9
COMPARING MODELS
Outsourcing key
functions lowers
the City’s overall
cost, due to
lower labor
overhead and
shared resources
from vendors
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-10
PRELIMINARY BUILD SCHEDULE
2023 2024 2025 2026 2027 2028
Year #1 2 3 4 5 6
Miles of Fiber -90 180 270 360 360
Residential Customers Passed 6,501 13,035 19,602 26,201 26,332 26,464
Business Customers Passed 998 2,001 3,009 4,022 4,042 4,062
Residential Customers Connected 0 391 1,959 5,103 7,210 8,468
Business Customers Connected -60 301 783 1,107 1,300
Take Rate –(Residential & Business)0%3%10%19%27%32%
Average Res Connected Per Day -2 6 12 8 4
Average Biz Connected Per Day -0 1 3 2 1
Will change
based on final
take rates and
construction
plan
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-11
FINANCIAL PLAN
Costs Original Estimates 2021 Current Estimates
Fiber Backbone $ 22,277,161 $ 25,618,735
Fiber To The Home/Premise $ 85,972,581 $ 98,868,468
Cost Savings if Built Together $ (4,476,825)$ (8,730,823)
Working Capital Set Aside $ 12,500,000 $ 12,500,000
Total Costs $ 116,272,917 $ 128,256,380
Funding Original Estimates 2021 Current Estimates
Existing Fiber Fund $ 32,500,000 $ 32,500,000
Contribution from Electric to Fiber Backbone $ 10,000,000 $ 10,000,000
Total Available Funding $ 42,500,000 $ 42,500,000
Total New Funding Required $ 73,772,917 $ 85,756,380
Will change
based on take
rates, final
design and rates
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-12
FINANCIAL PLAN
•Interim Financial Plan – Updates
•Updated design provides more accurate quantities and costs
•Inflation due to supply chain issues has raised materials and labor costs
•Additional 20% contingency added to original estimates to compensate
•Construction contingencies are now at 40% on materials and labor
•More inflation experienced on materials than on labor
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FINANCIAL PLAN
•Finalizing the Financial Plan
•To be developed in advance of Council —UAC joint session in August
•Final cost estimates based on completed engineering design
•Projections for materials and labor increases in 2023, 2024, 2025, 2026
•Projections based on key indicators to determine inflation rates
•Adjusted construction contingencies to arrive at final costs
•Potential hedging strategies to abate risks of higher costs
•Take rates and rate schedules (based on survey)
•Pro forma income statement
•Borrowing summary with schedules
•Sensitivity and business risk analysis
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-14
Next Steps
•Finish engineering design
•Finalize capital costs
•Additional customer engagement
•Launch survey
•Collect survey results
•Estimate take rates
•Determine rates
•Finalize financial plan
•Develop governance and regulatory plan
•Joint Council/UAC study session in August 2022
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City of Palo Alto (ID # 13879)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Discussion of Wastewater CIP and Update on Utilities' Quarterly
Programs Report for Q2 of FY2022
From: Director of Utilities
Lead Department: Utilities
Executive Summary
Linked below for the Utilities Advisory Commissions information is an update on water, gas,
electric, wastewater collection and fiber utilities, efficiency programs, legislative/regulatory
issues, utility-related capital improvement programs, operations reliability impact measures
and a utility financial summary. This updated report (Linked Document) has been prepared to
keep the Council and Utilities Advisory Commission apprised of the major issues that are facing
the water, gas, electric, wastewater collection and fiber utilities. Attachment A is the 2020
Wastewater Asset Management review. A separate quarterly report on the financial position is
prepared consistent with when the City closes its books.
Items of special interest in this report are summarized below:
COVID-19 Impacts: The COVID-19 shelter in place order significantly affected utility loads in FY
2021:
• FY 2022 actual sales through December 2021 were about 4.1% lower than projections, and
revenues were about 6% below projections. Decreased loads are mostly attributed to the
commercial sector. (Section 1.6.1)
• Gas utility demand for through December 2021 was 4.7% lower than forecasted in the FY
2022 Financial Plan. But actual sales revenue was 10.5% higher than forecasted. The higher
revenue was due to increases in the market price of gas commodity which is passed through
to customers. (Section 2.5.1)
• Water demand and revenue through the end of December 2021 was 7% lower than
forecasted in the FY 2022 financial plan, mostly due to customer water conservation from
responding to the drought. Increased water conservation may further impact revenue and
reserve levels. (Section 4.5.1)
• Wastewater revenues have not been significantly affected by the pandemic.
