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HomeMy WebLinkAbout2013-01-28 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers January 28, 2013 7:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 January 28, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. * The agenda now includes time estimates for each section or item. These are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. Call to Order 7:00-7:10 PM City Manager Comments Minutes Approval December 10, 2012 Oral Communications 7:10-7:25 PM Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:25-8:00 PM Items will be voted on in one motion unless removed from the calendar by two Council Members. 1. Utilities Advisory Commission Recommendation that the City Council Adopt a Resolution Approving the City of Palo Alto Utilities Legislative Policy Guidelines for 2013 2. Adoption of a Resolution Approving Amendment No. 1 to the Amended and Restated Project Agreement No. 5 Between and Among the Transmission Agency of Northern California and its Participating Members 2 January 28, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 3. Appeal of Director’s Architectural Review Approval of the Co-location by AT&T Mobility LLC of Pole-Mounted Wireless Communications Equipment and Associated Equipment Boxes on 20 Existing Utility Poles Within City Rights-of-Ways Near the Following Locations: 747 Loma Verde Ave; 3284 Cowper; 3412 Ross/ 3374 Ross Rd; 3132 David Ave; 3415 Greer Rd; 3539 Louis Rd; 2385 Waverley; 3094 Greer Road on Maddux; 390 El Dorado Ave; 452 Loma Verde; 3524 Waverly on E. Meadow; 3706 Carlson Circle; 3757 Corina Wy; 3915 Louis Rd; 631 E. Meadow; 3901 Middlefield Rd; 412 Ferne; 3945 Nelson Ave.; 1772 Hamilton Ave.; 109 Lois Lane - AT&T DAS Phase 3 Project 4. Appeal of Director’s Architectural Review Approval of the Co-location by AT&T Mobility LLC of Pole-Mounted Wireless Communications Equipment and Associated Equipment Boxes on 20 Existing Utility Poles Within City Rights-of-Ways Near the Following Locations: 4131 El Camino Way, 550 Georgia Ave, 4101 Park Blvd (on W. Meadow), 4255 Ruthelma Ave, 669 Maybell Ave, 110 E. Charleston Dr (on Alma), 493 W. Charleston Dr, 4298 Ponce Dr, 429 Monroe, 231 Parkside Dr., opposite 106 Loma Verde, 516 Barron Ave, 4257 McKellar, 320 Lambert Ave, 3989 La Donna, 397 Ventura Ave, 3364 Emerson St, 820 Chimalus Dr, 715 Barron Ave, 915 Matadero Ave. AT&T DAS Phase 4 Project 5. Approval of $114,165 for the Consolidated Maintenance Contract between the City of Palo Alto and Public Safety Systems, Inc. For Computer Aided Dispatch, Police Records Management, Fire Records Management, Mobile Data, and Geovalidation 6. Authorization for the City Manager to Enter Into a One-Year Contract with the Professional Evaluation Group/The Ochoa & Moore Law Firm, P.C. (PEG/OM) in a Total Amount Not to Exceed $125,000 for Rail Legislative Advocacy Services 7. Finance Committee Recommendation that Council Adopt Two Resolutions: 1) Approving the Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities and 2) Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges 3 January 28, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 8. Colleagues Memo from Mayor Scharff and Council Member Klein to Add a 4th Member to the Council’s Committee on Infrastructure 8:00-8:15 PM 9. Review and Input Regarding Scope of Services for Downtown Cap Study Request for Proposals and Direction Regarding Public Outreach and Input (Staff requests this item be continued to February 11, 2013) 8:15-8:20 PM 10. Discussion and Adoption of the Agenda for the City Council’s Annual Retreat on February 2, 2013 for the Possible Purposes of: (a) Setting the Council’s Priorities with Action Steps for 2013; (b) Discussion and Possible Action on Core Principles and Guiding Values; (c) Discussion and Possible Action on Meeting Management and the Length of Council Meetings; and (d) Other Potential Topics as Determined by the Council 8:20-8:50 PM Council Member Questions, Comments and Announcements 8:50-9:00 PM Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. PUBLIC COMMENT Members of the Public are entitled to directly address the City Council/Committee concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council/Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council/Committee, but it is very helpful. 4 January 28, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Agenda Packets City Council Rail Committee Regional Housing Mandate Committee City Council Retreat Action Minutes Action Minutes Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto Investment Activity Report for the Second Quarter, Fiscal Year 2013 Public Letters to Council Set 1 Set 2 Set 3 City of Palo Alto (ID # 3408) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Utilities 2013 Legislative Policy Guidelines Title: Utilities Advisory Commission Recommendation that the City Council Adopt a Resolution Approving the City of Palo Alto Utilities Legislative Policy Guidelines for 2013 From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that the City Council adopt the attached resolution approving the attached Utilities Legislative Policy Guidelines for 2013. Executive Summary The Utilities Legislative Policy Guidelines for 2013 (Attachment B) have been updated from the 2012 guidelines to respond to recent legislative and regulatory trends to: 1) provide direction to staff in evaluating and responding to legislative action involving Utilities issues, and 2) clarify approved policy and advocacy direction when active involvement of Palo Alto elected officials is required. These revisions were reviewed and unanimously approved by the UAC at its December 5, 2012 meeting. The guidelines are grouped in five sections: the first addressing legislative policy guidelines that are common to all utilities (electric, fiber optics, gas, wastewater collection, and water), and the following four sections addressing those guidelines that are specific to electric, gas, wastewater collection, and water. There is no section specifically for fiber optics as legislative initiatives are largely not applicable to Palo Alto’s dark fiber system. Each section includes a set of goals for the utility and guidelines for Palo Alto staff and elected officials when taking action to achieve the goals. Background The utility industry is a high-profile and heavily regulated industry that is subject to continuous legislative action at both the state and federal levels. Such legislation can influence, among other things, the reliability and security of the supply and distribution infrastructure, commodity procurement practices, customer service and billing, program design, rate design, and activities and costs associated with climate protection. Representatives of the City City of Palo Alto Page 2 (appointed and elected officials and staff) participate in Federal and State legislative forums to advocate positions on energy- and water-related issues that facilitate the City’s current strategic objectives, as adopted in the 2011 Utilities Strategic Plan: ensuring a reliable and safe supply of utility resources, providing customer service excellence, managing costs, and ensuring environmental sustainability. The City also participates in joint action efforts to advocate for goals and objectives shared by other publicly-owned utilities. At the state level, hundreds of bills focused on the utility industry can be introduced each year. The number of bills introduced, the pace at which bills change and new language is negotiated, and the often surprising speed at which bills can be placed for a vote during the legislative year requires staff and elected officials to respond quickly if the City is to have any influence on the resulting legislation. Often, a response to an amended bill is required in a matter of a day or two. These timing constraints preclude a return to the UAC and Council for approval each time a response is required. Therefore, a set of policy guidelines is developed each year that identifies the goals and priorities for the City to be applied by staff when evaluating and responding to legislation. While the guidelines are used by staff for evaluating legislation, any advocacy positions taken in alignment with these guidelines will be subject to the approval of the Utilities Director or City Manager per the City’s legislative advocacy process. Although it is impractical to return for approval each time a letter is sent in response to a bill amendment, the issues under debate are known to the UAC and Council through their participation in legislative committee meetings, and updates from the City Manager, the Utilities Director and City staff. Formal letters responding to legislative bills or amendments will be distributed to the UAC and Council. Discussion Apart from some reorganization of the structure and non-substantive changes to update the status of existing initiatives, the major revision was the addition of the following new guidelines: Under the electric utility guideline 7, which calls for advocating for Congressional, legislative, or administrative actions on matters impacting costs or operations of the Western Area Power Administration, a reference was made to the grid modernization goals of the Department of Energy’s Secretary Chu March 16, 2012 memo. This is something that could potentially impact reliability, greenhouse gas (GHG) emissions and cost. The new guideline directs support of the grid modernization goals without compromising the primary mission of Western and recognizing the achievements already made in California without adding duplicate costly efforts. This supports the Utilities Strategic Plan goals of ensuring a reliable supply of utility resources, managing costs, and ensuring environmental sustainability. Two new guidelines were added for the natural gas utility. One mirrors the guidelines on GHG cap-and-trade market design that is already included under the electric utility guidelines, and has been added because the City’s gas utility will come under the GHG cap-and-trade mechanism in 2015. The other new guideline addresses the issues of hydraulic fracturing, or “fracking”, in recognition of state and national interest in this process. The current language does not offer a position other than support of “fair application of environmental rules”. Any City of Palo Alto Page 3 specific advocacy position on this will require further review of the cost, safety and environmental impacts of any proposed legislation. One new guideline was added for the water utility that would address possible calls for increased infrastructure funding and regulations following the floods in the east coast in 2012. The guideline supports reliability, but calls for fair cost allocation and avoidance of unnecessary regulations. This supports the utilities strategic plan goals of ensuring a reliable supply while managing costs. Commission Review and Recommendation The Utilities Legislative Policy Guidelines for 2013 were presented to the UAC at its December 5, 2012 meeting. The UAC had a few clarifying questions on the new guidelines, and accepted Director Fong’s suggestion to reorganize the sections so that the utilities were listed in alphabetical order. The UAC unanimously approved a motion to recommend that the City Council approve the Utilities Legislative Policy Guidelines for 2013. Draft minutes from the UAC meeting are included as Attachment C. Resource Impact There is no direct resource impact associated with adoption of the proposed legislative policy guidelines. However, actions taken that support the efficient use of the City’s assets and resources will help control costs, implement the Council’s policies and goals, and protect utility customers. Policy Implications The recommendation is consistent with Council policy and supports the 2011 Utilities Strategic Plan’s objectives of: ensuring a reliable and safe supply of utility resources, providing customer service excellence, managing costs, and ensuring environmental sustainability. Environmental Review Approval of a resolution adopting the Utilities Legislative Policy Guidelines for 2013 does not meet the definition of a project pursuant to Section 21065 of the California Environmental Quality Act (CEQA), thus, no environmental review is required. Attachments:  Attachment A: RESO Approving 2013 Util Legislative Guidelines (PDF)  Attachment B: 2013 Utilities Legislative Policy Guidelines (PDF)  Attachment C: Excerpted Draft UAC Minutes of December 5, 2012 Meeting (PDF)  Attachment D: 2013 Legislative Policy Guidelines with Changes from 2012 Guidelines in Redline/Strikout Formal (PDF) ATTACHMENT A * NOT YET APPROVED* 130107 dm 6051826 Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving the City of Palo Alto Utilities Legislative Policy Guidelines for 2013 A. The City of Palo Alto Utilities Strategic Plan (“Strategic Plan”), approved by the Palo Alto City Council on July 18, 2011, [CMR 1880] provides a set of Strategic Objectives for the City of Palo Alto Utilities Department (CPAU) to follow in ensuring a reliable and safe supply of utility resources, providing customer service excellence, managing costs, and ensuring environmental sustainability. B. CPAU annually identifies Utilities’ Legislative Policy Guidelines that facilitate the Strategic Plan’s Strategic Objectives, and advocates for utility-related issues at Federal and State legislative forums in furtherance of those objectives. C. In December 2012 CPAU staff updated the Legislative Policy Guidelines to respond to recent legislative and regulatory trends. D. Action on some of these issues may require active involvement of Palo Alto elected and appointed officials. E. The Utilities’ Legislative Policy Guidelines for 2013 were presented to the UAC at its December 5, 2012 meeting, and the UAC voted unanimously (6-0) to recommend that the City Council approve the Utilities’ Legislative Policy Guidelines. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the resolution approving the Utilities Legislative Policy Guidelines for 2013. // // // // // ATTACHMENT A * NOT YET APPROVED* 130107 dm 6051826 SECTION 2. The Council finds that the adoption of this resolution does not constitute a project under Section 21065 of the California Environmental Quality Act (CEQA) and the CEQA Guidelines, and therefore, no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services ATTACHMENT B Utilities’ Legislative Policy Guidelines for 2013 Advocacy positions taken in alignment with these guidelines will be subject to the approval of the Utilities Director or City Manager as per the City’s legislative advocacy process ALL UTILIT IES Goals 1. Preserve/enhance local accountability in the control and oversight of matters impacting utility programs and rates for our customers while balancing statewide climate protection goals. 2. Support efforts to maintain or improve the reliability of the supply, transmission, storage and distribution/collection infrastructures. 3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas (GHG) emissions, and recognizes early voluntary action. 4. Maintain the City of Palo Alto Utilities’ (CPAU’s) ability to provide safe, reliable, sustainable, and competitively-priced utility services. Legislative Policy Guidelines Venue Goals 1. Local Accountability 2. Reliability & Infrastructure 3. Climate Protection 4. Service & Cost Control 1. Advocate goals through active participation in joint action efforts. Federal, State, and Regional     2. Communicate the City’s record on environmental and energy efficiency programs with Legislature, California Energy Commission (CEC), California Air Resources Board (CARB), and Natural Resources Defense Council (NRDC) via California Municipal Utilities Association (CMUA), Northern California Power Agency (NCPA), and the Bay Area Water Supply and Conservation Agency (BAWSCA). State    Utilities Legislative Policy Guidelines for 2013 Page 2 of 13 1. Local Accountability 2. Reliability & Infrastructure 3. Climate Protection 4. Service & Cost Control 3. Support legislation that will result in the most cost-effective reduction of GHG emissions, recognition of early action, and inclusion of more efficient solutions, fuel switching, and demand control programs, in integrated resource plans. Federal, State, and Regional     4. Promote utility legislation and regulations that support reasonable reliability standards and compliance requirements, and effective and consistent reporting requirements, customer communications, and goal- setting. Federal, State, and Regional Reliability Councils    5. Oppose cost shifts from Federal or State budgets and California Public Utilities Commission (CPUC) jurisdictional utilities through active participation in CMUA and NCPA legislative activities. Federal, State, and CPUC   6. Advocate for State and Federal grants for local and regional applications of energy efficiency, conservation, renewable resources, fiber, wastewater collection systems and recycled water projects. Federal and State    7. Maintain right of way access for utility infrastructure. Federal and State   8. Protect the value of existing assets and contracts and local regulatory approvals of same. Federal and State    Utilities Legislative Policy Guidelines for 2013 Page 3 of 13 ELECTRIC Goals 1. Preserve/enhance the ability of municipal utilities to exercise local accountability and oversight over matters impacting customer service, programs (such as demand side efficiency and conservation programs), and rate structure. 2. Preserve/enhance the reliability and security of infrastructure. 3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas emissions and encourages early voluntary action. 4. Preserve just and reasonable utility rates/bills. Legislative Policy Guidelines Venue Goals 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 1. Advocate goals through Northern California Power Agency (NCPA), California Municipal Utilities Association (CMUA), American Public Power Association (APPA), Transmission Agency of Northern California (TANC), and Bay Area Municipal Transmission Group (BAMx) with support from Palo Alto staff to speak with a coordinated voice. Federal and State     2. Support NCPA in its continued efforts to streamline the state regulatory reporting responsibilities, to eliminate duplicative data and report submittals to multiple state regulatory agencies, including the CEC, CARB, and the California Independent System Operator (CAISO). State   3. Advocate for legislation/regulations that provide local control and support for:  cost-effective clean distributed generation and cogeneration projects, and standards for connecting such resources to the local distribution system;  cost-effective electric efficiency programs;  implementation of renewable portfolio standards;  cost-effective storage integration;  direct access requirements;  smart meters and smart grid design and implementation, and  public benefit funds (as allowed in AB1890 (1996)). Federal and State     Utilities Legislative Policy Guidelines for 2013 Page 4 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 4. Support cap-and-trade market designs that:  protect consumers from the exercise of market power;  allocate allowances that help mitigate impacts to Palo Alto customers while providing incentives for utilities to move to lower GHG emission portfolios;  provide flexible compliance mechanisms such as banking and borrowing of allowances; and  allocate funds generated from cap-and-trade markets to GHG related activities, not as a revenue source for state or federal general funds. Federal and State    5. Support legislation for renewable portfolio standards that:  promote the 33% goal for the state;  maintain local compliance authority;  allow utilities to pursue low cost alternatives by utilizing existing transmission system to access out-of-state resources, including use of Renewable Energy Certificates (RECs);  prevent double jeopardy in the assessment of penalties for non-compliance; and  restrict extension of CEC jurisdiction over Publicly Owned Utilities. Local and State    6. Support/encourage transmission, generation, and demand-reduction projects and solutions including advocating for financing or funding solutions/options for projects that:  enhance/ensure reliability;  ensure equitable cost allocation (including protection against imposition of state-owned electric contract costs on municipal utility customers);  improve procurement flexibility (e.g. resource adequacy rules that ensure reliability and provide flexibility in meeting operational requirements or flexibility in meeting State renewable portfolio standards);  improve market transparency (particularly transparency of IOU’s transmission and procurement planning and implementation activities); and  lower the environmental impact on the Bay Area and the Peninsula. Local, State, and Federal     Utilities Legislative Policy Guidelines for 2013 Page 5 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 7. Advocate for Congressional, legislative, or administrative actions on matters impacting costs or operations of the Western Area Power Administration such as:  support of Congressional Field Hearings to explore modernizing flood control strategies, river regulation and generation strategies at Central Valley Project (CVP) plants to enhance generation, water delivery, flood control and fisheries;  protection of the status of Western Power Marketing Administration and cost-based rates;  provisions for preference customers’ first take at land available with economic potential for wind farms;  balancing efforts for competing environmental improvements in rivers and Delta conditions with water supply and hydropower impacts; and  Achieving the grid modernization goals of Secretary Chu’s March 16, 2012 memo without compromising the primary mission of Western and recognizing the achievements already made in California without adding duplicate costly efforts. Federal, State and Regional    8. Advocate for Congressional, legislative, or administrative actions on matters relating to overly burdensome reporting and compliance requirements established by the North American Reliability Corporation (NERC), the Federal Energy Regulatory Commission (FERC) or the Western Electricity Coordinating Council (WECC). Federal, State and Regional   9. Support fair and reasonable assessment of grid reliability established by NERC, WECC, or FERC and seek Congressional remedies (if needed) for punitive application of fees and fines. Federal and Regional   10. Work with California Independent System Operator (CAISO) or through FERC:  to give buyers of renewable intermittent resources relief from imbalance penalties; and  to promote financial and operational changes that result in timely and accurate settlement and billing. Federal and State    Utilities Legislative Policy Guidelines for 2013 Page 6 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 11. Monitor cyber security issues to ensure that CPAU, which currently does not have critical cyber assets, is not subject to NERC cyber security standards and support NCPA to protect it and its member agencies from unnecessary cyber security regulations. Federal and Regional   Utilities Legislative Policy Guidelines for 2013 Page 7 of 13 GAS Goals 1. Preserve/enhance the ability of municipal utilities to develop their own demand side efficiency and conservation programs, alternative gas supplies, and rate structure. 2. Increase the security and reliability of the gas supply and transmission infrastructure. This includes retaining access to intra- and interstate gas transmission systems to reliably serve customers. 3. Support efforts to reduce greenhouse gas emissions and protect the environment. 4. Preserve just and reasonable utility rates/bills. Legislative Policy Guidelines Venue Goals 1. Local Authority 2. Reliability of Infrastructure 3. Environ -ment 4. Cost Control 1. Advocate most of these goals mainly through the American Public Gas Association (APGA) with minor support from Palo Alto staff. Primarily Federal with minor advocacy at State level     2. Work with Northern California Power Agency (NCPA) and California Municipal Utilities Association (CMUA) to the extent that the City’s goals as a gas distributor align with generators’ use of natural gas. Federal and State     3. Support increased production/incentives for renewable gas supplies from in or out of state. Federal and State     4. Advocate for financing or funding for cost- effective natural gas efficiency and solar water heating end uses. Federal and State     5. Support market transparency and efforts to eliminate market manipulation through reasonable oversight Federal  6. Support municipal utilities’ ability to enter into pre-pay transactions for gas supplies. Federal  7. Support efforts to improve pipeline safety. Work with partners to discourage extension of CPUC regulatory authority over municipal gas operations. Oppose legislative proposals resulting in unreasonable costs for Palo Alto’s customers. Federal and State   Utilities Legislative Policy Guidelines for 2013 Page 8 of 13 1. Local Authority 2. Reliability of Infrastructure 3. Environ -ment 4. Cost Control 8. Support cap-and-trade market designs that:  protect consumers from the exercise of market power;  allocate allowances that help mitigate impacts to Palo Alto customers while providing incentives for natural gas utilities to move to lower GHG emission portfolios;  provide flexible compliance mechanisms such as banking and borrowing of allowances; and  allocate funds generated from cap-and- trade markets to GHG related activities, not as a revenue source for state or federal general funds. Federal and State    9. Advocate for the fair application of Clean Water Act rules and other existing environmental rules on the practice of hydraulic fracturing or “fracking” for natural gas development. Federal and State  Utilities Legislative Policy Guidelines for 2013 Page 9 of 13 WASTEWATER COLL ECTION Goals 1. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the imposition of non-volumetric customer meter or infrastructure charges for wastewater collection service. 2. Increase the reliability of the local wastewater collection systems. 3. Maintain the provision of an environmentally sustainable, reliable high quality wastewater collection service at a fair price. 4. Support equal comparisons of wastewater collection systems by regulatory agencies in order to minimize and reduce onerous, costly and time-intensive reporting requirements and improve value and accuracy of information reported to the public. Legislative Policy Guidelines Venue Goals 1. Local Authority 2. Reliable infrastructure 3. Maintain service 4.Valuable Reporting 1. Advocate goals through active participation in the Association of Bay Area Governments (ABAG). Local, Regional & State     2. Advocate to ensure that legislative actions regarding the comparison of wastewater collections systems for future regulations include the following requirements:  timely rebuilding of the local wastewater systems;  maintains the quality of delivered wastewater collection service;  minimizes any increase in the cost of wastewater collection service;  creates no additional exposure to more frequent or severe wastewater overflows;  supports the existing wastewater collections systems and their operation. Local, Regional & State   3. Support provision of sufficient resources for ABAG to enable it to advocate for:  environmentally sustainable, reliable wastewater collection service at a fair price;  regional comparisons of wastewater collection projects for future state grant funding. Local and Regional   Utilities Legislative Policy Guidelines for 2013 Page 10 of 13 1. Local Authority 2. Reliable infrastructure 3. Maintain service 4.Valuable Reporting 4. Support infrastructure security and reliability including equitable allocation of funds for increasing the security of infrastructure. Regional, and State  5. Advocate for funding and local regulations for wastewater collections system projects and requirements that reduce overflows and improve collection system efficiency. Regional, State and Federal   Utilities Legislative Policy Guidelines for 2013 Page 11 of 13 WATER Goals 1. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the ability to optimize volumetric and fixed charges to balance the goals of revenue certainty and water use efficiency. 2. Increase the security and reliability of the regional water system owned and operated by the San Francisco Public Utilities Commission (SFPUC). 3. Support efficiency and recycled water programs in order to minimize the use of imported supplies. 4. Maintain the provision of an environmentally sustainable, reliable supply of high quality water at a fair price. Legislative Policy Guidelines Venue Goals 1. Local Authority 2. Reliable infrastructure 3. Minimize imports 4. Supplies at fair cost 1. Advocate goals through active participation in the Bay Area Water Supply and Conservation Agency (BAWSCA) and California Municipal Utilities Association (CMUA), with support from Palo Alto staff for BAWSCA and the San Francisco Bay Area Regional Water System Financing Authority (RFA). Local, Regional & State     2. Participate in California Urban Water Conservation Council (CUWCC) Best Management Practice (BMP) revisions and development to ensure that aggressive and cost- effective efficiency goals are incorporated and operating proposals are reasonable, achievable, and cost-effective. State     3. Advocate to ensure that legislative actions regarding the Hetch Hetchy Reservoir and conveyance system include the following requirements:  timely rebuilding of the regional water system;  maintains the quality of delivered water;  minimizes any increase in the cost of water;  creates no additional exposure to more frequent or severe water shortages;  supports the existing water system and its operation. Local, Regional & State   Utilities Legislative Policy Guidelines for 2013 Page 12 of 13 1. Local Authority 2. Reliable infrastructure 3. Minimize imports 4. Supplies at fair cost 4. Advocate for interpretations or implementation of Water Code provisions (such as those enacted by AB 1823 (2002), AB 2058 (2002) and SB 1870 (2002)) that maintain or reinforce the authorities and protections available to the City and BAWSCA members outside of San Francisco. Local, Regional and State    5. Support provision of sufficient resources for BAWSCA to enable it to advocate for:  an environmentally sustainable, reliable supply of high quality water at a fair price;  preservation of Palo Alto’s existing contractual water allocation and transportation rights on the SFPUC Hetch Hetchy system;  regional planning for conservation, recycled water, and other water supply projects. Local and Regional     6. Advocate for:  actions that preserve Palo Alto’s existing contractual rights  supporting actions that preserve local control over water use and limit encroachment from outside jurisdictions Local and Regional   7. Support infrastructure security and reliability including an interconnection between the SCVWD West Pipeline with the SFPUC’s Bay Division Pipelines 3 and 4. Regional and State  8. Support notification requirements that aid residents/customers but do not inflict undue or unobtainable requirements on the utility. State   9. Support local control of public benefit funds funding levels and program design. State   10. Support beneficiary pays methodologies to prevent taxes or fees, in particular those imposed on SFPUC customers, to fund infrastructure improvements and costs of other water sources such as the Delta. State    11. Advocate for financing or funding for water conservation programs and recycled water projects that meet end-use needs and conserve potable water and oppose legislation that would reduce such funding. State, Regional and Federal     Utilities Legislative Policy Guidelines for 2013 Page 13 of 13 1. Local Authority 2. Reliable infrastructure 3. Minimize imports 4. Supplies at fair cost 12. Support infrastructure security and reliability that includes equitable allocation of funds for increasing the security of infrastructure and that protects the City from unnecessary regulations.    EXCERPTED DRAFT MINUTES OF THE DECEMBER 5, 2012 UTILITIES ADVISORY COMMISSION MEETING ITEM 2: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt a Resolution Approving the City of Palo Alto Utilities Legislative Policy Guidelines for 2013 Senior Resource Planner Debbie Lloyd provided a summary of the legislative guidelines, specifically identifying the changes in the 2013 guidelines from the 2012 guidelines. She noted the new guidelines added for the water and wastewater collection utilities to reflect Commissioner Hall’s suggestions from the UAC’s November meeting regarding emergency preparedness and possible introduction of Federal standards on water reliability given the extent of damage following the East coast storms this year. She also highlighted the new gas utility guidelines on greenhouse gas cap-and-trade market design and hydraulic fracturing, and inclusion of the Department of Energy, Secretary Chu’s memo in the electric utility guidelines. Commissioner Waldfogel asked to have clarified that the absence of a section for the fiber utility was an affirmative decision. He also suggested that he would like to see how the new guidelines align with the strategic plan goals. He would like to be sure that the guidelines do not diverge from what we've done strategically. Commissioner Melton asked about the new gas guideline on fracking. He asked why we added this guideline, which he found very nebulous. Director Fong noted that the issue was coming up at the American Public Gas Association and there may be legislation coming up at the federal level. Lloyd stated that the guideline is a placeholder and, if an actual proposal were to arise, staff may need to return to the UAC and Council to determine the City's position. Commissioner Melton commented on the new water guideline 12, which seemed to cover two different subjects: infrastructure needs and associated funding, and protecting the city from unnecessary regulations. Lloyd referred back to the issue raised by Commissioner Hall that the floods in the east coast this year may lead to increased calls for infrastructure funding and regulations, and according to the goals the City would support reliability with fair cost allocation and avoiding unnecessary regulations. Director Fong suggested a non-substantive change to the guidelines to list the utilities in alphabetical order. ACTION: Vice Chair Foster moved to support the staff's recommendation. Commissioner Chang seconded the motion. The motion carried unanimously (6-0) with Commissioner Hall absent. ATTACHMENT D Utilities’ Legislative Policy Guidelines for 2013 Advocacy positions taken in alignment with these guidelines will be subject to the approval of the Utilities Director or City Manager as per the City’s legislative advocacy process ALL UTILIT IES Goals 1. Preserve/enhance local accountability in the control and oversight of matters impacting utility programs and rates for our customers while balancing statewide climate protection goals. 2. Support efforts to maintain or improve the reliability of the supply, transmission, storage and distribution/collection infrastructures. 2.3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas (GHG) emissions, and recognizes early voluntary action. 3. Support efforts to maintain or improve the reliability of the supply, transmission, storage and distribution/collection infrastructures. 4. Maintain the City of Palo Alto Utilities’ (CPAU’s) ability to provide safe, reliable, sustainable, and competitively-priced utility services. Legislative Policy Guidelines Venue Goals 1. Local Accountability 2. Reliability & Infrastructure 23. Climate Protection 4. Service & Cost Control 1. Advocate goals through active participation in joint action efforts. Federal, State, and Regional     2. Communicate the City’s record on environmental and energy efficiency programs with Legislature, California Energy Commission (CEC), California Air Resources Board (CARB), and Natural Resources Defense Council (NRDC) via California Municipal Utilities Association (CMUA), Northern California Power Agency (NCPA), and the Bay Area Water Supply and Conservation Agency (BAWSCA). State    Utilities Legislative Policy Guidelines for 2013 Page 2 of 13 1. Local Accountability 2. Reliability & Infrastructure 23. Climate Protection 4. Service & Cost Control 3. Support legislation that will result in the most cost-effective reduction of GHG emissions, recognition of early action, and inclusion of more efficient solutions, such as cogeneration, distributed resources fuel switching, and demand control programs, in integrated resource plans. Federal, State, and Regional     4. Promote utility legislation and regulations that support reasonable reliability standards and compliance requirements, and effective and consistent reporting requirements, customer communications, and goal- setting. Federal, State, and Regional Reliability Councils    5. Oppose cost shifts from Federal or State budgets and California Public Utilities Commission (CPUC) jurisdictional utilities through active participation in CMUA and NCPA legislative activities. Federal, State, and CPUC   6. Advocate for State and Federal grants for local and regional applications of energy efficiency, conservation, renewable resources, fiber, wastewater collection systems and recycled water projects. Federal and State    7. Maintain right of way access for utility infrastructure. Federal and State   8. Protect the value of existing assets and contracts and local regulatory approvals of same. Federal and State    Utilities Legislative Policy Guidelines for 2013 Page 3 of 13 WATER Goals 1. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the ability to optimize volumetric and fixed charges to balance the goals of revenue certainty and water use efficiency. 1.2. Increase the security and reliability of the regional water system owned and operated by the San Francisco Public Utilities Commission (SFPUC). 3. Support efficiency and recycled water programs in order to minimize the use of imported supplies. 2.4. Maintain the provision of an environmentally sustainable, reliable supply of high quality water at a fair price. 3. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the ability to optimize volumetric and fixed charges to balance the goals of revenue certainty and water use efficiency. 4. Support efficiency and recycled water programs in order to minimize the use of imported supplies. Legislative Policy Guidelines Venue Goals 1. Local Authority 12. Reliable infrastructure 3. Minimize imports 24. Supplies at fair cost 1. Advocate goals through active participation in the Bay Area Water Supply and Conservation Agency (BAWSCA) and California Municipal Utilities Association (CMUA), with support from Palo Alto staff for BAWSCA and the San Francisco Bay Area Regional Water System Financing Authority (RFA). Local, Regional & State     2. Participate in California Urban Water Conservation Council (CUWCC) Best Management Practice (BMP) revisions and development to ensure that aggressive and cost- effective efficiency goals are incorporated and operating proposals are reasonable, achievable, and cost-effective. State     3. Advocate to ensure that legislative actions regarding the Hetch Hetchy Reservoir and conveyance system include the following requirements:  timely rebuilding of the regional water system;  maintains the quality of delivered water;  minimizes any increase in the cost of water; Local, Regional & State   Utilities Legislative Policy Guidelines for 2013 Page 4 of 13 1. Local Authority 12. Reliable infrastructure 3. Minimize imports 24. Supplies at fair cost  creates no additional exposure to more frequent or severe water shortages;  supports the existing water system and its operation. 4. Advocate for interpretations or implementation of Water Code provisions (such as those enacted by AB 1823 (2002), AB 2058 (2002) and SB 1870 (2002)) that maintain or reinforce the authorities and protections available to the City and BAWSCA members outside of San Francisco. Local, Regional and State    5. Support provision of sufficient resources for BAWSCA to enable it to advocate for:  an environmentally sustainable, reliable supply of high quality water at a fair price;  preservation of Palo Alto’s existing contractual water allocation and transportation rights on the SFPUC Hetch Hetchy system;  regional planning for conservation, recycled water, and other water supply projects. Local and Regional     6. Advocate for:  actions that preserve Palo Alto’s existing contractual rights  supporting actions that preserve local control over water use and limit encroachment from outside jurisdictions Local and Regional   7. Support infrastructure security and reliability including an interconnection between the SCVWD West Pipeline with the SFPUC’s Bay Division Pipelines 3 and 4. Regional and State  8. Support notification requirements that aid residents/customers but do not inflict undue or unobtainable requirements on the utility. State   9. Support local control of public benefit funds funding levels and program design. State   10. Support beneficiary pays methodologies to prevent taxes or fees, in particular those imposed on SFPUC customers, to fund infrastructure improvements and costs of other water sources such as the Delta. State    11. Advocate for financing or funding for water State, Regional     Utilities Legislative Policy Guidelines for 2013 Page 5 of 13 1. Local Authority 12. Reliable infrastructure 3. Minimize imports 24. Supplies at fair cost conservation programs and recycled water projects that meet end-use needs and conserve potable water and oppose legislation that would reduce such funding. and Federal 12. Support infrastructure security and reliability that includes equitable allocation of funds for increasing the security of infrastructure and that protects the City from unnecessary regulations.    Utilities Legislative Policy Guidelines for 2013 Page 6 of 13 GAS Goals 1. Preserve/enhance the ability of municipal utilities to develop their own demand side efficiency and conservation programs, alternative gas supplies, and rate structure. 2. Increase the security and reliability of the gas supply and transmission infrastructure. This includes retaining access to intra- and interstate gas transmission systems to reliably serve customers. 2.3. Support efforts to reduce greenhouse gas emissions and protect the environment. 3. Increase the security and reliability of the gas supply and transmission infrastructure. This includes retaining access to intra- and interstate gas transmission systems to reliably serve customers. 4. Preserve just and reasonable utility rates/bills. Legislative Policy Guidelines Venue Goals 1. Local Authority 2. Reliability of Infrastructure 23. Environ -ment 4. Cost Control 1. Advocate most of these goals mainly through the American Public Gas Association (APGA) with minor support from Palo Alto staff. Primarily Federal with minor advocacy at State level     2. Work with Northern California Power Agency (NCPA) and California Municipal Utilities Association (CMUA) to the extent that the City’s goals as a gas distributor align with generators’ use of natural gas. Federal and State     3. Support increased production/incentives for renewable gas supplies from in or out of state. Federal and State     4. Advocate for financing or funding for cost- effective natural gas efficiency and solar water heating end uses. Federal and State     5. Support market transparency and efforts to eliminate market manipulation through reasonable oversight Federal  6. Support municipal utilities’ ability to enter into pre-pay transactions for gas supplies. Federal  Utilities Legislative Policy Guidelines for 2013 Page 7 of 13 1. Local Authority 2. Reliability of Infrastructure 23. Environ -ment 4. Cost Control 7. Support efforts to improve pipeline safety in light of recent incidents on the PG&E system and elsewhere. Work with partners to discourage extension of CPUC regulatory authority over municipal gas operations. Oppose legislative proposals resulting in unreasonable costs for Palo Alto’s customers. Federal and State   8. Support cap-and-trade market designs that:  protect consumers from the exercise of market power;  allocate allowances that help mitigate impacts to Palo Alto customers while providing incentives for natural gas utilities to move to lower GHG emission portfolios;  provide flexible compliance mechanisms such as banking and borrowing of allowances; and  allocate funds generated from cap-and- trade markets to GHG related activities, not as a revenue source for state or federal general funds. Federal and State    9. Advocate for the fair application of Clean Water Act rules and other existing environmental rules on the practice of hydraulic fracturing or “fracking” for natural gas development. Federal and State y Utilities Legislative Policy Guidelines for 2013 Page 8 of 13 ELECTRIC Goals 1. Preserve/enhance the ability of municipal utilities to exercise local accountability and oversight over matters impacting customer service, programs (such as demand side efficiency and conservation programs), and rate structure. 2. Preserve/enhance the reliability and security of infrastructure. 3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas emissions and encourages early voluntary action. 4. Preserve just and reasonable utility rates/bills. Legislative Policy Guidelines Venue Goals 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 1. Advocate goals through Northern California Power Agency (NCPA), California Municipal Utilities Association (CMUA), American Public Power Association (APPA), Transmission Agency of Northern California (TANC), and Bay Area Municipal Transmission Group (BAMx) with support from Palo Alto staff to speak with a coordinated voice. Federal and State     2. Support NCPA’s in their continued efforts legislative initiative to streamline the state regulatory reporting responsibilities, to eliminate duplicative data and report submittals to multiple state regulatory agencies, including the CEC, CARB, and the California Independent System Operator (CAISO). State   3. Advocate for legislation/regulations that provide local control and support for:  cost-effective clean distributed generation and cogeneration projects, and standards for connecting such resources to the local distribution system;  cost-effective electric efficiency programs;  implementation of renewable portfolio standards;  cost-effective storage integration;  direct access requirements;  smart meters and smart grid design and implementation, and  public benefit funds (as allowed in AB1890 (1996)). Federal and State     Utilities Legislative Policy Guidelines for 2013 Page 9 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 4. Support cap-and-trade market designs that:  protect consumers from the exercise of market power;  allocate allowances that help mitigate impacts to Palo Alto customers while providing incentives for utilities to move to lower GHG emission portfolios;  provide flexible compliance mechanisms such as banking & and borrowing of allowances; and  allocate funds generated from cap-and-trade markets to GHG related activities, not as a revenue source for state or federal general funds. Federal and State    5. Support legislation for renewable portfolio standards that:  promote the 33% goal for the state;  maintain local compliance authority;  allow utilities to pursue low cost alternatives by utilizing existing transmission system to access out-of-state resources, including use of Renewable Energy Certificates (RECs);  prevent double jeopardy in the assessment of penalties for non-compliance; and  restrict extension of CEC jurisdiction over Publicly Owned Utilities. Local and State    6. Support/encourage transmission, generation, and demand-reduction projects and solutions including advocating for financing or funding solutions/options for projects that:  enhance/ensure reliability;  ensure equitable cost allocation (including protection against imposition of state-owned electric contract costs on municipal utility customers);  improve procurement flexibility (e.g. resource adequacy rules that ensure reliability and provide flexibility in meeting operational requirements or flexibility in meeting State renewable portfolio standards);  improve market transparency (particularly transparency of IOU’s transmission and procurement planning and implementation activities); and  lower the environmental impact on the Bay Area and the Peninsula. Local, State, and Federal     7. Advocate for Congressional, legislative, or Federal,    Utilities Legislative Policy Guidelines for 2013 Page 10 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control administrative actions on matters impacting costs or operations of the Western Area Power Administration such as:  support of Congressional Field Hearings to explore modernizing flood control strategies, river regulation and generation strategies at Central Valley Project (CVP) plants to enhance generation, water delivery, flood control and fisheries;  protection of the status of Western Power Marketing Administration and cost-based rates;  provisions for preference customers’ first take at land available with economic potential for wind farms; and  balancing efforts for competing environmental improvements in rivers and Delta conditions with water supply and hydropower impacts; and.  Achieving the grid modernization goals of Secretary Chu’s March 16, 2012 memo without compromising the primary mission of Western and recognizing the achievements already made in California without adding duplicate costly efforts. State and Regional 8. Advocate for Congressional, legislative, or administrative actions on matters relating to overly burdensome reporting and compliance requirements established by the North American Reliability Corporation (NERC), the Federal Energy Regulatory Commission (FERC) or the Western Electricity Coordinating Council (WECC). Federal, State and Regional   9. Support fair and reasonable assessment of grid reliability established by NERC, WECC, or FERC and seek Congressional remedies (if needed) for punitive application of fees and fines. Federal and Regional   10. Work with California Independent System Operator (CAISO) or through FERC:  to give buyers of renewable intermittent resources relief from imbalance penalties; and  to promote financial and operational changes that result in timely and accurate settlement and billing. Federal and State    Utilities Legislative Policy Guidelines for 2013 Page 11 of 13 1. Local Accountability 2. Reliability 3. GHG Reduction 4. Cost Control 11. Monitor cyber security issues to ensure that CPAU, which currently does not have critical cyber assets, is not subject to NERC cyber security standards and support NCPA to protect it and its member agencies from unnecessary cyber security regulations. Federal and Regional   Utilities Legislative Policy Guidelines for 2013 Page 12 of 13 WASTEWATER COLLECTIO N Goals 1. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the imposition of non-volumetric customer meter or infrastructure charges for wastewater collection service. 12. Increase the reliability of the local wastewater collection systems. 