HomeMy WebLinkAbout2016-02-16 Finance Committee Action MinutesRegular Meeting
Tuesday, February 16, 2016
Chairperson Filseth called the meeting to order at 7:12 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Filseth (Chair), Holman, Schmid, Wolbach
Absent:
Agenda Items
1. Utilities Advisory Commission Recommendation That the City Council Adopt a Resolution to Approve a Power Purchase Agreement With Hecate Energy Palo Alto LLC for up to 75,000 Megawatt-hours
per Year of Energy Over a Maximum of 40 Years for a Total not to Exceed Amount of $101 Million.
MOTION: Council Member Schmid moved, seconded by Council Member Holman to recommend the City Council adopt a Resolution to:
Approve a Power Purchase Agreement (PPA) with Hecate Energy Palo Alto LLC (Wilson Solar) for up to 75,000 Megawatt-hours (MWh) per year of energy for up to forty years at a total cost
not to exceed $101 million; and
Delegate to the City Manager or his designee, the authority to execute on behalf of the City the PPA with HEPA, the three contract term extension options available to the City under
the PPA, and any documents necessary to administer the agreements that are consistent with the Palo Alto Municipal Code and City Council approved policies; and
Waive the application of the investment-grade credit rating requirement of Section 2.30.340(d) of the Palo Alto Municipal Code; and
Waive the application of the anti-speculation requirement of Section D.1 of the City’s Energy Risk Management Policy as it may apply to this PPA.
MOTION PASSED: 4-0
2. Utilities Advisory Commission Recommendation that the City Council Adopt a Resolution to Continue the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program at the Current Contract
Price of $0.165 per kilowatt-hour for Local Solar Resources and at the Avoided Cost Level ($0.081 to $0.082 per kilowatt-hour) for Local Non-solar Eligible Renewable Resources.
MOTION: Chair Filseth moved, seconded by Council Member Schmid to recommend the City Council adopt a Resolution to:
Maintain the Palo Alto CLEAN contract price of 16.5 cents per kilowatt-hour (kWh) for local solar resources that have already submitted applications to the CLEAN program and reduce the
CLEAN contract price for future local solar resources to their current avoided cost: 8.9 cents /kWh for a 20-year contract term and 9.0 cents/kWh for a 25-year contract term, and continue
with a program limit of 3 megawatts (MW); and
Reduce the Palo Alto CLEAN contract price for local non-solar eligible renewable resources equal to their current avoided cost: 8.1 cents/kWh for a 20-year contract term and 8.2 cents/kWh
for a 25-year contract term, and continue with a separate program limit of 3 MW.
MOTION PASSED: 4-0
3. Commercial and Residential Impact Fee Nexus Studies and Recommend Affordable Housing Impact Fees.
MOTION: Chair Filseth moved, seconded by Council Member Wolbach that the Finance Committee directs Staff to revise the recommendation and bring back an Ordinance with the objective
of significantly increasing impact fees for commercial development in order to maximize affordable housing revenue. This includes the following considerations:
Set the Impact Fee per square foot for office, medical and R&D at twice the amount as residential; and
Consider the extent to which the City can set the Impact Fee for office, medical and R&D somewhere between the maximum feasible fee and maximum justified fee.
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to also include the option of either a fee or inclusionary housing, which will allow the
developer to construct units instead of paying the fee.”
MOTION PASSED: 4-0
4. Approval of Amendment to Table of Organization by Adding 1.0 FTE Management Analyst in the Development Services Department.
MOTION: Council Member Wolbach moved, seconded by Council Member Holman to recommend the City Council amend the Table of Organization by adding 1.0 Full Time Employee (FTE) Management
Analyst in the General Fund, Development Services Department.
AMENDMENT: Chair Filseth moved, seconded by Council Member Schmid to add a comment to the Finance Committee recommendation that the target headcount for 2017 Management Professional
positions remain at 217.4.
AMENDMENT FAILED: 2-2 Holman, Wolbach no
MOTION PASSED: 4-0
ADJOURNMENT: The meeting was adjourned at 10:30 P.M.
ACTION MINUTES
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Finance Committee Action Minutes
February 16, 2016
FINANCE COMMITTEE
ACTION MINUTES
Page 1 of 3