HomeMy WebLinkAbout2023-03-07 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
Page 1 of 2
Regular Meeting
March 7, 2023
The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room
at 5:30 P.M.
Present In-Person: Burt (Chair), Lythcott-Haims, Stone
Present Virtually:
Absent:
Agenda Items
1. Utilities Advisory Commission and Staff Recommendation That the Finance Committee
Recommend the City Council Adopt a Resolution Approving the Fiscal Year 2024 Water
Utility Financial Plan, Including Proposed 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 Master-
Metered and General Non-Residential Water Service), and W-7 (Non-Residential
Irrigation Water Service)Assistant City Manager Kiely Nose
MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to
recommend the City Council adopt a resolution approving
a. FY 2024 Water Utility Financial Plan
b. Up to a $3.746 million transfer from the Capital Improvement Projects Reserve to the
Operations Reserve in FY 2023
c. Up to a $3.0 million transfer from the Rate Stabilization Reserve in FY 2023
d. Increasing Water Utility Rates Via the Amendment of Rate Schedules W-1, W-2, W-3, W-
4, and W-7
MOTION PASSED: 3-0
2. The Utilities Advisory Commission and Staff Request That the Finance Committee
Recommend the City Council Adopt a Resolution Approving the FY 2024 Wastewater
Collection Utility Financial Plan Including Proposed 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
SUMMARY MINUTES
Page 2 of 2
Sp. Finance Committee Meeting
Action Minutes: 3/7/2023
Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and
Disposal – Industrial Discharger)
MOTION: Chair Burt moved, seconded by Vice Mayor Stone to continue this item to the March
21, 2023 Finance Committee Meeting
MOTION PASSED: 3-0
3. Adoption of a Resolution Amending Utility Rate Schedule D-1 (Storm and Surface Water
Drainage) Reflecting a 4.9 Percent Consumer Price Index Rate Increase to $16.76 per
Month Per Equivalent Residential Unit for Fiscal Year 2024.
MOTION: Chair Burt moved, seconded by Council Member Lythcott-Haims to recommend the
City Council adopt a resolution amending Utility Rate Schedule D-1 (Storm and Surface Water
Drainage), to implement a 4.9% rate increase consistent with the applicable Consumer Price
Index, increasing the monthly charge per Equivalent Residential Unit (ERU) by $0.78, from
$15.98 to $16.76 for Fiscal Year 2024.
MOTION PASSED: 3-0
4. Approval of the Electric Utility Construction Services Contract with VIP Powerline Corp.
(C23185980) for a Total Not-to-Exceed Amount of $20,000,000 over Five Years; CEQA
status – exempt (existing facilities, replacement or reconstruction)Budget Manager Jessie
Deschamps
MOTION: Chair Burt moved, seconded by Vice Mayor Stone to recommend the City Council
a. Adopt a determination that this action is exempt from environmental review under
Class 1 (Existing Facilities) and/or Class 2 (Replacement or Reconstruction) (CEQA
Guidelines section 15301-15302); and
b. Approve and authorize the City Manager to execute the construction contract
C23185980 (Attachment A) with VIP Powerline Corp. (VIP) in an amount not-to-exceed
$20,000,000 over five (5) years, with an annual not-to-exceed amount of $4,000,000 for
Electric Construction Services to provide essential ongoing operational work including
construction maintenance and system improvement work on the City’s electric
distribution system at various locations throughout the City of Palo Alto.
c. This recommendation go to Council as an Action Item provided that it does not impact
operations, otherwise it will go on Consent.
MOTION PASSED: 3-0
Adjournment: The meeting was adjourned at 8:20 P.M.