23. Maintain the provision of an environmentally sustainable, reliable high quality wastewater collection service at a fair price. 3. Support ability of municipal utilities to develop and manage their own conservation and efficiency programs and retain authority over ratemaking, including the imposition of non-volumetric customer meter or infrastructure charges for wastewater collection service. 4. Support equal comparisons of wastewater collection systems by regulatory agencies in order to minimize and reduce onerous, costly and time-intensive reporting requirements and improve value and accuracy of information reported to the public. Legislative Policy Guidelines Venue Goals 1. Local Authority 12. Reliable infrastructure 23. Maintain service 4.Valuable Reporting 1. Advocate goals through active participation in the Association of Bay Area Governments (ABAG). Local, Regional & State     2. Advocate to ensure that legislative actions regarding the comparison of wastewater collections systems for future regulations include the following requirements:  timely rebuilding of the local wastewater systems;  maintains the quality of delivered wastewater collection service;  minimizes any increase in the cost of wastewater collection service;  creates no additional exposure to more frequent or severe wastewater overflows;  supports the existing wastewater collections systems and their operation. Local, Regional & State   3. Support provision of sufficient resources for ABAG to enable it to advocate for:  environmentally sustainable, reliable wastewater collection service at a fair Local and Regional   Utilities Legislative Policy Guidelines for 2013 Page 13 of 13 1. Local Authority 12. Reliable infrastructure 23. Maintain service 4.Valuable Reporting price;  regional comparisons of wastewater collection projects for future state grant funding. 4. Support infrastructure security and reliability including equitable allocation of funds for increasing the security of infrastructure. Regional, and State  5. Advocate for funding and local regulations for wastewater collections system projects and requirements that reduce overflows and improve collection system efficiency. Regional, State and Federal   City of Palo Alto (ID # 3409) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Amendment to TANC Project Agreement 5 Title: Adoption of a Resolution Approving Amendment No. 1 to the Amended and Restated Project Agreement No. 5 Between and Among the Transmission Agency of Northern California and its Participating Members From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt the attached resolution approving Amendment No. 1 to the Amended and Restated Project Agreement No. 5 Between and Among the Transmission Agency of Northern California and its Participating Members, and granting the City Manager the authority to approve future operational amendments to the agreement. Executive Summary The Transmission Agency of Northern California (TANC), of which the City of Palo Alto is a member, is requesting that the City execute an amendment to TANC’s Project Agreement No. 5 for participation in an organized system for reserving space on the transmission system. The minor amendment will allow an annual transmission product to be provided through TANC’s system. The TANC Commission approved the amendment at its November 28, 2012 meeting and the TANC Commission memo and resolution is provided in attachment C. Although the City assigned its interests in TANC to other members in 2009 for a fifteen year term, the City, as a party to the original agreement, must execute any amendment to the agreement for it to take effect. Once the assignment period has ended, the amended Project Agreement No. 5 will once again apply to the City’s transmission transactions with TANC and its members. Background The City of Palo Alto is a member of TANC, a California Joint Powers Agency that currently owns about 87 percent of the California-Oregon Transmission Project (COTP), a 1600 megawatt (MW), 340-mile long electric transmission line from the California-Oregon Border to the 500 kilovolt Tracy Substation in Northern California. The City has an approximately 50 MW share of the COTP. In January, 2009 (Resolution No. 8900) the City entered into an agreement for a fifteen-year assignment of the City’s share of the COTP to three other TANC members, the City of Palo Alto Page 2 Modesto Irrigation District (MID), the Turlock Irrigation District (TID) and the Sacramento Municipal Utility District (SMUD). In 2004, the City entered into TANC’s Project Agreement No. 5 (PA-5) for participation in an Open Access Same Time Information System (OASIS)1 (Resolution No. 8467). The purpose of participation in the OASIS was to enhance transmission availability in California by making unused transmission capacity on COTP available for use by other entities in an open and efficient manner. Discussion At its December 28, 2012 meeting, the TANC Commission approved a minor amendment to PA- 5 that will allow an annual transmission product to be provided through TANC’s OASIS. PA-5 currently requires that PA-5 signatories waive their rights of first refusal to purchase transmission capacity offered by certain other COTP owners, provided that the capacity product offered is for a period of “less than twelve (12) months”. The proposed amendment will change this right of first refusal language to align PA-5’s terms with TANC’s recent implementation of an annual transmission product offering. The amended language will permit PA-5 participants to sell annual transmission products to other entities through the OASIS, because the waiver of the right of first refusal is amended to apply to capacity products offered for a period of “up to twelve (12) months”. Although the City has assigned its share of the COTP to TID, MID and SMUD, it is still a signatory to PA-5 and therefore must execute the amendment to the agreement for it to take effect. The resolution also grants the City Manager the authority to approve future operational amendments to PA-5, during the remainder of the fifteen-year assignment period, through January 31, 2024. Such authority will be limited to amendments requested by MID, TID, and SMUD that do not change the City’s post-layoff period standing or contractual rights. Resource Impact There is no immediate resource impact from this action. When the City takes back its share of the COTP in 2024 at the end of the term of the assignment, this amendment to PA-5 will provide the City’s electric utility more options for selling and capturing the value of any unused transmission capacity on the COTP. Policy Implications This recommendation is consistent with the Council-approved Utilities Strategic Plan with regard to maximizing the value of assets and promoting efficient use of resources. 1 The Open Access Same-Time Information System (OASIS) is an Internet-based system for obtaining services related to electric power transmission in North America. It is the primary means by which high-voltage transmission lines are reserved for moving wholesale quantities of electricity. City of Palo Alto Page 3 Environmental Review Approval of this amendment does not meet the California Environmental Quality Act’s definition of a “project” under Public Resources Code Section 21065, thus environmental review is not required. Attachments:  Attachment A: RESO TANC Staff Report Approving Amendment to TANC PA5 (PDF)  Attachment B: Amendment No. 1 to PA-5 (PDF)  Attachment C: TANC Commission Report and Resolution (PDF)  Attachment D: PA-5 Effective 5-1-06 (PDF) *NOT YET APPROVED* 130108 dm 6051868 Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving Amendment No. 1 to the Amended and Restated Project Agreement No. 5 Between and Among the Transmission Agency of Northern California and its Participating Members R E C I T A L S A. The City of Palo Alto (“City”), a municipal utility and a chartered city, is a member of the Transmission Agency of Northern California (“TANC”), a joint power agency engaged in interstate transmission of power that currently owns about 87 percent of the California-Oregon Transmission Project (“COTP”), a 1600 megawatt (“MW”), 340-mile long electric transmission line from the California-Oregon Border to Northern California. B. The City has an approximately 50 MW share of the COTP. C. In 2004, TANC and its Members, the Cities of Alameda, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara, and Ukiah, the Modesto Irrigation District, the Turlock Irrigation District, and the Plumas-Sierra Rural Electric Cooperative (“Participating Members”) entered into TANC Project Agreement No. 5 (“PA-5”) for Participation in an Open Access Same Time Information System (“OASIS”),(City of Palo Alto Resolution No. 8467). D. PA-5 establishes and describes how unused transmission capacity on COTP will be made available for sale pursuant to Federal laws and regulations that govern open access to wholesale transmission capacity. E. PA-5 exempts certain sales from other Participating Members’ “Right of Refusal” provisions. These “Right of Refusal” provisions establish a formal process by which other COTP participants have the first right to purchase (or refuse) transmission products before such products are offered to non-participants. The maximum waiver of such rights under the current language of PA-5 is for transmission products of “less than twelve (12) months”, which limits offerings through the OASIS to monthly, weekly, daily and hourly products. F. In October 2012, the TANC Commission approved a new annual transmission product for sale through the OASIS, which requires an amendment to PA-5’s waiver of the “Right of Refusal” provision. G. This Amendment No. 1 will change Section 14 of PA-5 to exempt sales of COTP transmission capacity products of “up to twelve-months” in term from the “Right of Refusal” provisions. *NOT YET APPROVED* 130108 dm 6051868 H. In January of 2009 (Resolution No. 8900) the City entered into an agreement for a fifteen-year assignment of the City’s share of the COTP to the Modesto Irrigation District (MID), the Turlock Irrigation District (TID) and the Sacramento Municipal Utility District (SMUD). I. Despite the long term assignment, the City remains a signatory to PA-5 and must approve any amendments for them to be effective. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the resolution approving Amendment No. 1 to the Amended and Restated Project Agreement No. 5 Between and Among the Transmission Agency of Northern California and its Participating Members. The City Manager is hereby authorized to sign the agreement on behalf of the City. SECTION 2. The Council further grants the City Manager the authority to approve future operational amendments to PA-5, during the remainder of the fifteen-year assignment period through January 31, 2024. Such authority will be limited to amendments that do not change the City’s post-layoff period standing or detrimentally impact the City’s contractual rights. // // // // // // // // // // // *NOT YET APPROVED* 130108 dm 6051868 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under Section 21065 of the California Environmental Quality Act (CEQA) and the CEQA Guidelines, and therefore, no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services City of Palo Alto (ID # 3435) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Appeal of AT&T DAS Phase 3 Title: Appeal of Director’s Architectural Review Approval of the Co-location by AT&T Mobility LLC of Pole-Mounted Wireless Communications Equipment and Associated Equipment Boxes on 20 Existing Utility Poles Within City Rights-of-Ways Near the Following Locations: 747 Loma Verde Ave; 3284 Cowper; 3412 Ross/ 3374 Ross Rd; 3132 David Ave; 3415 Greer Rd; 3539 Louis Rd; 2385 Waverley; 3094 Greer Road on Maddux; 390 El Dorado Ave; 452 Loma Verde; 3524 Waverly on E. Meadow; 3706 Carlson Circle; 3757 Corina Wy; 3915 Louis Rd; 631 E. Meadow; 3901 Middlefield Rd; 412 Ferne; 3945 Nelson Ave.; 1772 Hamilton Ave.; 109 Lois Lane - AT&T DAS Phase 3 Project From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council: 1) uphold the Director of Planning and Community Environment’s decision to approve the Architectural Review application for the Phase 3 project based upon the findings and conditions of approval described in the Record of Land Use Action (Attachment A), excluding the proposed installation adjacent to 3706 Carlson Circle; and 2) direct staff to work with AT&T and residents to evaluate alternative locations/options for the 3706 Carlson Circle installation. Executive Summary AT&T’s application is for Architectural Review of 20 wireless communication facilities (WCFs) collocated on utility poles within City rights-of-way and jointly owned by the City and Pacific Bell Telephone Company dba AT&T of California, known as the Palo Alto Outdoor DAS (Distributed Antenna System) project Phase 3. The 20 installations propose one antenna placed on a pole extension at the top of each pole, and equipment cabinets placed lower down on the pole (between 10 feet and 20 feet above grade). The pole locations were reviewed regarding City of Palo Alto Page 2 their aesthetic impacts and consistency with the Phase 1 design approval by Council on January 23, 2012, and on December 18, 2012 the staff level Architectural Review approval was issued for the project. Staff received five appeals of this decision from residents who cited concerns regarding impacts to property values, aesthetics, noise, health, AT&T’s procedures for site selection, and the City’s review process. These are topics similar to those that have been raised in the Phase 1 and Phase 2 appeals that Council reviewed and approved in 2012. Staff believes the Director’s decision is appropriate for all of the sites, with the exception of the 3706 Carlson Circle site, which involves relocation of the utility pole from a public utility easement (PUE) to the street frontage. Staff recommends that this request be referred back to staff and AT&T to work with the residents to evaluate alternative sites. A subsequent decision on that particular site would then be issued and would again be appealable to Council. Background On March 29, 2012, AT&T submitted an application for Architectural Review for the Phase 3 DAS installations at 20 locations. The project was determined to be a collocation project and, according to Palo Alto Municipal Code (PAMC) Section 18.42.110, requires approval of an Architectural Review application, followed by the issuance of encroachment permits. The use itself is considered a permitted use, such that no Conditional Use Permit (CUP) is needed. In January 2012, the Council, on appeal, reviewed the Phase 1 DAS project for 20 installations and upheld the Director’s decision to approve the project sites (CMR #2393). At that time the issues that were raised by the appellants focused on the need for a wireless master plan for the entire city, and concerns for aesthetic impacts, potential health risks, noise, impacts on property value, type of technology proposed, and the safety and reliability of the actual installations. These issues were discussed in the associated CMR and can be viewed online for additional details. The Council approved all of the applications. On November 5, 2012, the Phase 2 DAS project approval was forwarded to Council on appeal to consider (on the Consent Calendar) at their meeting. An appeal was filed by Mr. Tony Kramer, a resident, citing concerns about the project’s compliance with the City’s Noise Ordinance. The City Council did not remove it from the Consent Calendar and voted to uphold the Director’s decision to approve the 15 project sites (CMR #3239). There are a total of four phases in AT&T’s citywide DAS project, including a total of 75 installations. The Phase 3 and 4 projects were both approved on December 18, 2012. Phase 1 is nearing completion of construction and Phase 2 installations are nearing construction. These four phases are a part of AT&T’s build-out to provide adequate coverage and/or additional capacity for wireless communications. AT&T is subject to a license agreement that allows AT&T to collocate the DAS antennas and equipment on the City’s portion of the utility poles. The Council approved the standard license agreement on July 25, 2011 (CMR #1756). City of Palo Alto Page 3 Following the Council’s decision on the Phase 1 application, subsequent Architectural Review (AR) applications for DAS installations, following the same prototype design as the approved design, were to be reviewed at staff level and be subject to public notice and Council appeal, but ARB public hearings were not required, according to the Zoning Code. Neighbor notification is provided and public comments are reviewed by staff for each location. Actions by the Director of Community Environment on the applications are posted on the City’s website and courtesy notices of the actions are mailed to neighbors within 300 feet of each pole. The Director’s decisions on staff level AR applications are also noted on the next available ARB meeting agenda. Review Process The standard procedure for the review of an appealed Architectural Review application is for placement on the Council Consent Calendar within 30 days of the filing of an appeal. Section 18.76.020(b)(3)(D) of the Zoning Code specifies that wireless communication facilities are considered “minor projects” to be reviewed by staff. Section 18.77.070(b)(5) of the Zoning Code specifically requires consideration by the Council on appeal of a staff approval of such a facility, rather than hearing before the ARB. Council may decide to pull the item off Consent only if at least three Councilmembers concur, and then the project is scheduled for a future public hearing date (PAMC 18.77.070(f)). The Council meeting on March 4, 2013 has been targeted for this public hearing, if Council determines to set a hearing. Project Description The approved design for the DAS installations is shown in the attached plans (Attachment G). The existing utility poles range in height from 28 to 52 feet and the pole top extension, on average, is about 8.25 feet. The equipment proposed on the pole face is the same for all the poles and is comprised of (1) a power disconnect box located nine feet above grade; (2) a remote prism cabinet (52.4”H x 12.15”W x 10.125”D) located approximately 10’-5” above grade; (3) a back-up battery cabinet (27”H x 22”W x 18”D) located approximately 15’-9” above grade; (4) an optical network interface box (13”H x 13”W x 3.75”D) located approximately 19’ above grade; and (5) related wiring. At the top of the pole extension, one antenna radome (24”H x 16” Base Diameter) would be placed in-line with the pole. The Phase 3 DAS project includes two sites where the existing poles, which are within a PUE and located close (3-5 feet) to the existing residential buildings, are proposed to be relocated out to the sidewalk right-of-way. With this pole relocation, the DAS installation would be consistent with the other sites throughout the city. Discussion City of Palo Alto Page 4 There were five appeals filed for this project and these are included as Attachment C. With the exception of one (Kramer), the appellants all requested that another location for the DAS equipment be considered, other than the sites indicated in their appeal request. 1. The first appeal, submitted by Dorianne and Roy Moss, was directed at the proposed installation near 747 Loma Verde. This installation is over 150 feet away from the Moss’ rear property line, and is separated by a street and one single-family property. The concerns that were raised in the appeal were the potential impacts to property value and AT&T’s lack of consideration (in determining the equipment location) of the project’s impacts to their second-story master bedroom window view. 2. The second appeal was filed by Scott and Elaine Keller and focused on the installation adjacent to their home at 3945 Nelson Drive. This installation is at least 35 feet away from the rear of the house. The Kellers raised concerns about the project’s noise impacts and the design aesthetics. 3. The third appeal, submitted by Bala Ganesh and Albert Ovadia, was specific to the DAS installation on the pole adjacent to 631 E. Meadow Drive. The installation is approximately 18 feet away from Mr. Ganesh’s garage and 25 feet away from Mr. Ovadia’s home. The appeal stated their concern was about the potential health impacts from the installation and the possible reduction in property value due to aesthetics. 4. The fourth appeal, submitted by Tony Kramer, was directed at the entire project. Mr. Kramer stated that he is appealing the decision because “AT&T has not met all the conditions of the Planning Department’s Notice of Incomplete”, dated April 27, 2012, and therefore should not be approved. This is in regards to the City requiring AT&T to submit an updated noise study for the DAS equipment. There is no DAS installation proposed adjacent to Mr. Kramer’s home. 5. The fifth appeal, submitted by Roger Petersen, was specific to the installation near 3706 Carlson Circle. This DAS installation is one of the two proposed pole relocations in Phase 3 and would move the existing utility pole approximately 22 feet away from the current location (that is approximately four feet away from the garage at 3704 Carlson Circle) out toward the street. This site also has a condition of approval that requires the installation of a new street tree for future screening. The concern that Mr. Petersen cites in his appeal is that the relocation of the utility pole out onto the street would be unattractive, since there currently are no utility poles located along Carlson Circle. City of Palo Alto Page 5 Staff Responses to Appeal Issues Property Value and Health Impacts The Federal Telecommunications Act (TCA) of 1996 limits the City’s authority in the review of wireless telecommunications projects. The City may only focus on the aesthetic and zoning code aspects of a project and, by law, may not consider potential health issues and any perceived related consequences (e.g. drop in property value). Under federal law, a local agency’s wireless facility siting decisions may not have the effect of prohibiting the provision of wireless service or unreasonably discriminating among wireless service providers. Further, a utility is required to provide any telecommunications carrier with nondiscriminatory access to its utility poles. Under federal law, the City may not regulate the placement, construction or modification of wireless communications facilities on the basis of the environmental effects of radio frequency (RF) emissions, so long as the facilities comply with the Federal Communications Commission (FCC) regulations concerning such emissions. Staff additionally has seen no information that indicates an identifiable loss of property value from such installations. Noise As outlined in PAMC Section 9.10.050, the public property noise limit specifies that no person shall produce on public property a noise level more than 15 dB above the local ambient at a distance of 25 feet or more from the source. The definition of local ambient means the lowest sound level repeating itself during a six-minute period as measured with a precision sound level meter; the code specifies that the minimum sound level shall be 40 dBA when determining noise levels outside (not inside a structure), and therefore, noise production in excess of 55 dBA at a distance of 25 feet away from the source would violate the noise ordinance. The noise requirements for residential properties, as set forth in PAMC 9.10.030, is that noise levels cannot exceed six dB above the local ambient (40 dBA minimum) at the property plane. According to AT&T, the two pieces of equipment that would produce sound are the back-up battery cabinet and the prism remote. All other elements proposed (antenna and wiring) do not produce noise. On June 6, 2012, Hammett & Edison Inc. performed a noise analysis at a powered installation in front of 255 N. California Avenue. The results of this study state that the noise level produced by the equipment, including the ambient noise, is approximately 44.5 dBA at a distance of 25 feet away from the pole. Based on this data, the conclusion is that the equipment is compliant with the Noise Ordinance. The details of the noise analysis are outlined in Attachment D. Staff does believe that, as indicated in the noise measurements at 255 N. California Avenue, lower noise levels (nearer the residential standard) can be readily achieved and that every City of Palo Alto Page 6 effort should be made to attain the lowest level reasonable. To further address the noise concern, therefore, staff has included the following two Conditions of Approval:  For installations in the City right-of-way, the Applicant shall endeavor to minimize the noise at the property line boundary with adjacent residential property, and shall attempt to keep such noise below 6dB above the ambient level most of the time, when fans are running at their normal setting. If such a standard is not reasonably achievable for a site, then the Applicant voluntarily agrees to use commercially reasonable efforts to ensure that the noise level does not exceed 6 dB above the ambient noise level at the nearest location of a residential structure. Under no circumstances shall the noise exceed the noise standard in Municipal Code 9.10.050 (i.e., +15dB over ambient at 25 feet).  The applicant shall submit a sound analysis of an operating installation within two months of the project installation/operation. The analysis shall clearly delineate how the installation complies with the previously listed condition regarding noise. Applicant may be required to submit these reports periodically for the life of the project, as determined by the Director of Planning. AT&T has agreed to the above conditions and has stated that it will make all feasible attempts to minimize the noise production from their installations. AT&T has completed several DAS installations, including 255 North California, 464 Churchill, 1720 Webster, 370 Lowell, and 1345 Webster. Council members may wish to visit one or more of these sites to assess the noise impacts from a layperson’s standpoint. Staff has visited the sites and believes that the noise is minimal adjacent to the pole and barely audible from 25 feet away. Aesthetics The Phase 3 installations follow the same design concepts that were reviewed by the ARB and approved by the City Council in January 2012. Carlson Circle Relocation to Street Right-of-Way Several residents in the vicinity of the 3706 Carlson Circle site have objected to the relocation of the pole from a public utility easement (PUE) to the street right-of-way. The City’s direction to AT&T has been to avoid location of antennas and equipment on poles in PUEs, given their proximity to homes and potential visual and noise concerns. This street, however, does not have existing utility poles on the street and the residents have identified some alternatives (including in PUEs) that might be viable. Staff recommends that the Council direct staff and AT&T to work with the residents to evaluate the alternative sites and re-issue an approval letter. AT&T concurs with the staff recommendation. The subsequent action would be appealable to Council if any neighbor objected. The Record of Land Use Action (Attachment A) has been prepared excluding this site from the Council approval at this time (condition #25). City of Palo Alto Page 7 Other Objections Staff also notes that some property owners objected (Attachment F) to the location and installations of four other sites near their properties, but those residents did not formally appeal the decision. Nevertheless, the entire Phase 3 project is one application, so the Council may act on those or any other proposal in the package. Staff believes that the objections fall into similar categories related to health impacts or visual concerns, as addressed above. Conclusion Staff believes that all of the site requests, other than 3706 Carlson Circle, are consistent with City criteria and federal and state law for such installations, and the Director’s decisions should be upheld. The approvals are reflected in the Record of Land Use Action. Citywide Wireless Communications Facilities Study In association with the Phase 1 DAS project, many residents requested the City to consider the development of a city-wide master plan for wireless facilities. On May 16, 2011, Council sponsored a study session to review issues related to wireless communications facilities (cell towers and antennas). Consultants to the City and staff presented an overview of the need for and technology related to such facilities, health issues, and relevant federal, state, and Palo Alto regulations. The Council asked that staff continue the dialogue with the community to provide better understanding for the public and the wireless industry. Council directed staff on July 2, 2012 to issue a request for proposal for a consultant/vendor to prepare a citywide wireless communications facilities plan. The RFP was released on October 2, 2012. Staff has interviewed four firms for the study and is finalizing its selection. A contract is expected to be awarded in February. Alternatives to Staff Recommendation The Council may also consider the following alternatives rather than approval as proposed: A. Council may remove the project from Consent to schedule and conduct a Public Hearing for one or more of the specific DAS locations; OR B. Council may remove the project from Consent to schedule and conduct a Public Hearing for all of the proposed DAS locations. Staff has targeted March 4, 2013 as a potential hearing date, given the wireless communications “shot-clock” processing requirements. (AT&T has stipulated to a shot-clock extension to accommodate the Council’s hearing schedule, if necessary.) City of Palo Alto Page 8 Policy Implications The proposed project is consistent with the Comprehensive Plan and staff believes there are no other substantive policy implications. The project is supported by the following Comprehensive Plan Policies: (B-13) Support the development of technologically-advanced communications infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries; and (B-14) Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. Resource Impacts The costs of project review by all staff and consultants is recovered by Architectural Review application fees paid by AT&T. Pursuant to the City’s standard license agreement, AT&T will pay the City $270 per year per installation, or a total of $4,050 per year for the 15 sites. Environmental Review The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per section 15303 of the CEQA Guidelines. Attachments:  Attachment A: Record of Land Use Action (DOC)  Attachment B: Location Map (PDF)  Attachment C: Appeals (PDF)  Attachment D: Hammett and Edison Noise Memo, July 27, 2012 (PDF)  Attachment E: Applicant's Submittal Information (PDF)  Attachment F: Public Comments (PDF)  Attachment G: Project Plans (Councilmembers and Libraries only) (TXT) Attachment A ACTION NO. 2013-01 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR AT&T DAS PROJECT PHASE 3: ARCHITECTURAL REVIEW 12PLN-00127 (AT&T, APPLICANT) On January 28, 2013, the Council upheld the Director of Planning and Community Environment’s December 18, 2012 decision to approve the Architectural Review application of the co-location by AT&T of (Distributed Antenna System, a.k.a. DAS) wireless communications equipment on existing utility poles, removing the DAS installation located adjacent to 3706 Carlson Circle making the following findings, determination and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On March 29, 2012, AT&T applied for Architectural Review for the co-location of wireless communications equipment (Distributed Antenna System) on 20 utility poles located within City rights-of-ways near the following locations: 747 Loma Verde Ave; 3284 Cowper; 3412 Ross/ 3374 Ross Rd; 3132 David Ave; 3415 Greer Rd; 3539 Louis Rd; 2385 Waverley; 3094 Greer Road on Maddux; 390 El Dorado Ave; 452 Loma Verde; 3524 Waverly on E. Meadow; 3706 Carlson Ci relocate to sidewalk; 3757 Corina Wy; 3915 Louis Rd; 631 E. Meadow; 3901 Middlefield Rd; 412 Ferne; 3945 Nelson Ave.; 1772 Hamilton Ave relocate to sidewalk; 109 Lois Lane. The proposed equipment would include one antenna at the top of each pole and two equipment boxes on the side of each pole (“The Project”). B. On December 18, 2012, following staff review, the Director of Planning and Community Environment (Director) approved the Architectural Review (AR) application. Notices of the Director’s decision were mailed notifying neighbors of the decision. The action is contained in the CMR #3435. D. Within the prescribed timeframe, five appeals of the Director’s decision were filed by Palo Alto residents: Moss, Keller, Ganesh, Kramer, and Petersen. SECTION 2. Environmental Review. This project is exempt from the provisions of the California Environmental Quality Act per Section 15303 of the CEQA Guidelines. SECTION 3. Architectural Review Findings. 1. The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. This finding can be made in the affirmative in that the project, as conditioned, incorporates a more streamlined design that conforms with policies that encourage quality development that is compatible with surrounding development and public spaces. The project is also supported by the following Comprehensive Plan Policies: (B-13) Support the development of technologically-advanced communications AT&T DAS Phase 3 2 infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries; (B-14) Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. 2. The design is compatible with the immediate environment of the site. This finding can be made in the affirmative in that the proposed design, as conditioned, blends with the existing utility poles that are located within various residential neighborhoods within the City. 3. The design is appropriate to the function of the project. This finding can be made in the affirmative in that the design of the equipment is not excessive for the intended utility use and has been improved with the required conditions of approval to streamline the design with the back-up battery cabinet placed above the prism and elimination of one antenna. 4. In areas considered by the board as having a unified design character or historical character, the design is compatible with such character. This finding is not applicable to this project. 5. The design promotes harmonious transitions in scale and character in areas between different designated land uses. This finding is not applicable to this project. 6. The design is compatible with approved improvements both on and off the site. This finding can be made in the affirmative in that the project, as conditioned, is compatible with the existing utility poles. 7. The planning and siting of the various functions and buildings on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community. This finding is not applicable to this project. 8. The amount and arrangement of open space are appropriate to the design and the function of the structures. This finding is not applicable to this project. 9. Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project’s design concept. This finding is not applicable to this project. 10. Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles. This finding can be made in the affirmative in that the circulation under and around the utility pole is not impacted. AT&T DAS Phase 3 3 11. Natural features are appropriately preserved and integrated with the project. This finding is not applicable to this project. 12. The materials, textures, colors and details of construction and plant material are appropriate expression to the design and function. This finding can be made in the affirmative, see Findings 2, 3, and 4 above. 13. The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment. This finding can be made in the affirmative in that the project, as conditioned, will be required to plant some additional street trees at some locations. The placement and selection of the street trees will be reviewed and approved by Public Works and Utilities to assure the plantings will be consistent with City standards. 14. Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety which would tend to be drought-resistant to reduce consumption of water in its installation and maintenance. This finding can be made in the affirmative, see Finding 13. All City street trees are regularly maintained and will use only the required amount of water needed for establishment and maintenance. 15. The project exhibits green building and sustainable design that is energy efficient, water conserving, durable and nontoxic, with high-quality spaces and high recycled content materials. This finding is not applicable to this project. The scope of the project is small and there is limited opportunity to incorporate green building design into the sign installations. 16. The design is consistent and compatible with the purpose of architectural review as set forth in subsection 18.76.020(a). This finding can be made in the affirmative in that the project design, as conditioned, promotes visual environments that are integrated into the aesthetics of the immediate environment of an industrial utility facility. SECTION 4. Architectural Review Approval Granted. Architectural Review Approval is hereby granted for the Project by the City Council pursuant to Chapter 18.77 of the Palo Alto Municipal Code. SECTION 5. Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by AT&T titled Palo Alto ODAS, consisting of 63 pages, and received September 13, AT&T DAS Phase 3 4 2012, except as modified to incorporate the conditions of approval in Section 6. A copy of these plans is on file in the Department of Planning and Community Development. SECTION 6. Conditions of Approval. Planning Division 1. The project shall be in substantial conformance with the approved plans and related documents received September 13, 2012, except as modified to incorporate these conditions of approval. 2. All conditions of approval shall be printed on the cover sheet of the plan set submitted to obtain any permit through the Building Inspection Division. 3. Any modifications/additions to the approved plans shall be approved by Planning prior to construction and installation. 4. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s), if applicable, is not secured for the project within the time limit specified above, the approval shall expire and be of no further force or effect. 5. For all pole installations, the backup battery cabinet shall be placed above the prism box. 6. For the life of the project, the size of the battery cabinet shall be reduced as technology improves so as to maintain the smallest battery cabinet needed. 7. The antenna, cabinet boxes, and pole extension shall be painted either “Rock Brown” or “Sand Brown”, with a matte finish, to match the existing color and finish of the utility pole, and all other equipment (i.e. wiring and related hardware) shall be painted with a matte finish to blend in with the background material/color of the pole. 8. The project shall be reviewed by the Utilities Department to determine if the pole is feasible for the placement of the proposed equipment and antennas. If the Utilities department does not support the placement of the equipment on the pole, the applicant shall submit a new Architectural Review application to the Planning Division for review of proposed alternative pole selection. 9. For sites that require new street tree installations, the applicant shall coordinate with the Public Works Tree Division, Utilities Department, and Transportation Division to gain approval for the placement and selection of tree AT&T DAS Phase 3 5 type. If the City departments do not support the placement of a city tree for screening purposes for the identified locations, then that site is no longer approved for the equipment installation and the applicant shall be required to submit a new Architectural Review application to the Planning Division for review of proposed alternative pole selection. 10. The applicant, in coordination with City departments, shall (1) analyze all proposed sites to determine whether new street trees can be added in the immediate vicinity for screening purposes and (2) add additional trees where feasible. 11. The preferred selection for new street trees shall be evergreen trees, as deemed appropriate by Public Works and the Utilities department. 12. Unless the City agrees to a modification of this condition, the requirements to install new street trees shall be 100% the responsibility of the applicant and shall be completed prior to the installation of pole equipment. 13. For installations in the City right-of-way, the Applicant shall endeavor to minimize the noise at the property line boundary with adjacent residential property, and shall attempt to keep such noise below 6dB above the ambient level most of the time, when fans are running at their normal setting. If such a standard is not reasonably achievable for a site, then the Applicant voluntarily agrees to use commercially reasonable efforts to ensure that the noise level does not exceed 6 dB above the ambient noise level at the nearest location of a residential structure. Under no circumstances shall the noise exceed the noise standard in Municipal Code 9.10.050 (i.e., +15dB over ambient at 25 feet). 14. The applicant shall submit a sound analysis of an operating installation within two months of the project installation/operation for City approval. The analysis shall clearly delineate how the installation complies with the previously listed condition regarding noise. Applicant may be required to submit these reports periodically for the life of the project, as determined by the Director of Planning. 15. The applicant shall perform a radio frequency (RF) analysis for each of the twenty installations to document the RF emissions for the installed and operating equipment. This analysis shall be submitted to the City within two months of the project installation/operation. Applicant may be required to submit these reports periodically for the life of the project, as determined by the Director of Planning. AT&T DAS Phase 3 6 16. If for any reason the project requires modification from the approved plans in any way, the applicant shall contact Planning staff for a determination on whether the change requires a new application for Architectural Review and Historic Review, if applicable, to be submitted. 17. Pole 1/Node P2N11A (747 Loma Verde Ave): Equipment shall face trees to the south west. 18. Pole 2/Node P2N15B installation shall be located adjacent to 3284 Cowper St. 19. Pole 3/Node P2N20A installation shall be adjacent to 3412/3374 Ross Road and an additional street tree shall be required to the left side of pole. 20. Pole 5/Node P2N24A (3415 Greer Road): Low growing (+/- 15’tall) street tree shall be planted to the south side of pole. 21. Pole 7/Node P2N51A installation shall be adjacent to 2385 Waverley St and an additional street tree shall be planted to the left. 22. Pole 8/Node P2N52A (3094 Greer Road): Verify that the maple tree is still growing to the left of the pole; if tree no longer there, applicant shall install a new street tree. 23. Pole 9/Node P2N6A installation shall be located adjacent to 390 El Dorado Ave. 24. Pole 11/Node P2N10B shall be located adjacent to 3524 Waverley Street, on E. Meadow. 25. Pole 12/Node P2N13A (3706 Carlson Circle) installation shall require the utility pole to be moved to the inside edge of sidewalk and one low growing street tree shall be installed to the left of the pole, with agreement of the adjacent property owner be eliminated from the project approval. AT&T shall work with staff and neighbors to determine if an alternative location is feasible for AT&T’s coverage needs and submit that site for separate Architectural Review. 26. Pole 15/Node P2N31A installation shall be located adjacent to 631 E. Meadow Drive. 27. Pole 17/Node P2N34B installation shall be located adjacent to 412 Ferne Ave. 28. Pole 19/Node P2N25A (1772 Hamilton Ave) installation shall require the utility pole to be moved to the inside edge of AT&T DAS Phase 3 7 sidewalk and shall install one low growing street tree to the left of the pole. 29. Pole 20/Node P2N13A (109 Lois Lane) installation shall require the utility pole to be moved to the inside edge of sidewalk and one low growing street tree shall be installed to the left of the pole. 30. All cost recoverable charges related to this Planning entitlement process, per the cost recovery agreement, shall be paid in full and in a timely manner; these include charges for two consultants hired for peer review of this project. Non-payment may result in the withholding of other city required permits and or approvals required for the project to move forward to the construction phase. Fire Department 31. The applicant shall submit a completed copy the document entitled “Optional Checklist for Local Government to Determine Whether a Facility is Categorically Excluded.” If the applicant is required to submit an Environmental Assessment (EA) to the FCC, please indicate if it has been submitted and the date submitted. Electric Utility 32. Electric Utility shall not perform any operations and/or engineering until a Master License Agreement is signed between AT&T and the City of Palo Alto. AT&T shall not attach any equipment on the City's portion of any utility pole until the Master License Agreement is signed by both parties. The Master License Agreement will determine the procedures, policies, fees and responsibilities for DAS work on joint utility poles. SECTION 7. Indemnity. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”)from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City its actual attorneys fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. SECTION 8. Term of Approval. Architectural Review Approval. The approval shall be valid for one year from the AT&T DAS Phase 3 8 original date of approval, pursuant to Palo Alto Municipal Code Section 18.77.090. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by AT&T titled Palo Alto ODAS, consisting of 63 pages and received September 13, 2012. Phase 3 - Palo Alto oDAS kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj N25A N38A P2N7A P2N6A P2N52AP2N51A P2N36A P2N34B P2N33A P2N32A P2N31A P2N28A P2N27A P2N24A P2N21A P2N20AP2N15B P2N13A P2N11A P2N10B AL M A MID DLEFIEL D E L C A M I N O R E A L PAGE MILL EMBARCADERO C H A R LE S T O N O R E G O N FOOTHILL C H U R C HILL J U NIP E R O S E R R A S A N D HIL L PALMARBORETUM RENGSTORFF G A L V E Z EL CAMINO REAL £¤101 Legend kj N25A, 1772 Hamilton Ave kj N38A, 109 Lois Ln kj P2N10B, 3524 Waverly St kj P2N11A, 747 Loma Verde Ave kj P2N13A, 3706 Carlson Cir kj P2N15B, 3284 Cowper St kj P2N20A, 3412 Ross Rd/3374 Ross Rd kj P2N21A, 3132 David Ave kj P2N24A, 3415 Greer Rd kj P2N27A, 3757 Corina Way kj P2N28A, 3915 Louis Rd kj P2N31A, 631 E Meadow Dr kj P2N32A, 3901 Middlefield Rd kj P2N33A, 3539 Louis Rd kj P2N34B, 412 Ferne Ave kj P2N36A, 3945 Nelson Dr kj P2N51A, 2385 Waverly St kj P2N52A, 3094 Greer Rd kj P2N6A, 390 El Dorado kj P2N7A, 452 Loma Verde Ave ³ AT&T Proprietary (Internal Use Only)Not for use or disclosure outside the AT&T companies except under written agreement.Telco proprietary data is not to be disclosed to siloed employees. Gonsalves. Ronna From: Sent: To: Cc: Subject: Attachments: 0 1i t I • ..ttlm ;) Gr F ICE elainekllr@aol.com Tuesday, January 22, 2013 10:54 AM 13 JAN 22 PM 12: 50 Council, City scott.l.keller@lmco.com Appeal of AT&T DAS Antennas Phase ill -3945 Nelson Drive KELLER-LANDSCAPING_PLAN.pdf; Map_oC3945_Nelson_and_Environs.pdf Dear Honorable City Council Members: I am writing to make you aware of my husband's and my concerns regarding the AT&T DAS antenna installation on the telephone pole adjacent to our back yard at 3945 Nelson Drive. My husband has written to you before, but we wanted to make you aware that we have formally appealed the installation and to reiterate our concerns. We are in a unique situation in that the pole at 3945 Nelson Drive is located on the side of our property at the back property line, just a few feet from the gate to our backyard patio, and not at the front curb as is usually the case. We own an Eichler, and we purchased the property because of the indoor/outdoor space concept. It is a small house, and we see the backyard as an important extension of our living space. Before we knew about this proposed antenna, we relandscaped our entire back yard and added a patio in the back corner of the property, abutting the telephone pole in question. (See Attachment #1). In the January 23.2012 City Council meeting to approve Phase I of this project, City Planning stated that they were not recommending that antennas be located in people's back yards. but that is exactly what is happening here. The antenna is loud and unSightly and would basically become a part of our backyard space. We have tried, on multiple occasions, to address this issue with both the Palo Alto City Planning department and AT&T. City Planning has directed us to work things out directly with AT&T. In a June 25, 2012 email, Clare Campbell from the Palo Alto Planning Department stated that she "will be communicating directly with you, the property owner, regarding your concerns with the DAS project" but I have never been able to have a direct conversation with her. She went on to say that she was forwarding my concerns to AT&T and that "AT&T needs to communicate with you what their needs are and how those can be met with the various pole sitings." AT&T did not initiate a response with me on this matter. After I called AT&T multiple times, including calls to Ms. Clunie's supervisor, I was told that the location of the antenna in question was "critical" but information on why this was so was never given to me, despite multiple requests. I have tried repeatedly to engage AT&T in a conversation about this antenna location. I have sent Shiyama Clunie from AT&T External Affairs (and Clare Campell from Palo Alto City Planning) proposed alternative locations and have tried to engage AT&T in a conversation on the matter. Our property is adjacent or in close proximity to numerous public and commercial spaces that could be used to house this antenna. (See Attachment #2). Ms. Clunie tells me that the antenna in question could not possibly be moved, not even by 30 feet over to Cubberley, which is right behind us. When we question this (my husband and I are both engineers and this makes no sense to us), we have been kept at bay and have never received any information on why the 3945 Nelson Drive location is so critical. Ms. Clunie assured us as recently as January 4, 2013 (and copied City Council members on the email), that "I'll review your suggestions and will provide you with a written response shortly." We have never received any explanations from her or anyone at AT&T, just as we did not hear back from her after Clare Campbell forwarded my June 25,2012 email to her. I call upon you, the Palo Alto City Council, to balance your citizens' rights against those of corporations like AT&T and ensure due process is met. I am really surprised and disheartened that AT&T has so much control in this process. I have spoken to many others who are affected by the antennas, and the community at large feels railroaded by AT&T in this process. The Planning Department is asking citizens to work with AT&T, but AT&T has no incentive to consider moving any antennas, regardless of the reason, and is effectively stonewalling anyone who tries to engage with them in this matter. . Please do call me at 650-384-6411 with any questions you might have. I very much appreCiate your thoughtful consideration of this matter. Sincerely, Elaine M. Keller 1 RESIDENCE ... " \(ELlt;K t<ES\vE7\l~ NELSONDRIVE ~qLtS NeJ~ 1:)- Thlo A\1-o GoogleMaps Page loft e 1'D~~\ ~\~.