Electric Utility:
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• Output from the City’s hydroelectric resources is low. Total forecasted hydropower for FY
2022 is 283 GWh, which is 195 GWh (41%) below the long-term average. (Section 1.1.2)
• REC sales for CY 2022 are expected to result in $0.77M in net revenue . (Section 1.1.3)
• A number of construction projects are in the design phase with construction due to begin in
2022. (Section 1.2)
• Vacancies remain high for the electric utility, particularly for electric linespeople. Due to a
shortage of linespeople across the industry and challenges in hiring journey level
linespeople, CPAU is expanding the linespeople apprenticeship program to develop in -
house talent. The apprenticeship program takes approximately four years for an employee
to become a journey level linesperson. During this period, CPAU will supplement existing
crews with contractors for overhead and underground maintenance, emergency response,
capital improvement projects, and customer connections. (Section 1.4)
• Reliability goals include being in the first quartile of utilities nationally for System Average
Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index
(SAIFI), which indicate the frequency and t otal duration of outages experienced by all
customers, and in the second quartile for Customer Average Interruption Duration Index
(CAIDI), which indicates the average restoration time, the amount of time customers
actually affected by an outage in a given year are out of power. When 2021 data is
available, the numbers are expected to be close to the goals. (Section 1.5)
• Electric sales for the first two quarters of FY22 were about 4% lower than projected, and
revenue was about 6% lower. This trend is reflected in the Financial Plans scheduled for
Council approval in June, and staff will recommend activating the Hydro Rate Stabilization.
(Section 1.6)
Gas Utility:
• Gas sales were lower than forecasted through December 2021. Cost and revenue were
significantly higher due to increasing natural gas market prices. (Section 2.5)
• The total gas supply cost passed through to customers, including the commodity charge,
transmission charge, and environmental charges (Cap and Trade Program costs and Carbon
Neutral Gas Program cost) have increased 15% since July of 2021. This equates to roughly a
12% increase in the system average gas rate. (Section 2.1.1)
• A gas main replacement project is currently in progress (GS -13001) and the City is in the
midst of a two year inspection project to find “cross bores.” (Section 2.2)
Wastewater Utility:
• An overview of the status of the Regional Water Quality Control Plant (RWQCP)
rehabilitation projects is provided, including an overview of the financing plan for the
projects. The first project to begin construction will be the primary sedimentation tank
rehabilitation. (Section 3.1)
• A sewer system rehabilitation project (SSR 30) was approved by Council on December 31,
2021. Construction is anticipated to start at the end of March 2022. (Section 3.2)
• Wastewater Utility revenue for Q1 FY22 was 3.7% lower than budget. (Section 3.4)
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Water Utility:
• Atmospheric rivers in October and December generated significant snowpack then January
2022 was the driest January on record at the Hetch Het chy gauge. Snowpack is near normal
(66% of median peak snowpack) while Hetch Hetchy System precipitation was 60% of
median annual total). The SFPUC operates its storage to handle a multi-year drought.
(Section 4.1)
• In August the state curtailed diversions on the Tuolumne River. In response, the SFPUC filed
a lawsuit and is applying for a health and safety exemption because per capita use on the
system is extremely low. During the October storms, the State Board suspended the
curtailments and they remain suspended as of February 3, 2022.
• The SFPUC declared a local water shortage emergency on November 23, 2021 calling for
voluntary systemwide 10% water use reductions. Each Wholesale Customer has its own
requested cutback level and Palo Alto’s voluntary water purchase cutback level is 7.96%.
(Section 4.1)
• Water sales are 7% lower due to drought-related conservation. Staff projects that with
expected revenues and expenses together with transfers from the CIP Reserve, the
Operations Reserve will remain at the maximum guideline level at the beginning of FY 2022
and will reach approximately target levels by the end of FY 2022. (Section 4.5)
• A rebuild of the City’s Corte Madera Reservoir is in progress to improve seismic safety.
Construction is expected to be complete in April 2023. A water main replacement project is
currently being designed, and construction is expected to start in June 2022. (Section 4.2)
Fiber Utility (Section 5):
• Magellan Advisors has completed 60% of the engineering design for the fiber backbo ne and
fiber-to-the-home (FTTH) which includes designs for running overhead and underground
lines and route optimization. Staff is identifying potential sites for three fiber huts which
will be strategically located (i.e. north, south, west). The City launched the Palo Alto Fiber
Community Engagement Hub. The goal of the online platform is to inform the community
about the Palo Alto Fiber initiative and increase awareness of the benefits of City-provided
internet service. (Section 5.1)
• Fiber revenues for FY 2022 are projected to be $3.8 million, which is $0.2 million or 5%
below the revenue forecast of $4.0 million. Compared to pre-pandemic revenues, FY 2022
fiber sales are anticipated to be $0.7 million or 15% below FY 2020 fiber sales of $4.5
million. Staff projects annual fiber revenues will return to pre-pandemic level of $4.5 million
by FY 2024. (Section 5.4)
• Projected ending FY 2022 Fiber Optic Reserve is $34.0 million. (Section 5.4)
Customer Programs (Section 6):
• The City launched its Business Advantage Program in March 2021 to help local businesses
tune their HVAC units for efficiency. Businesses also got an HVAC inspection, a new MERV
13 filter, and advice on tuning the HVAC to increase indoor air flow in line with ASHRAE
recommendations for reducing airborne infectious aerosol exposure . As of February 2,
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2022, 57 systems have been installed and 20 additional businesses are pending installation.
