HomeMy WebLinkAbout2020-05-05 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
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Regular Meeting
May 05, 2020
The Finance Committee of the City of Palo Alto met on this date in the
Community Meeting Room at 7:01 P.M.
Present: Kniss, DuBois, Tanaka (Chair)
Absent:
Chair Tanaka
Agenda Items
1. Discussion of June 30, 2019 Actuarial Valuation of Palo Alto's Retiree
Healthcare Plan and Annual Actuarially Determined Contributions (ADC)
for Fiscal Years 2021 and 2022.
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois to
recommend the City Council review and accept the June 30, 2019 Actuarial
Valuation of Palo Alto’s Retiree Healthcare Plan, recommend a 6.25 percent
discount rate to be used in the calculation of the Actuarial Determined
Contribution (ADC) and approve full funding of the annual ADC for Fiscal Year
(FY) 2021 and FY 2022.
MOTION PASSED: 3-0
2. Discussion of Proposed Fiscal Year 2020-21 Community Development
Block Grant (CDBG) Funding Allocation; Draft 2020-25 Consolidated
Plan; and Draft 2020-21 Annual Action Plan.
MOTION: Vice Mayor DuBois moved, seconded by Council Member Kniss to
recommend the City Council take the following actions:
1. Allocate Community Development Block Grant (CDBG) funding as
recommended in the draft 2020-2021 Action Plan (Attachment A) and
as described in this Report;
2. Authorize the City Manager to execute the Fiscal Year 2020-2021 CDBG
application and Fiscal Year 2020-2021 Action Plan for CDBG funds, any
ACTION MINUTES
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Finance Committee Meeting
Action Minutes: 05/05/2020
other necessary documents concerning the application and to otherwise
bind the City with respect to the applications and commitment of funds;
3. Authorize Staff to submit the 2020-2021 Action Plan (Attachment B) to
Housing and Urban Development (HUD) by the extended deadline of
August 16, 2020; and
4. Authorize Staff to submit the 2020-2025 Consolidated Plan (Attachment
B) to HUD by the extended deadline of August 16, 2020.
MOTION PASSED: 3-0
3. Staff and the Utilities Advisory Commission Request the Finance
Committee Recommend the City Council Adopt a Resolution Approving
the Fiscal Year 2021 Electric Financial Plan and Reserve Transfers,
Amending the Electric Utility Reserve Management Practices, and
Increasing Electric Rates by two Percent Overall by Amending the E-1,
E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-NSE and
E-EEC Rate Schedules.
MOTION: Chair Tanaka moved, seconded by Council Member Kniss to
recommend the City Council approve the Electric Utility Financial Plan with the
following conditions:
1. Adopt a zero percent increase effective July 1, 2020;
2. Approve the Fiscal Year (FY) 2021 Electric Utility Financial Plan;
3. Amend the Electric Utility Reserves Management Practices;
4. Approve the following transfers:
a. Up to $5 million from the Supply Operations Reserve to the Electric
Special Projects Reserve in FY 2020;
b. Up to $4 million from the Supply Operations Reserve to the Hydro
Stabilization Reserve in FY 2020;
c. Up to $7 million from the Distribution Operations Reserve to the
CIP Reserve; and
d. Transfer $3.74 million from the Supply Operations Reserve to the
LCFS Reserve.
MOTION PASSED: 2-1 DuBois No
ACTION MINUTES
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Finance Committee Meeting
Action Minutes: 05/05/2020
4. Staff and the Utilities Advisory Commission Recommend the Finance
Committee Recommend the City Council Adopt a Resolution Approving the Fiscal Year 2021 Gas Utility Financial Plan, Including Proposed
Transfers and an Amendment to the Gas Utility Reserve Management
Practices, 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).
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois to
recommend the City Council agree to a three percent rate increase to the Gas
Utility Financial Plan (with a five percent Distribution Rate increase.)
MOTION PASSED: 2-1 Tanaka No
Adjournment: The meeting was adjourned at 9:38 P.M.