HomeMy WebLinkAbout2020-04-21 Finance Committee Action Minutes FINANCE COMMITTEE
ACTION MINUTES
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Regular Meeting
April 21, 2020
The Finance Committee of the City of Palo Alto met on this date, virtually by
the use of Zoom at 7:01 P.M.
Present: Kniss, DuBois, Tanaka (Chair)
Absent:
Oral Communications
None
Agenda Items
1. Adoption of a Resolution Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) Increasing the Storm Water Management
Fee by 2.5 Percent to $15.04 per Month per Equivalent Residential Unit
for Fiscal Year (FY) 2021.
MOTION: Vice Mayor DuBois moved, seconded by Council Member Kniss to
recommend that the City Council adopt a Resolution amending Utility Rate
Schedule D-1 (Storm and Surface Water Drainage), to implement a 2.5
percent rate increase consistent with the applicable Consumer Price Index,
increasing the monthly charge per Equivalent Residential Unit by $0.36, from
$14.68 to $15.04 for Fiscal Year 2021.
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER to add to the Motion to direct Staff to also bring to
Council the cost per rate payer and information on deferred maintenance.
MOTION AS AMENDED: Vice Mayor DuBois moved, seconded by Council
Member Kniss to recommend that the City Council adopt a Resolution
amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage), to
implement a 2.5 percent rate increase consistent with the applicable
Consumer Price Index, increasing the monthly charge per Equivalent
Residential Unit by $0.36, from $14.68 to $15.04 for Fiscal Year 2021; and
direct Staff to also bring to Council the cost per rate payer and information on
deferred maintenance.
MOTION PASSED: 2-1, Tanaka no
ACTION MINUTES
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Finance Committee Meeting
Action Minutes: 04/21/2020
2. Staff and the Utilities Advisory Commission Recommended the Finance
Committee Recommend the City Council Adopt a Resolution Approving the Fiscal Year (FY) 2021 Water Utility Financial Plan, Including Proposed
Reserve Transfers and an Amendment to the Water Utility Reserves
Management Practices, With no Water Rate Adjustment for FY 2021.
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois to
recommend that the City Council:
A. Adopt a Resolution approving:
i. The Fiscal Year (FY) 2021 Water Utility Financial Plan;
ii. Up to a $3 million transfer from the Operations Reserve to the CIP
Reserve in FY 2020;
iii. Up to a $5 million transfer from the Operations Reserve to the
Rate Stabilization Reserve in FY 2020;
iv. Up to an $8 million capital program contribution from the
Operations Reserve to the CIP Reserve in FY 2021;
v. Amendments to the Water Utility Reserves Management Practices
relating to the CIP Reserve (as set forth in the Financial Plan, with
a redline provided by Staff);
vi. Approve the maintenance of a balance in the Rate Stabilization
Reserve through FY 2028 in order to provide greater rate
stabilization to customers.
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER to add to the Motion to direct Staff to provide
details as to why Palo Alto’s rates are higher than cities (New Part B.)
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER to add to the Motion Part B. “with the same supplier
at next year’s Finance Committee.”
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois to
recommend that the City Council:
A. Adopt a Resolution approving:
i. The Fiscal Year (FY) 2021 Water Utility Financial Plan;
ACTION MINUTES
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Finance Committee Meeting
Action Minutes: 04/21/2020
ii. Up to a $3 million transfer from the Operations Reserve to the CIP
Reserve in FY 2020;
iii. Up to a $5 million transfer from the Operations Reserve to the
Rate Stabilization Reserve in FY 2020;
iv. Up to an $8 million capital program contribution from the
Operations Reserve to the CIP Reserve in FY 2021;
v. Amendments to the Water Utility Reserves Management Practices relating to the CIP Reserve (as set forth in the Financial Plan, with
a redline provided by Staff);
vi. Approve the maintenance of a balance in the Rate Stabilization
Reserve through FY 2028 in order to provide greater rate
stabilization to customers; and
B. Direct Staff to provide details as to why Palo Alto’s rates are higher than
cities with the same supplier at next year’s Finance Committee
MOTION PASSED: 3-0
3. Staff Recommends the Finance Committee Recommend the City Council
Make no Changes to Wastewater Rates for Fiscal Year (FY) 2021
Beginning July 1, 2020.
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois to
recommend the City Council make no changes to Wastewater rates for Fiscal
Year (FY) 2021 beginning July 1, 2020.
MOTION PASSED: 3-0
Adjournment: The meeting was adjourned at 8:40 P.M.