10 new contracts were sent to customers and are awaiting signature. (Section 6.1.1)
• The City continues to promote its multi-family and workplace EV charger programs. See
Section 6.1.2 for more detail.
• A pilot project with Mid-Pen Housing, a non-profit housing developer, to convert the gas
furnaces at Page Mill Court, a 24-unit apartment complex for low-income adults, to all-
electric air source heat pump equipment was successfully completed. The pilot was funded
with a grant from the Bay Area Air Quality Management District and the City’s Public Benefit
funds (Section 6.1.3).
Communications: A digest of major outreach efforts is provided in Section 7, including outreach
related to drought, the public safety power shutoff program in the Foothills, and utility scams.
Legislative and Regulatory: Major legislative and regulatory items are summarized in Section 8.
Attachments:
• Attachment A: Wastewater Utility Asset Management Overview CY20
• Attachment B: Presentation
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Wastewater Utility Asset Management
Overview - 2020
Executive Summary
•The City continues to keep up with routine maintenance
•Sewer main replacement projects continue as planned
•Noticeable annual decline of sanitary sewer overflows
•Emergency Response Team continually responds to calls from
Dispatch Center
•Reduced number of calls received from Dispatch Center due to routine
maintenance and main replacement program
•Sedaru maintenance software went live in November 2020
Infrastructure Overview
Key infrastructure replacement efforts in the next five years include:
●Scheduled biennial sewer main, lateral and manhole replacement
projects
●Routine maintenance program for main, laterals, siphons and lift
station
●Routine maintenance of SCADA sewer overflow monitoring devices
in manhole
System Operations and Maintenance
Total FTE’s working on Wastewater O&M.
Main Maintenance
[1.2]18%
Construction
[1.9]28%Emergency Standby
[1.5]22%
Main/Lateral Inspection
[0.5]8%
Lateral Maintenance
[1.6] 24%
Wastewater Operations and
Maintenance
(Full -Time Equivelent [FTE] and % of total)
Main Maintenance ConstructionEmergency Standby Main/Lateral InspectionLateral Maintenance
Asset Management Goals
What are our goals?
-Properly manage, operate, and maintain the
wastewater collection system to deliver
reliable service to our community
-Repair, rehabilitate, replace, and upgrade
system components as needed
- Minimize inflow and infiltration (I/I) to
provide sufficient system capacity
-Maintain a timely response to sanitary
sewer overflows (SSO) to reduce overflow
impact to public health & the environment
-Identify system blockages due to fats, oils
and grease (FOG) and develop strategies to
decrease backups
-Provide regular training for City of Palo
Alto Utility staff in wastewater collection
system maintenance, operations, and
emergency response
How do we achieve those goals?
-Inspect our collection system routinely to
make sure it is flowing properly
-Make necessary repairs in a timely manner
-Replace assets as they reach end of life or as
their condition deteriorates
-Identify capacity constraints and risks to our
collection system and mitigate these issues
promptly through appropriate capital
improvement projects
-Seek ways to increase our productivity and
control costs by completing our work more
safely and efficiently
-Public outreach with bill inserts or door
hangers to inform the residents on FOG
prevention along with root/grease treatment
with herbicides and grease emulsifying
agents
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● Main Maintenance (1.2 FTE):
o *Hydro-flushing: high-velocity hydro flushing/vacuum truck
o *Root/Grease Treatment: herbicides, along with grease emulsifying agents are used to control
root and Fat, Oils and Grease (FOG) issues.
● Lateral Maintenance (1.6 FTE):
o *SOAP: Peventive maintenance program includes: Sewer Overflow Alternative Program (SOAP)
using an electric power rodder and a hydro jetting tool to clear systemic sewer blockages.
● Main / Lateral Inspections (0.5 FTE): routine field inspections of mains, laterals, siphons, manholes
and other sewer components (lift station). Process involves remote Closed-Circuit Television (CCTV)
cameras and visual inspections.
● Emergency Response Team (ERT) (1.5 FTE): consist of a standby team of 3 which includes 2
installers and a heavy equipment operator. ERT receives calls from Dispatch Center and responds
promptly to investigate and mitigate sewer issues, during business and non-business hours. When
the team is not responding to calls during business hours, the team works on Lateral Maintenance.
● Construction (1.9 FTE): consist of repair work for defects that need immediate attention, new
service lateral installs, and emergency manhole repairs.
*Priority programs critical to daily operation
Maintenance Status:
● Essential maintenance programs are carried out continuously.