~ loc~s [[Ie-.ry .c{ 'Palo~11o.1>G\\"k'S /'e:.hoJ.-s. /oihz(o+, LA",c3 I. aGree f\ ~.»J~M~(\ ~~S~ ~ • COM.~al ~ce Cc"'arl.es~o~ ~-b-) ~ l'~FSCt·J ~ T an.\ef'\f\a \ouJl.O" . • ?o.\enhq\.C\I.\ecn~Ve.. IO~$ ~ A1tf ))~ aftkf\~ 0\'1 e.~~~~ *t~~h<.. 1Dle~ hUps:llmaps.googkuomfmaps?Fh&bF=eb&ie=U1'F8AII=31.417737,·122.1U278&SplFO.O.,. 11312013 Gonsalves. Ronna From: Sent: To: Cc: Subject: Ms. Clunie, elainekllr@aoLcom Wednesday, January 23, 2013 12:58 PM sr2597@att.com '3 JAN 23 PH 3: 22 sctkllr@aoLcom; Campbell, Clare; Keene, James; Council, City; Williams, Curtis; mn3281 @att.com; pa@mallp.com Re: EXTERNAL: RE: AT&TDAS Antenna at 3945 Nelson Drive, Palo Alto Thank you for responding to my many requests for more information. However, I do not agree with your arguments in their entirety. First of all, the ARB approved this location based on misinformation provided by AT&T. You submitted photos of the area taken in March or so of 2012, well before the relandscaping that we did in May (before we know about this plan at all). This relandscaping eliminated the foilage screening that you claim existed aroud the telephone pole in question. We made you aware of the lack of screening at this location as early as June, 2012, but you stili submitted erroneous photos of the location to the ARB in September, which led to their December approval of the site .. There is no screening whatsoever at this location and you were made aware of that. Secondly, you do not address the possibility of moving the DAS antenna over to Cubberley, which is just a few feet from our property. At the proposed Parkside location, you are proposing to install a new AT&T telephone pole. Why isn't this possible at Cubberley? Or why can't you attach the antenna to an existing light pole at Cubberely, as the January 23, 2012 City Council minutes stated would be the alternative in cases of underground utilities? It does not appear that you have addressed either of these alternatives, and these locations would be close enough to not impact your coverage. Lastly, could you please provide the system design impact and the network performance impact for each of the alternatives that we have proposed along with technical proof that the alternatives are unworkable. This antenna would basically be located in our back yard. I feel you need to pursue EVERY alternative to that event, and we are not yet convinced that you have done so. Thank you. Elaine Keller -----Original Message----- From: CLUNIE, SHIYAMA <sr2597@att.com> To: 'elainekllr@aol,com' <elainekllr@aoLcom> Cc: 'sctkllr@aol.com' <sctkllr@aol.com>; 'clare.campbell@cityofpaloalto.org' <clare.campbell@cityofpaloalto.org>; 'james. keene@cityofpaloalto.org' <james. keene@cityofpaloalto.org>; 'city .council@cityofpaloalto.org' <city.council@cityofpaloalto.org>; 'curtis.williams@cityofpaloalto.org' <curtis.williams@cityofpaloalto.org>; NGUYEN, MINH V <mn3281@att.com>; 'Paul Albritton (pa@mallp.com)' <pa@mallp.com> Sent: Tue, Jan 22, 2013 9:43 pm Subject: RE: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Elaine -As you and I discussed when we spoke in July and October of 2012, we've carefully considered the sites that you suggested, and unfortunately they are not viable alternatives for AT&T. DAS nodes are low powered in nature and have only a one to two block range. As a result, the planning division-approved AT&T DAS network already includes facilities adjacent to the alternatives you suggest, including Piazza Shopping Center, the Greenmeadow Community Center and Mitchell Park, in addition to the node at 3945 Nelson Drive. Similarly, the area that would be served by the poles that you reference, located at the intersection of Nelson Dr. and Charleston Avenue, are already covered by nodes planned nearby, to the north of Middlefield and on the east side of Charleston, as well as by a node currently planned for Parkside Ave. If we moved the node at 3945 Nelson Drive to the Nelson Dr.lCharleston Ave. location, it would create overlaps in coverage close to that site, and gaps in coverage between that location and other nearby nodes. The poles along the access driveway to Cubberley adjacent to your property are located in rear residential yards and are not accessible to AT&T. 4 Please know that each of the 19 utility poles approved in the AT&T Phase II I DAS project were selected from 77 poles evaluated by AT&T, the City Planning Division and Utilities Department, as well as the City's third party consultant to identify poles with the least aesthetic impact to neighbors and the community using criteria established by the city's Architectural Review Board (ARB). Each individual DAS node also uses the diminutive, streamlined design that resulted from months of comment and review by the public and ARB. While we understand your concerns, AT&T continues to believe that 3945 Nelson Drive is the preferred location for AT&T's DAS node to provide needed wireless service to this area with the least impacts. I have attached the first page of the Planning Division's approvals of AT&T's Phase III and Phase IV DAS projects that lists the specific address of each approved pole for your reference. Finally, you correctly mention that the permit application for Phase "' of the DAS project was submitted in March 2012. However, the application was not accepted by the City as complete until September 2012. As noted above, AT&T has worked with Palo Alto's Planning Division, Utilities Department and the City's outside consultant to find locations that suit each neighborhood's coverage needs and aesthetics. This process has taken many months. I hope that this e-mail addresses your concerns adequately. If I've overlooked an issue or concern that you raised or didn't answer a question to your satisfaction, please let me know. Best regards, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: CLUNIE, SHIYAMA Sent: Friday, January 04, 2013 11 :00 AM To: 'elainekllr@aol.com' Cc: sctkllr@aol.com; clare.campbell@cityofpaloalto.org; james.keene@cityofpaloalto.org; city.council@cityofpaloalto.org; curtis.williams@cityofpaloalto.org; NGUYEN, MINH V; Paul Albritton (pa@mallp.com) Subject: RE: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Elaine - I'm glad that we agree that we have had phone conversations and have exchanged e-mails and voice-mails over a period of months. I'm sorry that you don't feel that the information that I provided on alternative sites was detailed enough. I'll review your suggestions and will provide you with a written response shortly. Best regards, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: elainekllr@aol.com [mailto:elainekllr@aol.com] Sent: Friday, January 04, 2013 10: 12 AM To: CLUNIE, SHIYAMA Cc: sctkllr@aol.com; clare.campbell@cityofpaloalto.org; james.keene@cityofpaloalto.org; city.council@cityofpaloalto.org Subject: Re: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto 5 Shiyama, I agree that we have had telephone conversations in addition to emails. I also agree that you have told me that you do not have alternatives to the antenna location in our backyard. But, when I asked you for detailed information to support that comment, I have not received it. It may be inconvenient for AT&T to move this antenna but this not an excuse to force a noisy antenna system to abut a disabled person's -or anyone else's -back yard, just feet from their patio and entranceway. It is not plausible to us that, with all the choices within very close distance to us, that the only technically acceptable solution is our exact location. In fact, our little community is surrounded by phone poles and opportunities for your system in more commercial or public environments all within a few feet of us. In the attached map you can see multiple locations that should be suitable. There are easily accessible telephone poles abutting the Piazza's shopping center (Charleston Center), where higher noise levels are already standard. There are telephone poles at the intersection of Nelson and Charleston which face a major intersection rather than a residential back yard. Neither is far from the current proposed site. If you look at . the attached map, there is an over-abundance of public and commercial space in the immediate vicinity of this antenna location that could support the antenna. Clearly, the antenna does not have to be on a telephone pole. Per the January 23,2012 Palo Alto City Council meeting notes, light poles will be used when telephone poles are not available due to underground utilities. There is no reason why light poles or phone poles at Cubberly or Mitchell Park could not be used in this case. Cubberly is only 50 to 100 feet away! AT&T's statements to us regarding alternative locations lack specifics and are not credible. Thank you. Elaine and Scott Keller -----Original Message---- From: Keller, Scott L <scott.l.keller@lmco.com> To: 'elainekllr@aol,com' <elainekllr@aol,com> Sent: Fri, Jan 4, 2013 8:31 am ' Subject: Fw: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Sent from my Blackberry From: CLUNIE, SHIYAMA [mailto:sr2597@att.com] Sent: Friday, January 04,201308:37 AM To: 'elainekllr@aol.com' <elainekllr@aol.com>; 'clare.campbell@citvofpaloalto.org' <clare.campbell@citvofpaloalto.org> Cc: Keller, Scott L Subject: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Elaine - My records show that I called you on July 13th• As you mention below, when you left a message for me on September 29th (a Saturday), I called you back on Tuesday, October 2nd , after doing research on the site in question. Our interactions didn't consist of voice-mails, exclusively. I had a phone conversation with you, during which we discussed alternatives that had been considered and eliminated. This week, I've put together an e-mail response for you, and you'll receive that shortly. Sincerely, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 . Cell: (510) 326-8897 6 From: CLUNIE, SHIYAMA Sent: Friday, January 04, 2013 6:59 AM To: 'elainekllr@aol.com'; clare.campbell@cityofpaloalto.org Cc: scott.l.keller@lmco.com Subject: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Hello Elaine - We considered several alternatives to this location, as I shared with you when we spoke in November. I've put together an e-mail response for you, which you'll receive shortly. Sincerely, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: elainekllr@aol.com [mailto:elainekllr@aol.com] Sent: Thursday, January 03, 2013 1:47 PM To: clare.campbell@cityofpaloalto.org; CLUNIE, SHIYAMA Cc: scott.l.keller@lmco.com Subject: Fwd: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Hello and Happy New Year to both of you. I am writing to resend an email that I originally sent to the two of you back in early November of 2012, documenting our concerns with the placement of an AT&T DAS system just outside of our side yard fence and within just a few feet our our backyard living space. In the letter, I proposed three alternative placements for the antenna in close proximity to our property. I have not heard back from either of you regarding the feasibility of these alternate sites. My husband and I are formally protesting the placement of this antenna in Phase 3 of the AT&T DAS system, and we would appreciate your response to the alternative locations as part of this appeal. Thank you. Elaine Keller -----Orig inal Message----- From: elainekllr <elainekllr@aol.com> To: sr2597 <sr2597@att.com> Sent: Mon, Nov 5, 20125:52 pm Subject: Fwd: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Shiyama, this is the email address that I used last week when I sent the email below, although it looks very different in the CC: line below. It did not come back as 'returned,' though. Elaine -----Original Message----- From: elainekllr <elainekllr@aol.com> To: clare. campbell <clare.campbell@cityofpaloalto.org> Cc: ""\"sr2597 sr2597\"" <"sr2597 sr2597''''@att.com>; scott.l.keller <scott.l.keller@lmco.com> Sent: Tue, Oct 30,20125:54 pm Subject: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto 7 Dear Clare, My husband and I remain extremely concerned about plans to locate an AT&T DAS antenna on a telephone pole abutting our back yard at 3945 Nelson Drive, Palo Alto. Per city documentation, it is Node # P2N36A. We would like to petition the city to relocate this antenna to another location. There are multiple locations in the vicinity that would be much more acceptable. Please bear with me as I step through our concerns and our attempts to obtain Clarification. NOTICES: To date, we have received no notices from the city regarding this project, nor have any of our neighbors, which is disheartening in and of itself. The fact that the city, together with AT&T, could even attempt to make decisions as to antenna placement without alerting the affected neighbors and understanding their individual concerns is just inconceivable. On the first two rounds of documents, AT&T and the city didn't even get our address right (first listed as 3495 Nelson Drive, then 3945 Nelson Avenue). My husband and I were only made aware of the project from another local resident who was affected by an antenna in Phase II, even though a September 12,2012 letter from Minh V. Nguyen of AT&T to Clare Campbell cites a March 29, 2012 Phase III application date. This 9-12-12 document went on to state that the 3945 Nelson Drive "location is acceptable as has less impacts to residences due to siting by athletic fields and within semi-deciduous tree canopy." The semi-deciduous tree canopy being referenced was removed when our yard was landscaped in May, 2012 (at which point we still had no idea about this project) but is still being referenced in the 9-12-12 letter, along with pre-May 2012 photos. We formally request that the city of Palo Alto and AT&T follow established laws and processes in terms of understanding residenfs concerns and impacts and cease work on the DAS planning in this area until they do so. CONVERSATIONS WITH AT&T: AT&T has been impossible to deal with in regards to this matter. Their idea of External Relations leaves a lot to be desired. I originally emailed you, Clare, with my concerns on June 25,2012 and was informed that you would forward my concerns to Shiyama Clunie in External Affairs at AT&T. By July 10 of 2012,1 had still not heard from Shiyama and you suggested that I call her supervisor, John Jefferson at AT&T. John reiterated that I needed to work with Shiyama, but still, weeks and then months passed with no communications from her. Fast forwarding to September -I attempted once again to contact AT&T after being made aware of the September 12, 2012 letter referenced above. I called John Jefferson on September 29 and was again referred to Shiyama Clunie, whom I left a voice message for on the same day. Shiyama returned my call with a voice message on October 2,2012, saying that her engineers felt the pole near our house was the ONLY suitable location in the area for their antenna, something that I do not begin to believe. My husband and I both have engineering degrees and realize that such a statement is absurd. I have since called Shiyama back an additional THREE times over the ensuing weeks, and she has yet to return my call. The last call that I placed to her was on October 26, 2012. NOISE AND AESTHETIC CONCERNS: We are very concerned about the noise that will be generated from the DAS antenna and are fairly certain that it will exceed the guidelines for residential noise pollution as outlined in City of Palo Alto Noise Ordinance, PAMC Chapter 9.10. Because the antenna would be adjacent to our side/back yard, it is only a few feet away from the backyard areathat is occupied on a daily basis, throughout the day and often well into the evening hours. This imposition is much greater than if the antenna were to have been located at the curb in the front yard. I am handicapped and as such I spend a disproportionate amount of my time in my house / yard. We recently had our yard landscaped so as to make better use of the outdoor space and hence improve my quality of life. As it stands, the antenna will be located: 1) on an easement located within our residential property line, 2) a mere 30" from the fence to our back yard and just adjacent to the gate into the back yard area, and 3) just 25' from our bedroom window. It is inconceivable that the hum from this antenna, which is quite noticeable, would not be heard loud and clear from within the indoor/outdoor area which we consider living space. Additionally, any stress will aggravate my medical condition, which is life limiting. The noise of the AT&T DAS antenna will undoubtedly add to my stress level. Lastly, the antenna itself is unsightly and we would have a clear line of sight from our back yard and our bedroom window. s ALTERNATE SITES: Contrary to AT&T's supposition, there are multiple sites in the immediate area that would be better candidates for placement ofthis antenna: 1) Cubberly Community Center First and foremost, locating the pole at the nearby Cubberly Community Center would alleviate a host of problems -it would be on city property and subject to public noise ordinances, the property is not used full-time and hence would not be under as much scrutiny, and for engineering purposes the antenna would be located close to its originally designated location. 2) Piazza's Shopping Center Piazza's and the adjacent shopping complex (and a pole near the parking lot of Piazzas) afford a vast area of space from which to choose an antenna location. This pole is in an area where the ambient noise is much greater than our quiet corner and is close to the original AT&T location. 3) Greenmeadow Pool Area The area surrounding Greenmeadow's pool and park also offers potential locations that are better hidden from both residential sight and sound disturbances. We formally request the city of Palo Alto relocate this antenna to a more suitable site than 3945 Nelson Drive. Thank you for your patience in listening to my concerns. Please let me know what the next steps are that I should take. would be happy to meet with you at any time regarding this matter. Sincerely, Elaine Keller 9 Gonsalves, Ronna From: Sent: To: Cc: Subject: Attachments: "c: :1Y CLE{,t 's u hCE CLUNIE, SHIYAMA <sr2597@att.com> Tuesday, January 22,2013 9:14 PI'13 J ~I~ 23 PH 3: 25 'elainekllr@aoLcom' 'sctkllr@aoLcom'; Campbell, Clare; Keene, James; Council, City; Williams, Curtis; NGUYEN, MINH V; 'Paul Albritton (pa@mallp.com)' RE: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Pages from Phase 3 and 4 Directors ApprovaLpdf Elaine -As you and I discussed when we spoke in July and October of2012, we've carefully considered the sites that you suggested, and unfortunately they are not viable alternatives for AT&T. DAS nodes are low powered in nature mId have only a one to two block range. As a result, the planning division-approved AT&T DAS network already includes facilities adjacent to the alternatives you suggest, including Piazza Shopping Center, the Greeimleadow Community Center and Mitchell Park, in addition to the node at 3945 Nelson Drive. Similarly, the area that would be served by the poles that you reference, located at the intersection ofNel~n Dr. and Charleston Avenue, are already covered by nodes planned nearby, to the north of Middlefield and on the east side of Charleston, as well as by a node cUlTently planned for Parkside Ave. If we moved the node at 3945 Nelson Drive to the Nelson Dr.lCharleston Ave. location, it would create overlaps in coverage close to that site, mId gaps in coverage between that location and other nearby nodes. The poles along the access driveway to Cubberley adjacent to your property are located in rear residential yards and are not accessible to AT&T. Please know that each of the 19 utility poles approved in the AT&T Phase III DAS project were selected from 77 poles evaluated by AT&T, the City Plmming Division and Utilities Department, as well as the City's third party consultant to identify poles with the least aesthetic impact to neighbors and the commlmity using criteria established by the city's Architectural Review Board (ARB). Each individual DAS node also uses the diminutive, streamlined design that resulted from months of comment mId review by the public and ARB. While we understand your concerns, AT&T continues to believe that 3945 Nelson Drive is the preferred location for AT&T's DAS node to provide needed wireless service to this area with the least impacts. I have attached the first page of the Plarming Division's approvals of AT&T's Phase III and Phase IV DAS projects that lists the speci1ic address of each approved pole for your reference. Finally, you cOlTectly mention that the permit application for Phase III of the DAS project was submitted in March 2012. However, the application was not accepted by the City as complete until September 2012. As noted above, AT&T has worked with Palo Alto's Planning Division, Utilities Department mId the City's outside consultant to find locations that suit each neighborhood's coverage needs and aesthetics. This process has taken many months. I hope that this e-mail addresses your concerns adequately. If I've overlooked an issue or concern that you raised or didn't answer a question to your satisfaction, please let me know. Best regards, Shiymna Shiyama Clunie Area Manager 1 AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: CLUNIE, SHIYAMA Sent: Friday, January 04, 2013 11:00 AM To: 'elainekllr@aol.com' Cc: sctkllr@aol.com; clare.campbell@cityofpaloalto.org; james.keene@cityofpaloalto.org; city.council@cityofpaloalto.org; curtis.williams@cityofpaloalto.org; NGUYEN, MINH V; Paul Albritton (pa@mallp.com) Subject: RE: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Elaine - I'm glad that we agree that we have had phone conversations and have exchanged e-mails and voice-mails over a period of months. I'm sorry that you don't feel that the information that I provided on alternative sites was detailed enough. I'll review your suggestions and will provide you with a written response shortly. Best regards, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: elainekllr@aol.com [mailto:elainekllr@aol.com] Sent: Friday, January 04,2013 10:12 AM To: CLUNIE, SHIYAMA Cc: sctkllr@aol.com; clare.campbell@citvofpaloalto.org; james.keene@cityofpaloalto.org; city.council@cityofpaloalto.org Subject: Re: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Shiyama, I agree that we have had telephone conversations in addition to emails. I also agree that you have told me that you do not have alternatives to the antenna location in our backyard. But, when I asked you for detailed information to support that comment, I have not received it. It may be inconvenient for AT&T to move this antenna but this not an excuse to force a noisy antenna system to abut a disabled person's -or anyone else's -back yard, just feet from their patio and entranceway. It is not plausible to us that, with all the choices within very close distance to us, that the only technically acceptable solution is our exact location. In fact, our little community is surrounded by phone poles and opportunities for your system in more commercial or public environments all within a few feet of us. In the attached map you can see multiple locations that should be suitable. There are easily accessible telephone poles abutting the Piazza's shopping center (Charleston Center), where higher noise levels are already standard. There are telephone poles at the intersection of Nelson and Charleston which face a major intersection rather than a residential back yard. Neither is far from the current proposed site. If you look at the attached map, there is an over-abundance of public and commercial space in the immediate vicinity of this antenna location that could support the antenna. Clearly, the antenna does not have to be on a telephone 2 pole. Per the January 23, 2012 Palo Alto City Council meeting notes, light poles will be used when telephone poles are not available due to underground utilities. There is no reason why light poles or phone poles at Cubberly or Mitchell Park could not be used in this case. Cubberly is only 50 to 100 feet away! AT&T's statements to us regarding alternative locations lack specifics and are not credible. Thank you. Elaine and Scott Keller --Original Message---- From: Keller, Scott L <scott.l.keller@lmco.com> To: 'elainekllr@aol.com' <elainekllr@aol.com> Sent: Fri, Jan 4, 2013 8:31 am Subject: Fw: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Sent from my Blackberry From: CLUNIE, SHIYAMA lmailto:sr2597@att.com] Sent: Friday, January 04,201308:37 AM To: 'elainekllr@aol.com' <elainekllr@aol.com>; 'clare.campbell@citvofpaloalto.org' <clare.campbell@cityofpaloalto.org> Cc: Keller, Scott L Subject: EXTERNAL: RE: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Elaine - . My records show that I called you on July 13th• As you mentiqn below, when you left a message for me on September 29th (a Saturday), I called you back on Tuesday, October 2nd, after doing research on the site in question. Our interactions didn't consist of voice-mails, exclusively. I had a phone conversation with you, during which we discussed alternatives that had been considered and eliminated. This week, I've put together an e-mail response for you, and you'll receive that shortly. Sincerely, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: CLUNIE, SHIYAMA Sent: Friday, January 04, 2013 6:59 AM To: 'elainekllr@aol.com'; clare.campbell@cityofpaloalto.org Cc: scott.l.keller@lmco.com Subject: RE: AT&T DAS Antenna at 3945 Nelson Drive, P,alo Alto Hello Elaine - 3 We considered several alternatives to this location, as I shared with you when we spoke in November. I've put together an e-mail response for you, which you'll receive shortly. Sincerely, Shiyama Shiyama Clunie Area Manager AT&T External Affairs, Santa Clara County and Southern San Mateo County Office: (650) 473-8022 Cell: (510) 326-8897 From: elainekllr@aol.com [mailto:elainekllr@aol.com] Sent: Thursday, January 03,20131:47 PM To: clare.campbell@cityofpaloalto.org; CLUNIE, SHIYAMA Cc: scott.l.keller@lmco.com Subject: Fwd: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Hello and Happy New Year to both of you. I am writing to resend an email that I originally sent to the two of you back in early November of 2012, documenting our concerns with the placement of an AT&T DAS system just outside of our side yard fence and within just a few feet our our backyard living space. In the letter, I proposed three alternative placements for the antenna in close proximity to our property. I have not heard back from either of you regarding the feasibility of these alternate sites. My husband and I are formally protesting the placement of this antenna in Phase 3 of the AT&T DAS system, and we would appreciate your response to the alternative locations as part of this appeal. Thank you. Elaine Keller -----Original Message----- From: elainekllr <elainekllr@aol.com> To: sr2597 <sr2597@att.com> Sent: Mon, Nov 5,20125:52 pm Subject: Fwd: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Shiyama, this is the email address that I used last week when I sent the email below, although it looks very different in the CC: line below. It did not come back as 'returned,' though. Elaine -----Original Message----- From: elainekllr <elainekllr@aol.com> To: clare.campbell <clare.campbell@cityofpaloalto.org> Cc: ""\"sr2597 sr2597\"" <"sr2597 sr2597""@att.com>; scott.l.keller <scott.l.keller@lmco.com> Sent: Tue, Oct 30, 2012 5:54 pm Subject: AT&T DAS Antenna at 3945 Nelson Drive, Palo Alto Dear Clare, My husband and I remain extremely concerned about plans to locate an AT&T DAS antenna on a telephone pole abutting our back yard at 3945 Nelson Drive, Palo Alto: Per city documentation, it is Node # P2N36A. We would like to petition the city to relocate this antenna to another location. There are multiple locations in the vicinity that would be much more acceptable. Please bear with me as I step through our concerns and our attempts to obtain clarification. NOTICES: 4 To date, we have received no notices from the city regarding this project, nor have any of our neighbors, which is disheartening in and of itself. The fact that the city, together with AT&T, could even attempt to make decisions as to antenna placement without alerting the affected neighbors and understanding their individual concerns is just inconceivable. On the first two rounds of documents, AT&T and the city didn't even get our address right (first listed as 3495 Nelson Drive, then 3945 Nelson Avenue). My husband and I were only made aware of the project from another local resident who was affected by an antenna in Phase II, even though a September 12, 2012 letter from Minh V. Nguyen of AT&T to Clare Campbell cites a March 29. 2012 Phase III application date. This 9-12-12 document went on to state that the 3945 Nelson Drive "location is acceptable as has less impacts to residences due to siting by athletic fields and within semi-deciduous tree canopy." The semi-deciduous tree canopy being referenced was removed when our yard was landscaped in May, 2012 (at which point we still had no idea about this project) but is still being referenced in the 9-12-12 letter, along with pre-May 2012 photos. We formally request that the city of Palo Alto and AT&T follow established laws and processes in terms of understanding residenfs concerns and impacts and cease work on the DAS planning in this area until they do so. CONVERSATIONS WITH AT&T: AT&T has been impossible to deal with in regards to this matter. Their idea of External Relations leaves a lot to be desired. I originally emailed you, Clare, with my concerns on June 25,2012 and was informed that you would forward my concerns to Shiyama Clunie in External Affairs at AT&T. By July 10 of 2012, I had still not heard from Shiyama and you suggested that I call her supervisor, John Jefferson at AT&T. John reiterated that I needed to work with Shiyama, but still, weeks and then months passed with no communications from her. Fast forwarding to September -I attempted once again to contact AT&T after being made aware of the September 12, 2012 letter referenced above. I called John Jefferson on September 29 and was again referred to Shiyama Clunie, whom I left a voice message for on the same day. Shiyama returned my call with a voice message on October 2,2012, saying that her engineers felt the pole near our house was the ONLY suitable location in the area for their antenna, something that I do not begin to believe. My husband and I both have engineering degrees and realize that such a statement is absurd. I have since called Shiyama back an additional THREE times over the ensuing weeks, and she has yet to return my call. The last call that I placed to her was on October 26, 2012. NOISE AND AESTHETIC CONCERNS: We are very concerned about the noise that will be generated from the DAS antenna and are fairly certain that it will exceed the guidelines for residential noise pollution as outlined in City of Palo Alto Noise Ordinance, PAMC Chapter 9.10. Becausethe antenna would be adjacent to our side/back yard, it is only a few feet away from the backyard area that is occupied on a daily basis, throughout the day and often well into the evening hours. This imposition is much greater than if the antenna were to have been located at the curb in the front yard. I am handicapped and as such I spend a disproportionate amount of my time in my house / yard. We recently had our yard landscaped so as to make better use of the outdoor space and hence improve my quality of life. As it stands, the . antenna will be located: 1) on an easement located within our residential property line, 2) a mere 30" from the fence to our back yard and just adjacent to the gate into the back yard area, and 3) just 25' from our bedroom window. It is inconceivable that the hum from this antenna, which is quite noticeable, would not be heard loud and clear from within the indoor/outdoor area which we consider living space. Additionally, any stress will aggravate my medical. condition, which is life limiting. The noise of the AT&T DAS antenna will undoubtedly add to my stress level. Lastly, the antenna itself is unSightly and we would have a clear line of sight from our back yard and our bedroom window. ALTERNATE SITES: Contrary to AT&T's supposition, there are multiple sites in the immediate area that would be better candidates for . placement of this antenna: 1) Cubberly Community Center First and foremost, locating the pole at the nearby Cubberly Community Center would alleviate a host of problems -it would be on city property and subject to public noise ordinances, the 5 property is not used full-time and hence would not be under as much scrutiny, and for engineering purposes the antenna would be located close to its originally designated location. 2) Piazza's Shopping Center Piazza's and the adjacent shopping complex (and a pole near the parking lot of Piazzas) afford a vast area of space from which to choose an antenna location. This pole is in an area where the ambient noise is much greater than our quiet corner and is close to the original AT&T location. 3) Greenmeadow Pool Area The area surrounding Greenmeadow's pool and park also offers potential locations that are better hidden from both residential sight and sound disturbances. We formally request the city of Palo Alto relocate this antenna to a more suitable site than 3945 Nelson Drive. Thank you for your patience in listening to my concerns. Please let me know what the next steps are that I should take. would be happy to meet with you at any time regarding this matter. Sincerely, Elaine Keller 6 December 18,2012 Minh Nguyen AT&T Mobility LLC 870 N. McCarthy Blvd. Milpitas, CA 95035 Subject: Dear Mr. Nguyen: , On December 18, 201 was conditionally aot)t{)~fed . .fuv plrutmijfg set forth in Palo <"".~n."iI''''''..I~jLjJ''' PROJECT ,&1.."." ..... ,.&,,"- Request by installation an Cowper St; 3412 Waverley St; ""A~',",'- Waverly St on E. u'. YJ ...... ..uv Louis Rd; 631 E. lYl~l:tQO'W; Hamilton Ave ...... JV,gl,S/, the California Emlir~J:ltnenta'l '<.'----J< ""'''''.T<,n .. r of Small Structures. FINDINGS FOR The approval is based the Standards for Architectural Review tloarCl:·,-l:ma \_J""¥.""',,>l·'l')I-'rl'\:\J~ conditions outlined below. CONDITIONS OF APPROVAL Gty afPaIo Alto Department of Planning and Community Environment 1. The project shall be in substantial cOllltot.tfia1a~(,\jiit1V'tb:e 'll1t)~ffl~ documents received September 13, 2012, conditions of approval. Planning 250 Hamilton Avenue P,O, Box 10250 Palo Alto, CA 94303 650.329.2441 650.329.2154 Transportation 250 Hamilton Avenue P,O. Box 10250 Palo Alto, CA 94303 650.329,2520 650.329.2154 Building 285 Hamilton Avenue P.O, Box 10250 Palo Alto, CA 94303 650.329,2496 650.329,2240 Gonsalves, Ronna From: Sent: To: Cc: Subject: Attachments: Paul Albritton <pa@mallp.com> Wedn~sd~y, January 23/2013 11:16 AM 13 JAN 23 PM 3: 24 Councll, City . "- Williams/ Curtis; French, Amy; Campbell, Clare; Silver, Cara AT&T Mobility Letter to City Council -DAS Phase ill and Phase IV -Consent Calendar January 28/ 2013 AT&T Mobility Letter .pdf; ATTOOOOl.htm Please find attached AT&T Mobility's response to the appeals filed for Phase III and Phase IV of its Palo Alto DAS project. The letter asks the City Council to affirm the Planning Division approvals and allow them to remain on the consent calendar for January 28, 2013. Thank you. Paul for Paul Albritton Phone (415) 288-4000 Mackenzie & Albritton, LLP Fax (415) 288-4010 220 Sansome Street, 14th Floor San Francisco, CA 94104 1 MACKENZIE & ALBRITTON LLP 220 SANSOME STREET, 14TH FLoOR SAN FRANCISCO, CALIFORNIA 94104 TELEPHONE 415/288-4000 FACSIMILE 415/288-4010 January 23, 2013 VIA ELECTRONIC MAIL Mayor Gregory Scharff Vice Mayor Nancy Shepherd Council Members Patrick Burt, Marc Berman, Karen Holman, Larry Klein, Gail Price, Greg Schmid and Liz Kniss City Council City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Re: AT&T's Response to Appeals of AT&T DAS Project Phase Ill, 12PLN-00127 Architectural Review Phase IV, 12PLN-00258 Architectural Review City Council Consent Calendar Januaty 28,2013 Dear Mayor Scharff, Vice Mayor Shepherd and Council Members: We write to you on behalf of our client AT&T Mobility ("AT&T") to urge that you adopt the fmdings and decision of the Planning Division to approve AT&T's distributed antenna system ("DAS") Phase III and Phase IV (the "Approvals"). Staffs findings in support of the Approvals are well-reasoned, supported by substantial evidence and represent years of exhaustive review by Planning Division staff, Utilities Department staff, th.e City'arborist, the City's outside consultants, the Architectural Review Board (the "ARB") and the Council. In addition, both state and federal law compel the City to affirm the Approvals. There is no reason to remove the Approvals from the Council's January 28, 2013, consent calendar. As described below, all but one of the appeals are filed by residents whose homes are next to existing poles. These appeals simply seek to re-open unsupported aesthetic, noise, health or property value concerns, while the remaining appeal challenges the City's implementation of its noise regulations with arguments that were rejected by the Council in its approval of Phase II of the AT&T DAS project. The concerns raised in all of the appeals have been thoroughly reviewed and previously addressed by the ARB and the Council and are not worthy of further review, as follows. Palo Alto City Council January 23, 2013 Page 2 of2 I. The Thoughtful Design and Careful Placement of AT&T DAS Node Facilities on Existing Utility Poles Create No Aesthetic Impacts. Since early 2010, AT&T has worked with the City of Palo Alto to arrive at an aesthetically acceptable design and pole site selection process that will minimize aesthetic impacts on the Palo Alto community while providing needed wireless service. Based upon ARB review, the aesthetic profile of AT&T's DAS nodes has been nearly eliminated by streamlining antennas to a single pole-top attachment, raising battery boxes above a narrow radio cabinet, and rotating all equipment toward the street and away from residential views. Closely following rigorous location guidelines established by the ARB, AT&T conducted a rigorous Alternative Aesthetics Fielding Analysis evaluating 150 existing utility poles to identify the 38 approved pole locations in Phase III and Phase IV, which represents the fewest poles feasible to provide necessary wireless coverage. Block placement was evaluated to identify locations away from street comers in order to minimize public views and in-between property lines to avoid impacts on individual views. Poles were also selected to maximize the benefit of existing foliage to camouflage DAS equipment. AT&T's aesthetic review was re-analyzed and adjusted by Planning Division staff and again by the City's independent consultant to arrive at final pole locations with the least aesthetic impacts to individuals and the community to be served. In sum, the design, pole selection guidelines and final pole selection have been thoroughly reviewed by the Planning Division staff, its independent consultants, the ARB and the Council and do not require further public hearings for review. II. Presently OperatingDAS Nodes Confirm Compliance with Noise Ordinance. Notwithstanding repetitious appeals, there is simply no question that the AT&T DAS project complies with Palo Alto Municipal Code §9.10 (the "Noise Ordinance"). Just two months ago, in November 2012, the Council, following the recommendation of Planning Division staff and the City Attorney, completely rejected a similar appeal based upon a tortured interpretation of the Noise Ordinance. As part of its obligations under the Phase I approval, and submittal requirements for its Phase II approval, AT&T has provided the City with a post-installation noise analysis by independent consultants Hammett & Edison, Inc., Consulting Engineers. This report, which was included in the Council's approval of Phase II of the AT&T DAS project, measured the sound from an operating AT&T DAS facility in Palo Alto and confirmed that AT&T's Palo Alto DAS design fully complies with the Noise Ordinance. Based upon this information and the prior decisions of the Council, further appeals raising noise concerns are simply frivolous and do not warrant any further hearings. III. Health Concerns and. by Extension. Property Value Concerns Are Unfounded. Preempted by Federal Law and May Not Be the Basis of Further Hearings. The Telecommunications Act of 1996 bars local jurisdictions from denying an application for a wireless telecommunications facility based on the environmental effects of Palo Alto City Council January 23, 2013 Page 3 of3 radio frequency emissions! where, as here, AT&T has demonstrated full compliance with Federal Communications Commission ("FCC") emissions guidelines. The statements submitted by Hammett & Edison, Inc., Consulting Engineers, confIrm that all of the AT&T DAS facilities will operate well within, and indeed far below, applicable public exposure limits allowed under FCC guidelines. The federal preemption of radio frequency emissions issues applies whether local decisions are directly based on emissions or indirectly based on a proxy such as property values. Thus, "concern over the decrease in property values may not be considered as substantial evidence if the fear of property value depreciation is based on concern over the health effects caused by RF emissions." AT&T Wireless Services of California LLC v. City of Carlsbad, 308 F.Supp.2d 1148, 1159 (S.D. Cal. 2003). IV. Federal and State Law Compel Council Affirmation of the Approvals. AT&T has worked diligently with the City of Palo Alto over the last three years to identify the least intrusive means to provide wireless service to an identifIed signifIcant gap in coverage. This effort has resulted in the Approvals that appear on the January 28,2013 . Council consent calendar. Failure to affirm the Approvals on that date would run afoul of limitations under the Telecommunications Act which preempt any local decision that would effectively prohibit the provision of personal wireless services or that would unreasonably delay approvals for such service.2 Similarly, the Council may not act in a manner that would deny AT&T the right to place its facilities in the public rights-of-way under the statewide franchise granted to AT&T under California Public Utilities Code.3 For these reasons, both state and federal law compel Council affirmation of the Approvals on January 28,2013. Conclusion The Phase III and Phase IV AT&T DAS Approvals that appear on the January 28, 2013 Council consent calendar represent years of design and aesthetic review to arrive at the ideal facility design and locations to best serve the Palo Alto community with the least impacts upon residents. The City Council should not permit the narrow, unfounded concerns of a few individuals to further delay this well-designed project, which represents the extensive efforts of both the City and AT&T. We encourage you to affirm the Approvals as part of the Council's consent calendar without further hearing. cc: Curtis Williams Cara Silver, Esq. 147 U.S.C. §332(c)(7)(B)(iv). 2 See 47 U.S.C. §332 et seq. Very truly yours, ~~~ V ~ B. Albritton 3 See California Public Utilities Code §7901 et seq. e-mail: bhammett@h-e.com Delivery: 470 Third Street West • Sonoma, California 95476 Telephone: 707/996-5200 San Francisco • 707/996-5280 Facsimile • 202/396-5200 D.C. WILLIAM F. HAMMETT, P.E. DANE E. ERICKSEN, P.E. STANLEY SALEK, P.E. ROBERT P. SMITH, JR. RAJAT MATHUR, P.E. KENT A. SWISHER ANDREA L. BRIGHT ___________ ROBERT L. HAMMETT, P.E. 1920-2002 EDWARD EDISON, P.E. 1920-2009 BY E-MAIL JD3235@ATT.COM July 27, 2012 John di Bene, Esq. AT&T Mobility 4430 Rosewood Drive Pleasanton, California 94588 Dear John: As you requested, we have visited the AT&T Mobility oDAS node recently installed at 255 North California Avenue in Palo Alto, California, in order to assess the noise levels from that installation and to evaluate those actual levels against both the city's noise limit and the projected levels. On the morning of June 6, 2012, using one of our Quest Technologies Type 2200 Sound Level Meters (Serial No. SBF110001, under current calibration by the manufacturer), we observed a minimum* noise level of 44.5 dBA at a distance of 25 feet from the pole. That is the distance specified for compliance with the city's municipal code Section 9.10.050, which limits an increase in noise to 15 dBA, measured at 25 feet, for facilities not located on private property. The ambient reading at that location with the AT&T node shut off was 42.1 dBA, so the actual increase was 2.4 dBA, well below the 15 dBA allowed by the code. Removing† the 42.1 dBA ambient level from the 44.5 dBA level with the AT&T equipment turned on indicates that the equipment by itself produced noise at 25 feet of approximately 40.8 dBA. This compares well with the manufacturer's data, given in our report dated November 1, 2011, which averaged 40.9 dBA to the front and sides. Therefore, we conclude from these measurements that noise from the AT&T Mobility oDAS nodes has been accurately represented by the manufacturer and that, indeed, the noise increase easily meets the Palo Alto limits. Please let us know if any questions arise on these measurements or this analysis. Sincerely yours, William F. Hammett * Intended to represent the noise from continuous, fixed sources, separate from the varying levels due to intermittent sources including traffic, wind, voices, and planes. † Using appropriate mathematical conversions. MACKENZIE & ALBRITTON LLP 220 SANSOME STREET, 14TH FLOOR SAN FRANCISCO, CALIFORNIA 94104 TELEPHONE 415 / 288-4000 FACSIMILE 415 / 288-4010 January 23, 2013 VIA ELECTRONIC MAIL Mayor Gregory Scharff Vice Mayor Nancy Shepherd Council Members Patrick Burt, Marc Berman, Karen Holman, Larry Klein, Gail Price, Greg Schmid and Liz Kniss City Council City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Re: AT&T’s Response to Appeals of AT&T DAS Project Phase III, 12PLN-00127 Architectural Review Phase IV, 12PLN-00258 Architectural Review City Council Consent Calendar January 28, 2013 Dear Mayor Scharff, Vice Mayor Shepherd and Council Members: We write to you on behalf of our client AT&T Mobility (“AT&T”) to urge that you adopt the findings and decision of the Planning Division to approve AT&T’s distributed antenna system (“DAS”) Phase III and Phase IV (the “Approvals”). Staff’s findings in support of the Approvals are well-reasoned, supported by substantial evidence and represent years of exhaustive review by Planning Division staff, Utilities Department staff, the City arborist, the City’s outside consultants, the Architectural Review Board (the “ARB”) and the Council. In addition, both state and federal law compel the City to affirm the Approvals. There is no reason to remove the Approvals from the Council’s January 28, 2013, consent calendar. As described below, all but one of the appeals are filed by residents whose homes are next to existing poles. These appeals simply seek to re-open unsupported aesthetic, noise, health or property value concerns, while the remaining appeal challenges the City’s implementation of its noise regulations with arguments that were rejected by the Council in its approval of Phase II of the AT&T DAS project. The concerns raised in all of the appeals have been thoroughly reviewed and previously addressed by the ARB and the Council and are not worthy of further review, as follows. Palo Alto City Council January 23, 2013 Page 2 of 2 I. The Thoughtful Design and Careful Placement of AT&T DAS Node Facilities on Existing Utility Poles Create No Aesthetic Impacts. Since early 2010, AT&T has worked with the City of Palo Alto to arrive at an aesthetically acceptable design and pole site selection process that will minimize aesthetic impacts on the Palo Alto community while providing needed wireless service. Based upon ARB review, the aesthetic profile of AT&T’s DAS nodes has been nearly eliminated by streamlining antennas to a single pole-top attachment, raising battery boxes above a narrow radio cabinet, and rotating all equipment toward the street and away from residential views. Closely following rigorous location guidelines established by the ARB, AT&T conducted a rigorous Alternative Aesthetics Fielding Analysis evaluating 150 existing utility poles to identify the 38 approved pole locations in Phase III and Phase IV, which represents the fewest poles feasible to provide necessary wireless coverage. Block placement was evaluated to identify locations away from street corners in order to minimize public views and in-between property lines to avoid impacts on individual views. Poles were also selected to maximize the benefit of existing foliage to camouflage DAS equipment. AT&T’s aesthetic review was re-analyzed and adjusted by Planning Division staff and again by the City’s independent consultant to arrive at final pole locations with the least aesthetic impacts to individuals and the community to be served. In sum, the design, pole selection guidelines and final pole selection have been thoroughly reviewed by the Planning Division staff, its independent consultants, the ARB and the Council and do not require further public hearings for review. II. Presently Operating DAS Nodes Confirm Compliance with Noise Ordinance. Notwithstanding repetitious appeals, there is simply no question that the AT&T DAS project complies with Palo Alto Municipal Code §9.10 (the “Noise Ordinance”). Just two months ago, in November 2012, the Council, following the recommendation of Planning Division staff and the City Attorney, completely rejected a similar appeal based upon a tortured interpretation of the Noise Ordinance. As part of its obligations under the Phase I approval, and submittal requirements for its Phase II approval, AT&T has provided the City with a post-installation noise analysis by independent consultants Hammett & Edison, Inc., Consulting Engineers. This report, which was included in the Council’s approval of Phase II of the AT&T DAS project, measured the sound from an operating AT&T DAS facility in Palo Alto and confirmed that AT&T’s Palo Alto DAS design fully complies with the Noise Ordinance. Based upon this information and the prior decisions of the Council, further appeals raising noise concerns are simply frivolous and do not warrant any further hearings. III. Health Concerns and, by Extension, Property Value Concerns Are Unfounded, Preempted by Federal Law and May Not Be the Basis of Further Hearings. The Telecommunications Act of 1996 bars local jurisdictions from denying an application for a wireless telecommunications facility based on the environmental effects of Palo Alto City Council January 23, 2013 Page 3 of 3 radio frequency emissions1 where, as here, AT&T has demonstrated full compliance with Federal Communications Commission (“FCC”) emissions guidelines. The statements submitted by Hammett & Edison, Inc., Consulting Engineers, confirm that all of the AT&T DAS facilities will operate well within, and indeed far below, applicable public exposure limits allowed under FCC guidelines. The federal preemption of radio frequency emissions issues applies whether local decisions are directly based on emissions or indirectly based on a proxy such as property values. Thus, “concern over the decrease in property values may not be considered as substantial evidence if the fear of property value depreciation is based on concern over the health effects caused by RF emissions.” AT&T Wireless Services of California LLC v. City of Carlsbad, 308 F.Supp.2d 1148, 1159 (S.D. Cal. 2003). IV. Federal and State Law Compel Council Affirmation of the Approvals. AT&T has worked diligently with the City of Palo Alto over the last three years to identify the least intrusive means to provide wireless service to an identified significant gap in coverage. This effort has resulted in the Approvals that appear on the January 28, 2013 Council consent calendar. Failure to affirm the Approvals on that date would run afoul of limitations under the Telecommunications Act which preempt any local decision that would effectively prohibit the provision of personal wireless services or that would unreasonably delay approvals for such service.2 Similarly, the Council may not act in a manner that would deny AT&T the right to place its facilities in the public rights-of-way under the statewide franchise granted to AT&T under California Public Utilities Code.3 For these reasons, both state and federal law compel Council affirmation of the Approvals on January 28, 2013. Conclusion The Phase III and Phase IV AT&T DAS Approvals that appear on the January 28, 2013 Council consent calendar represent years of design and aesthetic review to arrive at the ideal facility design and locations to best serve the Palo Alto community with the least impacts upon residents. The City Council should not permit the narrow, unfounded concerns of a few individuals to further delay this well-designed project, which represents the extensive efforts of both the City and AT&T. We encourage you to affirm the Approvals as part of the Council’s consent calendar without further hearing. Very truly yours, Paul B. Albritton cc: Curtis Williams Cara Silver, Esq. 1 47 U.S.C. §332(c)(7)(B)(iv). 