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Home My WebLink About2008-09-03 Utilities Advisory Commission Summary Minutes Utilities Advisory Commission Minutes Approved on: October 1, 2008 Page 1 of 3 FINAL UTILITIES ADVISORY COMMISSION MINUTES OF SEPTEMBER 3, 2008 CALL TO ORDER Chair Dawes called to order at 7:00 P.M. the scheduled meeting of the Utilities Advisory Commission (UAC). Present: Commissioners Dexter Dawes, John Melton, Asher Waldfogel and Council Member Yiaway Yeh Absent: Commissioners Marilyn Keller and Dick Rosenbaum ORAL COMMUNICATIONS NONE APPROVAL OF THE MINUTES The minutes from the August 6, 2008, were unanimously approved. AGENDA REVIEW No changes to the agenda were requested. REPORT FROM COMMISSION MEETINGS/EVENTS NONE UTILITIES DIRECTOR REPORT Utilities Director Valerie Fong provided the following updates: 1. FY 2008-09 and 2009-10 Budget: Based on the latest updates of expected supply costs for the next two years, a mid-year rate increase is not being considered at this time. A presentation updating the Commission on supply costs is scheduled for the October meeting. 2. Gas Prepay Project: McDonald Partners has been selected to be the City’s consultant. The consultant will assist the City in evaluating the risks and rewards of various prepay structures and will assist in identifying any internal policy changes or operating requirements. One key component of the scope of work is to educate staff, the UAC and Council. Work is expected to begin in September. 3. Marketing: New email newsletters on energy efficiency and sustainability (developed by a third party contractor) have been implemented to inform our customers about programs and projects they can do to enhance their bottom line, reduce energy bills, and reduce GHG emissions. 4. Drought Concerns: Staff is working with BAWSCA to review and firm up regional mandatory drought plans, should they be required. 5. Water Service Contract Negotiations: Negotiations continue on a new water service contract between San Francisco and BAWSCA on behalf of the BAWSCA agencies. The latest report indicates that there are several serious challenges to having a completed contract before the current contract expires on June 30, 2009. 6. Solar Water Heating Program: Training for building inspectors, contractors and residents continues. The first two rebates applications under the program have been received. Utilities Advisory Commission Minutes Approved on: October 1, 2008 Page 2 of 3 7. Energy Efficiency Rebates: Updates to the SMART Energy (residential) and CAP (commercial) rebates have been completed to make the programs easier to understand and more similar to those offered in surrounding utilities. 8. GHG Reduction Initiatives: Staff has worked with the Sustainability Team extensively over the summer to provide six years of electric and natural gas history for each City utility account. The Sustainability Team will look at this information to find the best places to focus resources in the reduction of GHG. Staff has also been working with Public Works and the Sustainability Team on developing an LED Streetlight Pilot Project. Staff is coordinating with Jim Baer on his “First Wave” initiative to “green” 100 buildings in Palo Alto. A simplified “walk through” audit is being developed to enable these building managers to conduct preliminary reviews of their buildings and find the lowest hanging fruit for efficiency upgrades. Staff is also looking at potential options to integrate the PAG program with the overall efforts to reduce GHGs. 9. Update on Solar PV Questions from Last Month’s Meeting: Assistant Director Tom Auzenne provided the following updates:  Federal Investment Tax Credit (renewable tax credits) is still stalled in Congress. Will expire at the end of this year, and lack of renewal will negatively impact third-party PV ownership programs;  PV Program budget is $13M for 10 years, or 10 program “steps”. The rebate level of each step is at least 7% lower than prior step (per SB1 mandate);  There has not been a California state tax credit for photovoltaic systems since 2005;  (Photovoltaic DC to AC conversion) … on average the AC rating is 75% to 80% of the DC rating;  Staff will incorporate wording for the PV Partners Guidebook to help avoid future conflicts between tree-owners and PV system-owners (SB1399). 10. NCPA Finance Committee: Council Member Yeh has been appointed to the Northern California Power Agency’s Finance Committee. 11. UAC Calendar: Fong provided a rolling calendar of upcoming items for UAC meetings. Council Member Yeh asked whether the UAC should have an expanded role in reviewing the SAP system and the IT website as a vehicle for additional on-line payment options. Staff did not render an opinion on the matter. UNFINISHED BUSINESS NONE NEW BUSINESS ITEM 1: DISCUSSION ITEM: Frequency of Updates Director Fong announced that Utilities would return to its prior practice of providing quarterly updates. Commissioner Melton advised that the content in the quarterly reports should focus on policy matters and not as much on operational aspects such as reliability impact measures. Fong noted that these impact measures would be provided annually, not quarterly. Commissioner Dawes stated that once a system is created to produce a certain report, that the ongoing administrative burden should be small. Commissioner Waldfogel asked that the reports should contain information and drivers that will drive quarterly decisions. Utilities Advisory Commission Minutes Approved on: October 1, 2008 Page 3 of 3 ITEM 2: ACTION ITEM: Recommendation to Approve a Program to Protect Customer Identification and Credit Information in Compliance with the Fair and Accurate Credit Transactions Act of 2003 Assistant Director Tom Auzenne explained that the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) requires that the City Council must approve a consumer credit protection program by November 1, 2008. Commissioner Waldfogel asked about storing credit card information. Since the City only accepts one-time payments using credit cards and not recurring payments, it doesn’t need to store credit card information. The new billing system will continue this one-time, non recurring credit card payment policy. Commissioner Waldfogel said that he supports the proposed program as long as it doesn’t preclude recurring credit card payments in the future. Commissioner Melton noted that this program is aimed at identity theft, but that on-line theft is much less common than physical theft, including laptops or media storage devices (e.g. CDs or flash drives). He asked about the current policies on access to information within the building or on carrying the information outside of the building. Auzenne noted that the current system has had no identity theft occurrences and that the new system will be an improvement due to its auditing feature that shows which Customer Service Rep has touched each customer account. Commissioner Melton asked why the Utility needs social security numbers, driver’s license numbers or passport numbers. Auzenne replied that these numbers are used to ensure that a caller asking for information on an account is the person responsible for the account and to help find customers who have not paid. Commissioner Dawes asked what needs to be done to implement the proposed policies. Fong responded that we will be in compliance with the new policies even if the new billing system is not on line until 2009. Auzenne added that there are no known processes or procedures in the current system that would need to be changed. Melton moved and Waldfogel seconded the motion to “Recommend to Council approve a program to protect customer identification and credit information in compliance with the Fair and Accurate Credit Transactions Act of 2003” ACTION: The Commission voted unanimously (3-0) to approve the motion. The next scheduled meeting is set for October 1. Chair Dawes announced that he will not be able to attend this meeting and that he believes that Commissioner Keller will not be able to attend this meeting. Fong indicated her recollection that Commissioner Keller would most likely miss November’s meeting not October. Meeting adjourned at 8:05 P.M. Respectfully submitted, Marites Ward City of Palo Alto Utilities