● Main/Lateral inspection program continues to provide Engineering Dept. with pipe assessment
records for CIP replacement project prioritization.
● Aging remote overflow monitoring devices need upgrading to support current technology.
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Wastewater Maintenance and Construction Charts
1. Planned Activities
2. Unplanned Activities
42,62354,76148,415
2,591
85,55150,92942,778
84,822106,37175,82287,29859,106
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Main Maintenance Completed, 2020(Linear Feet of Mains per Month)
FlushingGoal (33K)
279 307 239 360 215 202 210 260 252 255 229 180
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lateral Maintenance Completed, 2020(Number of Laterals per Month)
Lateral TagsGoal (275)
7 11
4 0
6 9 7 2 5 6 4 2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Construction Work Orders Completed, 2020
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Table 1: Status of Collection System Operation and Maintenance Programs
System
Operation or
Maintenance
Program
Status
Green = good
Yellow = room
for improvement
Comments
Lateral
Maintenance Daily lateral maintenance tags were completed year-long with the help from
standby ERT crew members. However, goals were not met in 2020;
emergency standby staff was pulled from these tasks due to emergency event
calls.
Main
Maintenance Flushing was performed on a regular schedule throughout the year.
Wastewater Operations exceeded its goal for main cleaning schedule in 2020
and completed 741,067 L.F. of flushing. New goals need to be evaluated to
help balance the FTE assignments.
Main/Lateral
Inspections
(CCTV)
Operations typically work off a scheduled inspection; however, there are
times when the crew works on a list of special request inspections that tend
to postpone the current month's inspections.
Emergency
Dispatched calls The City maintains 24-hour system monitoring. Several staff are adequately
trained to handle this function in the event of a staffing emergency to ensure
redundancy. There are no backlogs of leaks or assets in need of repair. The
City maintains an emergency on-call program to respond to and control water
leaks or other system emergencies at any hour of the day or night.
Construction
(Repair
main/laterals,
new laterals)
An Operations crew is assigned the task to perform construction work for
new Development Services installations and emergency repair work for our
sewer mains and lower laterals, when work needs immediate attention and is
not included in our Capital Improvement Program (CIP) projects.
In the last 10 years, the sanitary sewer overflows (SSO) have noticeably decreased due to annual
maintenance and biennial sewer main, lateral and manhole replacement CIP projects. With
collaboration with Wastewater Operations department, Engineering staff uses sewer asset
maintenance reports to help prioritize which neighborhoods would benefit from a sewer
replacement.
357 328 235 118 133 102 81 121 70 64 67 431010101011172323232211 9200920102011201220132014201520162017201820192020
Sanitary Sewer Overflows (SSO)
(By Year)SSO's Median SSO Volume
u
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Table 2: Condition of Collection System Assets
Asset Class Aggregate Maintenance Asset Condition
Manholes Various
locations
Manholes are inspected
during main flushing.
Manhole walls and bases are
visually inspected for I & I.
Feedback is provided to
Engineering with
recommendations for future
replacement.
Old brick manholes are typically replaced with
more reliable pre-cast concrete structures. Over
time brick manholes introduce groundwater via
cracks at the base or wall structures.
Mains and Lateral
services
In 2020:
~ 140 miles
of mains,
~2,988
laterals
Operation forecasts a 36-
month schedule for
maintenance for the entire
city.
High frequency lines are cleaned every 3 to 6
months; Easement lines every 36 months; Trunk
lines (>15-inches) are cleaned every 60 months;
Siphons every 12 months; all other lines every 12
to 36 months.
Lift Station / Force
main
1 station /
~900 linear
feet of 10-
inch force
main
Wastewater Operations
perform routine operational
checks of the station once a
month and the wet well is
cleaned quarterly. Preventive
maintenance for mechanical
and electrical equipment is
done annually by WGW
Operations. The station has
an audible alarm and is
connected through a SCADA
system to the Utilities
Dispatch Center. The station
serves approximately 25
homes and a portable
generator is available in the
event of power outages.
Our lift station currently requires only minor and
routine maintenance and is in good condition
overall.