2 See 47 U.S.C. §332 et seq. 3 See California Public Utilities Code §7901 et seq. New Cingular Wireless PCS, LLC Application for Development Review Permit Outside Distributed Antenna System (DAS) City of Palo Alto March 23, 2012 3 Project Description AT&T is interested in deploying an outside “distributed antenna system” (DAS) to bolster voice and data capacity in areas of the City of Palo Alto. DAS is comprised of a network of small, low power antennas, usually placed on poles, which are connected to common radio equipment within a limited geographic area. This system would fill coverage and capacity gaps within areas of the City that are experiencing high density demand for mobile wireless services. The DAS proposed by AT&T would support the development of technologically advanced communications infrastructure that will facilitate the growth of emerging wireless telecommunications industries in the City of Palo Alto. In addition, residents as well as public safety are increasingly reliant on mobile devices. Data suggests as much as 70% of all mobile calls are made inside buildings and 50% of all calls to 911 are made on mobile devices.1 The Police Department reminds residents to know where their phones are to help report crimes. Also, in the event of disasters, first responders and affected residents rely on their cell phones. The DAS system thus will help improve service coverage and reliability and thus help enhance public safety efforts within the City. AT&T’s DAS technology is capable of serving multiple carriers with very minimal equipment installation. It is AT&T’s intent that its DAS will not only meet the existing demand but also provide the infrastructure for deployment of future 4G demands. 1 National Emergency Numbers Association - “It is estimated that of the 240+ million calls that were made to 9-1-1 in 2006, at least 100 million of them were made by wireless telephone users—that’s 50 percent. This is a huge increase from nearly 4.3 million wireless 9-1-1 calls just 10 years ago, and it is anticipated that the number will continue to rise, both due to cellular and IP-based WiFi and WiMAX forms of wireless service.” 4 Scope of Work This application is for a Development Review Permit and is being proposed for the construction of the 20 of approximately 80 DAS nodes on existing utility poles within the City of Palo Alto. The initial and 2nd group applications of 35 nodes has already been submitted to the City. This 3rd group of nodes will provide wireless service in the area of southeastern Palo Alto west of Oregon Expressway and east of El Camino. The exact locations of the 20 proposed nodes are depicted on exhibit of this application. The remaining node locations will be applied for on separate applications to address the remaining coverage needs within the City of Palo Alto. Under Section 1.1307(b)(1) of the Federal Communication Commission’s rules; the proposed low powered wireless facilities are “categorically excluded” as they are fully compliant with FCC requirements for limiting human exposure to radio frequency (RF) energy and are identified as unlikely to cause exposure in excess of the FCC’s guidelines. Please see the attached Federal Communications Commission – Local and State Government Advisory Committee Checklist. The facility also will comply with California Public Utility Commission General Orders - 95 and 170. AT&T intends to utilize its existing infrastructure within the City to minimize the impact of deploying DAS on residents of the City of Palo Alto. The DAS system will primarily use existing underground fiber to connect the DAS nodes to the DAS radio equipment hub which is located inside the local AT&T central switching office. 5 AT&T Mobility will purchase local fiber transport from AT&T California. If AT&T California does not have fiber to any node location, it will be necessary to place new fiber and in a few instances new conduit. In these instances, new conduit will be necessary only from the nearest manhole or pole to the node; generally, this should be between 50 to 250 feet. If fiber or power is not already located in the manhole, it generally can be pulled through existing conduit without the need for additional trenching or new conduit. In an effort to minimize trenching, power and fiber can share the same trench where feasible. All of the DAS nodes will be located within the public ROW on existing utility poles or within existing Public Utility Easement (PUE). Replacement of a utilities pole will be necessary if the pole is found to be noncompliant with General Orders - 95 and 170. For utility poles that must be replaced, it will remain at the existing height unless a change is requested by AT&T California or Palo Alto Utilities. On August 4th, 2011 AT&T attended a preliminary study session for this DAS project with the Palo Alto Architectural Review Board. As a result each node locations were reviewed and aesthetics guidelines from the ARB panel were adhered to where possible. The battery cabinets were moved higher on the pole to avert it from line of sight. And where applicable, nodes were moved to avoid being in front of second story windows. Also, nodes locations were reassessed to account for maximum screening with the available foliage. The DAS nodes consist of a remote prism antenna (which is 24 inches tall with a 16-inch diameter) that is mounted on top of the existing/replacement poles. The antenna is mounted at the top of a 6 feet tall fiber glass extension that is mounted to the top of the pole. In total, the extension will be 8 feet above the top of the utility pole in order to maintain GO95 separation. This is shown on page. 6 For a utility pole mounted cabinet design, a 10 inches high by 5.5 inches wide by 5 inches deep quick disconnect, a 11 inches high by 4 inches wide by and 3/8 inches deep ground bus bar mounted 9 feet above the ground line. Above that sits a Tyco remote cabinet that is 52.4 inches tall by 12.2 inches deep by 11.2 inches wide. And above that is the Alpha battery cabinet that is 27 inches high by 22 inches wide by 18 inches deep. Lastly, above that is a demark box that is 13 inches tall by 13 inches wide by 3.75 inches deep. This is shown on page 30. All the attached equipment is configured such that it blends into the width of the pole. Equipment is tan/beige, and designed to blend in with equipment usually found in the streetscape. Two of the cabinets produce measureable acoustical results. Both have theoretical maximum acoustical performance of 46dB, without isolating ambient noise from the environment, at a distance of 20 feet, which is a rough approximation of the typical distance from a user on the ground. AT&T Mobility expects the actual acoustical performance of the cabinet to be quieter than these theoretical maximums. Description of Construction The antenna structure installation may involve the removal and replacement of the utility poles. A new foundation will be excavated (size dependent on soil conditions), and conduits containing coaxial cables (from the Remote cabinet), and power. Trenching will typically extend to a depth of 36 inches below grade. The following is a description of the work involved in the installation of the Myers cabinet and ground mounted remote. The typical sequence for construction of these nodes will be as follows: 7 · Remote & Myers cabinet excavation and trenching -- An excavation will be made via backhoe to accommodate the proposed concrete slab for the equipment/meter cabinet with trenching from the cabinet location to the pole(s) and/or power connection point, as necessary. An additional trunk will haul and hold supplies. Excavated material will be exported from the site using a dump truck. Backhoe and dump truck will be manned and idling throughout the excavation process and then turned off; generator on truck will run during construction. · Utility pole replacement -- The existing foundation will be removed and replaced with new foundation adequate for new pole installation. · Electrical Installation -- Once conduit and cabinet are in place, cables will be installed to connect the new cabinet to the serving manhole. The power panel will be set by an electrical contractor. SCE will then be called to set the power meter. · Testing -- Final testing of cabinet equipment and antennas will be performed after electrical power is provided to the site. · Duration and Estimated Personnel -- Typical duration for active construction of each node will be 10 days with 2 trucks and 1-3 workers, with traffic control and Department of Transportation approvals required for lane closures associated with trenching, excavation of pad and caisson foundations, and setting of the pole. 8 NORTH PALO ALTO Polygon2 Existing Coverage In-Building Service In-Transit Service Outdoor Service Legend Existing Site City Boundary 9 NORTH PALO ALTO Polygon2 Proposed (Top) Coverage In-Building Service In-Transit Service Outdoor Service Legend Existing Site City Boundary 10 Palo Alto Phase 3 Nodes kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj kj N34B37.41379-122.10791 N38A37.44575-122.136509 N7A37.426463-122.126148 N6A37.428466-122.132264 N51A37.431927-122.13638 N36A37.41718-122.111271 N31A37.42379-122.115742 N28A37.42315-122.106521 N21A37.433803-122.11966 N25A37.449747-122.132666 N52A37.437177-122.117219 N33A37.430394-122.111908 N32A37.420137-122.109488 N27A37.427621-122.107027 N24A37.432914-122.111599 N20A37.429212-122.116544 N15B37.425283-122.122644 N13A37.418163-122.117285 N11A37.429938-122.121374 N10B37.421091-122.120513 L O U I S U S H W Y 1 0 1 MI D D L E F I E L D B R Y A N T A L M A C O W P E R G R E E R W A V E R L E Y R O S S SEALE B A Y S H O R E S O U T H W E B S T E R LOMA VE R D E P A R K COLORADO FA B I A N NE W E L L R A M O N A ELYBARR O N C L A R A LEGHOR N GARCIA CALIFO R N I A LOWE L L B Y R O N MARION TENNY S O N AMES LOS R O B L E S AMARI L L O HI G H MELVIL L E DR I V E W A Y OLIVE E M E R S O N OREGO N N E L S O N GE N G MATAD E R O LA PA R A HARKER ILIMA MA R I N E 2N D GRAN T GARLAN D MOREN O WI L K I E WYANDO T T E SUTTE R CO R I N A HANS E N COLER I D G E IRIS BIRC H BICYCL E JOSI N A WALKWAY WILTO N CHIMA L U S PAUL G R O V E EDLEE HOPKINS KINGS L E Y PARKINSON LAMB E R T CASEY O R M E FU L T O N MAYB E L L AMP H I T H E A T R E FLOR A L E S EL C A M I N O WA L N U T CURT N E R VISTA EL CAR M E L O TA S S O E D G E W O O D TALISM A N FERN A N D O G U I N D A PARKS I D E R A M P BRUCE ELSIN O R E CERE Z A GEOR G I A MARG A R I T A SAL A D O CREEKSIDE SU T H E R L A N D IN D I A N CAROL I N A C H A R L E S T O N S A N T A A N A BRYSON W H I T S E L L L A N D I N G S TERMIN A L SANTA R I T A CO M M E R C I A L E M B A R C A D E R O TENNE S S E E MILIT A R Y T R A N S P O R T THAI N CELIA PEPP E R TULI P CHEST N U T VENTU R A WASHIN G T O N SYCAMOR E LAKE ACACI A BLAIR FIELDIN G W R I G H T TA N L A N D STONE CA R M E L GREEN W I C H MOR T O N SIE R R A SHAU N A MACL A N E MAURE E N E M E R S O N COLORADO OREGO N R A M O N A U S H W Y 1 0 1 HI G H P A R K RAMP DRIVE W A Y T A S S O MOREN O R A M O N A P A R K CHARLE S T O N MATAD E R O R A M P DR I V E W A Y PA R K B A Y S H O R E BY R O N E M E R S O N CALIFO R N I A Legend PA_Phase_3Nodes Name, Address kj N10B, 3524 Waverly St kj N11A, 747 Loma Verde Ave kj N13A, 3706 Carlson Cir kj N15B, 3314 Cowper St kj N20A, 3412 Ross Rd kj N21A, 3132 David Ave kj N24A, 3415 Greer Rd kj N25A, 620 Rhodes Dr kj N27A, 3757 Corina Way kj N28A, 3915 Louis Rd kj N31A, 651 E Meadow Dr kj N32A, 3901 Middlefield Rd kj N33A, 3539 Louis Rd kj N34B, 372 Ferne Ave kj N36A, 3945 Nelson Dr kj N38A, 109 Lois Ln kj N51A, 2410 Waverly St kj N52A, 3094 Greer Rd kj N6A, Side of 2801 South Ct kj N7A, 452 Loma Verde Ave ³ AT&T Proprietary (Internal Use Only)Not for use or disclosure outside the AT&T companies except under written agreement.Telco proprietary data is not to be disclosed to siloed employees.11 Palo Alto DAS all forecasted Nodes 0 0.4 0.8 1.2 1.6 20.2 Miles PALO ALTO 280 280 101 101 82 114 109 82 M I D D L E F I E L D R D A L M A S T SAND H I L L R D ORE G O N E X P Y EMBARCADERO RD COU N T Y R O U T E G 3 UNIV E R S I T Y A V E W B A Y S H O R E R D J U N I P E R O S E R R A B L V D FO O T H I L L E X P Y SAN A N T O N I O A V E SAN T A C R U Z A V E FA B I A N W A Y G A R C I A A V E PU L G A S A V E CHA R L E S T O N R D AMPHIT H E A T R E P K W Y E B A Y S H O R E R D W M I D D L E F I E L D R D N S H O R E L I N E B L V D ARA S T R A D E R O R D OLD M I D D L E F I E L D W A Y E CHAR L E S T O N R D W CH A R L E S T O N R D BA Y S H O R E P K W Y A L M A S T ORE G O N E X P Y F O O T H I L L E X P Y COU N T Y R O U T E G 3 CHA R L E S T O N R D Legend Polygon 1 Polygon 2 City Bounds 1212 !"#"$%&'()(*+$,$-.&/&012$&3!4$5&210$ "617*+$8&(7*$-&)1$9&:;*(&70$,$-;)&$!)*&<$=;)(>&.7(;$ !"#$% &'()%"%*+%,% 4*;*1?17*$&>$@;??1**$#$A2(0&7<$B7:C<$=&70D)*(7E$A7E(711.0$ #-)% +./0% *+% 1'00)22% 3% 45.6*78% 97:;8% <*76=>2.7(% 47(.7))/68% -'6% ?))7% /)2'.7)5% *7% ?)-'>+% *+% @#3#%!*?.>.2A8%'%B)/6*7'>%C./)>)66%2)>):*00=7.:'2.*76%:'//.)/8%2*%)D'>='2)%2-)%5.62/.?=2)5%'72)77'% 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                          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Occupational Exposure Public Exposure PCS CellFM Po w e r De n s i t y (m W / c m 2) The U.S. Congress required (1996 Telecom Act) the Federal Communications Commission (“FCC”) to adopt a nationwide human exposure standard to ensure that its licensees do not, cumulatively, have a significant impact on the environment. The FCC adopted the limits from Report No. 86, “Biological Effects and Exposure Criteria for Radiofrequency Electromagnetic Fields,” published in 1986 by the Congressionally chartered National Council on Radiation Protection and Measurements (“NCRP”). Separate limits apply for occupational and public exposure conditions, with the latter limits generally five times more restrictive. The more recent standard, developed by the Institute of Electrical and Electronics Engineers and approved as American National Standard ANSI/IEEE C95.1-2006, “Safety Levels with Respect to Human Exposure to Radio Frequency Electromagnetic Fields, 3 kHz to 300 GHz,” includes similar limits. These limits apply for continuous exposures from all sources and are intended to provide a prudent margin of safety for all persons, regardless of age, gender, size, or health. As shown in the table and chart below, separate limits apply for occupational and public exposure conditions, with the latter limits (in italics and/or dashed) up to five times more restrictive: Frequency Electromagnetic Fields (f is frequency of emission in MHz) Applicable Range (MHz) Electric Field Strength (V/m) Magnetic Field Strength (A/m) Equivalent Far-Field Power Density (mW/cm2) 0.3 – 1.34 614 614 1.63 1.63 100 100 1.34 – 3.0 614 823.8/ f 1.63 2.19/ f 100 180/ f2 3.0 – 30 1842/ f 823.8/ f 4.89/ f 2.19/ f 900/ f2 180/ f2 30 – 300 61.4 27.5 0.163 0.0729 1.0 0.2 300 – 1,500 3.54 f 1.59 f f /106 f /238 f/300 f/1500 1,500 – 100,000 137 61.4 0.364 0.163 5.0 1.0 Higher levels are allowed for short periods of time, such that total exposure levels averaged over six or thirty minutes, for occupational or public settings, respectively, do not exceed the limits, and higher levels also are allowed for exposures to small areas, such that the spatially averaged levels do not exceed the limits. However, neither of these allowances is incorporated in the conservative calculation formulas in the FCC Office of Engineering and Technology Bulletin No. 65 (August 1997) for projecting field levels. Hammett & Edison has built those formulas into a proprietary program that calculates, at each location on an arbitrary rectangular grid, the total expected power density from any number of individual radio sources. The program allows for the description of buildings and uneven terrain, if required to obtain more accurate projections. 17 RFR.CALC™ Calculation Methodology Assessment by Calculation of Compliance with FCC Exposure Guidelines Methodology Figure 2 The U.S. Congress required (1996 Telecom Act) the Federal Communications Commission (“FCC”) to adopt a nationwide human exposure standard to ensure that its licensees do not, cumulatively, have a significant impact on the environment. The maximum permissible exposure limits adopted by the FCC (see Figure 1) apply for continuous exposures from all sources and are intended to provide a prudent margin of safety for all persons, regardless of age, gender, size, or health. Higher levels are allowed for short periods of time, such that total exposure levels averaged over six or thirty minutes, for occupational or public settings, respectively, do not exceed the limits. Near Field. Prediction methods have been developed for the near field zone of panel (directional) and whip (omnidirectional) antennas, typical at wireless telecommunications base stations, as well as dish (aperture) antennas, typically used for microwave links. The antenna patterns are not fully formed in the near field at these antennas, and the FCC Office of Engineering and Technology Bulletin No. 65 (August 1997) gives suitable formulas for calculating power density within such zones. For a panel or whip antenna, power density S = 180 BW 0.1 Pnet D2 h , in mW/cm2, and for an aperture antenna, maximum power density Smax = 0.1  16    Pnet   h2 , in mW/cm2, where BW = half-power beamwidth of the antenna, in degrees, and Pnet = net power input to the antenna, in watts, D= distance from antenna, in meters, h= aperture height of the antenna, in meters, and = aperture efficiency (unitless, typically 0.5-0.8). The factor of 0.1 in the numerators converts to the desired units of power density. Far Field. OET-65 gives this formula for calculating power density in the far field of an individual RF source: power density S = 2.56 1.64 100 RFF2 ERP 4 D2 , in mW/cm2, where ERP = total ERP (all polarizations), in kilowatts, RFF = relative field factor at the direction to the actual point of calculation, and D= distance from the center of radiation to the point of calculation, in meters. The factor of 2.56 accounts for the increase in power density due to ground reflection, assuming a reflection coefficient of 1.6 (1.6 x 1.6 = 2.56). The factor of 1.64 is the gain of a half-wave dipole relative to an isotropic radiator. The factor of 100 in the numerator converts to the desired units of power density. This formula has been built into a proprietary program that calculates, at each location on an arbitrary rectangular grid, the total expected power density from any number of individual radiation sources. The program also allows for the description of uneven terrain in the vicinity, to obtain more accurate projections. 18 Alternative Aesthetics Fielding Analysis 3/20/12 Seq Design Status Node Number Latitude Longitude Pole _Ht PA_ Pole _no Locations Fielding Notes 1 in-design P2N10B 37.421091 -122.120513 38' 6" 3954 3524 Waverly St on E Meadow Dr Feasible - Deciduous tree against pole to rt (NE). No street tree opportunity. alternate P2N10B 37.421339 -122.120306 3453 3524 Waverly St W corner of Waverly and E Meadow Dr on E Meadow Feasible - Corner pole. Trees behind. No street trees or opporunity for. Equipment streetside on E Meadow? alternate P2N10B 37.421250 -122.120140 2311 Rear of 3546 South Ct on E Meadow Dr - South Corner of Waverly and E Meadow Feasible - Corner pole. No tree screening, except for tree behind (S) pole. Middle School across Waverly St. alternate not feasible P2N10B 37.420980 -122.120384 223? Side of 3535 South Ct. on E Meadow Dr Not feasible - No room on pole. Pole number obscured. Can't read last digit. alternate P2N10B 37.420852 -122.120743 3955 Side of 3527 South Ct on E Meadow Feasible - Evergreen tree to rt (NE) and deciduous to left (SW). Cable box on pole at 17.j Equipment could be located under cable box. 2 in-design P2N11A 37.429938 -122.121374 43' 6" 3289 747 Loma Verde Ave Feasible - Decid tree to left (W) on property line. 2nd story window, but distant, offset and screened. Room for street tree to right (E). alternate not feasible P2N11A 37.429793 -122.121713 3288 737 Loma Verde Ave Not feasible - Decid tree to rt (W) and Euc behind. Euc would block 130 AZM. alternate P2N11A 37.429766 -122.121515 3290 734 Loma Verde Ave Feasible if replaced. Power step down pole. No AT&T. Not tall enough. Evergreen trees to rt and left. alternate P2N11A 37.430177 -122.121133 3291 761 Loma Verde Ave Feasible - Euc for screening to rear. Possible to add street tree to right. 2nd story windows behind eucalyptus tree. 3 in-design P2N13A 37.418163 -122.117285 33' 6" 2255 3706 Carlson Cir Feasible - PUE not ROW. Deciduous yard tree to 5' from top. Pole within 6' of garage. No 2nd story. alternate P2N13A 37.418982 -122.117042 n/a 3716 Redwood Cir Feasible - Evergreen shrubs 10' up pole. No 2nd story. Pole number covered by foliage. 3 spans north of primary. PUE. alternate not feasible P2N13A Not AvailableNot Available n/a 3704 Calson Cir Not feasible - Rear yard no access. N of primary 1 span. alternate not feasible P2N13A Not AvailableNot Available n/a 3709 Carlson Cir Not feasible - Rear yard no access. S of primary 1 span. End pole. alternate not feasible P2N13A Not AvailableNot Available n/a 3719 Redwood Cir Not feasible - Rear yard no access. N of primary 2 spans. 4 in-design P2N15B 37.425283 -122.122644 39' 6" 3993 3314 Cowper St Feasible - No 2nd story window. Magnolia tree to far left (SE). Decid tree to far right (NW). No trees immediately adjacent and no room for street trees. alternate P2N15B 37°25'31.68"N122° 7'22.76"W 3992 3304 Cowper St Feasible - Large pine to rear. Magnolia tree to left (SE). Place equipment to left. 2nd story window to rt. alternate P2N15B 37°25'32.70"N122° 7'24.25"W 3991 3284 Cowper St Feasible - Large decid tree to right of and around pole. Across street from school. Equipment streetside. alternate P2N15B 37°25'29.69"N122° 7'19.58"W 3994 3352 Cowper St. Not feasible unless replaced. End pole. Too short. Guy pole only. No tree screening. 5 in-design P2N20A 37.429212 -122.116544 43' 3368 3412 Ross Rd - border of YMCA property and 3374 Ross Rd Feasible - Large cypress behind pole. No 2nd story window alternate P2N20A 37.428626 -122.115709 3371 3412 Ross Rd - YMCA Feasible - surrounded by deciduous trees. No 2nd story window. Equipment streetside. 2 spans SE of primary. alternate P2N20A 37.428848 -122.116042 3370 3412 Ross Rd - YMCA Feasible - surrounded by deciduous trees. No 2nd story window. Equipment streetside. 1 span SE of primary alternate P2N20A 37.429433 -122.117015 3367 3370 Ross Rd Feasible - No 2nd story window. Topped redwood behind pole to screen. Equipment streetside. 1 span NW of primary. 6 in-design P2N21A 37.433803 -122.119660 37' 6" 3268 3132 David Ave Feasible - No 2nd story window. Good evergreen and decid screening behind pole. Mature decid tree to right (NW). No room for new street trees. alternate not feasible P2N21A Not AvailableNot Available n/a 3135 David Ct.Not Feasible - 1 span to the NE. Rear yard, no access. alternate not feasible P2N21A Not AvailableNot Available n/a n/a All other poles within 2 spans are rear yard. alternate P2N21A 37.433971 -122.120905 3258 3055 Stelling Dr Feasible if not too far for RF - Alternate pole located approx 250' W of primary. No 2nd story. Decid tree to rt (SW). Possible new street tree to left (NE). Page 1 of 3 19 Alternative Aesthetics Fielding Analysis 3/20/12 Seq Design Status Node Number Latitude Longitude Pole _Ht PA_ Pole _no Locations Fielding Notes 7 in-design P2N24A 37.432914 -122.111599 38' 6" 2917 3415 Greer Rd Feasible - No 2nd story window. Birch tree behind. Equipment on rt (S) to avoid streetlight on separate pole in front of utility pole. No room for new street tree. alternate not feasible P2N24A Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard 8 in-design P1N25A 37.449747 -122.132666 38' 4490 Side of 620 Rhodes Dr (borders 1772 Hamilton Ave) Feasible - Screen from SW by evergreen trees. Equipment on E side of pole. No 2nd story window. Set back from street in PUE. alternate Not feasible P1N25A Not AvailableNot Available n/a Back of 1765 Hamilton Ave Not feasible - Pole in yard. No access. alternate Not feasible P1N25A Not AvailableNot Available n/a Back of 660 Rhodes Dr Not feasible - Pole in yard. No access. alternate Not feasible P1N25A Not AvailableNot Available n/a Back of 580 Rhodes Dr Not feasible - Pole in yard. No access. 9 in-design P2N27A 37.427621 -122.107027 36' 6" 3660 3757 Corina Way Feasible - No 2nd story. Mature decid tree to right (SW). No tree and no room for new tree on left. alternate not feasible P2N27A Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard 10 in-design P2N28A 37.423150 -122.106521 37' 3571 3915 Louis Rd Feasible - No 2nd story. Mature decid tree to left (N). alternate P2N28A 37.424167 -122.106458 3672 3891 Louis Rd Feasible - No 2nd story. Mature decid tree to left (N) Transformer. Equipment streetside. Adjacent to Adobe Creek. alternate not feasible P2N28A Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard 11 in-design P2N31A 37.423790 -122.115742 3620 651 E Meadow Dr Feasible - No 2nd story windows. Equipment streetside. No screening. No room for street tree. alternate P2N31A 37.424176 -122.114924 37' 6" 3623 691 E Meadow Dr at Middlefield Rd Feasible - Corner pole.Guy pole only. Evergreen olive tree screening from behind. Decid tree to rt (NW). alternate P2N31A 37.424085 -122.114782 3622 3600 Middlefield Rd Feasible - Corner pole. PA Fire Dept. No 2nd story. Equipment facing E Meadow Dr. Note there is a flagpole cell tower at the Fire station. alternate P2N31A 37.423846 -122.115236 3618 Side of 3600 Middlefield Rd (on E Meadow) Feasible - No 2nd story. Bet church and Fire Station. No screening. No opportunity for street tree. Equipment on N side. alternate not feasible P2N31A 37.423980 -122.115377 36??681 E Meadow Dr Not feasible - Pole full. Pole number obscured. alternate not feasible P2N31A 37.424111 -122.115140 3261 691 E Meadow Dr Feasible only if tree is pruned and pole replaced with taller pole. Pole is approx. 30' high. No 2nd story, not corner. Support pole and drop. 12 in-design P2N32A 37.420137 -122.109488 43' 6" 2167 3901 Middlefield Rd on E Charleston Rd Feasible - Large oaks on both sides. 2nd story only across E Charleston. End pole. None further W. alternate P2N32A 37.420236 -122.109198 2166 3901 Middlefield Rd on E Charleston Rd (further NE) Feasible - Large oak on east side and street tree to west. 2nd story window across E Charleston. alternate P2N32A 37.420365 -122.108862 2165 706 E Charleston Feasible - Tree (deciduous) on west side only. No 2nd story window. 13 in-design P2N33A 37.430394 -122.111908 23' 6978 3539 Louis Rd Feasible - At Eichler Swim Club. Support pole only. 23' AGL. Will need replacement. Only fully accessible pole candidate. Adjacent to creek. alternate P2N33A 37.430645 -122.111546 2975 3539 Louis Rd Feasible - Pole located inside Eichler Swim and Tennis Club. There is gate access to utility easement. Feasible if ATT can get access to that gate as a utility. Redwood alternate not feasible P2N33A Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard 14 in-design P2N34B 37.413790 -122.107910 38' 1980 372 Ferne Ave Feasible - No 2nd story. Evergreen shrub to 10' up pole. Equipment facing driveway (SW). PUE not ROW. alternate not feasible P2N34B 37.414412 -122.107422 1998 412 Ferne Ave Not feasible - Tree behind that interferes with 170 AZM. alternate not feasible P2N34B Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard Page 2 of 3 20 Alternative Aesthetics Fielding Analysis 3/20/12 Seq Design Status Node Number Latitude Longitude Pole _Ht PA_ Pole _no Locations Fielding Notes 15 in-design P2N36A 37.417180 -122.111271 38' 1951 3945 Nelson Dr rear of 4000 Middlefield Rd Feasible - Evergreen screening behind (E) and left (N). On border or Cubberly Community Center. No 2nd story window. alternate not feasible P2N36A Not AvailableNot Available n/a Rear of 3962 Nelson Dr First pole W of primary Not feasible - Rear yard no access. alternate not feasible P2N36A Not AvailableNot Available n/a Rear of 3960 Nelson Dr 2nd pole W of primary Not feasible - Rear yard no access. alternate not feasible P2N36A Not AvailableNot Available n/a Rear of 3945 Nelson Dr First pole E of primary Not feasible - Rear yard no access. alternate not feasible P2N36A Not AvailableNot Available n/a Rear of 3929 Nelson Dr 2nd pole E of primary Not feasible - Rear yard no access. 16 in-design P1N38A 37.445750 -122.136509 39' 5048 109 Lois Ln near Walnut Dr Feasible - Setback 10' from sidewalk in front yard. No 2nd story. No tree screening but could plant one at street. Equipment will be within 10' of 2 houses. PUE. alternate Not feasible P1N38A Not AvailableNot Available n/a Back of 109 Lois Ln near Walnut Dr (first pole to NW of primary) alternate Not feasible P1N38A Not AvailableNot Available n/a Back of 108 Lois Ln (first pole to SE of primary) alternate Not feasible P1N38A Not AvailableNot Available 5029 108 Walter Hayes Ln (2nd pole to SE of primary) alternate Not feasible P1N38A Not AvailableNot Available 5058 Side of 1547 Walnut (on Stanley) (2nd pole to NW) 17 in-design P2N51A 37.431927 -122.136380 33' 2575 2410 Waverly St. Feasible - 2nd story window. End pole. Last pole to SE. Large evergreen mature tree to SE. No street tree opportunity. alternate not feasible P2N51A 37.432257 -122.136955 4863 2398 Waverly St Not feasible - No space available without interfering with climbing. 30' from corner. Street tree behind. alternate P2N51A 37.432539 -122.137175 4862 2385 Waverly St Feasible - 2nd story window approx 80' back. Decid trees to rt (SE) and behind. Comm, no power. alternate P2N51A 37.432440 -122.137248 4861 2380 Waverly St Feasible - 2nd story window behind on house next door. Small decid tree to rt (NW). Larger decid street trees 20' each side of the pole. 18 in-design P2N52A 37.437177 -122.117219 38' 6" 2355 3094 Greer Rd on Maddux Dr Feasible - No 2nd story. Redwood behind. Decid trees to rt and left. Equipment streetside. alternate P2N52A 37.437595 -122.117177 2379 3095 Greer Rd Feasible - No 2nd story window. In side yard, adjacent to garage, not house. Matadero Creek to left. No screening. Tree could be added in yard? alternate not feasible P2N52A Not AvailableNot Available n/a n/a No other feasible candidates. All poles rear yard 19 in-design P2N6A 37.428466 -122.132264 39' 6" 2669 Side of 2801 South Ct on El Dorado Feasible - Magnolia tree rt (NE) and decid tree to left (SW). No 2nd story window. Shrubs growing up pole to ht of 5'. alternate P2N6A 37.428179 -122.132552 2668 Side of 2800 South Ct on El Dorado Feasible - Deciduous tree to left (NE) and rt (SW). No 2nd story window. alternate P2N6A 37.428693 -122.132072 2670 Side of 2801 South Ct on El Dorado (NE of Primary) Not feasible - Surrounded by trees for screening, but tall redwood across street in 360 AZM. 20 in-design P2N7A 37.426463 -122.126148 42' 4002 452 Loma Verde Ave on Kipling St Feasible - No 2nd story. Equipment streetside. Birch to rt and behind. alternate P2N7A 37.426713 -122.126467 3972 Side of 3149 Waverly St (on Loma Verde) Feasible - No 2nd story. Shrubs to rear. No room for street tree to left(W). Mature dec street stree to ft (E). alternate P2N7A 37.426443 -122.126879 3970 Side of 3149 Waverly St (on Loma Verde) Feasible - Grace Lutheran Church. No 2nd story. Dec street trees to rt and left. Equipment streetside. alternate P2N7A 37.426347 -122.126785 3971 Side of 3157 Waverly St (on Loma Verde) Feasibility to be determined by RF. Decid street tree to left (E). Possible new tree to rt (W). No 2nd story. Height might be an issue as this is a short pole. Page 3 of 3 21 PRISM REMOTE INSTALLATION ******PROPRIETARY INFORMATION****** NOT FOR USE OR DISCLOSURE OUTSIDE OF ADC TELECOMMUNICATIONS OR THEIR CUSTOMERS 50 ' - 0 " 6' 6 " 43 ' - 6 " 21 ' - 1 0 " 12 ' - 4 " 12 ' - 4 " 2'-0" 1' - 0 " 4" U GUARD EXOTHERMIC (CAD) WELD TO GROUND ROD 10'-0" 9' - 0 " 20 ' - 8 7 / 8 " QUAD BAND/ QUAD BAND BATTERY CABINET- ALPHA MMOE 24 ' - 1 / 8 " 24 ' - 1 1 7 / 8 " DUAL BAND X-POL TRI-SECTOR ANTENNA 52 ' - 3 " CABLE GAUGE BETWEEN UTILITY POLE GROUND BAR AND GROUND ROD #2 AWG SOLID PLACED IN LIQUID TIGHT NON METALIC CONDUIT COAXIAL CABLE WILL BE ½” FOR ALL RUNS >/= 1'-0" 5" x 5 " F I B E R G L A S S E X T E N S I O N 6' - 0 " 6" 22                                                                      23 !"#"$%&'()(*+$,$-.&/&012$3(0*.('4*12$!5*1556$7+0*18$ -6)&$!)*&9$:6)(;&.5(6$ !"#$%! !!&'()!*!+,!*! 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(5:21&:#.! @E!\!/P!(&)!>/P@/W/P!]!/P@OW/P!]!aB9! 25 From: John Hamburger <jwhamburger@yahoo.com> Sent: Thursday, December 20, 2012 10:43 PM To: Campbell, Clare Cc: ildikoran@gmail.com; tim.perkins@yahoo.com; sv.rogerp@gmail.com; Sandra Park; manasmandal@yahoo.com; elizabeth.ratner@gmail.com; jimafox@pacbell.net; meng@arts4all.org; Williams, Curtis; French, Amy; 'CLUNIE, SHIYAMA'; NGUYEN, MINH V Subject: Re: No DAS on Carlson Circle Attachments: DAS Petition Carlson Circle.pdf Clare, We just received a card from your department stating the intention of the Palo Alto Planning Dept to ignore the petition that we, the neighbors of Carlson Circle, submitted, attached, requesting that the AT&T DAS system not be installed on our circle. In your last email, you said that you would discuss with AT&T relocating the switch underground. We think a better alternative is to place the system on a busier route, such as along Alma St, Charleston or Middlefield. We are adamant in opposing this unsightly and potentially harmful system on our small circle. We do not consider it a feasible alternative to place a pole on the sidewalk in front of 3706 Carlson Circle. We request that you address this issue, as we have communicated to you, your department and to AT&T over the past year, and not install the DAS system on Carlson Circle. Thank you for your consideration. John Hamburger From: "Campbell, Clare" <clare.campbell@cityofpaloalto.org> To: 'John Hamburger' <jwhamburger@yahoo.com> Cc: "ildikoran@gmail.com" <ildikoran@gmail.com>; "tim.perkins@yahoo.com" <tim.perkins@yahoo.com>; "sv.rogerp@gmail.com" <sv.rogerp@gmail.com>; Sandra Park <tesyl@pacbell.net>; "manasmandal@yahoo.com" <manasmandal@yahoo.com>; "elizabeth.ratner@gmail.com" <elizabeth.ratner@gmail.com>; "jimafox@pacbell.net" <jimafox@pacbell.net>; "meng@arts4all.org" <meng@arts4all.org>; "Williams, Curtis" <Curtis.Williams@CityofPaloAlto.org>; "French, Amy" <Amy.French@CityofPaloAlto.org>; "'CLUNIE, SHIYAMA'" <sr2597@att.com>; "NGUYEN, MINH V" <mn3281@att.com> Sent: Wednesday, April 25, 2012 11:49 AM Subject: RE: No DAS on Carlson Circle Hello John, Thanks for this and the other three emails. I see that you have included AT&T in your communications, and I need them, as the project applicant, to respond to the issues you raise about alternative placement. Your issues raised about aesthetics and (health) hazards have been discussed at previous public hearings with the Architectural Review Board and City Council when the first phase of the DAS project was reviewed. By law (Telecommunications Act, 1996), the City cannot base a decision to approve or deny an application based upon potential health issues. AT&T has gone through an extensive design review process with the first phase of the DAS project. The project approval was appealed to and ultimately supported by Council (01/23/12). The aesthetics of the Phase I project was discussed with the Architectural Review Board and with City Council to assure that the approved design would have the least visual impacts to the existing neighborhoods. The recently submitted Phase 2 and 3 projects follow the approved design of Phase I. I understand that the proposed installation on 3706 Carlson Circle is much closer to the adjacent homes than those that were approved in the Phase 1 application. To address the aesthetic impacts, perhaps AT&T can consider the undergrounding of the equipment, so the boxes are not so visually intrusive on the private properties. I will need AT&T to respond to this redesign (they are copied on this email). Thanks, Clare Campbell | Planner From: John Hamburger [mailto:jwhamburger@yahoo.com] Sent: Tuesday, April 24, 2012 10:17 PM To: Campbell, Clare ; Williams, Curtis Cc: ildikoran@gmail.com; tim.perkins@yahoo.com; sv.rogerp@gmail.com; Sandra Park; manasmandal@yahoo.com; elizabeth.ratner@gmail.com; jimafox@pacbell.net; meng@arts4all.org Subject: No DAS on Carlson Circle Clare, Curtis, The attached petition, signed by the residents of Carlson Circle, Palo Alto, CA, requests that the City of Palo Alto ensure that AT&T does not install a DAS (Distributed Antenna System) cell phone tower on Carlson Circle, Palo Alto. We oppose this installation on the basis that: (1) the DAS system will be visually obtrusive and will spoil the low Eichler design lines on our circle; (2) concern regarding unknown and untested hazards from having such a cell tower antenna in a residential area; (3) concern regarding the health and safety of individuals living on Carlson Circle; and (4) there are other more appropriate locations to install such an antenna system. Therefore, we Carlson Circle residents request that the City of Palo Alto Planning Department and AT&T relocate the DAS RF antenna system to another location— not on Carlson Circle . Please respond at your earliest convenience. Thank you for your consideration. John Hamburger From: dyebc@msn.com Sent: Thursday, December 20, 2012 9:34 PM To: Campbell, Clare Subject: DAS installation Hi Clare, I emailed you regarding my concerns with the DAS installation at 1772 Hamilton Ave. which is near our home and Duveneck Elementary school. I am even more concerned now given the plan to relocate the antenna to the sidewalk. It seems this would make an unsightly addition to the neighborhood. I would like to better understand this latest decision. Also, my earlier concerns about the long term effect of the DAS on small, growing children was never addresses by the City or by AT&T. I contacted the person you suggested multiple times, but they never responded. It seems improper of the City to allow AT&T to just put up installations without answering the residents' questions. I'm also wondering why the city is providing final notice of the installation over the holidays with a deadline to appeal so soon after the holidays. It seems that the City is trying to avoid residents' concerns. Your thoughts are greatly appreciated. Best, Clara Dye From: Sung Park <spark0820@gmail.com> Sent: Friday, December 28, 2012 11:00 AM To: Campbell, Clare Subject: Concern over proposed AT&T DAS 3 Project Dear Clare, I am a Palo Alto home owner and have been recently notified by your office regarding the proposed DAS installation plan on a utility pole which is located near my residence at 971 Maddux Dr. I'm very much concerned about the proposed installation due to the proximity of the pole's location to our residence. My primary concern is the noise (primary from the fan) that it will generate during hot summer months where we will have our bedroom windows open. Since our bedroom windows is literally a few feets away from the pole, I am worried that the generated noise from DAS will interfere with the peace and tranquility of my residence. Please let me know if the noise issue is being adequately addressed. If I feel that it's be not being addressed to some satisfaction, I am planning to file an appeal for the proposed plan. Please let me know how I can go about doing that as well. I understand that there is a need for better wireless coverage in the city and I realize the importance of the proposed plan. I just feel that a good compromise between the city's need and homeowner's desire to maintain peace and tranquility can be met. I hope you understand. I look forward to hearing from you soon. Best regards, Sung 7069 Note only Page 1 City of Palo Alto (ID # 3436) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Appeal of AT&T DAS Phase 4 Title: Appeal of Director’s Architectural Review Approval of the Co-location by AT&T Mobility LLC of Pole-Mounted Wireless Communications Equipment and Associated Equipment Boxes on 20 Existing Utility Poles Within City Rights-of-Ways Near the Following Locations: 4131 El Camino Way, 550 Georgia Ave, 4101 Park Blvd (on W. Meadow), 4255 Ruthelma Ave, 669 Maybell Ave, 110 E. Charleston Dr (on Alma), 493 W. Charleston Dr, 4298 Ponce Dr, 429 Monroe, 231 Parkside Dr., opposite 106 Loma Verde, 516 Barron Ave, 4257 McKellar, 320 Lambert Ave, 3989 La Donna, 397 Ventura Ave, 3364 Emerson St, 820 Chimalus Dr, 715 Barron Ave, 915 Matadero Ave. AT&T DAS Phase 4 Project From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council: 1) uphold the Director of Planning and Community Environment’s decision to approve the Architectural Review application for the Phase 4 project based upon the findings and conditions of approval described in the Record of Land Use Action (Attachment A), excluding the proposed installation adjacent to 231 Parkside Drive; and 2) direct staff to work with AT&T and residents to evaluate alternative locations/options to 231 Parkside Drive. Executive Summary AT&T’s application is for Architectural Review of 20 wireless communication facilities (WCFs) collocated on utility poles within City rights-of-way and jointly owned by the City and Pacific Bell Telephone Company dba AT&T of California, known as the Palo Alto Outdoor DAS (Distributed Antenna System) project Phase 4. The 20 installations propose one antenna placed on a pole extension at the top of each pole, and equipment cabinets placed lower down on the pole (between 10 feet and 20 feet above grade). The pole locations were reviewed regarding City of Palo Alto Page 2 their aesthetic impacts and consistency with the Phase 1 design approval (Council action 01/23/12), and on December 18, 2012 the staff level Architectural Review approval was issued for the project. Staff received two appeals of this decision from residents who cited concerns regarding impacts to health and aesthetics. These are topics that have been raised in the Phase 1 and 2 appeals that Council reviewed in 2012. Staff believes the Director’s decision is appropriate for all of the sites, with the exception of the 231 Parkside Drive site, which involves relocation of the utility pole from a public utility easement (PUE) to the street frontage. Staff recommends that this request be referred back to staff and AT&T to work with the residents to evaluate alternative sites. A subsequent decision on that particular site would then be issued and would again be appealable to Council. Background On June 29, 2012, AT&T submitted an application for Architectural Review for the Phase 4 DAS installations at 20 locations. The project was determined to be a collocation project and, according to Palo Alto Municipal Code (PAMC) Section 18.42.110, requires approval of an Architectural Review application, followed by the issuance of encroachment permits. The use itself is considered a permitted use, such that no Conditional Use Permit (CUP) is needed. In January 2012, the Council, on appeal, reviewed the Phase 1 DAS project for 20 installations and upheld the Director’s decision to approve the project sites (CMR #2393). At that time the issues that were raised by the appellants focused on the need for a wireless master plan for the entire city, and concerns for aesthetic impacts, potential health risks, noise, impacts on property value, type of technology proposed, and the safety and reliability of the actual installations. These issues were discussed in the associated CMR and can be viewed online for additional details. The Council approved all of the applications. On November 5, 2012, the Phase 2 DAS project approval was forwarded to Council on appeal to consider (on the Consent Calendar) at their meeting. An appeal was filed by Mr. Tony Kramer, a resident, citing concerns about the project’s compliance with the City’s Noise Ordinance. The City Council did not remove it from the Consent Calendar and voted to uphold the Director’s decision to approve the 15 project sites (CMR #3239). There are a total of four phases in AT&T’s citywide DAS project, including a total of 75 installations. The Phase 3 and 4 projects were both approved on December 18, 2012. Phase 1 is nearing completion of construction and Phase 2 installations are nearing construction. These four phases are a part of AT&T’s build-out to provide adequate coverage and/or additional capacity for wireless communications. AT&T is subject to a license agreement that allows AT&T to collocate the DAS antennas and equipment on the City’s portion of the utility poles. The Council approved the standard license agreement on July 25, 2011 (CMR #1756). City of Palo Alto Page 3 Following the Council’s decision on the Phase 1 application, subsequent Architectural Review (AR) applications for DAS installations, following the same prototype design as the approved design, were to be reviewed at staff level and be subject to public notice and Council appeal, but ARB public hearings were not required, according to the Zoning Code. Neighbor notification is provided and public comments are reviewed by staff for each location. Actions by the Director of Community Environment on the applications are posted on the City’s website and courtesy notices of the actions are mailed to neighbors within 300 feet of each pole. The Director’s decisions on staff level AR applications are also noted on the next available ARB meeting agenda. Review Process The standard procedure for the review of an appealed Architectural Review application is for placement on the Council Consent Calendar within 30 days of the filing of an appeal. Section 18.76.020(b)(3)(D) of the Zoning Code specifies that wireless communication facilities are considered “minor projects” to be reviewed by staff. Section 18.77.070(b)(5) of the Zoning Code specifically requires consideration by the Council on appeal of a staff approval of such a facility, rather than hearing before the ARB. Council may decide to pull the item off Consent only if at least three Councilmembers concur, and then the project is scheduled for a future public hearing date (PAMC 18.77.070(f)). The Council meeting on March 4, 2013 has been targeted for this public hearing, if Council determines to set a hearing. Project Description The approved design for the DAS installations is shown in the attached plans (Attachment G). The existing utility poles range in height from 28 to 52 feet and the pole top extension, on average, is about 8.25 feet. The equipment proposed on the pole face is the same for all the poles and is comprised of (1) a power disconnect box located nine feet above grade; (2) a remote prism cabinet (52.4”H x 12.15”W x 10.125”D) located approximately 10’-5” above grade; (3) a back-up battery cabinet (27”H x 22”W x 18”D) located approximately 15’-9” above grade; (4) an optical network interface box (13”H x 13”W x 3.75”D) located approximately 19’ above grade; and (5) related wiring. At the top of the pole extension, one antenna radome (24”H x 16” Base Diameter) would be placed in-line with the pole. The Phase 4 DAS project inlcudes one site (231 Parkside Drive) where the existing pole, which is within a PUE and located close (≈3 feet) to the existing residential building, is proposed to be relocated out to the sidewalk right-of-way. With this pole relocation, the DAS installation would be consistent with the other sites throughout the city. Discussion City of Palo Alto Page 4 There were two appeals filed for this project and these are included as Attachment C. The appellants all requested that another location for the DAS equipment be considered, other than the sites indicated in their appeal request. 1. The first appeal, submitted by Lilian Marcus, was directed at the proposed installation near 820 Chimalus Drive. This installation is roughly 22 feet away from the appellant’s home. Ms. Marcus raised concerns about the potential health impacts that could be generated by the DAS installation. Staff Response: The Federal Telecommunications Act (TCA) of 1996 limits the City’s authority in the review of wireless telecommunications projects. The City may only focus on the aesthetic and zoning code aspects of a project and, by law, may not consider potential health issues and any perceived related consequences (e.g. drop in property value). Under federal law, a local agency’s wireless facility siting decisions may not have the effect of prohibiting the provision of wireless service or unreasonably discriminating among wireless service providers. Further, a utility is required to provide any telecommunications carrier with nondiscriminatory access to its utility poles. Under federal law, the City may not regulate the placement, construction or modification of wireless communications facilities on the basis of the environmental effects of radio frequency (RF) emissions, so long as the facilities comply with the Federal Communications Commission (FCC) regulations concerning such emissions. The conditions of approval require demonstration of compliance with the federal standards. 