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Wastewater Collection System
April 6, 2022 1
UAC
April 06,2022 B
A c1Tv OF
V PALO ALTO
•
MEETING □
IZl Received Before Meetin
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Wastewater Infrastructure
•216 miles of sewer mains in the collection system
•Council adopted a CIP/Infrastructure program in 1990
(CMR:183:0)
•36% or 78 miles of sewer mains have been replaced
or rehabilitated
•138 miles of sewer mains remain to be replaced
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Sanitary Sewer Project Replacement Rate
•Past replacement rate:
o ~2.5 miles per year
o Annual CIP project between 1990 and 2020
•Current replacement rate:
o ~1 mile per year
o Biennial CIP project since 2021
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Pipe Condition Assessment and Defects in Sewer System
4
•Perform CCTV inspection to assess pipe condition for sewer system
•Use defect scoring and WW Ops feedback to prioritize replacement projects
•Categories of pipe condition defects:
o O&M defects
o Structural defects
•How to address pipe condition defects?
o Routine maintenance
o Replacement
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CCTV video of a deteriorated sewer main
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CCTV images of typical O&M defects
Root intrusion Grease
Cracks
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Routine maintenance activities
•Hydro-flushing/jetting to remove roots, grease, and debris
•Rodding to remove roots in clay pipes
•Chemical root foaming in less accessible areas
•CCTV inspection of pipe condition
•Responds to service calls
•Sewer lateral preventive replacement program
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•Structural defects such as broken pipe or missing section require replacement
•Mechanical devices used for routine maintenance could disturb the broken section
to make it worse
•Potential damage if broken sections collapse:
▪Sewer main blockage/backup
▪Sewage overflows into street and
storm drain system
▪Street sink hole
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Sewer mains with structural defects
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Effectiveness of CIP and Routine Maintenance
•Sanitary sewer overflow (SSO) has declined due to on-going sanitary sewer
replacement (SSR) projects and routine maintenance program
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Remaining sewer mains to be replaced or rehabilitated
•138 miles of original pipe remaining
•Installed between 1950s and 1970s
•It will take 138 years to replace them
all at current rate of 1 mile per year
•1970 pipes would be 190 years old in
138 years
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3.b
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Conclusion
•138 miles of remaining sewer mains are between 50 to 70 years old, mainly VCP
(Vitrified Clay Pipe)
•Life expectancy of clay pipe is ~100 years in Palo Alto
▪clay soil expands and contracts -earth movement causes pipe to crack
▪root intrusion at pipe joints, also cause pipe to crack
•To meet the 100-year replacement cycle, need to replace 2.5 miles of sewer mains
per year
814
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City of Palo Alto (ID # 14195)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Discussion of UAC Recruitment and Term Changes Resulting From the
City Council's Adoption of Ordinance 5529, Establishing Term Limits and
Consolidating Appointments to March of Each Year
From: Director of Utilities
Lead Department: Utilities
Recommended Motion
This is a discussion item, and no action is required.
Executive Summary
On June 21, 2021 the City Council adopted an ordinance (Linked Document) establishing Board
and Commission term limits and consolidating appointments to March of each year. Effective
January 1, 2022, UAC commissioner recruitment shifted to January from the prior May
schedule, and terms of office begin on March 15 of each year, rather than June.
This change also extended the terms of the UAC’s seated members by approximately 10.
This matter is agendized so the UAC can discuss the shift in the upcoming selection of the Chair
and Vice Chair, Budget Subcommittee, and the new Fiber Subcommittee, which is scheduled for
the May UAC meeting.
Once selected, the terms for these members will end on March 31, 2023.
Attachments:
• Attachment A: Ordinance 5529
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229_20210804_ts24
Ordinance No. 5529
Ordinance of the Council of the City of Palo Alto Amending Sections of Title 2
(Administrative Code) of the Palo Alto Municipal Code to Consolidate the
Appointment of Members to Boards and Commissions to April of Each Year;
Establish Term Limits to Boards and Commissions; and Codify Existing Duties of
the Human Relations Commission
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
A. The City has several statutory boards and commissions. See Palo Alto Municipal Code
Chapters 2.18 et seq.;
B. Existing PAMC section 2.16.070 requires that the City Council make regularly-scheduled
appointments to boards and commissions in December and May of each year. Each
board or commission is assigned to one of those months;
C. The City Council intends to consolidate all board and commission appointments occur by
the beginning of April;
D. The City Council intends to impose term limits to members of boards and commissions;
and
E. The City Council intends to codify the Human Relations Commission’s existing duties of
making grant recommendations under various grant programs.
SECTION 2. Section 2.16.070 (Schedule of appointments) of Chapter 2.16 (Boards and
Commissions Generally) of Title 2 (Administrative Code) is hereby amended as follows
(additions are in underline, deletions are in strikethrough):
2.16.070 Schedule of appointments.
(a) The City Council shall review applications to fill vacancies in the following boards and
commissions in May April of each year:
(1) Human Relations Commission (Chapter 2.22)
(2) Public Art Commission (Chapter 2.18)
(3) Utilities Advisory Commission (Chapter 2.23)
(4) Architectural Review Board (Chapter 2.21)
(5) Historic Resources Board (Chapter 2.27)
(6) Parks and Recreation Commission (Chapter 2.25)
(7) Planning and Transportation Commission (Chapter 2.20)
(b) The City Council shall review applications to fill vacancies in the following boards and
commissions in December of each year:
(1) Architectural Review Board (Chapter 2.21)
(2) Historic Resources Board (Chapter 2.27)
(3) Parks and Recreation Commission (Chapter 2.25)
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(4) Planning and Transportation Commission (Chapter 2.20)
(cb) The City Council shall fill vacancies in all other boards and commissions in April May or
December of each year, or at another time, at its discretion.
(dc) The City Council may fill mid-term vacancies during the next regularly scheduled
recruitment for the board or commission or may hold a special recruitment, at its discretion.
Special recruitments shall be subject to the requirements of Section 2.16.060.
SECTION 3. Chapter 2.16 (Boards and Commissions Generally) is hereby amended to add new
Section 2.16.080 (Term limits) as follows:
2.16.080 Term limits.
Effective January 1, 2022, no person may serve more than three consecutive terms of office as
a member of the same board or commission. This section shall apply to the boards and
commissions listed in section 2.16.070(a), except for the Planning and Transportation
Commission, in which no person may serve more than two consecutive terms of office as a
member of the same board or commission.
(a) For the purposes of this section, a member will be considered to have served a term of
office if he or she serves more than half of a standard term. For boards and commissions
with three-year terms, half of the term shall be 18 months. For boards and commissions
with four-year terms, half of the term shall be two years.
(b) A member’s service that began on or before January 1, 2022 shall count under the
provisions of this section only for those members who served for at least one day on a
board or commission between January 1, 2021 and January 1, 2022. Notwithstanding
the previous sentence, members of boards and commissions serving as of January 1,
2022 shall be permitted to complete their term.
(c) A member who has served three consecutive terms of office (or two consecutive terms
of office for the Planning and Transportation Commission) may remain as a member of
the same board or commission for up to six months past the end of the term if no
replacement is appointed or until a replacement is appointed, whichever comes first.
(d) A member who has served three consecutive terms of office (or two consecutive terms
of office for the Planning and Transportation Commission) shall not be appointed to the
same board or commission within one year of the last date of service.
SECTION 4. Section 2.18.040 (Term of office) of Chapter 2.18 (Public Art Commission) is hereby
amended as follows:
2.18.040 Term of office.
Terms of office on the Public Art Commission shall be three years. Commission appointments
shall be staggered so that three (3) members are appointed in 2018 and every three years
thereafter, one (1) member is appointed in 2019 and every three years thereafter, and one (1)
member is appointed in 2020 and every three years thereafter. Terms of office shall commence
on the first day of June and end on the last day of May. Effective January 1, 2022, terms of
office due to expire on May 31 of each year shall be extended to expire on the March 31 of the
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229_20210804_ts24
following year, and thereafter terms of office shall commence on April 1. If a successor is
unavailable, a member may remain in office until his or her successor is appointed, subject to
the limits in section 2.16.080.
SECTION 5. Section 2.20.020 (Term of office) of Chapter 2.20 (Planning and Transportation
Commission) is hereby amended as follows:
2.20.020 Term of office.
Terms of office on the Planning and Transportation Commission shall be four years. Effective
January 1, 2016, terms of office due to expire on October 31 of each year shall be extended to
expire on December 15 of the same year, and thereafter terms of office shall commence on the
sixteenth day of December Effective January 1, 2022, terms of office due to expire on
December 15 of each year shall be extended to expire on March 31 of the following year, and
thereafter terms of office shall commence on April 1. If a successor is unavailable, a member
may remain in office until his or her successor is appointed., subject to the limits in section
2.16.080.
SECTION 6. Section 2.21.025 (Term of office) of Chapter 2.21 (Architectural Review Board) is
hereby amended as follows:
2.21.025 Term of office.
Terms of office on the Architectural Review Board shall be three years. Effective January 1,
2016, the terms of office due to expire on October 31 of each year shall be extended to expire
on December 15 of the same year, and thereafter terms of office shall commence on the
sixteenth day of December. Effective January 1, 2022, terms of office due to expire on
December 15 of each year shall be extended to expire on March 31 of the following year, and
thereafter terms of office shall commence on April 1. If a successor is unavailable, a member
may remain in office until his or her successor is appointed., subject to the limits in section
2.16.080.
SECTION 7. Section 2.22.020 (Term of office) of Chapter 2.22 (Human Relations Commission) is
hereby amended as follows:
2.22.020 Term of office.
Terms of office on the Human Relations Commission shall be three years. Commission
appointments shall be staggered so that two (2) members are appointed in 2018 and every
three years thereafter, two (2) members are appointed in 2019 and every three years
thereafter, and one (1) member is appointed in 2020 and every three years thereafter. Terms of
office shall commence on the first day of June and end on the last day of May. Effective January
1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on the
March 31 of the following year, and thereafter terms of office shall commence on April 1. If a
successor is unavailable, a member may remain in office until his or her successor is appointed.,
subject to the limits in section 2.16.080.