2. The second appeal was filed by Carolyn and Mark Dobervich (241 Parkside) that includes signatures from Betty Rundell (231 Parkside) and Nancy Karp (221 Parkside), and focused on the installation between 231 and 221 Parkside Drive. This DAS installation is a proposed pole relocation and would move the existing utility pole approximately 22 feet away from the current location (which is approximately three feet away from the house at 221 Parkside) out towards the street. This site also has a condition of approval that requires the installation of a new street tree for future screening (if the existing street tree is damaged). This appeal cites concerns about the new pole placement not fitting within the existing street context, in that there are no utility poles placed along the curb in the immediate vicinity. The argument is made that the new pole would be a “visual eyesore.” Staff Response: The City’s direction to AT&T has been to generally avoid location of antennas and equipment on poles in PUEs, given their proximity to homes and potential visual and noise concerns. This street, however, does not have existing utility poles on the street and the residents have identified some alternatives that might be viable. Staff recommends that the Council direct staff and AT&T to work with the residents to evaluate the alternative sites and re- issue an approval letter. AT&T concurs with the staff recommendation. The subsequent action City of Palo Alto Page 5 would be appealable to Council if any neighbor objected. The Record of Land Use Action (Attachment A) has been prepared excluding this site from the Council approval at this time (condition #19). Other Objections Staff also notes that one other property owner objected (Attachment F) to the location and installations near his property, but did not formally appeal the decision. Nevertheless, the entire Phase 4 project is one application, so the Council may act on that site or any other proposal in the package. Staff believes that the objection relates to health impacts of the installation, as addressed in #1 above. Conclusion Staff believes that all of the site requests, other than 231 Parkside Drive, are consistent with City criteria and federal and state law for such installations, and the Director’s decisions should be upheld. The approvals are reflected in the Record of Land Use Action. Citywide Wireless Communications Facilities Study In association with the Phase 1 DAS project, many residents requested the City to consider the development of a city-wide master plan for wireless facilities. On May 16, 2011, Council sponsored a study session to review issues related to wireless communications facilities (cell towers and antennas). Consultants to the City and staff presented an overview of the need for and technology related to such facilities, health issues, and relevant federal, state, and Palo Alto regulations. The Council asked that staff continue the dialogue with the community to provide better understanding for the public and the wireless industry. Council directed staff on July 2, 2012 to issue a request for proposal for a consultant/vendor to prepare a citywide wireless communications facilities plan. The RFP was released on October 2, 2012. Staff has interviewed four firms for the study and is finalizing its selection. A contract is expected to be awarded in February. Alternatives to Staff Recommendation The Council may also consider the following alternatives rather than approval as proposed: A. Council may remove the project from Consent to schedule and conduct a Public Hearing for one or more of the specific DAS locations; OR B. Council may remove the project from Consent to schedule and conduct a Public Hearing for all of the proposed DAS locations. City of Palo Alto Page 6 Staff has targeted March 4, 2013 as a potential hearing date, given the wireless communications “shot-clock” processing requirements. (AT&T has stipulated to a shot-clock extension to accommodate the Council’s hearing schedule, if necessary.) Policy Implications The proposed project is consistent with the Comprehensive Plan and staff believes there are no other substantive policy implications. The project is supported by the following Comprehensive Plan Policies: (B-13) Support the development of technologically-advanced communications infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries; and (B-14) Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. Resource Impacts The costs of project review by all staff and consultants is recovered by Architectural Review application fees paid by AT&T. Pursuant to the City’s standard license agreement, AT&T will pay the City $270 per year per installation, or a total of $4,050 per year for the 15 sites. Environmental Review The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per section 15303 of the CEQA Guidelines. Attachments:  Attachment A: Record of Land Use Action (DOC)  Attachment B: Location Map (PDF)  Attachment C: Appeals (PDF)  Attachment D: Hammett and Edison Noise Memo, July 27, 2012 (PDF)  Attachment E: Applicant's Submittal Information (PDF)  Attachment F: Public Comments (PDF)  Attachment G: Project Plans (Councilmembers and Libraries only) (TXT) Attachment A ACTION NO. 2013-02 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR AT&T DAS PROJECT PHASE 4: ARCHITECTURAL REVIEW 12PLN-00258 (AT&T, APPLICANT) On January 28, 2013, the Council upheld the Director of Planning and Community Environment’s December 18, 2012 decision to approve the Architectural Review application of the co-location by AT&T of (Distributed Antenna System, a.k.a. DAS) wireless communications equipment on existing utility poles, removing the DAS installation located adjacent to 231 Parkside Drive making the following findings, determination and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On June 29, 2012, AT&T applied for Architectural Review for the co-location of wireless communications equipment (Distributed Antenna System) on 20 utility poles located within City rights-of-ways near the following locations: 4131 El Camino Way, 550 Georgia Ave, 4101 Park Blvd (on W. Meadow), 4255 Ruthelma Ave, 669 Maybell Ave, 110 E. Charleston Dr (on Alma), 493 W. Charleston Dr, 4298 Ponce Dr, 429 Monroe, 231 Parkside Dr (pole to be relocated to the curb), opposite 106 Loma Verde, 516 Barron Ave, 4257 McKellar, 320 Lambert Ave, 3989 La Donna, 397 Ventura Ave, 3364 Emerson St, 820 Chimalus Dr, 715 Barron Ave, 915 Matadero Ave. The proposed equipment would include one antenna at the top of each pole and two equipment boxes on the side of each pole (“The Project”). B. On December 18, 2012, following staff review, the Director of Planning and Community Environment (Director) approved the Architectural Review (AR) application. Notices of the Director’s decision were mailed notifying neighbors of the decision. The action is contained in the CMR #3436. D. Within the prescribed timeframe, two appeals of the Director’s decision were filed by Palo Alto residents: Marcus and Dobervich. SECTION 2. Environmental Review. This project is exempt from the provisions of the California Environmental Quality Act per Section 15303 of the CEQA Guidelines. SECTION 3. Architectural Review Findings. 1. The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. This finding can be made in the affirmative in that the project, as conditioned, incorporates a more streamlined design that conforms with policies that encourage quality development that is compatible with surrounding development and public spaces. The project is also supported by the following Comprehensive Plan Policies: (B-13) AT&T DAS Phase 4 2 Support the development of technologically-advanced communications infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries; (B-14) Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. 2. The design is compatible with the immediate environment of the site. This finding can be made in the affirmative in that the proposed design, as conditioned, blends with the existing utility poles that are located within various residential neighborhoods within the City. 3. The design is appropriate to the function of the project. This finding can be made in the affirmative in that the design of the equipment is not excessive for the intended utility use and has been improved with the required conditions of approval to streamline the design with the back-up battery cabinet placed above the prism and elimination of one antenna. 4. In areas considered by the board as having a unified design character or historical character, the design is compatible with such character. This finding is not applicable to this project. 5. The design promotes harmonious transitions in scale and character in areas between different designated land uses. This finding is not applicable to this project. 6. The design is compatible with approved improvements both on and off the site. This finding can be made in the affirmative in that the project, as conditioned, is compatible with the existing utility poles. 7. The planning and siting of the various functions and buildings on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community. This finding is not applicable to this project. 8. The amount and arrangement of open space are appropriate to the design and the function of the structures. This finding is not applicable to this project. 9. Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project’s design concept. This finding is not applicable to this project. 10. Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles. This finding AT&T DAS Phase 4 3 can be made in the affirmative in that the circulation under and around the utility pole is not impacted. 11. Natural features are appropriately preserved and integrated with the project. This finding is not applicable to this project. 12. The materials, textures, colors and details of construction and plant material are appropriate expression to the design and function. This finding can be made in the affirmative, see Findings 2, 3, and 4 above. 13. The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment. This finding can be made in the affirmative in that the project, as conditioned, will be required to plant some additional street trees at some locations. The placement and selection of the street trees will be reviewed and approved by Public Works and Utilities to assure the plantings will be consistent with City standards. 14. Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety which would tend to be drought-resistant to reduce consumption of water in its installation and maintenance. This finding can be made in the affirmative, see Finding 13. All City street trees are regularly maintained and will use only the required amount of water needed for establishment and maintenance. 15. The project exhibits green building and sustainable design that is energy efficient, water conserving, durable and nontoxic, with high-quality spaces and high recycled content materials. This finding is not applicable to this project. The scope of the project is small and there is limited opportunity to incorporate green building design into the sign installations. 16. The design is consistent and compatible with the purpose of architectural review as set forth in subsection 18.76.020(a). This finding can be made in the affirmative in that the project design, as conditioned, promotes visual environments that are integrated into the aesthetics of the immediate environment of an industrial utility facility. SECTION 4. Architectural Review Approval Granted. Architectural Review Approval is hereby granted for the Project by the City Council pursuant to Chapter 18.77 of the Palo Alto Municipal Code. AT&T DAS Phase 4 4 SECTION 5. Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by AT&T titled Palo Alto ODAS, consisting of 63 pages, and received September 17, 2012, except as modified to incorporate the conditions of approval in Section 6. A copy of these plans is on file in the Department of Planning and Community Development. SECTION 6. Conditions of Approval. Planning Division 1. The project shall be in substantial conformance with the approved plans and related documents received September 17, 2012, except as modified to incorporate these conditions of approval. 2. All conditions of approval shall be printed on the cover sheet of the plan set submitted to obtain any permit through the Building Inspection Division. 3. Any modifications/additions to the approved plans shall be approved by Planning prior to construction and installation. 4. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s), if applicable, is not secured for the project within the time limit specified above, the approval shall expire and be of no further force or effect. 5. For all pole installations, the backup battery cabinet shall be placed above the prism box. 6. For the life of the project, the size of the battery cabinet shall be reduced as technology improves so as to maintain the smallest battery cabinet needed. 7. The antenna, cabinet boxes, and pole extension shall be painted either “Rock Brown” or “Sand Brown”, with a matte finish, to match the existing color and finish of the utility pole, and all other equipment (i.e. wiring and related hardware) shall be painted with a matte finish to blend in with the background material/color of the pole. 8. The project shall be reviewed by the Utilities Department to determine if the pole is feasible for the placement of the proposed equipment and antennas. If the Utilities department does not support the placement of the equipment on the pole, the applicant shall submit a new Architectural Review AT&T DAS Phase 4 5 application to the Planning Division for review of proposed alternative pole selection. 9. For sites that require new street tree installations, the applicant shall coordinate with the Public Works Tree Division, Utilities Department, and Transportation Division to gain approval for the placement and selection of tree type. If the City departments do not support the placement of a city tree for screening purposes for the identified locations, then that site is no longer approved for the equipment installation and the applicant shall be required to submit a new Architectural Review application to the Planning Division for review of proposed alternative pole selection. 10. The applicant, in coordination with City departments, shall (1) analyze all proposed sites to determine whether new street trees can be added in the immediate vicinity for screening purposes and (2) add additional trees where feasible. 11. The preferred selection for new street trees shall be evergreen trees, as deemed appropriate by Public Works and the Utilities department. 12. Unless the City agrees to a modification of this condition, the requirements to install new street trees shall be 100% the responsibility of the applicant and shall be completed prior to the installation of pole equipment. 13. For installations in the City right-of-way, the Applicant shall endeavor to minimize the noise at the property line boundary with adjacent residential property, and shall attempt to keep such noise below 6dB above the ambient level most of the time, when fans are running at their normal setting. If such a standard is not reasonably achievable for a site, then the Applicant voluntarily agrees to use commercially reasonable efforts to ensure that the noise level does not exceed 6 dB above the ambient noise level at the nearest location of a residential structure. Under no circumstances shall the noise exceed the noise standard in Municipal Code 9.10.050 (i.e., +15dB over ambient at 25 feet). 14. The applicant shall submit a sound analysis of an operating installation within two months of the project installation/operation for City approval. The analysis shall clearly delineate how the installation complies with the previously listed condition regarding noise. Applicant may be required to submit these reports periodically for the life of the project, as determined by the Director of Planning. AT&T DAS Phase 4 6 15. The applicant shall perform a radio frequency (RF) analysis for each of the twenty installations to document the RF emissions for the installed and operating equipment. This analysis shall be submitted to the City within two months of the project installation/operation. Applicant may be required to submit these reports periodically for the life of the project, as determined by the Director of Planning. 16. If for any reason the project requires modification from the approved plans in any way, the applicant shall contact Planning staff for a determination on whether the change requires a new application for Architectural Review and Historic Review, if applicable, to be submitted. 17. Pole 6/Node P2N29A (110 E. Charleston Road): An Additional street tree shall be required to the left side of pole. 18. Pole 7/Node P2N30A (493 W. Charleston Road): Equipment shall be installed to face the existing tree. 19. Pole 10/Node P2N28A (231 Parkside Dr) installation shall require the utility pole to be moved to the inside edge of sidewalk and one low growing street tree shall be installed to the left of the pole if the existing tree is damaged during construction activities with agreement of the adjacent property owner be eliminated from the project approval. AT&T shall work with staff and neighbors to determine if an alternative location is feasible for AT&T’s coverage needs and submit that site for a separate Architectural Review. 20. Pole 13/Node P2N44A (4257 McKellar Ln): An Additional street tree shall be required to the left side of pole. 21. Pole 20/Node P2N50A installation shall be located adjacent to 904 Matadero Road. 22. All cost recoverable charges related to this Planning entitlement process, per the cost recovery agreement, shall be paid in full and in a timely manner; these include charges for two consultants hired for peer review of this project. Non-payment may result in the withholding of other city required permits and or approvals required for the project to move forward to the construction phase. Fire Department 23. The applicant shall submit a completed copy the document entitled “Optional Checklist for Local Government to Determine Whether a Facility is Categorically Excluded.” If the applicant is required to submit an Environmental AT&T DAS Phase 4 7 Assessment (EA) to the FCC, please indicate if it has been submitted and the date submitted. Electric Utility 24. Electric Utility shall not perform any operations and/or engineering until a Master License Agreement is signed between AT&T and the City of Palo Alto. AT&T shall not attach any equipment on the City's portion of any utility pole until the Master License Agreement is signed by both parties. The Master License Agreement will determine the procedures, policies, fees and responsibilities for DAS work on joint utility poles. SECTION 7. Indemnity. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”)from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City its actual attorneys fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. SECTION 8. Term of Approval. Architectural Review Approval. The approval shall be valid for one year from the original date of approval, pursuant to Palo Alto Municipal Code Section 18.77.090. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney AT&T DAS Phase 4 8 PLANS AND DRAWINGS REFERENCED: Those plans prepared by AT&T titled Palo Alto ODAS, consisting of 63 pages and received September 17, 2012. Phase 4 - Palo Alto oDAS kj kj kj kj kj kj kj kjkj kj kj kj kj kj kj kj kj kj kj kj P2N4A P2N1A P2N9A P2N8A P2N5A P2N3C P2N50A P2N45A P2N44A P2N43A P2N39A P2N38A P2N35A P2N30A P2N29A P2N25A P2N23A P2N16B P2N14B P2N12A AL M A MID DLE FIELD EL CAMIN O REAL CHARLESTON FO OTHILL PAGE MILL ARASTRADERO HILLVIEW RENGSTORFF SAN ANTONIO OLD MIDDLEFIELD CENTRAL CALIFORNIA FOOTHILL E L C A M I N O R E A L £¤101 £¤101 Legend kj P2N12A, 4131 El Camino Real kj P2N14B, 550 Georgia Ave kj P2N16B, 4101 Park Blvd kj P2N1A, 820 Chimalus Dr. kj P2N23A, 4255 Ruthelma Ave kj P2N25A, 669 Maybell Ave kj P2N29A, 110 E Charleston Rd kj P2N30A, 493 W Charleston Rd kj P2N35A, 4298 Ponce Dr kj P2N38A, 429 Monroe Dr. kj P2N39A, 231 Parkside Dr kj P2N3C, Across from 106 LomaVerde kj P2N43A, 516 Barron Ave kj P2N44A, 4257 McKellar kj P2N45A, 320 Lambert Ave kj P2N4A, 715 Barron Ave kj P2N50A, 904/915 Matadero Ave kj P2N5A, 3989 La Doona kj P2N8A, 397 Ventura Ave. kj P2N9A, 3364 Emerson St ³ AT&T Proprietary (Internal Use Only)Not for use or disclosure outside the AT&T companies except under written agreement.Telco proprietary data is not to be disclosed to siloed employees. e-mail: bhammett@h-e.com Delivery: 470 Third Street West • Sonoma, California 95476 Telephone: 707/996-5200 San Francisco • 707/996-5280 Facsimile • 202/396-5200 D.C. WILLIAM F. HAMMETT, P.E. DANE E. ERICKSEN, P.E. STANLEY SALEK, P.E. ROBERT P. SMITH, JR. RAJAT MATHUR, P.E. KENT A. SWISHER ANDREA L. BRIGHT ___________ ROBERT L. HAMMETT, P.E. 1920-2002 EDWARD EDISON, P.E. 1920-2009 BY E-MAIL JD3235@ATT.COM July 27, 2012 John di Bene, Esq. AT&T Mobility 4430 Rosewood Drive Pleasanton, California 94588 Dear John: As you requested, we have visited the AT&T Mobility oDAS node recently installed at 255 North California Avenue in Palo Alto, California, in order to assess the noise levels from that installation and to evaluate those actual levels against both the city's noise limit and the projected levels. On the morning of June 6, 2012, using one of our Quest Technologies Type 2200 Sound Level Meters (Serial No. SBF110001, under current calibration by the manufacturer), we observed a minimum* noise level of 44.5 dBA at a distance of 25 feet from the pole. That is the distance specified for compliance with the city's municipal code Section 9.10.050, which limits an increase in noise to 15 dBA, measured at 25 feet, for facilities not located on private property. The ambient reading at that location with the AT&T node shut off was 42.1 dBA, so the actual increase was 2.4 dBA, well below the 15 dBA allowed by the code. Removing† the 42.1 dBA ambient level from the 44.5 dBA level with the AT&T equipment turned on indicates that the equipment by itself produced noise at 25 feet of approximately 40.8 dBA. This compares well with the manufacturer's data, given in our report dated November 1, 2011, which averaged 40.9 dBA to the front and sides. Therefore, we conclude from these measurements that noise from the AT&T Mobility oDAS nodes has been accurately represented by the manufacturer and that, indeed, the noise increase easily meets the Palo Alto limits. Please let us know if any questions arise on these measurements or this analysis. Sincerely yours, William F. Hammett * Intended to represent the noise from continuous, fixed sources, separate from the varying levels due to intermittent sources including traffic, wind, voices, and planes. † Using appropriate mathematical conversions. MACKENZIE & ALBRITTON LLP 220 SANSOME STREET, 14TH FLOOR SAN FRANCISCO, CALIFORNIA 94104 TELEPHONE 415 / 288-4000 FACSIMILE 415 / 288-4010 January 23, 2013 VIA ELECTRONIC MAIL Mayor Gregory Scharff Vice Mayor Nancy Shepherd Council Members Patrick Burt, Marc Berman, Karen Holman, Larry Klein, Gail Price, Greg Schmid and Liz Kniss City Council City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Re: AT&T’s Response to Appeals of AT&T DAS Project Phase III, 12PLN-00127 Architectural Review Phase IV, 12PLN-00258 Architectural Review City Council Consent Calendar January 28, 2013 Dear Mayor Scharff, Vice Mayor Shepherd and Council Members: We write to you on behalf of our client AT&T Mobility (“AT&T”) to urge that you adopt the findings and decision of the Planning Division to approve AT&T’s distributed antenna system (“DAS”) Phase III and Phase IV (the “Approvals”). Staff’s findings in support of the Approvals are well-reasoned, supported by substantial evidence and represent years of exhaustive review by Planning Division staff, Utilities Department staff, the City arborist, the City’s outside consultants, the Architectural Review Board (the “ARB”) and the Council. In addition, both state and federal law compel the City to affirm the Approvals. There is no reason to remove the Approvals from the Council’s January 28, 2013, consent calendar. As described below, all but one of the appeals are filed by residents whose homes are next to existing poles. These appeals simply seek to re-open unsupported aesthetic, noise, health or property value concerns, while the remaining appeal challenges the City’s implementation of its noise regulations with arguments that were rejected by the Council in its approval of Phase II of the AT&T DAS project. The concerns raised in all of the appeals have been thoroughly reviewed and previously addressed by the ARB and the Council and are not worthy of further review, as follows. Palo Alto City Council January 23, 2013 Page 2 of 2 I. The Thoughtful Design and Careful Placement of AT&T DAS Node Facilities on Existing Utility Poles Create No Aesthetic Impacts. Since early 2010, AT&T has worked with the City of Palo Alto to arrive at an aesthetically acceptable design and pole site selection process that will minimize aesthetic impacts on the Palo Alto community while providing needed wireless service. Based upon ARB review, the aesthetic profile of AT&T’s DAS nodes has been nearly eliminated by streamlining antennas to a single pole-top attachment, raising battery boxes above a narrow radio cabinet, and rotating all equipment toward the street and away from residential views. Closely following rigorous location guidelines established by the ARB, AT&T conducted a rigorous Alternative Aesthetics Fielding Analysis evaluating 150 existing utility poles to identify the 38 approved pole locations in Phase III and Phase IV, which represents the fewest poles feasible to provide necessary wireless coverage. Block placement was evaluated to identify locations away from street corners in order to minimize public views and in-between property lines to avoid impacts on individual views. Poles were also selected to maximize the benefit of existing foliage to camouflage DAS equipment. AT&T’s aesthetic review was re-analyzed and adjusted by Planning Division staff and again by the City’s independent consultant to arrive at final pole locations with the least aesthetic impacts to individuals and the community to be served. In sum, the design, pole selection guidelines and final pole selection have been thoroughly reviewed by the Planning Division staff, its independent consultants, the ARB and the Council and do not require further public hearings for review. II. Presently Operating DAS Nodes Confirm Compliance with Noise Ordinance. Notwithstanding repetitious appeals, there is simply no question that the AT&T DAS project complies with Palo Alto Municipal Code §9.10 (the “Noise Ordinance”). Just two months ago, in November 2012, the Council, following the recommendation of Planning Division staff and the City Attorney, completely rejected a similar appeal based upon a tortured interpretation of the Noise Ordinance. As part of its obligations under the Phase I approval, and submittal requirements for its Phase II approval, AT&T has provided the City with a post-installation noise analysis by independent consultants Hammett & Edison, Inc., Consulting Engineers. This report, which was included in the Council’s approval of Phase II of the AT&T DAS project, measured the sound from an operating AT&T DAS facility in Palo Alto and confirmed that AT&T’s Palo Alto DAS design fully complies with the Noise Ordinance. Based upon this information and the prior decisions of the Council, further appeals raising noise concerns are simply frivolous and do not warrant any further hearings. III. Health Concerns and, by Extension, Property Value Concerns Are Unfounded, Preempted by Federal Law and May Not Be the Basis of Further Hearings. The Telecommunications Act of 1996 bars local jurisdictions from denying an application for a wireless telecommunications facility based on the environmental effects of Palo Alto City Council January 23, 2013 Page 3 of 3 radio frequency emissions1 where, as here, AT&T has demonstrated full compliance with Federal Communications Commission (“FCC”) emissions guidelines. The statements submitted by Hammett & Edison, Inc., Consulting Engineers, confirm that all of the AT&T DAS facilities will operate well within, and indeed far below, applicable public exposure limits allowed under FCC guidelines. The federal preemption of radio frequency emissions issues applies whether local decisions are directly based on emissions or indirectly based on a proxy such as property values. Thus, “concern over the decrease in property values may not be considered as substantial evidence if the fear of property value depreciation is based on concern over the health effects caused by RF emissions.” AT&T Wireless Services of California LLC v. City of Carlsbad, 308 F.Supp.2d 1148, 1159 (S.D. Cal. 2003). IV. Federal and State Law Compel Council Affirmation of the Approvals. AT&T has worked diligently with the City of Palo Alto over the last three years to identify the least intrusive means to provide wireless service to an identified significant gap in coverage. This effort has resulted in the Approvals that appear on the January 28, 2013 Council consent calendar. Failure to affirm the Approvals on that date would run afoul of limitations under the Telecommunications Act which preempt any local decision that would effectively prohibit the provision of personal wireless services or that would unreasonably delay approvals for such service.2 Similarly, the Council may not act in a manner that would deny AT&T the right to place its facilities in the public rights-of-way under the statewide franchise granted to AT&T under California Public Utilities Code.3 For these reasons, both state and federal law compel Council affirmation of the Approvals on January 28, 2013. Conclusion The Phase III and Phase IV AT&T DAS Approvals that appear on the January 28, 2013 Council consent calendar represent years of design and aesthetic review to arrive at the ideal facility design and locations to best serve the Palo Alto community with the least impacts upon residents. The City Council should not permit the narrow, unfounded concerns of a few individuals to further delay this well-designed project, which represents the extensive efforts of both the City and AT&T. We encourage you to affirm the Approvals as part of the Council’s consent calendar without further hearing. Very truly yours, Paul B. Albritton cc: Curtis Williams Cara Silver, Esq. 1 47 U.S.C. §332(c)(7)(B)(iv). 2 See 47 U.S.C. §332 et seq. 3 See California Public Utilities Code §7901 et seq. From: James Ang <james.ang@gmail.com> Sent: Sunday, December 23, 2012 10:53 PM To: Campbell, Clare Subject: Appeal: AT&T DAS Phase 4 Project - 20 Poles Categories: forwarded to CW AFSC To Whom This May Concern, I am appealing the decision to place an antenna within 300 feet from my place of residence at 3130 Emerson St, Palo Alto, California 94306. I am requesting that the City of Palo Alto does not approve a plan that places a DAS antenna within 300 feet from my home. I am concerned about the safety of my children who would be subjected to elevated levels of electromagnetic interference from the proposed antenna. There has been no studies that demonstrated that the level of exposure in terms of duration and magnitude is safe for growing children. Furthermore, the proximity of the antenna to the nearby El Carmelo Elementary school where one of my child attends is another cause for my concern, if not the parents of the attending children. Thank you. Sincerely, James Ang 3130 Emerson St Palo Alto, CA 94306 7070 Note only. Page 1 City of Palo Alto (ID # 3457) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Approval of PSSI Maintenance Contract Title: Approval of $114,165 for the Consolidated Maintenance Contract between the City of Palo Alto and Public Safety Systems, Inc. For Computer Aided Dispatch, Police Records Management, Fire Records Management, Mobile Data, and Geovalidation From: City Manager Lead Department: Police Recommendation Staff recommends that Council approve the 2013 maintenance contract with Public Safety Systems Inc. (PSSI) for $114,165. Background In 1999, the City signed a contract with PSSI for the purchase and installation of Computer Aided Dispatch (CAD). In subsequent years, the City has contracted for other critical public safety systems with PSSI, and PSSI provides maintenance and support for these systems. The systems include: Police Records Management (ICIS); Computer Aided Dispatch (CAD); a component of Fire Records Management (EMBRS); a GIS-based location validation application (GeoServer); and mobile data software for the police mobile data computers (Mobile). In 2009, the City consolidated the five separate maintenance contract into one contract and invoice. In March 2012, the City entered into a contract with Intergraph Inc. to replace the CAD, GeoServer and mobile data software systems. Negotiations are in progress to replace the Police Records Management (RMS) and In-Field reporting systems. The CAD, GeoServer and mobile data implementation is underway with a “go-live” in the latter half of 2013. Negotiations for the other applications has taken longer than anticipated, but implementation of those systems is targeted for the fourth quarter of 2013 or early 2014. Discussion City of Palo Alto Page 2 The City has signed a contract for a new CAD vendor in partnership with the cities of Mountain View and Los Altos. Project development and implementation are underway and completion is planned in the third quarter of 2013. The maintenance contract for the legacy applications with the existing vendor PSSI will need to be renewed for the 2013 calendar year to insure that the critical existing public safety applications are supported during the transition to the new systems. The CAD implementation will be completed in 2013 and, contingent on final negotiations, the RMS and In-field systems will be installed in the fourth quarter of 2013. Resource Impact The annual cost for systems maintenance is covered in Information Technology’s existing application maintenance fund. Policy Implications The recommendations in this report do not represent a change in City policies. Environmental Review The recommendations in this report do not constitute a project requiring review under the California Environmental Quality Act (CEQA). Attachments: Attachment A - PSSI Software Support Agreement 011413 (PDF) City of Palo Alto (ID # 3493) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Rail Legislative Advocacy Services with PEG Title: Authorization for the City Manager to Enter Into a One-Year Contract with the Professional Evaluation Group/The Ochoa & Moore Law Firm, P.C. (PEG/OM) in a Total Amount Not to Exceed $125,000 for Rail Legislative Advocacy Services From: City Manager Lead Department: Planning and Community Environment Recommendation The City Council Rail Committee (CCRC) recommends the City Council authorize the City Manager to enter into a one-year contract with the Professional Evaluation Group/The Ochoa & Moore Law Firm, P.C. (PEG/OM) in an amount not to exceed one-hundred and twenty-five thousand dollars ($125,000) for state rail legislative advocacy services (Attachment A). Executive Summary The CCRC voted 3-0 (Vice Mayor Scharff absent) to recommend the City renew its contract with PEG/OM for state rail legislative advocacy services. Staff is requesting the City Council authorize the City Manager to enter into a one-year contract with PEG/OM in an amount not to exceed one-hundred and twenty-five thousand dollars ($125,000) through the end of 2013. The contract was not renewed prior to the start of 2013 because it was requested in December that staff revise the scope of the contract to allow PEG/OM to do more legislative advocacy on the City’s behalf related to possible California Environmental Quality Act (CEQA) reform. The start date of the contract is January 1, 2013 to cover services rendered in January of this year. The City first retained professional services for rail legislative advocacy services in February 2010. The most recent contract with PEG/OM expired on December 31, 2012. The CCRC, after conducting a review, recommended the contract with PEG/OM be renewed. The CCRC was particularly impressed with this firm’s work over the last calendar year. City of Palo Alto Page 2 In conjunction with the recommendation to move forward with contract renewal, the CCRC gave direction related to CEQA legislation contract language and cost sharing opportunities. Specifically, the CCRC directed that the contract scope be revised to allow for expanded CEQA representation. This is due to the fact that CEQA reform will be a major focus of State Legislators in 2013, and changes could impact the City of Palo Alto beyond just High Speed Rail. Therefore, it is critical the City have an advocate that can keep the City informed about potential comprehensive CEQA legislation, as well inform State Legislators about the City’s concerns. Given the shared concerns with nearby jurisdictions, the CCRC also directed staff to explore cost sharing opportunities with local cities. Staff has incorporated expanded CEQA language in the attached contract and will be contacting nearby cities in early 2013 about cost shearing opportunities. John Garamendi Jr., principal of PEG, was formerly the Executive Associate Athletic Director, External Affairs for U.C. California on an interim basis while he served as U.C. California’s Director of Corporate and Foundation Relations. Mr. Ralph M. Ochoa, partner with OM, serves on the Board of Trustees for the U.C. Merced Foundation. Timeline and Resource Impacts The contract term would be one-year from January to December 2013. The cost for this contract is one-hundred and twenty-five thousand dollars ($125,000), including certain travel expenses. The funds will be provided from the City Council Contingency fund. Staff will include this contract for discussion during the mid-year budget review to replace the City Council Contingency Fund. The City will incorporate provisions in the contract that if other cities in the area decide to use the same firm for high-speed rail consulting then there will be a corresponding reduction in cost to the City of Palo Alto. Attachments:  A - C13148578 Signed by Consultant_1-2013 (PDF) City of Palo Alto (ID # 3432) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Standby Rate and Policy for Energy Purchase from Potential Waste to Energy Facility Title: Finance Committee Recommendation that Council Adopt Two Resolutions: 1) Approving the Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities and 2) Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges From: City Manager Lead Department: Utilities Recommendation Staff, the Finance Committee, and the Utilities Advisory Commission (UAC) recommend that Council: 1. Adopt a resolution (Attachment A) approving the Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities (the Policy); and 2. Adopt a resolution (Attachment B) modifying Utilities Rules and Regulation 2 (Definitions and Abbreviations) and the six electric rate schedules covering medium and large commercial customers (E-4 and E-7) to include standby service charges. Executive Summary In January 2013 the Public Works Department received Council approval of a request for proposals (RFP) that could result in a waste-to-energy facility at the Regional Water Quality Control Plant or at the adjacent site designated for that purpose by Measure E. The biogas produced at such a facility could be used in a variety of ways, and the attached resolutions clarify the City of Palo Alto Utilities’ (CPAU’s) policies so potential proposers have more certainty about which uses are acceptable and economic for a given project. The proposed policy states that: City of Palo Alto Page 2 i. If the energy produced by the waste-to-energy facility is sold to CPAU, CPAU will purchase the energy at the market prices prevailing when the contract is signed. The policy also commits CPAU to pay a minimum purchase price of 7.7 cents per kilowatt- hour (¢/kWh). This “no regrets” rate is a minimum rate and CPAU will purchase at prevailing market prices if they are higher. ii. If the energy produced by the waste-to-energy facility is used on-site at the facility, it would be subject to CPAU standby power rates. iii. If the energy produced by the waste-to-energy facility is sold to another utility outside of Palo Alto, it would be subject to a wheeling agreement with CPAU. iv. The policy also states that the City will not allow proposers to inject biogas into the City’s gas distribution system. The second resolution adopts the electric standby rate to recover the cost to the utility of providing backup service to customers who own their own generators. Customers with renewable generators smaller than 1 megawatt (MW) that are sized to meet customer load rather than to export to the grid (like most rooftop solar systems) are exempt from the standby rates, as required by California Public Utilities Code 2827(g). Therefore, if the size of the waste- to-energy facility is less than 1 MW, it would not be subject to the proposed standby rate. Background In January 2013 the Public Works Department is planning to seek Council approval of an RFP for a waste-to-energy facility (referred to as the Energy/Compost Facility, or E/C Facility) at the Regional Water Quality Control Plant (RWQCP) or at an adjacent site designated for that purpose by Measure E, which passed in November 2011. Biogas produced by these types of facilities is used in a variety of ways. It can be used to generate electricity, cleaned up and used as a vehicle fuel, or injected into a gas pipeline for delivery to customers. If electricity is generated it can be used on site, sold to the utility where the project is located, or sold to a different utility. CPAU currently has no policies related to injection of biogas into its gas distribution system, and has not reviewed its policies related to on-site electric generation or moving electricity across its distribution system in several years. Staff has reviewed its policies in order to develop the attached proposal. Discussion The first proposed resolution (Attachment A) sets forth a policy for energy use at a potential waste-to-energy facility. The proposed Policy is discussed in more detail in the report to the Finance Committee (Attachment I). Staff has identified three primary ways the biogas from a waste-to-energy facility could potentially be used: City of Palo Alto Page 3 1) Injection into the gas distribution system. Utilities in California are only beginning to experiment with injecting biogas into a gas distribution system. Given the safety issues involved in operating a gas distribution system, the corrosive nature of biogas, and CPAU’s small size and limited resources, staff recommends against exploring the first alternative at this time. 2) Vehicle Fuel – Compressed Natural Gas (CNG). A CNG fueling station is a potentially viable alternative, but one that could be done by the project developer independently from CPAU and does not require any change in CPAU policy. 3) Electricity generation. The electricity could be used on site or sold. If the proposer decides to use the energy on site, CPAU would provide backup power under the “standby rates” discussed below. If the proposer wishes to sell, the resolution commits CPAU to purchasing the electricity at the market rate for renewable energy (including any avoided transmission or other costs) at the time the contract is signed. Based on current market conditions staff estimates that price to be about 9.4 cents/kWh, but market conditions can change rapidly, as demonstrated by the remarkable decline in solar energy prices over the last three years. In the interest of providing some level of certainty around the energy price, the resolution also commits CPAU to purchasing the electricity at a default floor price of 7.7 ¢/kWh. The Policy also states that CPAU will modify its Rules and Regulations and Rate Schedules to accommodate these various uses. The second resolution (Attachment B) implements this part of the Policy as it relates to on-site use of electricity. The primary necessary change is the adoption of a rate to recover the utility’s costs associated with providing backup electricity when the generator is offline. Utilities typically refer to these rates as “standby rates,” since the utility is “standing by” to provide electricity upon demand. The second resolution modifies the rate schedules for large and medium commercial electric customers to include standby rates. These rates are discussed in more detail in the attached Finance Committee report (Attachment I). The second resolution also includes non-substantive cleanup to the six affected rate schedules, which includes clarifying language incorporating a change in the term “power factor penalty” to “power factor adjustment.” These changes will not affect operation of the rate schedules. Committee and Commission Review and Recommendation The Finance Committee discussed the proposed Policy and standby rates at its December 18, 2012 meeting. The minutes from that meeting are provided as Attachment H. There were questions regarding the pricing as well as the types of equipment that could be used to generate electricity from biogas. The Finance Committee unanimously recommended that the Council adopt the attached resolutions. City of Palo Alto Page 4 The UAC discussed the proposed Policy at its September 5, 2012 meeting and voted unanimously to recommend that Council adopt the Policy. The minutes from that meeting are provided as Attachment E. The UAC also discussed the proposed standby rates at its November 7, 2012 and December 5, 2012 meetings. The minutes from those meetings are provided as Attachments F and G, respectively. Commissioners had questions about how the rate would operate and its applicability to the proposed E/C Facility project and to other types of projects. At its December 5, 2012 meeting, the UAC unanimously recommended approval of the rate (6-0, Hall absent). Timeline Following adoption of the proposed resolutions, the Public Works Department will release its RFP, which is anticipated to be released in early February 2013. Resource Impact Adopting the resolutions approving this Policy and the standby rate will have minimal resource impact, but if a customer takes service under the standby rate schedule, additional staff time will be necessary to set up the metering required and to implement the rate in the billing system. Staff time is estimated to be less than 0.1 FTE and would be absorbed with existing staff. Equipment requirements would depend on the site in question and would be recovered through applicable connection fees. Policy Implications To properly evaluate the value of onsite generation, customers need certainty regarding the City’s rate structure, and by providing that certainty the staff recommendation is consistent with Long-term Electric Acquisition Plan (LEAP) Strategy #4, Local Generation, which states “promote and facilitate the deployment of cost-effective local resources.” Environmental Review The adoption of the resolution adopting an energy purchase policy does not meet the Environmental Quality Act’s definition of a “project” under Public Resources Code 21065, and the adoption of the resolution setting standby service charges does is not subject to CEQA review under Public Resources Code Section 21080(b)(8) (modification of rates to meet operating expenses, purchase supplies, meet financial reserve needs, obtain capital project funds, or obtain funds for charter-authorized intracity transfers). City of Palo Alto Page 5 Attachments:  Attachment A: Resolution Adopting a Policy Regarding Purchase of Energy from Potential Waste to Energy Facilities (PDF)  Attachment B: Resolution Amending Six Rate Schedules for Medium and Large Commercial Customers to Add Standby Charges (PDF)  Attachment C: Proposed Utilities Rule and Regulation 2 (Definitions and Abbreviations) (PDF)  Attachment D: Proposed Utility Rate Schedules E-4, E-4TOU, E-4G, E-7, E-7TOU and E-7G (PDF)  Attachment E: Excerpted Final UAC Minutes of 10-3-12 (PDF)  Attachment F: Excerpted Final UAC Minutes of 11-7-12 Meeting (PDF)  Attachment G: Excerpted Final UAC Minutes of 12-5-12 (PDF)  Attachment H: Excerpted Draft Minutes of the Finance Committee meeting of 12-18-12 (PDF)  Attachment I: Staff Report ID 3314 UAC Recommendation to Adopt a Standby Rate and E/C Facility Energy Purchase Policy - to Finance 12-18-12 (PDF) *NOT YET APPROVED* 130114 dm 6051870 Resolution No. _____ Resolution of the Council of the City of Palo Alto Adopting a Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities A. On November 3, 2011, Palo Alto voters approved Measure E, which undedicated 10 acres of existing parkland in Byxbee Park (the “Measure E Site”) for the exclusive purpose of evaluating the development of an Energy/Compost facility, which could potentially process yard trimmings, food waste, sewage sludge, and other organic material. B. The City is proceeding with a long-term planning process related to the future of the regional Water Quality Control Plant. C. The City plans to evaluate various alternative types of waste-to-energy facilities at those sites. As part of this process, proposals will be solicited from project developers. D. The City, in order to properly evaluate the various alternatives and solicit proposals from developers, intends to adopt a policy pertaining to the use of the energy generated by the facility or facilities. The Council of the City of Palo Alto (“City”) does RESOLVE as follows: SECTION 1. It is the policy of the City to provide a range of alternatives for the use of energy generated by a potential waste-to-energy facility at the regional Water Quality Control Plant and the Measure E Site. These alternatives may include, but are not limited to, compressed natural gas vehicle fueling or electricity generation. Electricity generated may be 1) used by the facilities on the Measure E site or the regional Water Quality Control Plant, which would reduce the amount of electricity supplied by the City’s electric utility to those facilities, 2) sold to the City’s electric utility for distribution to customers, or 3) sold to an entity outside of the City’s electric utility service area. SECTION 2. To enable this policy the City will evaluate its Utilities Rules and Regulations and Utility Rate Schedules to determine whether changes are advisable or required to enable these alternatives. SECTION 3. It is the policy of the City to provide an optional default purchase price for energy from a waste-to-energy project, commencing in calendar year 2018. This default purchase price will be equal to the City’s forecasted avoided cost in 2018 based on a scenario in which the City’s avoided cost of electricity compares favorably to its current costs. The default purchase price is 7.7 ¢/kWh for electricity from a project certified by the California Energy Commission (CEC) as an Eligible Renewable Energy Resource for the purpose of fulfilling Renewable Portfolio Standard goals. “Renewable Portfolio Standard” refers to the standard adopted by the State of California pursuant to Senate Bill 2 1st Extraordinary Session (SBX1 2, *NOT YET APPROVED* 130114 dm 6051870 Chapter 1, Statutes 2011-12), and California Public Utilities Code Sections 399.11 through 399.32, inclusive, as may be amended, setting minimum renewable energy targets for local publicly owned electric utilities. SECTION 4. It is the policy of the City not to consider the injection of biogas associated with a waste-to-energy project into its gas distribution system at this time. SECTION 5. The Council finds that the adoption of this Resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21065. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Sr. Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services *NOT YET APPROVED* 121115 dm 6051819 1 Resolution No. _________ Resolution of the Council of the City of Palo Alto Amending Utilities Rule and Regulation 2 (Definitions and Abbreviations) and Utility Rate Schedules E-4 (Medium Commercial Electric Service), E-4 TOU (Medium Commercial Electric Time of Use Service), E-4G (Medium Commercial Green Power Electric Service), E-7 (Large Commercial Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service), and E-7G (Large Commercial Green Power Electric Service), to Include Standby Service Charges The Council of the City of Palo Alto RESOLVES: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 2 (Definitions and Abbreviations) is amended as attached and incorporated. This Utilities Rule and Regulation shall become effective on February 5, 2013. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedules E-4 (Medium Commercial Electric Service), E-4 TOU (Medium Commercial Electric Time of Use Service), and E-4G (Medium Commercial Green Power Electric Service), E-7 (Large Commercial Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service), and E-7G (Large Commercial Green Power Electric Service), are amended as attached and incorporated. These utility rate schedules shall become effective as of February 5, 2013. SECTION 3. Adoption of this resolution to add standby service charges to the six above- referenced electric rate schedules has no effect on the other non-standby-related rates shown on those rate schedules, nor on any of the City’s other electric rates. SECTION 4. The Council finds that the rates adopted by this resolution are not special taxes because they are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and which do not exceed the reasonable costs to the City of providing the service or product. SECTION 5. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8) because the amended rates adopted by this resolution are necessary to recover the costs of maintaining the City Electric Utility’s distribution system to // // // // *NOT YET APPROVED* 121115 dm 6051819 2 serve peak customer load, as well as the costs of maintaining reserve generating capacity to provide energy when needed by customers. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Sr. Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 1 A. ABBREVIATIONS AMR - Automated Meter Reading AER - Advance Engineering Request Btu - British Thermal Unit ccf - Hundred Cubic Feet CEC - California Energy Commission CPAU - City of Palo Alto Utilities CPUC - California Public Utilities Commission. DA - Direct Access ERU - Equivalent Residential Unit ESP - Energy Service Provider FERC - Federal Energy Regulatory Commission GDA - Gas Direct Access GSP - Gas Service Provider GSPA - Gas Service Provider Agreement kVar - Kilovar kVarh - Kilovar-hours kW - Kilowatt kWh - Kilowatt-hour MW - Megawatt MMBtu - One million Btus. NEC - National Electric Code, Latest Version NRTL - Nationally Recognized Testing Laboratory PAMC - Palo Alto Municipal Code PSIG - Per square inch gauge PST - Pacific Standard Time RWQCP - Regional Water Quality Control Plant UUT - Utilities Users Tax DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 2 B. GENERAL DEFINITIONS Account The identification number in CPAU’s billing system for Utility Services. Agency Any local, county, state or federal governmental body or quasi-governmental body, including, without limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board, commission or council of the City. Applicant An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following: 1. Electric Service 2. Water Service 3. Gas Service 4. Wastewater Collection 5. Refuse and Recycling Collection 6. Storm and Surface Water Drainage Service 7. Fiber Optics Service Or, an entity submitting an Application for Interconnection pursuant to Rule 27. Application (for Interconnection of Generating Facilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility. Bidweek Price Index The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” under the column “avg.” for the calendar month. Billing Period Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is approximately 30 days, with variations occurring due to staff availability, holiday scheduling, field verification of Meter readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill.. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 3 British Thermal Unit Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000 Btu. Business Day Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. Certification Test A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs. Certification; Certified; Certificate The documented results of a successful Certification Test. Certified Equipment Equipment that has passed all required Certification Tests. Charge Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligations for Service. Charter The Charter of the City of Palo Alto. City Attorney The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney. City’s Collector The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection, removal and disposal of solid waste and Recyclable Materials pursuant to one or more written contracts with the City. City Manager The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of Title 2 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 4 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Manager. City of Palo Alto, or City The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the term “City” may include services provided by both the City of Palo Alto Utilities Department and the City of Palo Alto Public Works Department. City of Palo Alto Public Works Department (Public Works) The City Department responsible for providing Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage Utility Services. Other Utility Services such as Water, Gas, Electric, Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department. City of Palo Alto Utilities Department (CPAU) The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic Utility Services. Other Utility Services such as Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department. Code The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code. Commercial Service Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and industrial Customers. The term also applies to Utility Services through Master Meters serving multi-family Residential dwellings and common areas of multi-family facilities. Compostable Materials Organic materials designated by the City as acceptable for collection and processing. Cubic Foot of Gas (cf) The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot. Curtailment The act of reducing or interrupting the delivery of natural Gas. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 5 Customer The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s). Dark Fiber A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters, receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic activation is provided by the reseller or end-user. Dark Fiber Infrastructure Components of the CPAU Fiber Optic Distribution System required to provide Service to Customers (licensees), that are attached, owned, controlled or used by the City, located overhead or underground within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties. Dedicated Distribution Transformer A Distribution Transformer that is dedicated to serving a single premise. Demand The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specified within a monthly billing cycle). Demand Charge An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute a Demand Charge component of a Customer’s Electric bill. Demarcation Point The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services. Direct Access (DA) The election by a Customer to procure its Gas Supply Services, from an Energy Service Provider, other than DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 6 CPAU. In this situation, a Customer deals directly with an ESP for commodity supply, while distribution and applicable transmission services would continue to be provided by CPAU. Direct Access Service Request (DASR) The form required to initiate Direct Access Service. Distribution Services Includes, but is not limited to, Utility Service provided by the Distribution System and other Services such as billing, meter reading, administration, marketing, and Customer Services. Does not include Services directly related to the Interconnection of a Generating Facility as per Rule 27. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto. The Electric Distribution System transmits power from the City’s Interconnection with PG&E to CPAU’s Meter located on the Customer’s Premises. The Gas Distribution System transports Gas from PG&E receiving stations to CPAU’s Meter located on the Customer Premises. The Water Distribution System transports Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on the Customer Premises. The Wastewater Collection System transports sewage from the Customer’s Premises to the Water Quality Control Plant. Distribution and Transmission Services Services provided by CPAU to effect the physical delivery of Energy Services provided by the Energy Services Provider from the Point of Receipt to the Direct Access Customer’s Service Address. Effluent Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall. Electric, Electric Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of generation, transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of Palo Alto Utilities Department. Emergency An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 7 Emergency Service Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same. Energy Services Energy commodity and any applicable ancillary Services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value added Services associated or related to the Provision and/or usage of energy commodity. Equivalent Residential Unit (ERU) This is the basic unit for computing storm and surface water drainage fees. All single-family Residential properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedule D-1, according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft. Fiber Optic, Fiber Optic Service A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto Utilities Department is referred to as Dark Fiber. Fiber Optic Backbone The high-density portion of the Dark Fiber Infrastructure installed and owned by the City. Force Majeure The occurrence of any event that has, had or may have an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is beyond the reasonable control of the parties and which event includes, but is not limited to, an Act of God, an irresistible superhuman cause, an act of a superior governmental authority, an act of a public enemy, a labor dispute or strike or a boycott which could not be reasonably contemplated by the City or Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods, earthquakes, or any other similar cause. Full Service; Fully Bundled Service Provision by CPAU of both Distribution and Transmission Services and Energy or Gas Commodity Services to its Customer(s). Function Some combination of hardware and software designed to provide specific features or capabilities. Its use, as DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 8 in Protective Function, is intended to encompass a range of implementations from a single-purpose device to a section of software and specific pieces of hardware within a larger piece of equipment to a collection of devices and software. Gas Any combustible Gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning. It shall include, but not be limited to, natural Gas, Gas manufactured from coal or oil, Gas obtained from biomass or from landfill, or a mixture of any or all of the above. Gas, Gas Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of procurement, transmission, and distribution of Gas for retail use. Gas Service is provided by the City of Palo Alto Utilities Department. Gas Direct Access (GDA) The election by a Customer to procure its natural Gas, and related natural Gas Services, from a Gas Service Provider, other than CPAU. In this situation, a Customer obtains natural Gas commodity directly from a GSP, but local transmission of the natural Gas commodity is effectuated by CPAU in accordance with the terms of CPAU’s Natural Gas Service Agreement with PG&E. Also, Distribution Services would continue to be provided by CPAU. Gas Direct Access Service Request (GDASR) The form required to initiate Gas Direct Access Service. Gas Service Provider (GSP) The Person who procures, schedules, nominates and arranges transport of natural Gas to Gas Direct Access Customers, including its successors and assigns. Gas Service Provider Agreement (GSPA) The contract between CPAU and the Gas Direct Access Customer’s Gas Service Provider that establishes the terms and conditions under which Gas Services may be provided to the Gas Direct Access Customer. Generating Facility All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the purpose of producing Electric power. This includes a solar or wind turbine electrical generating facility that is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation 29. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 9 Generator A device converting mechanical, chemical or solar energy into electrical energy, including all of its protective and control Functions and structural appurtenances. One or more Generators comprise a Generating Facility. Gross Nameplate Rating; Gross Nameplate Capacity The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Initial Review The review by CPAU, following receipt of an Application, to determine the following: (a) whether the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements. Inspector The authorized Inspector, agent, or representative of CPAU. Interconnection; Interconnected The physical connection of a Generating Facility in accordance with the requirements of the City’s Utilities Rules and Regulations so that Parallel Operation with CPAU’s Distribution System can occur (has occurred). Interconnection Agreement An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City’s Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement, and the Power Purchase Agreements authorized by the City Council may be considered as Interconnection Agreements for purposes of defining such term. Interconnection Facilities The electrical wires, switches and related equipment that are required in addition to the facilities required to provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or provided separately. Interconnection Study DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 10 A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution System. Internet Exchange Any Internet data center for telecommunications equipment and computer equipment for the purposes of enabling traffic exchange and providing commercial-grade data center services. Interstate Transportation (or Transmission) Transportation of Gas on a pipeline system under the regulation of the FERC. Island; Islanding A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the remainder of CPAU’s Distribution System. Junction A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communication cables. Junction Site The area within the Transmission Pathway at which a Junction is located. Kilovar (kVar) A unit of reactive power equal to 1,000 reactive volt-amperes. Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate of Kilovar. Kilowatt (kW) A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard unit of billing for electrical energy. Law DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 11 Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order, ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or Public Works Customers, including, without limitation, any regulation or order of an official or quasi- official entity or body. Licensed Fibers One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive use of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber Services Agreement and the Utilities Rules and Regulations. Licensed Fibers Route A defined path of Licensed Fibers that is identified by specific End Points. Load(s) The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time, normally 15 minutes or the quantity of Gas required by a Customer at its Service Address, measured in MMBtu per Day. Main Wastewater Line Any Wastewater line not including a building connection (Service) sewer. Master-metering Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. Maximum Generation For a customer with a non-utility generator located on the customer’s side of the Point of Common Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum average generation in kilowatts taken during any 15-minute interval in that billing period provided that in case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Meter The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 12 Water delivered to the Customer. Metering The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in kVar at a point, and its display to CPAU as required by Rule 27. Metering Equipment All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering. Meter Read The recording of usage data from Metering Equipment. Minimum Charge The least amount for which Service will be rendered in accordance with the Rate Schedule. Momentary Parallel Operation The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less. Nationally Recognized Testing Laboratory (NRTL) A laboratory accredited to perform the Certification Testing requirements under Rule 27. Net Energy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s Electric utility Distribution System and the electricity generated by the customer-generator’s facility and delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period. Net Generation Metering Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator. Net Nameplate Rating The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 13 Non-Islanding Designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-Islanding. Occupied Domestic Dwelling Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a Person or Persons. Parallel Operation The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected. For the purpose of this Rule, Parallel Operation includes only those Generating Facilities that are Interconnected with CPAU’s Distribution System for more than 60 cycles (one second). Performance Test, Performance Tested After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of each Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance Specifications. Performance Specifications These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain reflectometer data plots that identify the light optical transmission losses in each direction along the leased fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers for singlemode Fiber, as a Function of distance, measured in kilometers. Person Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form of business association. PG&E Citygate The PG&E Citygate is the point at which PG&E’s backbone transmission system connects to PG&E’s local transmission system. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 14 Point of Common Coupling (PCC) The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors of the Producer. Point of Common Coupling Metering Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no host load. Point of Delivery (POD) Unless otherwise specified, the following definitions apply: For Electric, that location where the Service lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the POD is at the weather-head connection; for under-ground Services, the POD is located at the terminals ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the City delivers natural Gas that it has transported to the Customer. Point of Interconnection The electrical transfer point between a Generating Facility and the Distribution System. This may or may not be coincident with the Point of Common Coupling. Point of Receipt The designated location at which CPAU receives Gas supplied by a GSP on behalf of a GDA Customer. The Point of Receipt for Gas will be designated in the GSPA. Point of Service (POS) Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service, this is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location established at the time of installation. Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground and used or useful in supplying Electric, communication, or similar or associated Service. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 15 Power Factor The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce distribution system losses caused by low Power Factor. Power Factor Adjustment CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and may make a Power Factor Adjustment to a Customer’s bill to account for those costs and the additional energy costs and losses incurred by CPAU due to the Customer’s low Power Factor. Premises All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway. Primary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or greater than 1000 volts. Producer The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own or operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection Agreement. Proposal for Dark Fiber Services A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber licensing fees, term of the Service, and summary of licensed Fiber elements. Protective Function(s) The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other Functions) whose purpose is to protect against Unsafe Operating Conditions. Provision DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 16 Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or otherwise controls, establishes, or limits the performance required or permitted by any party. Prudent Utility Practices The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic manner. Public Right-of-Way The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse and recycling or communications commodity and/or distribution Service, and the means of public transportation, to the general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters, lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways. Public Utility Easements The areas occupied or used by the City for the purpose of providing Utility Service to the general public, and all related Services offered by the City’s Utilities Department and/or Public Works Department, the rights of which were acquired by easements appurtenant or in gross, or are other interests or estates in real property, or are the highest use permitted to be granted by the nature of the City’s interest in and to the affected real property. This term incorporates all public Service easements for Utility Services that have been recorded by the City with the Recorder of the County of Santa Clara, California. Public Works Department See City of Palo Alto Public Works Department. Rate Schedule One or more Council-adopted documents setting forth the Charges and conditions for a particular class or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service, applicability, territory, rates, conditions, and references to Rules. Recyclable Materials Materials designated by the City as acceptable for recycling collection and processing. Reserved Capacity DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 17 For a customer with one or more non-utility generators located on the customer’s side of the Point of Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Residential Service Utility Service provided to separately metered single family or multi-family, domestic dwelling. Rules and Regulations See Utilities Rules and Regulations Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas, Electric power and energy. Secondary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000 volts. Service(s) Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater Collection services provided by the Utilities Department (CPAU); and Refuse and Recycling, Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department. Service Address The official physical address of the building or facility assigned by CPAU’s Planning Department, at which Customer receives Utility Services. Service Charge A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The Charge is intended to recover a portion of certain fixed costs. Service Drop The overhead Electric Service conductors from the last pole or other aerial support to and including the splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 18 of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the building or other structure to and including the termination box. Services or Service Lines Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of Delivery to the Customer. Service Territory The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of the CPAU. Short Circuit (Current) Contribution Ratio (SCCR) The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to CPAU’s system. Simplified Interconnection An Interconnection conforming to the minimum requirements as determined under Rule 27, Section I. Single Line Diagram; Single Line Drawing A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered. Special Facilities See CPAU’s Rule and Regulation 20 governing Special Facilities. Splice A point where two separate sections of Fiber are physically connected. Standard Refuse Container A Standard Refuse Container shall have the meaning described in the Palo Alto Municipal Code. A Standard Container shall also include a wheeled container with a capacity of not to exceed 32 gallons. Standby Service DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 19 Back-up Energy Services provided by CPAU. Storm and Surface Water Drainage Utility Service provided to residents and business owners in the City of Palo Alto. Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department. Supplemental Review A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; or (c) cost and schedule for an Interconnection Study. System Integrity The condition under which a Distribution System is deemed safe and can reliably perform its intended Functions in accordance with the safety and reliability rules of CPAU. Tax Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by any Agency, including the City. Telemetering The electrical or electronic transmittal of Metering data in real-time to CPAU. Temporary Service Service requested for limited period of time or of indeterminate duration such as, but not limited to, Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service. Therm A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon dioxide or nitrogen lower the Therm factor. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 20 Transfer Trip A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by CPAU. Transmission Pathway Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in which the Dark Fiber Infrastructure is located. Trap Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer Gas from a main line through a building connection (service) sewer. Underground Utility District An area in the City within which poles, overhead electric or telecommunication wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC. Unintended Island The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without the approval of CPAU. Unsafe Operating Conditions Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System Integrity or operation outside pre-established parameters required by the Interconnection Agreement. Utilities Department See City of Palo Alto Utilities Department. Utilities Director The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director of utilities. Utility(ies) Rules and Regulations, Rules and Regulations The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 21 Alto Municipal Code, as amended from time to time. Utility(ies) Service(s), Service(s) Electric, fiber optics, water, gas, wastewater collection services provided by the City of Palo Alto Utilities Department (CPAU) and Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage services provided by the City of Palo Alto Public Works Department. Utilities User Tax (UUT) City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges, Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code. Wastewater Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo Alto Public Works Department. Water Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided by the City of Palo Alto Utilities Department. Water Column (WC) Pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi. Yard Trimmings Yard Trimmings means those materials defined in Section 5.20.010 of the Palo Alto Municipal Code. (END) MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-1 dated 7-1-2009 Sheet No E-4-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with a Maximum Demand below 1,000 kilowatts. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand- metered services, as determined by the City. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-2 dated 7-1-2009 Sheet No E-4-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such customers between the hours of noon and 6 pm on weekdays. 4. Power Factor For new or existing customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill will include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment will be applied to a customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the customer’s load was less than 95%. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-3 dated 7-1-2009 Sheet No E-4-3 The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any City of Palo Alto full- service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-4 dated 7-1-2009 Sheet No E-4-4 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-1 dated 7-1-2009 Sheet No E-4-TOU-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with Demand between 500 and 1,000 kilowatts per month and who have sustained this level of usage for at least three consecutive months during the most recent 12 month period. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered services, as determined by the City. In addition, this rate schedule is applicable for customers who did not pay Power Factor penalties Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $3.12 $8.96 $12.08 Mid-Peak 1.99 5.65 7.64 Off-Peak 1.13 3.26 4.39 Energy Charge (per kWh) Peak $0.10963 $0.03242 $0.00321 $0.14526 Mid-Peak 0.05617 0.01623 0.00321 0.07561 Off-Peak 0.04298 0.01218 0.00321 0.05837 Winter Period Demand Charge (per kW) Peak $2.77 $5.10 $7.87 Off-Peak 1.49 2.94 4.43 Energy Charge (per kWh) Peak $0.07003 $0.02296 $0.00321 $0.09620 Off-Peak 0.04088 0.01313 0.00321 0.05722 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-2 dated 7-1-2009 Sheet No E-4-TOU-2 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein.. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-3 dated 7-1-2009 Sheet No E-4-TOU-3 3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 4. Power Factor PenaltyAdjustment Time of Use customers must not have had a Power Factor penalty Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor penaltyAdjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor penaltiesAdjustments, the Customer will be removed from the E-4- TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 5. Changing Rate Schedules Customers electing to be served under E-4 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-4 dated 7-1-2009 Sheet No E-4-TOU-4 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-5 dated 7-1-2009 Sheet No E-4-TOU-5 (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-1 dated 7-1-2009 Sheet No E-4-G-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for Customers with a Maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green plan. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered Services, as determined by the City. B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: (1000 kWh block option): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171 Palo Alto Green Charge (per 1000 kWh block) 15.00 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318 Palo Alto Green Charge (per 1000 kWh block) 15.00 (100% Renewable Green option): Commodity Distribution Public Benefits Palo Alto Green Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.0150 0.09671 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.0150 0.08818 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-2 dated 7-1-2009 Sheet No E-4-G-2 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter, which does not reset after a definite time interval, may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-3 dated 7-1-2009 Sheet No E-4-G-3 4. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill will include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment will be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full-service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 6. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-4 dated 7-1-2009 Sheet No E-4-G-4 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-5 dated 7-1-2009 Sheet No E-4-G-5 the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-1 dated 7-1-2009 Sheet No E-7-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Service for commercial Customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (kW) $6.42 $12.55 $18.97 Energy Charge (kWh) 0.05662 0.01825 0.00321 0.07808 Winter Period Demand Charge (kW) $5.50 $6.04 $11.54 Energy Charge (kWh) 0.04990 0.01898 0.00321 0.07209 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-2 dated 7-1-2009 Sheet No E-7-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Request for Service Qualifying Customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays. 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-3 dated 7-1-2009 Sheet No E-7-3 Customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-4 dated 7-1-2009 Sheet No E-7-4 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.4) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-1 dated 7-1-2009 Sheet No E-7-TOU-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Service for commercial customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. In addition, this rate schedule is applicable for customers who did not pay Power Factor penalties Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $4.24 $8.25 $12.49 Mid-Peak 2.06 4.13 6.19 Off-Peak 1.17 2.06 3.23 Energy Charge (per kWh) Peak $0.07029 $0.02296 $0.00321 $0.09646 Mid-Peak 0.05867 0.01901 0.00321 0.08089 Off-Peak 0.04870 0.01567 0.00321 0.06758 Winter Period Demand Charge (per kW) Peak $3.04 $3.38 $6.42 Off-Peak 1.59 1.68 3.27 Energy Charge (per kWh) Peak $0.05617 $0.02142 $0.00321 $0.08080 Off-Peak 0.04663 0.01767 0.00321 0.06751 LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-2 dated 7-1-2009 Sheet No E-7-TOU-2 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-3 dated 7-1-2009 Sheet No E-7-TOU-3 3. Request for Service Qualifying customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 5. Power Factor PenaltyAdjustment Time of Use customers must not have had a Power Factor penalty Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor penaltyAdjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor penaltiesAdjustments, the Customer will be removed from the E-7- TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 6. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-4 dated 7-1-2009 Sheet No E-7-TOU-4 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-5 dated 7-1-2009 Sheet No E-7-TOU-5 Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-1 dated 7-1-2009 Sheet No E-7-G-1 A. APPLICABILITY: This schedule applies to Demand metered Service for large commercial Customers who choose Service under the Palo Alto Green plan. A Customer may qualify for this rate schedule if the Customer’s Maximum Demand is at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: (1000 kWh block option): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $6.42 $12.55 $18.97 Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.07808 Palo Alto Green Charge (per 1000 kWh block) 15.00 Winter Period Demand Charge (per kW) $5.50 $6.04 $11.54 Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.07209 Palo Alto Green Charge (per 1000 kWh block) 15.00 (100% renewable green option): Commodity Distribution Public Benefits Palo Alto Green Total Summer Period Demand Charge ( per kW) $6.42 $12.55 $18.97 Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.0150 0.09308 Winter Period Demand Charge (per kW) $5.50 $6.04 $11.54 Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.0150 0.08709 LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-2 dated 7-1-2009 Sheet No E-7-G-2 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-3 dated 7-1-2009 Sheet No E-7-G-3 4. Request for Service Qualifying Customers may request Service under this schedule for more than one account or one meter if the accounts are at one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-4 dated 7-1-2009 Sheet No E-7-G-4 7. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. 8. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed; provided, however, the City is not required to supply Service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's Electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 9. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-5 dated 7-1-2009 Sheet No E-7-G-5 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} EXCERPTED FINAL MINUTES OF THE OCTOBER 3, 2012 UTILITIES ADVISORY COMMISSION MEETING ITEM 1: ACTION: UAC Recommendation that Council Adopt a Resolution Approving the Continuation of the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program Public Comment: Craig Lewis, representing the CLEAN Coalition, stated that the Palo Alto CLEAN has had no takers so far, but that the program could be tweaked to be successful. The CLEAN Coalition had hoped when the program started that property owners rather than developers would develop and own projects, eliminating the need for a lease payment. He said the price offered seems to have been too low and developers and that property owners were not attracted by the rate of return from a project in Palo Alto. He believed property owners would be more interested in leasing their rooftops to a third party developer. He stated that the lease payment to building owners translates to a 3 cent/kilowatt-hour (₵/kWh) increase in price so that a price of 17 ₵/kWh or higher would be required to get local solar projects. He recommended implementing a Volumetric Price Adjustment (VPA) whereby non-participation in the program over some period of time (e.g. a month) would result in an automatic increase in the price until participants were attracted. Resource Planner Jon Abendschein provided a summary of the written report. He stated that the City has supported local solar photovoltaic (PV) system installations since 1999 and the PV Partners program has resulted in the City being one of the top utilities nationwide for PV system installations. Abendschein stated that, despite a large amount of interest, the CLEAN program has not had any participants, primarily because the PV Partners is a more cost- effective option for most facilities and the returns for CLEAN program are insufficient. Abendschein explained the staff recommendation is to extend the program at the current 14 ₵/kWh price, eliminate the 100 kW minimum size, and ramp up efforts to market the PV Partners program. Since the program was evaluated last year, and the price was set at 14 ₵/kWh, the City's projection of the avoided cost has fallen to 11.6 ₵/kWh so that additional cost to ratepayers is $158,000 per year. Abendschein explained that the alternatives to the recommendation were considered and included increasing the price, lowering the price, or eliminating the program. Increasing the price would increase the cost to ratepayers, while lowering the price would not result in any participation. He also stated that staff had examined other types of renewable energy sources, but did not find any other energy sources aside from solar that were viable in Palo Alto aside from City-owned sources that could be developed without a CLEAN program. Commissioner Melton said that originally the program had been priced at the City's avoided cost, but now the price was 20% higher than the avoided cost. He asked what the City’s pricing policy was, and at what price would the cost of the program be too high compared to the City’s avoided cost. He did not want the program to entirely lose its relationship to avoided costs. Director Valerie Fong stated that the City Council had been comfortable with a small premium over avoided cost when the program was adopted, but had not provided specific policy direction on the maximum acceptable premium. Commissioner Eglash asked how many PV systems had been installed in Palo Alto since the CLEAN program had been adopted. Abendschein stated that there had been from 25-50 systems installed in residences, but he did not have the exact numbers. Commissioner Eglash said that many people were continuing to install solar even without Palo Alto CLEAN. He said the goal was not to have a feed-in tariff (FIT) simply to have a FIT. It was to stimulate solar development. He said the PV Partners program was economically more attractive and that solar was being installed at a healthy rate even without Palo Alto CLEAN. That implied that Palo Alto CLEAN was obsolete and unnecessary. He said the cost of solar was falling substantially, and 3rd party developers were offering excellent prices. He was against raising the price, but he was happy leaving the program operating as it was if it did not cost much to maintain it. Commissioner Waldfogel asked what the equivalent cost of the PV Partners program was. Abendschein said the avoided cost was the same, but if PV Partners were translated into a FIT price it would be equivalent to 20-24 ¢/kWh. PV Partners was a State mandated program, however. Commissioner Waldfogel asked whether the size of the PV Partners program was also a State mandate. Abendschein said it was. Vice Chair Foster asked who paid for the PV Partners program. Director Fong stated the City did. Vice Chair Foster asked whether it was better to have people participating in PA CLEAN or PV Partners, since PV Partners was more expensive. Director Fong stated that PA CLEAN participation would not relieve the City of its SB1 obligation, which the PV Partners program fulfilled. Abendschein added that even if customers chose to participate in Palo Alto CLEAN, the PV Partners capacity would still be available. Vice Chair Foster asked how much the Brannon Solar project factored into the avoided cost calculation. Abendschein said it was a small part of the calculation. Vice Chair Foster asked whether the staff recommended program would allow people to fund solar on each other’s roofs if they chose to. Abendschein said the funding source was not important as long as they sold the energy to the City. Vice Mayor Scharff asked what it would cost to continue the program. Abendschein said the staff time involved in maintaining the program without marketing it was minimal, but that the staff proposal had involved some staff time for marketing which would be absorbed by existing staff. Utility Marketing Services Manager Joyce Kinnear said that Key Account Representatives, who market the City’s programs, including energy efficiency, would spend time on marketing Palo Alto CLEAN, which would replace some of the time they spent marketing other programs like energy efficiency. Commissioner Foster stated that the program is an innovative program. The City should be doing it and would like to see an increase in the price to get more participation. He was not sensing much support for that proposal, so he would support the staff recommendation. He would be opposed to eliminating the program. Chair Cook thanked the CLEAN Coalition for support, but would not want to move much further away from the avoided cost. He would support the staff recommendation, but would want to review it again at some point in time, rather than have the program continue indefinitely. Commissioner Melton remarked that the goal is to increase the amount of renewable power generated within city limits, so he supported continuing the program despite the small increase in price. ACTION: Vice Chair Foster made a motion to support staff's recommendation. Melton seconded the motion. Commissioner Eglash offered a friendly amendment to review the program in one year. Vice Chair Foster and Commissioner Melton accepted the amendment. Commissioner Waldfogel asked if the failure of the program could be attributed to a marketing shortcoming. Abendschein said it was a matter of expanding the marketing to the specific customers who the program would work for. Commissioner Waldfogel stated that he believed that anyone who was eligible for the program had already heard about the program and had determined it was not worthwhile. He was uncomfortable continuing to spend money to market the program. Vice Chair Foster said that some level of marketing should exist as not all have heard of the program and it is being expanded to more customers. The motion passed by a vote of 5-1 with Commissioner Waldfogel voting no. EXCERPTED FINAL MINUTES OF THE NOVEMBER 7, 2012 UTILITIES ADVISORY COMMISSION MEETING NEW BUSINESS ITEM 1: PRESENTATION: Presentation on Standby Electric Rates for the City’s Energy/Compost Facility Resource Planner Jon Abendschein gave a presentation on standby rates. He stated that utilities generally have standby electric rates so that customers who have on-site generators pay for their reliance on backup power provided by the utility. Most utilities have a standby rate, but the City of Palo Alto Utilities (CPAU) has not needed to have one due to a lack of previous proposals to develop large or non-renewable generators. Renewable generators smaller than one megawatt (MW) are exempt from standby rates under State Law. The Public Works Department, however, was seeking proposals for its Energy/Compost (E/C) Facility project, which could involve on-site generation, and would need to know the CPAU standby rate in order to evaluate proposals. Abendschein stated that the standby rate is designed to recover distribution system costs, generating capacity costs, and billing and administrative costs. The costs the standby rate was intended to recover were part of the demand charges in the E-4 and E-7 retail rate schedules, and the standby charge would be designed to recover all of the distribution system demand charge and the portion of the generation demand charge related to providing reserve generating capacity. Staff expected to propose a rate based on the generator size, and had calculated a preliminary standby rate for E-7 customers of $13.51/kW in the summer billing periods and $6.86/kW in the winter. Abendschein gave an example calculation of a customer bill for a customer with an on-site generator. He noted that with no standby rate, the utility would not recover costs unless the generator had an outage during the month, and that cost recovery would be irregular, dependent on the frequency of generator outages. With a standby rate the customer’s share of the utility’s costs were properly collected each month regardless of outages. He also showed that the proposed rate was in-line with those of other California utilities. Commissioner Foster asked who this rate was needed for, and whether it was only necessary for the Energy/Compost Facility. Abendschein stated that it would apply to any non-renewable generator or large renewable generator in Palo Alto, but that the Energy/Compost Facility was the only project he was currently aware of that might involve such a facility. Commissioner Foster asked Abendschein to summarize why the rate was necessary. Abendschein stated that the rate was necessary for the utility to recover its costs associated with providing standby service. The State prohibited CPAU from recovering those costs for small renewable generators, but the rate was still necessary for other generators. Commissioner Hall asked whether the standby rate would provide an incentive for a customer to build their own gas-fired generator to reduce their electric bill. Abendschein stated that the rate was designed to recover the utility’s costs and was not an incentive. He stated that gas- fired generators were unlikely to be cost-effective due to the low electric rates compared to the CPAU gas rates. Commissioner Waldfogel asked if the rate could be avoided if the customer built more than 1 MW of on-site generation capacity but used multiple renewable generators, keeping each generator smaller than 1 MW. Abendschein said he believed the State’s exemption applied to the total generation behind the customer meter, not each individual generator, so the rate could not be avoided under that scenario. Commissioner Waldfogel then asked how the reduced customer load would affect the CPAU RPS requirements. Assistant Director, Resource Management Jane Ratchye stated that CPAU’s RPS requirements were based on sales, so the reduced customer load would reduce the RPS requirement some. Commissioner Waldfogel also asked what would happen if the generator ran infrequently in a month, asking whether the customer would be charged both the standby rate as well as the applicable retail demand rate. Abendschein said the customer would pay only one or the other, not both. Commissioner Melton asked whether staff had reviewed both investor-owned and publicly- owned utilities’ rates when developing the rate. Abendschein said staff had surveyed large and small publicly-owned utilities’ rate schedules as well as Pacific Gas and Electric’s (PG&E’s) rate. Commissioner Melton asked whether staff had reviewed the CPUC rules applicable to PG&E and related to standby rates and asked whether there were any that should be incorporated into the CPAU rates and policies. Abendschein said he had looked at PG&E's rate and found it very complex. He said it included some features not necessary for CPAU’s rate schedule, but that there were some other features he had incorporated. Staff had done a comprehensive review of State regulations as well. Commissioner Melton then asked would this rate would be an incentive for customers to install gas-fired generation like Bloom Energy fuel cells to avoid the City's electric charges. Abendschein stated that since fuel cells ran on natural gas they were unlikely to be cost-effective due to the low electric rates compared to the CPAU gas rates. Fuel cells were also relatively high cost solutions and were currently dependent on significant rebates and incentives in other utilities’ territories. Commissioner Hall asked whether the E/C Facility developer could the market the power outside the City. Abendschein said that it is possible, but unlikely. Commissioner Hall asked whether staff had conceived of a situation in which part of the