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229_20210804_ts24
SECTION 8. Section 2.23.030 (Term of office) of Chapter 2.23 (Utilities Advisory Commission) is
hereby amended as follows:
2.23.030 Term of office.
Terms of office on the Utilities Advisory Commission shall be three years. Effective January 1,
2016, terms of office due to expire on April 30 of each year shall be extended to expire on May
31 of the same year, and thereafter termsTerms of office shall commence on the first day of
June. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be
extended to expire on the March 31 of the following year, and thereafter terms of office shall
commence on April 1. Commission appointments shall be staggered so that in each three-year
cycle, two members are appointed one year, two members are appointed the next year, and
three members are appointed the next year. If a successor is unavailable, a member may
remain in office until his or her successor is appointed., subject to the limits in section 2.16.080.
SECTION 9. Section 2.25.030 (Term of office) of Chapter 2.25 (Parks and Recreation
Commission) is hereby amended as follows:
2.25.030 Term of office.
Terms of office on the parks and recreation commission shall be three years. Commission
appointments shall be staggered so that in each three-year cycle three members are appointed
to serve during the first year, four members are appointed to serve during the second year, and
no members are appointed to serve during the third year. Effective January 1, 2016, terms of
office due to expire on October 31 of each year shall be lengthened to expire on December 15
of the same year, and thereafter terms of office shall commence on the sixteenth day of
December. Effective January 1, 2022, terms of office due to expire on December 15 of each
year shall be extended to expire on March 31 of the following year, and thereafter terms of
office shall commence on April 1. If a successor is unavailable, a member may remain in office
until his or her successor is appointed., subject to the limits in section 2.16.080.
SECTION 10. Section 2.27.020 (Term of office) of Chapter 2.27 (Historic Resources Board) is
hereby amended as follows:
2.27.020 Term of office.
Terms of office on the Historic Resources Board shall be three years. Terms shall be staggered
so that three positions are refilled one year, and four positions are refilled two years later.
Effective January 1, 2016, terms of office due to expire on October 31 of each year shall be
extended to expire on December 15 of the same year, and thereafter terms of office shall
commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to
expire on December 15 of each year shall be extended to expire on March 31 of the following
year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a
member may remain in office until his or her successor is appointed., subject to the limits in
section 2.16.080.
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229_20210804_ts24
SECTION 11. Section 2.22.060 (Authority) of Chapter 2.22 (Human Relations Commission) is
hereby amended to add new subsection (g) as follows:
2.22.060 Authority.
Upon making a finding pursuant to Section 2.22.050(a), the commission may act as follows:
(a) To foster public awareness and understanding of human relations problems by any
means of disseminating information including, but not limited to, educational programs and
printed and electronic media;
(b) To facilitate resolution of problems or improvement of conditions within the jurisdiction
of the commission by encouragement, persuasion and mediation and by pointing out private or
public agencies which might provide assistance;
(c) To make such studies which, in the judgment of the commission, might aid in affecting
matters within the jurisdiction of the commission;
(d) To recommend local legislation or other action to the council and to encourage the
council to support or oppose state or federal legislation or regulation relating to matters within
the jurisdiction of the commission;
(e) To coordinate programs of the commission with similar programs by private and public
agencies and organizations; and
(f) To recommend or oppose legislation other than that of the city, provided that the city
council has not taken an official position with respect to such legislation, and provided further
that any communication, whether oral or written, from the commission concerning such
legislation clearly indicates that such recommendation or opposition is that of the commission
and is not necessarily that of the city council.; and
(g) To recommend grantees under the Human Services Resource Allocation Process,
Community Development Block Grant, and Emerging Needs Fund.
SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any
reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the Ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 13. The Council finds that adoption of this Ordinance is exempt from the California
Environmental Quality Act as it is not a “project” within the meaning of CEQA.
//
//
//
//
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229_20210804_ts24
SECTION 14. This Ordinance shall be effective on January 1, 2022.
INTRODUCED: June 21, 2021
PASSED: August 9, 2021
AYES: BURT, DUBOIS, KOU, STONE, CORMACK, FILSETH, TANAKA
NOES: None
ABSENT: None
ABSTENTIONS: None
NOT PARTICIPATING: None
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Deputy City Attorney City Manager
____________________________
City Clerk
____________________________
Chief Transportation Official
____________________________
Director of Community Services
____________________________
Director of Planning and Development
Services
____________________________
Director of Public Works
____________________________
Director of Utilities
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Certificate Of Completion
Envelope Id: 0C6AB7C647B7442285587EE07AC8C0E3 Status: Completed
Subject: Please DocuSign: Ord 5529 - Ordinance to Consolidate the Appointments.HRCBlk .pdf
Source Envelope:
Document Pages: 6 Signatures: 10 Envelope Originator:
Certificate Pages: 3 Initials: 0 Lesley Milton
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
lesley.milton@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
8/24/2021 6:46:57 PM
Holder: Lesley Milton
lesley.milton@cityofpaloalto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Tim Shimizu
Tim.shimizu@cityofpaloalto.org
Deputy City Attorney
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 67.169.5.157
Sent: 8/24/2021 6:52:57 PM
Viewed: 8/25/2021 9:03:56 AM
Signed: 8/25/2021 9:04:31 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Brad Eggleston
brad.eggleston@cityofpaloalto.org
Director of Public Works
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 8/25/2021 9:04:32 AM
Viewed: 8/25/2021 4:17:21 PM
Signed: 8/25/2021 4:17:32 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Dean Batchelor
dean.batchelor@cityofpaloalto.org
Director of Utilities
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 8/25/2021 4:17:34 PM
Resent: 8/30/2021 11:45:39 AM
Viewed: 8/30/2021 12:37:02 PM
Signed: 8/30/2021 1:03:41 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jonathan Lait
jonathan.lait@cityofpaloalto.org
Interim Director Planning and Community
Environment
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Uploaded Signature Image
Using IP Address: 99.88.42.180
Sent: 8/30/2021 1:03:43 PM
Viewed: 9/1/2021 3:54:47 PM
Signed: 9/1/2021 3:55:22 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
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Kristen O'Kane
kristen.o'kane@cityofpaloalto.org
Assistant Director Community Services
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 67.188.116.181
Sent: 9/1/2021 3:55:23 PM
Viewed: 9/1/2021 6:25:11 PM
Signed: 9/1/2021 6:25:30 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Philip Kamhi
philip.kamhi@cityofpaloalto.org
Chief Transportation Official
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 174.241.44.150
Signed using mobile
Sent: 9/1/2021 6:25:32 PM
Resent: 9/14/2021 1:55:27 PM
Viewed: 9/16/2021 11:55:15 AM
Signed: 9/16/2021 11:55:30 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ed Shikada
ed.shikada@cityofpaloalto.org
Ed Shikada, City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 98.37.254.249
Sent: 9/16/2021 11:55:33 AM
Viewed: 9/16/2021 4:46:33 PM
Signed: 9/17/2021 11:42:02 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Tom DuBois
tomforcouncil@gmail.com
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 24.5.55.204
Sent: 9/16/2021 11:55:33 AM
Viewed: 9/16/2021 4:30:15 PM
Signed: 9/16/2021 4:30:29 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lesley Milton
lesley.milton@cityofpaloalto.org
City Clerk
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 9/17/2021 11:42:04 AM
Viewed: 10/1/2021 8:20:56 AM
Signed: 10/1/2021 8:21:25 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
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Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 8/24/2021 6:52:57 PM
Certified Delivered Security Checked 10/1/2021 8:20:56 AM
Signing Complete Security Checked 10/1/2021 8:21:25 AM
Completed Security Checked 10/1/2021 8:21:25 AM
Payment Events Status Timestamps
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City of Palo Alto (ID # 14226)
Utilities Advisory Commission Staff Report
Meeting Date: 4/6/2022
City of Palo Alto Page 1
Title: Indication of Interest Among UAC Commissioners to Serve on S/CAP
Working Groups, Including: Finance, Engagement, Technology and/or
Community Scaling
From: Director of Utilities
Lead Department: Utilities
Recommended Motion
Commissioner _____ indicated interest in volunteering to be on the [INSERT NAME OF GROUP]
S/CAP Working Group(s), Commissioner _____ indicated interest in volunteering to be on the
[INSERT NAME OF GROUP] S/CAP Working Group(s), Commissioner _____ indicated interest in
volunteering to be on the [INSERT NAME OF GROUP] S/CAP Working Group(s), and
Commissioner _____ indicated interest in volunteering to be on the [INSERT NAME OF GROUP]
S/CAP Working Group(s).
The selection carries X-X with Chair _____, Vice Chair _____, and Commissioners, Bowie,
Forssell, Johnston, Metz, Scharff, Segal, and Smith voting to acknowledge and affirm the
working group selections indicated by _____.
Executive Summary
Mayor Burt has requested that volunteers from the UAC serve on the four S/CAP Working
Groups: Finance, Engagement, Technology, and Community Scaling (to be established). The
S/CAP Working Groups will be comprised of 1 Council member, up to 2 community members
and 1 UAC member. This item is before the UAC today to permit UAC Commissioners to
indicate their interest in volunteering to serve on one or more Working Groups, to assist the
Mayor in assigning members to each group.
The UAC volunteers will meet with their selected Working Group(s) outside of regular UAC
monthly meetings to learn about and review the S/CAP. The UAC volunteers may bring forth
S/CAP updates on their selected Working Group to the full UAC as part of the “COMMISSIONER
COMMENTS and REPORTS from MEETINGS/EVENTS” portion of the agenda.
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