E/C Facility output was used on site and the remainder was exported. Abendschein said that the owner would pay the standby charge for the portion of the output used on site and a wheeling charge for the remainder. EXCERPTED FINAL MINUTES OF THE DECEMBER 5, 2012 UTILITIES ADVISORY COMMISSION MEETING NEW BUSINESS ITEM 1: ACTION: Recommendation that Council Adopt a Resolution Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges Chair Cook stated that the UAC received a presentation and had a discussion at its last meeting and had few questions at the time. After receiving confirmation from the other commissioner, he requested that commissioners commence with any questions and indicated that there was no need for the prepared presentation. Commissioner Waldfogel stated that the rate being proposed is highly technical in nature and that the UAC may not have fully understood all of its details, but is being asked to weigh in on the rate. Director Fong stated that the details are in the rate schedule, but noted that the UAC does rely on the descriptions of the rate provided by staff in the report. Vice Chair Foster asked if anyone would be on the proposed standby rate now. Resource Planner Jon Abendschein stated that the first project that could be under the rate would be the waste to energy facility that is being evaluated by the Public Works Department. Director Fong stated that any customers with large generators would be subject to the rate. Abendschein added that he does receive calls from time to time from customers who are considering adding a generator on their site. ACTION: Commissioner Waldfogel moved to support the staff's recommendation. Vice Mayor Foster seconded the motion. The motion carried unanimously (6-0) with Commissioner Hall absent. FINANCE COMMITTEE DRAFT EXCERPT MINUTES Special Meeting December 18, 2012 UAC Recommendation that the Finance Committee Recommend that Council Adopt Two Resolutions: 1) Approving the Policy Pertaining to the Purchase of Energy from a Potential Green Waste-to-Energy Facility and 2) Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges. Jon Abendschein, Resources Planner spoke about a resolution that spelled out the City’s policy toward biogas and electricity use at a proposed compost-to-energy facility, and a resolution that adopted rate changes to enable customers who owned their own generators. The rate changes did not apply to Palo Alto net metered solar customers, since electric utility was required to provide free backup power under state law. . The facilities that were proposed for the Water Quality Control Plant site and the adjacent site were designated by Measure E for a Compost to Energy Facility. The Public Works Department was currently preparing to solicit proposals for potential designs, and he believed Council was going to see the draft Request for Proposal (RFP) in January. Facilities processed some combination of yard waste, food waste, and sewage sludge to generate biogas, which was used for electricity generation. This was the first large customer-owned electric generating facility seriously proposed for Palo Alto. Staff was working with the Public Works Department to ensure the rates, policies, and rules and regulations were all properly set up. The proposed policy discussed common uses of biogas, which was primarily used in three ways. First, it was burned in an engine to generate electricity. Second, it was used to power gas vehicles, and third, it was injected into a gas pipeline to be burned by gas customers. California gas utilities were only beginning to explore biogas injection, and safety was a major concern since biogas was able to corrode pipelines if poorly handled; Staff was against considering that option at this time. Vehicle fuel was a possibility, but Council was going to discuss that at a later date when they considered the RFP Public Works was bringing them in January. Electricity Generation was sold to Electric Utilities, or used at project sites. The policy in the first resolution reiterated different alternatives and stated that the City considered vehicle fuel or electricity generation use for the biogas, but there was no injection into the distribution system. The Resolution had one other key feature: it set a price that was used to model the economics of their projects. There were two main sources of revenue for these projects; the tip fees for the waste they FINANCE COMMITTEE DRAFT EXCERPT MINUTES processed and the revenue from the energy generation. The tip fees were the largest revenue source by far, but the energy revenue was significant. A change in the energy revenue changed the tip fee. To compare projects on an equivalent basis, the consultant assisting with the RFP recommended having all proposers use the same assumption for revenue from electricity sales. This resolution committed the City to purchase the energy at prevailing renewable market prices and set a floor price of 7.7 cents per Kilowatt-hour (kWh). This floor price was a conservative price based on the forecast of the future price of renewable energy under conditions favorable to the City. It was intended for use in developing proposals, and if the renewable market price was higher when it was time to sign a contract, the City paid that price. Staff reviewed the electric utility rates as well and the rules and regulations to ensure that the City accommodates all the project configurations that were proposed for the Energy Composting Facility and said if the proposer wanted to use the biogas from the project to generate electricity there were two main uses for that electricity. He said the proposer could plan to sell the energy or use it to reduce their own load. He said it was easy to accommodate the user if they wanted to sell the energy. The changes that were made to the permit processes and engineering rules and regulations to accommodate Palo Alto Clean Local Energy Accessible Now (CLEAN) program applied to this project. He said if people wanted to use the energy on site, Staff was not set up to accommodate that. The customer needed to buy backup power from the utility company when their generator was down. Most retail rate schedules did not work when an on-site generator was involved. Most utilities used a special rate schedule for backup power called a “Standby Rate.” The second resolution added a standby service section to the E-4 and E-7 rate schedules. The proposed standby rate was designed to recover the fixed costs associated with maintaining the distribution system and for it to be ready to provide energy to the customer upon demand in case of a generator outage. It also fixed costs associated with maintaining generating reserves. It was a monthly charge based on the generator size. Fixed charges were typically collected through the demand charge, which was the portion of the customer’s bill based on their peak monthly usage. The proposed standby rates compared to the regular retail demand rate was slightly lower. This was because Staff only charged the customer for a portion of the fixed generation costs. The rate schedule incorporated a provision of State Law that effectively required the utility to provide free backup power to renewable generators smaller than one megawatt (MW) and sized to meet FINANCE COMMITTEE DRAFT EXCERPT MINUTES on-site load. He noted that this exemption could conceivably apply to certain types of designs for an Energy/Compost Facilities. Chair Shepherd noted that there was an effective date of February 5, 2013. Mr. Abendschein indicated the effective date changed because the number of meetings relating to the digester had changed. The effective date was determined by scheduling. Herb Borock reported if the City supplied the power, the rate would include charges for a distribution system and would have public benefit. The overall distribution system expense was to be paid by other ratepayers if the facility generated its own power. An in-lieu charge was considered so other utility user rates did not increase. Council Member Burt asked Staff to review the Palo Alto CLEAN program. Mr. Abendschein indicated that the generator was separate from the Palo Alto CLEAN program. The purchase price was set without a feed-in tariff program. Council Member Burt felt the renewable source had been removed from the Palo Alto CLEAN program when the developer was most likely going select that program. He asked why the resource was not eligible for the Palo Alto CLEAN program. Mr. Abendschein reported that the Resolution demonstrated the commitment to purchase at wholesale prices. The Resolution provided the City with flexibility and developers with the option to decide what they wanted to do with their power. Council Member Burt asked if the rate was significantly different from the Palo Alto CLEAN rate. Mr. Abendschein explained Palo Alto CLEAN was a solar rate. Council Member Burt recalled that the Palo Alto CLEAN program was a program with renewables, with the first year limited to commercial solar. He asked why biogas was not allowed to participate in Palo Alto CLEAN. Mr. Abendschein stated that the prices and the commitments as set forth in the Resolution could be called the Palo Alto CLEAN rate. Council Member Burt inquired whether they were the same rate as Palo Alto CLEAN. Mr. Abendschein stated the only rate in the Palo Alto CLEAN program was a solar FINANCE COMMITTEE DRAFT EXCERPT MINUTES rate. Any rate set for Palo Alto CLEAN was different for a base load resource. There was also a built-in incentive in the Palo Alto CLEAN rate. Staff was hesitant to include any energy incentives, and requested Council direction on that. Council Member Burt believed the earlier discussion anticipated that the Wastewater Treatment Plant was a prospective customer, and inquired whether Staff's comments alluded to that. Mr. Abendschein indicated it was one possibility. Some project configurations used a considerable amount of energy, in which case they wanted to use their energy. Staff wished to provide that flexibility. Council Member Burt reported the cleanest utilization of gas was fuel cells. The California Energy Commission created the emerging renewables program with strong incentives for small wind and fuel cells. He asked if someone was eligible to use those rebates based on wattage produced. Mr. Abendschein explained the rebates were fairly high for fuel cells because the capital investment was very high. They were not eligible for the State rebate levels. The incentives were very high for a utility with a small rate base to try to maintain. Council Member Burt requested Staff explain why they were not eligible for State rebates. Mr. Abendschein reported they were not eligible for State rebates because they were not an investor-owned utility service territory; they were in Palo Alto's service territory. Council Member Burt inquired whether they could get the same rebates through Palo Alto. Mr. Abendschein answered no. The high rebate levels were sustained by a very large investor-owned utility rate base. MOTION: Vice Mayor Scharff moved, seconded by Chair Shepherd to recommend the City Council; 1) Adopt a Resolution (Attachment A) approving the Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities; and, 2) Adopt a Resolution (Attachment B) modifying Utilities Rules and Regulation 2 (Definitions and Abbreviations) and the six electric rate schedules covering medium and large commercial customers (E-4 and E-7) to include standby service charges. FINANCE COMMITTEE DRAFT EXCERPT MINUTES Vice Mayor Scharff did not believe incentives should be included. Chair Shepherd wanted to ensure a measurement of energy transitioned and used was maintained. Council Member Burt supported the recommendation, but wished to have a better understanding of the ramifications of scenarios prior to it being presented to the full Council. MOTION PASSED: 3-0 Price absent City of Palo Alto (ID # 3314) Finance Committee Staff Report Report Type: Action Items Meeting Date: 12/18/2012 City of Palo Alto Page 1 Summary Title: Standby Rate and Policy for Energy Purchase from Potential Waste to Energy Facility Title: UAC Recommendation that the Finance Committee Recommend that Council Adopt Two Resolutions: 1) Approving the Policy Pertaining to the Purchase of Energy from a Potential Green Waste-to-Energy Facility and 2) Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee recommend that Council: 1. Adopt a resolution (Attachment A) approving the Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities; and 2. Adopt a resolution (Attachment B) modifying Utilities Rules and Regulation 2 (Definitions and Abbreviations) and the six electric rate schedules covering medium and large commercial customers (E-4 and E-7) to include standby service charges. Executive Summary In January 2013 the Public Works Department is planning to seek Council approval of a request for proposals (RFP) for a waste-to-energy facility at the Regional Water Quality Control Plant or at an adjacent site designated for that purpose by Measure E, which passed in November 2011. The biogas produced at such a facility could be used in a variety of ways, and staff has introduced the attached resolutions to clarify the City of Palo Alto Utilities’ (CPAU’s) policies so potential proposers have more certainty about which uses are acceptable and economic for a given project. The proposed policy states that: City of Palo Alto Page 2 i. CPAU will purchase the energy at the market prices prevailing when the contract is signed, but the policy also commits CPAU to a minimum purchase price of 7.7 cents per kilowatt-hour (¢/kWh). This default rate is a “no regrets” rate that represents CPAU’s forecasted avoided costs in 2018 based on a plausible scenario in which CPAU’s expenses for renewable energy and transmission have decreased substantially from current planning assumptions. The default rate is a minimum rate, and CPAU will purchase at prevailing market prices if they are higher. ii. The energy could be used to reduce the facility’s purchases from the utility, subject to CPAU standby power rates. iii. The proposer may sell the energy to another utility outside of Palo Alto, subject to a wheeling agreement with CPAU. iv. The policy also states that the City will not allow proposers to inject biogas into the City’s gas distribution system. The second resolution adopts the electric standby rate mentioned above. A standby rate recovers the cost to the utility of providing backup service to customers who own their own generators. Customers with renewable generators smaller than 1 MW that are sized to meet customer load rather than to export to the grid (like most rooftop solar systems) are exempt from the standby rates, as required by California Public Utilities Code 2827(g). Background In January 2013 the Public Works Department is planning to seek Council approval of an RFP for a waste-to-energy facility (referred to as the Energy/Compost Facility, or E/C Facility) at the Regional Water Quality Control Plant (RWQCP) or at an adjacent site designated for that purpose by Measure E, which passed in November 2011. Biogas produced by these types of facilities is used in a variety of ways. It can be used to generate electricity, cleaned up and used as a vehicle fuel, or injected into a gas pipeline for delivery to customers. If electricity is generated it can be used on site, sold to the utility where the project is located, or sold to a different utility. CPAU currently has no policies related to injection of biogas into its gas distribution system, and has not reviewed its policies related to on-site electric generation or moving electricity across its distribution system in several years. Staff has reviewed its policies in order to develop the attached proposal. Discussion Staff has identified three primary ways the biogas from a waste-to-energy facility could potentially be used: 1) the gas could be injected into the gas distribution system, 2) the gas could be used in compressed natural gas (CNG) vehicles, and 3) the gas could be burned in a gas generator to make electricity. Utilities in California are only beginning to experiment with injecting biogas into a gas distribution system. Given the safety issues involved in operating a City of Palo Alto Page 3 gas distribution system, the corrosive nature of biogas, and CPAU’s small size and limited resources, staff recommends against exploring the first alternative at this time. A CNG fueling station, on the other hand, is a potentially viable alternative, but one that could be done by the project developer independently from CPAU and, therefore, does not require any analysis by CPAU. Therefore, the proposed Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities mainly addresses CPAU policies regarding electricity generation. Electricity generated at an E/C Facility could be used in three ways: 1) The electricity could be used on site to supply the energy needs of the facility itself; 2) It could be sold to CPAU; or 3) If requested by the proposer, it could be sold to a utility outside of Palo Alto. Option 1: On-site Electricity Use If the electricity were to be used on site, it would result in reduced energy purchases from CPAU for the RWQCP or the E/C Facility itself. CPAU’s interconnection rules and rates do not prohibit this, but they are not written to facilitate it either. The proposed policy states that on- site use is an acceptable use for the electricity, and that CPAU will make any necessary changes to its rates and rules and regulations to facilitate this. The primary necessary change is the adoption of a standby rate to recover the utility’s costs associated with providing backup service. The resolution in Attachment B modifies the rate schedules for large and medium commercial electric customers to include these rates. The proposed standby rates are designed to recover the cost to maintain the CPAU distribution system to serve peak customer load, as well as the cost of maintaining reserve generating capacity to provide energy when needed by the customer. For medium and large commercial customers these costs are recovered through the demand charge. When a customer’s load is served by an on-site generator, the generator reduces the customer’s metered demand, and the utility is not able to recover its cost to maintain the distribution system or provide generating capacity. Therefore, the proposed standby rate is designed to recover these costs through a monthly charge. The standby rate recovers the entire distribution component of the demand charge, which pays for the cost of maintaining the distribution system to serve peak customer load. It also recovers a portion of the commodity component of the demand charge, which pays for generation costs related to providing reserve generating capacity. Only a portion of the commodity demand charge is recovered because the customer is providing their own generating capacity. The portion of the commodity demand charge assessed reflects the cost of maintaining reserve generating capacity for the customer that conforms to California Independent System Operator (CAISO) reserve requirements. City of Palo Alto Page 4 Under the proposed standby rate the customer would pay a monthly charge for backup service based on the smaller of the generator size or the customer’s peak load for the month. In developing the rate, staff surveyed fourteen other California utilities, and this rate design is the same as the rate design used by the majority of those other utilities. Table 1, below, shows the proposed standby rate and compares it to the retail demand charge for each customer class. The standby rate is lower, but this relates to the fact that the customer is only charged a portion of the commodity component of the retail demand charge, as discussed above. Table 1: E-4 and E-7 Standby Rates and Retail Demand Charges Standby Rate ($/kW) Retail Demand Charge ($/kW) E-4 (Medium Commercial) Summer 15.92 20.54 Winter 9.67 13.84 E-7 (Large Commercial) Summer 13.39 18.97 Winter 6.76 11.54 The standby charge will also include an exemption for renewable generators smaller than 1 MW, an exemption that is mandated by California Public Utilities Code 2827(g). To qualify, the generator must be sized to meet the customer’s load, delivering no more than incidental surplus energy to the grid. Residential and commercial solar systems built under the utility’s PV Partners program are examples of the types of generators that qualify for this exemption. Solar systems built under the Palo Alto CLEAN program would not be subject to the standby charge because they are not intended to serve on-site load, and therefore do not reduce the customer bill. The proposed standby rate would apply to the following six electric rate schedules: 1. E-4 (Medium Commercial) 2. E-4 TOU (Medium Commercial Time of Use Service) 3. E-4-G (Medium Commercial Green Power Service) 4. E-7 (Large Commercial) 5. E-7 TOU (Large Commercial Time of Use Service) City of Palo Alto Page 5 6. E-7-G (Large Commercial Green Power Service) Staff does not believe a standby rate is necessary for E-2 (Small Commercial) or E-1 (Residential) customers at this time, since customers this size would typically install renewable generators that would be exempt from standby rates. Gas generators for small customers are not typically economically feasible in Palo Alto. In addition, because the E-2 and E-1 rate schedules do not have a demand rate, additional analysis would be required to establish these standby rates. Staff validated its rate design by calculating sample customer bills using actual customer data, and then applied eleven other utilities’ standby rates to the same customer data to see how they compared. Staff measured the ratio of the customer’s bill with self-generation to the customer’s bill without self-generation under each rate schedule, and found that the ratio for the CPAU rate was close to the median ratio for the other eleven utilities’ rates. Since other California utilities have similar cost structures, staff believes this provides additional industry- supported data that validates the proposed rate. The attached resolution also includes non-substantive cleanup to the six affected rate schedules, which includes clarifying language incorporating a change in the term “power factor penalty” to “power factor adjustment.” These changes will not affect operation of the rate schedule. Option 2: Electricity Sales to CPAU Generally, CPAU buys renewable energy by soliciting proposals from suppliers and selecting the best projects. That competitive procurement process ensures that the City pays the lowest price for renewable energy. Staff expects that CPAU will have an ongoing need to execute new contracts for renewable energy in the future as existing contracts start to expire beginning in 2021, leaving room for additional renewable energy in the electric portfolio. The current timeline for the E/C Facility and Biosolids Facility projects involves the facility or facilities beginning operation in 2018 or 2019. Due to the uncertainty associated with energy markets, CPAU does not enter into contracts for renewable energy commencing more than 3-4 years out. However, in order to evaluate the E/C and Biosolids facilities, the City will need to establish a price it would pay for the renewable energy produced from the facilities. This price will be used by vendors who respond to the E/C Facility RFP. Since the sale of energy is expected to be a significant revenue source for most E/C Facility designs, the sale price of the electricity will affect the fees the vendors will propose to charge the City for waste disposal. City of Palo Alto Page 6 If proposal states that CPAU will pay market price for the electricity, the uncertainty of this price could lead to the possibility that individual vendors will use different numbers to develop their proposals in response to Public Works’ RFP. In the interest of providing some level of certainty around the energy price, staff proposes that CPAU commit to purchasing the energy at a default, “no regrets” rate of 7.7 ¢/kWh. The default price represents the City’s avoided cost of locally sited renewable energy in 2018 under the following reasonable, but low cost (“no regrets”), scenario: 1) Solar energy prices continue to drop substantially. Staff used recent projections of solar energy prices from the National Renewable Energy Laboratory and the Rocky Mountain Institute to develop these estimates; 2) The renewable energy market is favorable to buyers, as it is currently; 3) CPAU has built a second transmission line that enables it to avoid Low Voltage Transmission Charges imposed by PG&E; and 4) All other avoided cost components use the current CPAU planning assumptions. The proposed policy states that if, at the time the facility is built, the market value of local renewable energy is less than 7.7 ¢/kWh, CPAU would still pay the default rate of 7.7 ¢/kWh. If, however, the market value of local renewable energy is higher than 7.7 ¢/kWh, CPAU would pay the market value determined at the time. Option 3: Electricity Sales to Another Utility Though CPAU will purchase the electricity from the project at market prices, it is possible, though unlikely, that the proposer would be able to find another utility willing to pay more for the electricity produced by the project. In this case CPAU would negotiate an agreement with the proposer to facilitate transporting the energy across its distribution system to the PG&E transmission system. Commission Review and Recommendation The UAC discussed the proposed Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities at its September 5, 2012 meeting and recommended unanimously that Council adopt the policy. The minutes from that meeting are provided as Attachment E. The UAC also discussed the proposed standby rates at its November 7, 2012 and December 5, 2012 meetings. The minutes from those meetings are provided as Attachments F and G. Commissioners had questions about how the rate would operate and its applicability to the City of Palo Alto Page 7 proposed E/C Facility project and to other types of projects. At its December 5, 2012 meeting, the UAC recommended approval of the rate (6-0, Hall absent). Timeline Staff anticipates requesting City Council adoption of the proposed resolutions in January 2013. This will enable the Public Works department to incorporate the policies into its RFP, which is anticipated to be released in February 2013. Resource Impact Adopting the resolutions approving this policy and the standby rate will have minimal resource impact, but if a customer takes service under the standby rate schedule, additional staff time will be necessary to set up the metering required and to implement the rate in the billing system. Staff time is estimated to be less than 0.1 FTE and would be absorbed with existing staff. Equipment requirements would depend on the site in question and would be recovered through applicable connection fees. Policy Implications To properly evaluate the value of onsite generation, customers need certainty regarding the City’s rate structure, and by providing that certainty the staff recommendation is consistent with Long-term Electric Acquisition Plan (LEAP) Strategy #4, Local Generation, which states “promote and facilitate the deployment of cost-effective local resources.” Environmental Review The adoption of the resolution adopting an energy purchase policy does not meet the Environmental Quality Act’s definition of a “project” under Public Resources Code 21065, and the adoption of the resolution setting standby service charges does is not subject to CEQA review under Public Resources Code Section 21080(b)(8) (modification of rates to meet operating expenses, purchase supplies, meet financial reserve needs, obtain capital project funds, or obtain funds for charter-authorized intracity transfers). Attachments:  Attachment A: Resolution Adopting a Policy Regarding Purchase of Energy from Waste to Energy Facilities (PDF)  Attachment B: Resolution Amending Six Rate Schedules for Medium and Large Commercial Customers to Add Standby Charges (PDF)  Attachment C: Proposed Utilities Rule and Regulation 2 (Definitions and Abbreviations) (PDF) City of Palo Alto Page 8  Attachment D: Proposed Utility Rate Schedules E-4, E-4TOU, E-4G, E-7, E-7TOU and E-7G (PDF)  Attachment E: Excerpted Final UAC Minutes of 10-3-12 (PDF)  Attachment F: Excerpted Draft Minutes of the UAC 11-07-12 Meeting (PDF)  Attachment G: Draft Excerpted UAC Minutes of 12-5-12 (PDF) *NOT YET APPROVED* 121128 dm 00710078 Resolution No. Resolution of the Council of the City of Palo Alto Adopting a Policy Pertaining to the Purchase of Energy from Potential Green Waste-to-Energy Facilities A. On November 3, 2011, the Palo Alto voters approved Measure E, which undedicated 10 acres of existing parkland in Byxbee Park (the “Measure E Site”) for the exclusive purpose of evaluating the development of an Energy/Compost facility, which could potentially process yard trimmings, food waste, sewage sludge, and other organic material.” B. The City is proceeding with a long-term planning process related to the future of the regional Water Quality Control Plant. C. The City plans to evaluate various alternative types of waste to energy facilities at those sites. As part of this process, proposals will be solicited from project developers. D. The City in order to properly evaluate the various alternatives and solicit proposals from developers intends to adopt a policy pertaining to the use of the energy generated by the facility or facilities. The Council of the City of Palo Alto (“City”) does RESOLVE as follows: SECTION 1. It is the policy of the City to provide a range of alternatives for the use of energy generated by a potential waste-to-energy facility at the regional Water Quality Control Plant and the Measure E Site. These alternatives may include, but are not limited to, compressed natural gas vehicle fueling or electricity generation. Electricity generated may be 1) used by the facilities on the Measure E site or the regional Water Quality Control Plant, which would reduce the amount of electricity supplied by the City’s electric utility to those facilities, 2) sold to the City’s electric utility for distribution to customers, or 3) sold to an entity outside of the City’s electric utility service area. SECTION 2. To enable this policy the City will evaluate its Utilities Rules and Regulations and Utility Rate Schedules to determine whether changes are advisable or required to enable these alternatives. SECTION 3. It is the policy of the City to provide an optional default purchase price for energy from a waste-to-energy project, commencing in calendar year 2018. This default purchase price will be equal to the City’s forecasted avoided cost in 2018 based on a scenario in which the City’s avoided cost of electricity compares favorably to its current costs. The default purchase price is 7.7 ¢/kWh for electricity from a project certified by the California Energy Commission (CEC) as an Eligible Renewable Energy Resource for the purpose of fulfilling Renewable Portfolio Standard goals. “Renewable Portfolio Standard” refers to the standard adopted by the State of California pursuant to Senate Bill 2 1st Extraordinary Session (SBX1 2, *NOT YET APPROVED* 121128 dm 00710078 Chapter 1, Statutes 2011-12), and California Public Utilities Code Sections 399.11through 399.31, inclusive, as may be amended, setting minimum renewable energy targets for local publicly owned electric utilities. SECTION 4. It is the policy of the City not to consider the injection of biogas associated with a waste-to-energy project into its gas distribution system at this time. SECTION 5. The Council finds that the adoption of this Resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Asst. City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services *NOT YET APPROVED* 121115 dm 6051819 1 Resolution No. _________ Resolution of the Council of the City of Palo Alto Amending Utilities Rule and Regulation 2 (Definitions and Abbreviations) and Utility Rate Schedules E-4 (Medium Commercial Electric Service), E-4 TOU (Medium Commercial Electric Time of Use Service), E-4G (Medium Commercial Green Power Electric Service), E-7 (Large Commercial Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service), and E-7G (Large Commercial Green Power Electric Service), to Include Standby Service Charges The Council of the City of Palo Alto RESOLVES: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 2 (Definitions and Abbreviations) is amended as attached and incorporated. This Utilities Rule and Regulation shall become effective on February 5, 2013. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedules E-4 (Medium Commercial Electric Service), E-4 TOU (Medium Commercial Electric Time of Use Service), and E-4G (Medium Commercial Green Power Electric Service), E-7 (Large Commercial Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service), and E-7G (Large Commercial Green Power Electric Service), are amended as attached and incorporated. These utility rate schedules shall become effective as of February 5, 2013. SECTION 3. Adoption of this resolution to add standby service charges to the six above- referenced electric rate schedules has no effect on the other non-standby-related rates shown on those rate schedules, nor on any of the City’s other electric rates. SECTION 4. The Council finds that the rates adopted by this resolution are not special taxes because they are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and which do not exceed the reasonable costs to the City of providing the service or product. SECTION 5. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8) because the amended rates adopted by this resolution are necessary to recover the costs of maintaining the City Electric Utility’s distribution system to // // // // *NOT YET APPROVED* 121115 dm 6051819 2 serve peak customer load, as well as the costs of maintaining reserve generating capacity to provide energy when needed by customers. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Sr. Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 1 A. ABBREVIATIONS AMR - Automated Meter Reading AER - Advance Engineering Request Btu - British Thermal Unit ccf - Hundred Cubic Feet CEC - California Energy Commission CPAU - City of Palo Alto Utilities CPUC - California Public Utilities Commission. DA - Direct Access ERU - Equivalent Residential Unit ESP - Energy Service Provider FERC - Federal Energy Regulatory Commission GDA - Gas Direct Access GSP - Gas Service Provider GSPA - Gas Service Provider Agreement kVar - Kilovar kVarh - Kilovar-hours kW - Kilowatt kWh - Kilowatt-hour MW - Megawatt MMBtu - One million Btus. NEC - National Electric Code, Latest Version NRTL - Nationally Recognized Testing Laboratory PAMC - Palo Alto Municipal Code PSIG - Per square inch gauge PST - Pacific Standard Time RWQCP - Regional Water Quality Control Plant UUT - Utilities Users Tax DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 2 B. GENERAL DEFINITIONS Account The identification number in CPAU’s billing system for Utility Services. Agency Any local, county, state or federal governmental body or quasi-governmental body, including, without limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board, commission or council of the City. Applicant An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following: 1. Electric Service 2. Water Service 3. Gas Service 4. Wastewater Collection 5. Refuse and Recycling Collection 6. Storm and Surface Water Drainage Service 7. Fiber Optics Service Or, an entity submitting an Application for Interconnection pursuant to Rule 27. Application (for Interconnection of Generating Facilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility. Bidweek Price Index The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” under the column “avg.” for the calendar month. Billing Period Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is approximately 30 days, with variations occurring due to staff availability, holiday scheduling, field verification of Meter readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill.. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 3 British Thermal Unit Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000 Btu. Business Day Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. Certification Test A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs. Certification; Certified; Certificate The documented results of a successful Certification Test. Certified Equipment Equipment that has passed all required Certification Tests. Charge Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligations for Service. Charter The Charter of the City of Palo Alto. City Attorney The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney. City’s Collector The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection, removal and disposal of solid waste and Recyclable Materials pursuant to one or more written contracts with the City. City Manager The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of Title 2 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 4 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Manager. City of Palo Alto, or City The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the term “City” may include services provided by both the City of Palo Alto Utilities Department and the City of Palo Alto Public Works Department. City of Palo Alto Public Works Department (Public Works) The City Department responsible for providing Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage Utility Services. Other Utility Services such as Water, Gas, Electric, Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department. City of Palo Alto Utilities Department (CPAU) The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic Utility Services. Other Utility Services such as Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department. Code The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code. Commercial Service Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and industrial Customers. The term also applies to Utility Services through Master Meters serving multi-family Residential dwellings and common areas of multi-family facilities. Compostable Materials Organic materials designated by the City as acceptable for collection and processing. Cubic Foot of Gas (cf) The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot. Curtailment The act of reducing or interrupting the delivery of natural Gas. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 5 Customer The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s). Dark Fiber A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters, receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic activation is provided by the reseller or end-user. Dark Fiber Infrastructure Components of the CPAU Fiber Optic Distribution System required to provide Service to Customers (licensees), that are attached, owned, controlled or used by the City, located overhead or underground within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties. Dedicated Distribution Transformer A Distribution Transformer that is dedicated to serving a single premise. Demand The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specified within a monthly billing cycle). Demand Charge An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute a Demand Charge component of a Customer’s Electric bill. Demarcation Point The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services. Direct Access (DA) The election by a Customer to procure its Gas Supply Services, from an Energy Service Provider, other than DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 6 CPAU. In this situation, a Customer deals directly with an ESP for commodity supply, while distribution and applicable transmission services would continue to be provided by CPAU. Direct Access Service Request (DASR) The form required to initiate Direct Access Service. Distribution Services Includes, but is not limited to, Utility Service provided by the Distribution System and other Services such as billing, meter reading, administration, marketing, and Customer Services. Does not include Services directly related to the Interconnection of a Generating Facility as per Rule 27. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto. The Electric Distribution System transmits power from the City’s Interconnection with PG&E to CPAU’s Meter located on the Customer’s Premises. The Gas Distribution System transports Gas from PG&E receiving stations to CPAU’s Meter located on the Customer Premises. The Water Distribution System transports Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on the Customer Premises. The Wastewater Collection System transports sewage from the Customer’s Premises to the Water Quality Control Plant. Distribution and Transmission Services Services provided by CPAU to effect the physical delivery of Energy Services provided by the Energy Services Provider from the Point of Receipt to the Direct Access Customer’s Service Address. Effluent Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall. Electric, Electric Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of generation, transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of Palo Alto Utilities Department. Emergency An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 7 Emergency Service Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same. Energy Services Energy commodity and any applicable ancillary Services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value added Services associated or related to the Provision and/or usage of energy commodity. Equivalent Residential Unit (ERU) This is the basic unit for computing storm and surface water drainage fees. All single-family Residential properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedule D-1, according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft. Fiber Optic, Fiber Optic Service A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto Utilities Department is referred to as Dark Fiber. Fiber Optic Backbone The high-density portion of the Dark Fiber Infrastructure installed and owned by the City. Force Majeure The occurrence of any event that has, had or may have an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is beyond the reasonable control of the parties and which event includes, but is not limited to, an Act of God, an irresistible superhuman cause, an act of a superior governmental authority, an act of a public enemy, a labor dispute or strike or a boycott which could not be reasonably contemplated by the City or Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods, earthquakes, or any other similar cause. Full Service; Fully Bundled Service Provision by CPAU of both Distribution and Transmission Services and Energy or Gas Commodity Services to its Customer(s). Function Some combination of hardware and software designed to provide specific features or capabilities. Its use, as DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 8 in Protective Function, is intended to encompass a range of implementations from a single-purpose device to a section of software and specific pieces of hardware within a larger piece of equipment to a collection of devices and software. Gas Any combustible Gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning. It shall include, but not be limited to, natural Gas, Gas manufactured from coal or oil, Gas obtained from biomass or from landfill, or a mixture of any or all of the above. Gas, Gas Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of procurement, transmission, and distribution of Gas for retail use. Gas Service is provided by the City of Palo Alto Utilities Department. Gas Direct Access (GDA) The election by a Customer to procure its natural Gas, and related natural Gas Services, from a Gas Service Provider, other than CPAU. In this situation, a Customer obtains natural Gas commodity directly from a GSP, but local transmission of the natural Gas commodity is effectuated by CPAU in accordance with the terms of CPAU’s Natural Gas Service Agreement with PG&E. Also, Distribution Services would continue to be provided by CPAU. Gas Direct Access Service Request (GDASR) The form required to initiate Gas Direct Access Service. Gas Service Provider (GSP) The Person who procures, schedules, nominates and arranges transport of natural Gas to Gas Direct Access Customers, including its successors and assigns. Gas Service Provider Agreement (GSPA) The contract between CPAU and the Gas Direct Access Customer’s Gas Service Provider that establishes the terms and conditions under which Gas Services may be provided to the Gas Direct Access Customer. Generating Facility All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the purpose of producing Electric power. This includes a solar or wind turbine electrical generating facility that is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation 29. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 9 Generator A device converting mechanical, chemical or solar energy into electrical energy, including all of its protective and control Functions and structural appurtenances. One or more Generators comprise a Generating Facility. Gross Nameplate Rating; Gross Nameplate Capacity The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Initial Review The review by CPAU, following receipt of an Application, to determine the following: (a) whether the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements. Inspector The authorized Inspector, agent, or representative of CPAU. Interconnection; Interconnected The physical connection of a Generating Facility in accordance with the requirements of the City’s Utilities Rules and Regulations so that Parallel Operation with CPAU’s Distribution System can occur (has occurred). Interconnection Agreement An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City’s Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement, and the Power Purchase Agreements authorized by the City Council may be considered as Interconnection Agreements for purposes of defining such term. Interconnection Facilities The electrical wires, switches and related equipment that are required in addition to the facilities required to provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or provided separately. Interconnection Study DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 10 A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution System. Internet Exchange Any Internet data center for telecommunications equipment and computer equipment for the purposes of enabling traffic exchange and providing commercial-grade data center services. Interstate Transportation (or Transmission) Transportation of Gas on a pipeline system under the regulation of the FERC. Island; Islanding A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the remainder of CPAU’s Distribution System. Junction A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communication cables. Junction Site The area within the Transmission Pathway at which a Junction is located. Kilovar (kVar) A unit of reactive power equal to 1,000 reactive volt-amperes. Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate of Kilovar. Kilowatt (kW) A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard unit of billing for electrical energy. Law DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 11 Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order, ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or Public Works Customers, including, without limitation, any regulation or order of an official or quasi- official entity or body. Licensed Fibers One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive use of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber Services Agreement and the Utilities Rules and Regulations. Licensed Fibers Route A defined path of Licensed Fibers that is identified by specific End Points. Load(s) The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time, normally 15 minutes or the quantity of Gas required by a Customer at its Service Address, measured in MMBtu per Day. Main Wastewater Line Any Wastewater line not including a building connection (Service) sewer. Master-metering Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. Maximum Generation For a customer with a non-utility generator located on the customer’s side of the Point of Common Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum average generation in kilowatts taken during any 15-minute interval in that billing period provided that in case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Meter The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 12 Water delivered to the Customer. Metering The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in kVar at a point, and its display to CPAU as required by Rule 27. Metering Equipment All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering. Meter Read The recording of usage data from Metering Equipment. Minimum Charge The least amount for which Service will be rendered in accordance with the Rate Schedule. Momentary Parallel Operation The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less. Nationally Recognized Testing Laboratory (NRTL) A laboratory accredited to perform the Certification Testing requirements under Rule 27. Net Energy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s Electric utility Distribution System and the electricity generated by the customer-generator’s facility and delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period. Net Generation Metering Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator. Net Nameplate Rating The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 13 Non-Islanding Designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non-Islanding. Occupied Domestic Dwelling Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a Person or Persons. Parallel Operation The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected. For the purpose of this Rule, Parallel Operation includes only those Generating Facilities that are Interconnected with CPAU’s Distribution System for more than 60 cycles (one second). Performance Test, Performance Tested After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of each Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance Specifications. Performance Specifications These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain reflectometer data plots that identify the light optical transmission losses in each direction along the leased fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers for singlemode Fiber, as a Function of distance, measured in kilometers. Person Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form of business association. PG&E Citygate The PG&E Citygate is the point at which PG&E’s backbone transmission system connects to PG&E’s local transmission system. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 14 Point of Common Coupling (PCC) The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors of the Producer. Point of Common Coupling Metering Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no host load. Point of Delivery (POD) Unless otherwise specified, the following definitions apply: For Electric, that location where the Service lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the POD is at the weather-head connection; for under-ground Services, the POD is located at the terminals ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the City delivers natural Gas that it has transported to the Customer. Point of Interconnection The electrical transfer point between a Generating Facility and the Distribution System. This may or may not be coincident with the Point of Common Coupling. Point of Receipt The designated location at which CPAU receives Gas supplied by a GSP on behalf of a GDA Customer. The Point of Receipt for Gas will be designated in the GSPA. Point of Service (POS) Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service, this is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location established at the time of installation. Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground and used or useful in supplying Electric, communication, or similar or associated Service. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 15 Power Factor The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce distribution system losses caused by low Power Factor. Power Factor Adjustment CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and may make a Power Factor Adjustment to a Customer’s bill to account for those costs and the additional energy costs and losses incurred by CPAU due to the Customer’s low Power Factor. Premises All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway. Primary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or greater than 1000 volts. Producer The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own or operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection Agreement. Proposal for Dark Fiber Services A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber licensing fees, term of the Service, and summary of licensed Fiber elements. Protective Function(s) The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other Functions) whose purpose is to protect against Unsafe Operating Conditions. Provision DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 16 Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or otherwise controls, establishes, or limits the performance required or permitted by any party. Prudent Utility Practices The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic manner. Public Right-of-Way The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse and recycling or communications commodity and/or distribution Service, and the means of public transportation, to the general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters, lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways. Public Utility Easements The areas occupied or used by the City for the purpose of providing Utility Service to the general public, and all related Services offered by the City’s Utilities Department and/or Public Works Department, the rights of which were acquired by easements appurtenant or in gross, or are other interests or estates in real property, or are the highest use permitted to be granted by the nature of the City’s interest in and to the affected real property. This term incorporates all public Service easements for Utility Services that have been recorded by the City with the Recorder of the County of Santa Clara, California. Public Works Department See City of Palo Alto Public Works Department. Rate Schedule One or more Council-adopted documents setting forth the Charges and conditions for a particular class or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service, applicability, territory, rates, conditions, and references to Rules. Recyclable Materials Materials designated by the City as acceptable for recycling collection and processing. Reserved Capacity DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 17 For a customer with one or more non-utility generators located on the customer’s side of the Point of Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Residential Service Utility Service provided to separately metered single family or multi-family, domestic dwelling. Rules and Regulations See Utilities Rules and Regulations Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas, Electric power and energy. Secondary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000 volts. Service(s) Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater Collection services provided by the Utilities Department (CPAU); and Refuse and Recycling, Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department. Service Address The official physical address of the building or facility assigned by CPAU’s Planning Department, at which Customer receives Utility Services. Service Charge A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The Charge is intended to recover a portion of certain fixed costs. Service Drop The overhead Electric Service conductors from the last pole or other aerial support to and including the splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 18 of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the building or other structure to and including the termination box. Services or Service Lines Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of Delivery to the Customer. Service Territory The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of the CPAU. Short Circuit (Current) Contribution Ratio (SCCR) The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to CPAU’s system. Simplified Interconnection An Interconnection conforming to the minimum requirements as determined under Rule 27, Section I. Single Line Diagram; Single Line Drawing A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered. Special Facilities See CPAU’s Rule and Regulation 20 governing Special Facilities. Splice A point where two separate sections of Fiber are physically connected. Standard Refuse Container A Standard Refuse Container shall have the meaning described in the Palo Alto Municipal Code. A Standard Container shall also include a wheeled container with a capacity of not to exceed 32 gallons. Standby Service DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 19 Back-up Energy Services provided by CPAU. Storm and Surface Water Drainage Utility Service provided to residents and business owners in the City of Palo Alto. Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department. Supplemental Review A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; or (c) cost and schedule for an Interconnection Study. System Integrity The condition under which a Distribution System is deemed safe and can reliably perform its intended Functions in accordance with the safety and reliability rules of CPAU. Tax Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by any Agency, including the City. Telemetering The electrical or electronic transmittal of Metering data in real-time to CPAU. Temporary Service Service requested for limited period of time or of indeterminate duration such as, but not limited to, Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service. Therm A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon dioxide or nitrogen lower the Therm factor. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 20 Transfer Trip A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by CPAU. Transmission Pathway Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in which the Dark Fiber Infrastructure is located. Trap Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer Gas from a main line through a building connection (service) sewer. Underground Utility District An area in the City within which poles, overhead electric or telecommunication wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC. Unintended Island The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without the approval of CPAU. Unsafe Operating Conditions Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System Integrity or operation outside pre-established parameters required by the Interconnection Agreement. Utilities Department See City of Palo Alto Utilities Department. Utilities Director The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director of utilities. Utility(ies) Rules and Regulations, Rules and Regulations The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2012 2-5-2013 Sheet No 21 Alto Municipal Code, as amended from time to time. Utility(ies) Service(s), Service(s) Electric, fiber optics, water, gas, wastewater collection services provided by the City of Palo Alto Utilities Department (CPAU) and Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage services provided by the City of Palo Alto Public Works Department. Utilities User Tax (UUT) City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges, Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code. Wastewater Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo Alto Public Works Department. Water Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided by the City of Palo Alto Utilities Department. Water Column (WC) Pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi. Yard Trimmings Yard Trimmings means those materials defined in Section 5.20.010 of the Palo Alto Municipal Code. (END) MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-1 dated 7-1-2009 Sheet No E-4-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with a Maximum Demand below 1,000 kilowatts. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand- metered services, as determined by the City. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-2 dated 7-1-2009 Sheet No E-4-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such customers between the hours of noon and 6 pm on weekdays. 4. Power Factor For new or existing customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill will include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment will be applied to a customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the customer’s load was less than 95%. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-3 dated 7-1-2009 Sheet No E-4-3 The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any City of Palo Alto full- service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. MEDIUM COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-4 dated 7-1-2009 Sheet No E-4-4 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-1 dated 7-1-2009 Sheet No E-4-TOU-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with Demand between 500 and 1,000 kilowatts per month and who have sustained this level of usage for at least three consecutive months during the most recent 12 month period. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered services, as determined by the City. In addition, this rate schedule is applicable for customers who did not pay Power Factor penalties Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $3.12 $8.96 $12.08 Mid-Peak 1.99 5.65 7.64 Off-Peak 1.13 3.26 4.39 Energy Charge (per kWh) Peak $0.10963 $0.03242 $0.00321 $0.14526 Mid-Peak 0.05617 0.01623 0.00321 0.07561 Off-Peak 0.04298 0.01218 0.00321 0.05837 Winter Period Demand Charge (per kW) Peak $2.77 $5.10 $7.87 Off-Peak 1.49 2.94 4.43 Energy Charge (per kWh) Peak $0.07003 $0.02296 $0.00321 $0.09620 Off-Peak 0.04088 0.01313 0.00321 0.05722 MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-2 dated 7-1-2009 Sheet No E-4-TOU-2 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein.. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-3 dated 7-1-2009 Sheet No E-4-TOU-3 3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 4. Power Factor PenaltyAdjustment Time of Use customers must not have had a Power Factor penalty Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor penaltyAdjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor penaltiesAdjustments, the Customer will be removed from the E-4- TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 5. Changing Rate Schedules Customers electing to be served under E-4 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-4 dated 7-1-2009 Sheet No E-4-TOU-4 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-TOU-5 dated 7-1-2009 Sheet No E-4-TOU-5 (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-1 dated 7-1-2009 Sheet No E-4-G-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for Customers with a Maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green plan. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered Services, as determined by the City. B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: (1000 kWh block option): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.08171 Palo Alto Green Charge (per 1000 kWh block) 15.00 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.07318 Palo Alto Green Charge (per 1000 kWh block) 15.00 (100% Renewable Green option): Commodity Distribution Public Benefits Palo Alto Green Total Summer Period Demand Charge (per kW) $5.31 $15.23 $20.54 Energy Charge (per kWh) 0.06083 0.01767 0.00321 0.0150 0.09671 Winter Period Demand Charge (per kW) $4.80 $9.04 $13.84 Energy Charge (per kWh) 0.05281 0.01716 0.00321 0.0150 0.08818 MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-2 dated 7-1-2009 Sheet No E-4-G-2 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter, which does not reset after a definite time interval, may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-3 dated 7-1-2009 Sheet No E-4-G-3 4. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill will include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment will be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full-service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 6. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-4 dated 7-1-2009 Sheet No E-4-G-4 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-4-G-5 dated 7-1-2009 Sheet No E-4-G-5 the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-1 dated 7-1-2009 Sheet No E-7-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Service for commercial Customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (kW) $6.42 $12.55 $18.97 Energy Charge (kWh) 0.05662 0.01825 0.00321 0.07808 Winter Period Demand Charge (kW) $5.50 $6.04 $11.54 Energy Charge (kWh) 0.04990 0.01898 0.00321 0.07209 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-2 dated 7-1-2009 Sheet No E-7-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Request for Service Qualifying Customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays. 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-3 dated 7-1-2009 Sheet No E-7-3 Customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-4 dated 7-1-2009 Sheet No E-7-4 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.4) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-1 dated 7-1-2009 Sheet No E-7-TOU-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Service for commercial customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. In addition, this rate schedule is applicable for customers who did not pay Power Factor penalties Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $4.24 $8.25 $12.49 Mid-Peak 2.06 4.13 6.19 Off-Peak 1.17 2.06 3.23 Energy Charge (per kWh) Peak $0.07029 $0.02296 $0.00321 $0.09646 Mid-Peak 0.05867 0.01901 0.00321 0.08089 Off-Peak 0.04870 0.01567 0.00321 0.06758 Winter Period Demand Charge (per kW) Peak $3.04 $3.38 $6.42 Off-Peak 1.59 1.68 3.27 Energy Charge (per kWh) Peak $0.05617 $0.02142 $0.00321 $0.08080 Off-Peak 0.04663 0.01767 0.00321 0.06751 LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-2 dated 7-1-2009 Sheet No E-7-TOU-2 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-3 dated 7-1-2009 Sheet No E-7-TOU-3 3. Request for Service Qualifying customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 5. Power Factor PenaltyAdjustment Time of Use customers must not have had a Power Factor penalty Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor penaltyAdjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor penaltiesAdjustments, the Customer will be removed from the E-7- TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 6. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-4 dated 7-1-2009 Sheet No E-7-TOU-4 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt- ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-TOU-5 dated 7-1-2009 Sheet No E-7-TOU-5 Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-1 dated 7-1-2009 Sheet No E-7-G-1 A. APPLICABILITY: This schedule applies to Demand metered Service for large commercial Customers who choose Service under the Palo Alto Green plan. A Customer may qualify for this rate schedule if the Customer’s Maximum Demand is at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: (1000 kWh block option): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $6.42 $12.55 $18.97 Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.07808 Palo Alto Green Charge (per 1000 kWh block) 15.00 Winter Period Demand Charge (per kW) $5.50 $6.04 $11.54 Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.07209 Palo Alto Green Charge (per 1000 kWh block) 15.00 (100% renewable green option): Commodity Distribution Public Benefits Palo Alto Green Total Summer Period Demand Charge ( per kW) $6.42 $12.55 $18.97 Energy Charge (per kWh) 0.05562 0.01825 0.00321 0.0150 0.09308 Winter Period Demand Charge (per kW) $5.50 $6.04 $11.54 Energy Charge (per kWh) 0.04990 0.01898 0.00321 0.0150 0.08709 LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-2 dated 7-1-2009 Sheet No E-7-G-2 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-3 dated 7-1-2009 Sheet No E-7-G-3 4. Request for Service Qualifying Customers may request Service under this schedule for more than one account or one meter if the accounts are at one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor penaltyAdjustment”, if applicable. The penalty adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor penalty Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-4 dated 7-1-2009 Sheet No E-7-G-4 7. Palo Alto Green Participation Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green plan. Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. 8. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed; provided, however, the City is not required to supply Service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's Electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a discount hereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 9. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 2-5-2013 Supersedes Sheet No E-7-G-5 dated 7-1-2009 Sheet No E-7-G-5 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} EXCERPTED FINAL MINUTES OF THE OCTOBER 3, 2012 UTILITIES ADVISORY COMMISSION MEETING ITEM 1: ACTION: UAC Recommendation that Council Adopt a Resolution Approving the Continuation of the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program Public Comment: Craig Lewis, representing the CLEAN Coalition, stated that the Palo Alto CLEAN has had no takers so far, but that the program could be tweaked to be successful. The CLEAN Coalition had hoped when the program started that property owners rather than developers would develop and own projects, eliminating the need for a lease payment. He said the price offered seems to have been too low and developers and that property owners were not attracted by the rate of return from a project in Palo Alto. He believed property owners would be more interested in leasing their rooftops to a third party developer. He stated that the lease payment to building owners translates to a 3 cent/kilowatt-hour (₵/kWh) increase in price so that a price of 17 ₵/kWh or higher would be required to get local solar projects. He recommended implementing a Volumetric Price Adjustment (VPA) whereby non-participation in the program over some period of time (e.g. a month) would result in an automatic increase in the price until participants were attracted. Resource Planner Jon Abendschein provided a summary of the written report. He stated that the City has supported local solar photovoltaic (PV) system installations since 1999 and the PV Partners program has resulted in the City being one of the top utilities nationwide for PV system installations. Abendschein stated that, despite a large amount of interest, the CLEAN program has not had any participants, primarily because the PV Partners is a more cost- effective option for most facilities and the returns for CLEAN program are insufficient. Abendschein explained the staff recommendation is to extend the program at the current 14 ₵/kWh price, eliminate the 100 kW minimum size, and ramp up efforts to market the PV Partners program. Since the program was evaluated last year, and the price was set at 14 ₵/kWh, the City's projection of the avoided cost has fallen to 11.6 ₵/kWh so that additional cost to ratepayers is $158,000 per year. Abendschein explained that the alternatives to the recommendation were considered and included increasing the price, lowering the price, or eliminating the program. Increasing the price would increase the cost to ratepayers, while lowering the price would not result in any participation. He also stated that staff had examined other types of renewable energy sources, but did not find any other energy sources aside from solar that were viable in Palo Alto aside from City-owned sources that could be developed without a CLEAN program. Commissioner Melton said that originally the program had been priced at the City's avoided cost, but now the price was 20% higher than the avoided cost. He asked what the City’s pricing policy was, and at what price would the cost of the program be too high compared to the City’s avoided cost. He did not want the program to entirely lose its relationship to avoided costs. Director Valerie Fong stated that the City Council had been comfortable with a small premium over avoided cost when the program was adopted, but had not provided specific policy direction on the maximum acceptable premium. Commissioner Eglash asked how many PV systems had been installed in Palo Alto since the CLEAN program had been adopted. Abendschein stated that there had been from 25-50 systems installed in residences, but he did not have the exact numbers. Commissioner Eglash said that many people were continuing to install solar even without Palo Alto CLEAN. He said the goal was not to have a feed-in tariff (FIT) simply to have a FIT. It was to stimulate solar development. He said the PV Partners program was economically more attractive and that solar was being installed at a healthy rate even without Palo Alto CLEAN. That implied that Palo Alto CLEAN was obsolete and unnecessary. He said the cost of solar was falling substantially, and 3rd party developers were offering excellent prices. He was against raising the price, but he was happy leaving the program operating as it was if it did not cost much to maintain it. Commissioner Waldfogel asked what the equivalent cost of the PV Partners program was. Abendschein said the avoided cost was the same, but if PV Partners were translated into a FIT price it would be equivalent to 20-24 ¢/kWh. PV Partners was a State mandated program, however. Commissioner Waldfogel asked whether the size of the PV Partners program was also a State mandate. Abendschein said it was. Vice Chair Foster asked who paid for the PV Partners program. Director Fong stated the City did. Vice Chair Foster asked whether it was better to have people participating in PA CLEAN or PV Partners, since PV Partners was more expensive. Director Fong stated that PA CLEAN participation would not relieve the City of its SB1 obligation, which the PV Partners program fulfilled. Abendschein added that even if customers chose to participate in Palo Alto CLEAN, the PV Partners capacity would still be available. Vice Chair Foster asked how much the Brannon Solar project factored into the avoided cost calculation. Abendschein said it was a small part of the calculation. Vice Chair Foster asked whether the staff recommended program would allow people to fund solar on each other’s roofs if they chose to. Abendschein said the funding source was not important as long as they sold the energy to the City. Vice Mayor Scharff asked what it would cost to continue the program. Abendschein said the staff time involved in maintaining the program without marketing it was minimal, but that the staff proposal had involved some staff time for marketing which would be absorbed by existing staff. Utility Marketing Services Manager Joyce Kinnear said that Key Account Representatives, who market the City’s programs, including energy efficiency, would spend time on marketing Palo Alto CLEAN, which would replace some of the time they spent marketing other programs like energy efficiency. Commissioner Foster stated that the program is an innovative program. The City should be doing it and would like to see an increase in the price to get more participation. He was not sensing much support for that proposal, so he would support the staff recommendation. He would be opposed to eliminating the program. Chair Cook thanked the CLEAN Coalition for support, but would not want to move much further away from the avoided cost. He would support the staff recommendation, but would want to review it again at some point in time, rather than have the program continue indefinitely. Commissioner Melton remarked that the goal is to increase the amount of renewable power generated within city limits, so he supported continuing the program despite the small increase in price. ACTION: Vice Chair Foster made a motion to support staff's recommendation. Melton seconded the motion. Commissioner Eglash offered a friendly amendment to review the program in one year. Vice Chair Foster and Commissioner Melton accepted the amendment. Commissioner Waldfogel asked if the failure of the program could be attributed to a marketing shortcoming. Abendschein said it was a matter of expanding the marketing to the specific customers who the program would work for. Commissioner Waldfogel stated that he believed that anyone who was eligible for the program had already heard about the program and had determined it was not worthwhile. He was uncomfortable continuing to spend money to market the program. Vice Chair Foster said that some level of marketing should exist as not all have heard of the program and it is being expanded to more customers. The motion passed by a vote of 5-1 with Commissioner Waldfogel voting no. EXCERPTED DRAFT MINUTES OF THE NOVEMBER 7, 2012 UTILITIES ADVISORY COMMISSION MEETING ITEM 1: PRESENTATION: Presentation on Standby Electric Rates for the City’s Energy/Compost Facility Resource Planner Jon Abendschein gave a presentation on standby rates. He stated that utilities generally have standby electric rates so that customers who have on-site generators pay for their reliance on backup power provided by the utility. Most utilities have a standby rate, but the City of Palo Alto Utilities (CPAU) has not needed to have one due to a lack of previous proposals to develop large or non-renewable generators. Renewable generators smaller than one megawatt (MW) are exempt from standby rates under State Law. The Public Works Department, however, was seeking proposals for its Energy/Compost (E/C) Facility project, which could involve on-site generation, and would need to know the CPAU standby rate in order to evaluate proposals. Abendschein stated that the standby rate is designed to recover distribution system costs, generating capacity costs, and billing and administrative costs. The costs the standby rate was intended to recover were part of the demand charges in the E-4 and E-7 retail rate schedules, and the standby charge would be designed to recover all of the distribution system demand charge and the portion of the generation demand charge related to providing reserve generating capacity. Staff expected to propose a rate based on the generator size, and had calculated a preliminary standby rate for E-7 customers of $13.51/kW in the summer billing periods and $6.86/kW in the winter. Abendschein gave an example calculation of a customer bill for a customer with an on-site generator. He noted that with no standby rate, the utility would not recover costs unless the generator had an outage during the month, and that cost recovery would be irregular, dependent on the frequency of generator outages. With a standby rate the customer’s share of the utility’s costs were properly collected each month regardless of outages. He also showed that the proposed rate was in-line with those of other California utilities. Commissioner Foster asked who this rate was needed for, and whether it was only necessary for the Energy/Compost Facility. Abendschein stated that it would apply to any non-renewable generator or large renewable generator in Palo Alto, but that the Energy/Compost Facility was the only project he was currently aware of that might involve such a facility. Commissioner Foster asked Abendschein to summarize why the rate was necessary. Abendschein stated that the rate was necessary for the utility to recover its costs associated with providing standby service. The State prohibited CPAU from recovering those costs for small renewable generators, but the rate was still necessary for other generators. Commissioner Hall asked whether the standby rate would provide an incentive for a customer to build their own gas-fired generator to reduce their electric bill. Abendschein stated that the rate was designed to recover the utility’s costs and was not an incentive. He stated that gas- fired generators were unlikely to be cost-effective due to the low electric rates compared to the CPAU gas rates. Commissioner Waldfogel asked if the rate could be avoided if the customer built more than 1 MW of on-site generation capacity but used multiple renewable generators, keeping each generator smaller than 1 MW. Abendschein said he believed the State’s exemption applied to the total generation behind the customer meter, not each individual generator, so the rate could not be avoided under that scenario. Commissioner Waldfogel then asked how the reduced customer load would affect the CPAU RPS requirements. Assistant Director, Resource Management Jane Ratchye stated that CPAU’s RPS requirements were based on sales, so the reduced customer load would reduce the RPS requirement some. Commissioner Waldfogel also asked what would happen if the generator ran infrequently in a month, asking whether the customer would be charged both the standby rate as well as the applicable retail demand rate. Abendschein said the customer would pay only one or the other, not both. Commissioner Melton asked whether staff had reviewed both investor-owned and publicly- owned utilities’ rates when developing the rate. Abendschein said staff had surveyed large and small publicly-owned utilities’ rate schedules as well as Pacific Gas and Electric’s (PG&E’s) rate. Commissioner Melton asked whether staff had reviewed the CPUC rules applicable to PG&E and related to standby rates and asked whether there were any that should be incorporated into the CPAU rates and policies. Abendschein said he had looked at PG&E's rate and found it very complex. He said it included some features not necessary for CPAU’s rate schedule, but that there were some other features he had incorporated. Staff had done a comprehensive review of State regulations as well. Commissioner Melton then asked would this rate would be an incentive for customers to install gas-fired generation like Bloom Energy fuel cells to avoid the City's electric charges. Abendschein stated that since fuel cells ran on natural gas they were unlikely to be cost-effective due to the low electric rates compared to the CPAU gas rates. Fuel cells were also relatively high cost solutions and were currently dependent on significant rebates and incentives in other utilities’ territories. Commissioner Hall asked whether the E/C Facility developer could the market the power outside the City. Abendschein said that it is possible, but unlikely. Commissioner Hall asked whether staff had conceived of a situation in which part of the E/C Facility output was used on site and the remainder was exported. Abendschein said that the owner would pay the standby charge for the portion of the output used on site and a wheeling charge for the remainder. EXCERPTED DRAFT MINUTES OF THE DECEMBER 5, 2012 UTILITIES ADVISORY COMMISSION MEETING ITEM 1: ACTION: Recommendation that Council Adopt a Resolution Amending Utility Rule and Regulation 2 (Definitions and Abbreviations) and the Six Rate Schedules Covering Medium and Large Commercial Customers (E-4 and E-7) to Include Standby Service Charges Chair Cook stated that the UAC received a presentation and had a discussion at its last meeting and had few questions at the time. After receiving confirmation from the other commissioner, he requested that commissioners commence with any questions and that there was no need for the prepared presentation. Commissioner Waldfogel stated that the rate being proposed is highly technical in nature and that the UAC may not have fully understood all of its details, but is being asked to weigh in on the rate. Director Fong stated that the details are in the rate schedule, but noted that the UAC does rely on the descriptions of the rate provided by staff in the report. Vice Chair Foster asked if anyone would be on the proposed standby rate now. Resource Planner Jon Abendschein stated that the first project that could be under the rate would be the waste to energy facility that is being evaluated by the Public Works Department. Director Fong stated that any customers with large generators would be subject to the rate. Abendschein added that he does receive calls from time to time from customers who are considering adding a generator on their site. ACTION: Commissioner Waldfogel moved to support the staff's recommendation. Vice Mayor Foster seconded the motion. The motion carried unanimously (6-0) with Commissioner Hall absent. City of Palo Alto COLLEAGUES MEMO January 28, 2013 Page 1 of 1 (ID # 3492) DATE: January 28, 2013 TO: City Council Members FROM: Mayor Scharff, Council Member Klein SUBJECT: COLLEAGUES MEMO FROM MAYOR SCHARFF AND COUNCIL MEMBER KLEIN TO ADD A 4TH MEMBER TO THE COUNCIL’S COMMITTEE ON INFRASTRUCTURE Draft Motion: I move that the Infrastructure Committee be a Brown Act committee composed of four Council Members, appointed by the Mayor. Background Per Council Motion the membership of the Council’s committee on Infrastructure is presently limited to three Council Members. Given the importance of this subject we believe this should be increased to four Council Members. We hope you will agree. We also wish to clarify that the Infrastructure Committee will be a Brown Act committee. City of Palo Alto (ID # 3494) City Council Staff Report Report Type: Action Items Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: RFP Scope of Services for Downtown Cap Study Title: Review and Input Regarding Scope of Services for Downtown Cap Study Request for Proposals and Direction Regarding Public Outreach and Input (Staff requests this item be continued to February 11, 2013) From: City Manager Lead Department: Planning and Community Environment Staff recommends the City Council continue the Downtown Development CAP Request for Proposal (RFP) Scope of Work item to the February 11th regular meeting. The continuation will allow the Council to consider the Downtown Development CAP RFP within the context of an overall visioning process for the Downtown Area and 27 University site, which will also be discussed on the same agenda date. City of Palo Alto (ID # 3491) City Council Staff Report Report Type: Action Items Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: City Council Retreat Agenda and Materials for Council Approval Title: Discussion and Adoption of the Agenda for the City Council’s Annual Retreat on February 2, 2013 for the Possible Purposes of: (a) Setting the Council’s Priorities with Action Steps for 2013; (b) Discussion and Possible Action on Core Principles and Guiding Values; (c) Discussion and Possible Action on Meeting Management and the Length of Council Meetings; and (d) Other Potential Topics as Determined by the Council. From: City Manager Lead Department: City Manager Recommendation Staff recommends that the Council review and approve an agenda for the City Council Retreat to be held on February 2, 2013 (Draft included as Attachment A). Background On December 17, the City Council adopted the following process to be used at the Council’s Annual Retreat to identify the 2013 Council Priorities: 1. Establish a two member committee consisting of Council Member Klein and Council Member Schmid to work with the City Manager’s Office to group the Council priority suggestions into categories for use at the retreat, including information on items potentially actionable in 2013 in each category. 2. During the first hour of the retreat each Council Member would have a chance to talk for six minutes advocating and clarifying his or her priorities and placing any of them in a different category if he or she so chooses. At the end of the hour, Council Members would be free to change or delete any of their priorities; and 3. During the second hour, Council Members would work to refine each of the remaining categories and identify those specific actions that could be accomplished during the City of Palo Alto Page 2 current year. At the end of the hour there would be a rank order voting with a goal to narrow to three priorities for 2013. The City Manager, working with Council Member Klein and Council Member Schmid, grouped the individual Council priority suggestions into categories and staff provided input on items potentially actionable in 2013 in each category. The draft list of potential council priorities and potential action items is included as Attachment B. The guidelines specify that staff is to collect and organize the Council recommended priorities into a list and provide to the Council no later than two weeks in advance of the 2013 Retreat. Staff is providing the list 10 days in advance of the retreat to coincide with the posting and distribution of packets for the Council meeting on January 28 and the discussion on the working agenda. Previously, on October 1, 2012, the City Council approved the Council Priority Setting Guidelines included as Attachment C. The guidelines define a Council priority and lay out the purpose, process and general parameters for annual priority setting. Consistent with these guidelines, staff received input on recommended priorities from Council members and community members included as Attachment D and E respectively. Also included in this staff report as background material for the Council’s discussion at the retreat is a list of the previous Council priorities from 2002 to 2012 (Attachment F), and an update on the status of 2012 Council priorities and action items (Attachment G). Discussion The City Council will conduct their annual Council Retreat at the Art Center on Saturday, February 2, 2013 from 9:00 am-2:00 pm. Gathering for coffee and bagels begins at 8:30 a.m. There were specific directives from Council of what to include at the retreat (which includes the Council decision on January 22, 2013 to refer Council Meeting Management to the retreat for up to an hour for discussion and possible action). There have also been some suggestions which individual Council Members have made and a proposal from the Finance Committee. The staff is including all of these for decisions at this point, to allow for structuring an agenda in advance of the retreat itself, to maximize use of the Council’s time at the retreat. 1. Section 3.1 of the Council’s Protocols and Procedures states that “at the beginning of each legislative year the Council will hold a special meeting to review the Council protocols, adopted procedures for meetings , the Brown Act, conflict of interest and other important procedural issues.” The Council, in the past, has often discussed this at its retreat. Q: Does the Council want to add this item to the retreat agenda as part of the Meeting Management Item or schedule for a regular Council Meeting? 2. At its December 4, 2012 meeting, the Finance Committee voted to “direct the City Manager and Mayor to bring to the annual Council retreat whether to refer to the Finance Committee consideration of dedicating certain revenue streams to certain infrastructure projects.” This was partly in response to an update related to increased revenues from the Transient Occupancy Tax (TOT). City of Palo Alto Page 3 Q: Does the Council want to add this item to your Retreat Agenda or schedule it for a regular Council Meeting, or make that decision at your meeting tonight? 3. Other topics for suggestion for possible consideration at the retreat (time may be a factor) is whether the Council wants to schedule a mid-year retreat and/or discuss the 2013 Council schedule (summer recess, winter break and first meeting of 2014). Q: Does the Council wish to discuss either of these issues at the retreat? Before making your decision, please refer to the Draft Working Agenda (Attachment A) to see if there is adequate time to add any of these items. Item 1 relating to Protocols etc., is suggested to be included in the Meeting Management agenda slot. Items 2 and 3 would need to be added to the agenda (Other Items). Draft Motion: I move approval of the Council Retreat agenda, included as Attachment A to the staff report, for the City Council Retreat to be held on February 2, 2012. Alternate Motion: I move approval of the working agenda, amended as follows: Alternate Motion 2: I move referral of the following suggested agenda topics to a future Council meeting for discussion and action: Attachments:  Attachment A. Council Retreat Draft Working Agenda (PDF)  Attachment B. Categories and Action Item (PDF)  Attachment C. Priority Setting Guidelines (PDF)  Attachment D. City Council Recommended 2013 Priorities (PDF)  Attachment E. Community Recommended 2013 Council Priorities (PDF)  Attachment F. Previous Council Priorities (PDF)  Attachment G. 2012 Council Priorites Update (PDF) Attachment A. Council Retreat Draft Working Agenda                City Council Retreat  Special Meeting    February 2, 2013  Palo Alto Art Center  1313 Newell Rd. Palo Alto, CA 94303  9:00 a.m. ‐ 2:00 p.m.      Draft Working Agenda  Working Schedule     1. Breakfast/Gathering 8:30 a.m.  2. Mayor Welcome/Overview to Day  9:00 a.m.  3. 2013 Council Priorities and Action Items  a. Process foundation (5 minutes)  b. Individual's nominees (55 minutes – six minutes per Council member)   c. Public comment (10‐20 minutes)                                                                         9:10 a.m.  Break   10:30 a.m.  d. Final individual regrouping of nominees by category (5 minutes)  e. Possible action steps under each of the categories (30 minutes)  f. Formal votes and approval (15 minutes – rank or ballot vote)    Working Lunch 12:00 p.m.  4. Guiding Principles/Core Values (set up a future session) 12:15 p.m.  5. Meeting Management  12:35 p.m.  6. Other Items?? 1:35 p.m.  7. Wrap and Next Steps 1:50 p.m.  8. Meeting Adjourned 2:00 p.m.    Attachment B. Draft List of Potential 2013 Council Priorities & Potential Action Items    Page 1  1/24/2013    The City Council established a two member committee consisting of Council Member Klein and  Council Member Schmid to work with the City Manager to group the individual Council priority  suggestions into categories for use at the 2013 Council retreat, including information on items  potentially actionable in 2013 in each category. At the retreat each Councilmember will have a  chance to explain/clarify his or her priorities and place any of them in different category if he or  she so chooses. The Council may also refine categories and/or create new categories at the  retreat.    The Potential Action Items beneath each Category have been generated by staff and are meant  to be illustrative and not exhaustive.  Category: Downtown & Parking  Councilmember Input  1. Land Use and Transportation, with an Emphasis on Parking (Berman)  2. The Future of Downtown (Burt)  3. Downtown/Commercial Development Cap (Holman)  4. Downtown (Klein)  5. Traffic and Downtown Parking Issues (Kniss)  6. Build a Parking Garage (Scharff)  7. Investigate the Impacts of Rapid Commercial Growth (Schmid)  Potential Action Items  1. Downtown Cap Study  2. Finance Options for Parking Structures  3. Downtown Parking Studies (includes RPP Assessment)  4. 27 University Avenue   5. Downtown Post Office  6. Ground Floor Overlay: Expand ground floor (GF) retail restrictions to Emerson Street and  evaluate other related actions   7. Future of the Roth Building   8. Police will continue to staff the Downtown Detail with two police officers to manage traffic,  homeless issues and have a visible presence in the downtown area  Category: Infrastructure  Councilmember Input  1. Infrastructure Improvements (Berman)  2. Infrastructure Strategy and Funding (Burt)  3. Infrastructure (Klein)  4. Funding and Planning for Infrastructure Improvements, Including New Facilities (Price)  5. Infrastructure Strategy and Funding ‐ Revenue Measure (Shepherd)     Attachment B. Draft List of Potential 2013 Council Priorities & Potential Action Items    Page 2  1/24/2013    Potential Action Items  1. Mitchell Park Library & Community Center opening  2. Potential 2014 Infrastructure Finance Measure (progress towards decision)  3. Cubberley Community Center (Community process completion; lease decision)  4. Public Safety Building: Potential public‐private partnership (395 Page Mill Project?)  5. Municipal Services Center Facilities Study   6. Bicycle and Pedestrian Transportation Plan  7. Newell Street Bridge  8. Golf Course Renovation  9. Energy Compost Facility  10. Main Library   11. Waste Water Treatment Master Plan  12. Completion of water storage reservoir, new well, and park improvements at El Camino  Park.  13. Achieve conceptual agreement with all parties on a second transmission line connection to  Palo Alto.  14. Completion of the gas pipeline and sewer inspection safety “crossbore” program.  15. City Street Repair Program  Category: Technology & the Connected City  Councilmember Input  1. Technology Innovation (Burt)  2. Technology (Klein)  3. Technology (Scharff)  4. Connecting in Multiple Ways: Transit, Shuttle, Internet, Fiber to the Premises, etc.  (Shepherd)  Potential Action Items  1. Technologies for Improved Service Delivery  2. Wi‐Fi Deployment at Cogswell Plaza  3. Community Apps Challenge & Palo Alto Mobile App  4. Virtual Library Branch  5. Dark Fiber network and Fiber to the Premises  6. Feasibility Study on Municipal Wi‐Fi   7. Emerging Technology Program   8. Wireless Communications (DAS)  9. Infrastructure Management System (IMS)  10. Design Commercial Customer Connect (smart meter) pilot program to complement the  recently approved Residential CustomerConnect pilot program for 300 residential  customers  11. Implement new Utilities emergency outage management system  12. Emergency Services: Silicon Valley Resilient Network: solar‐powered WiFi to keep  community connected after a major earthquake, etc.  13. New Computer Aided Dispatch System with the cities of Mountain View and Los Altos    Attachment B. Draft List of Potential 2013 Council Priorities & Potential Action Items    Page 3  1/24/2013    14. New Records Management System with Los Altos and Mountain View   15. Implement FLIR Thermal Imaging Cameras in the Foothill’s to create early warning &  notification of fires (Fire)  Category: Livability & Urban Design  Councilmember Input  1. Walkable Streets, Livable Neighborhoods (Holman)  2. Increase Resident and Visitor Enjoyment of our Commercial Areas (Scharff)   3. Assure that the Cities Commercial Sites are Vibrant and Attractive (Schmid)  Potential Action Items  1. Design Competition for the Highway 101 Pedestrian/Bicycle Overpass Project  2. 2012 Bicycle and Pedestrian Transportation Plan  3. Comprehensive Plan update  4. California Avenue Streetscape   5. California Avenue/Fry’s Area Concept Plan  6. Rinconada Park Long‐Range Plan   7. Art policy: Private Commercial Developments  Category: Healthy Community   Councilmember Input  1. Healthy City/Healthy Community (Holman)  2. Community Collaboration for Youth Well Being (Price)  3. Grow HSRAP Funding by 10‐20% (Schmid)  Potential Action Items  1. Stanford Funding Agreement Funding for Community.  2. Automated External Defibrillators (AED) Program  3. Bicycle and Pedestrian Plan  4. Buena Vista Mobile Home Park   5. HSRAP Grant Program   6. Healthy Staff/Healthy Community Policy   7. Project Safety Net  Category: Other (no alignment)  Councilmember Input  1. City Finances (Berman)  2. Misuse of the PC (Kniss)  3. Quality of Life  (Kniss)  4. Environmental Sustainability (Price)  5. Public‐private Partnerships (Shepherd)     Attachment B. Draft List of Potential 2013 Council Priorities & Potential Action Items    Page 4  1/24/2013    Potential Action Items  Environmental Sustainability:  1. Stanford Funds for Sustainability  2. Sustainability Planning & Staff Reorganization  3. Carbon Neutral Plan   4. PaloAltoGreen Program  5. Palo Alto CLEAN  6. Renewable Portfolio Standard Goals  7. Recycled Water Project  8. Light‐Emitting Diode (LED) Street Light Conversion  9. Residential Trash Pilot program   City Finances:  1. Explore Options on New Employee Benefit Structures  2. Cost of Service Study  3. Alternative Service Delivery  4. PEPRA Clean‐up Legislation  Public‐Private Partnerships:  1. 395 Page Mill Road (Jay Paul): Potential Public‐Private Partnership for Public Safety  Building.  2. Arts and Innovation District/27 University  Planned Community Zoning:  1. Economic Evaluations of Projects: Evaluate cost‐benefits of Planned Community zoning and  specific “public benefits” in large projects    City of Palo Alto  City Council Priority Setting Guidelines  Approved by City Council: October 1, 2012 Last revised: October 1, 2012 Background The City Council adopted its first Council priorities in 1986. Each year the City Council reviews it’s priorities at its Annual Council Retreat. On October 1, 2012 the City Council formally adopted the definition of a council priority, and the Council’s process and guidelines for selection of priorities. Definition A Council priority is defined as a topic that will receive particular, unusual and significant attention during the year. Purpose The establishment of Council priorities will assist the Council and staff to better allot and utilize time for discussion and decision making. Process 1. Three months in advance of the annual Council Retreat, staff will solicit input from the City Council on the priorities to be reviewed and considered for the following year. a. Council members may submit up to three priorities. b. Priorities should be submitted no later than December 1. c. As applicable, the City Manager will contact newly elected officials for their input by December 1. d. The City Clerk will provide timely notice to the public to submit proposed priorities by December 1. The Policy and Services Committee shall recommend to the Council which suggestions if any shall be considered at the City Council retreat. 2. Staff will collect and organize the recommended priorities into a list for Council consideration, and provide to Council no less than two weeks in advance of the retreat. 3. The Policy and Services Committee, each year at its December meeting, shall make recommendations about the process that will be used at the Annual Retreat paying particular attention to the number of priorities suggested by Council members. The recommended process is to be forwarded to Council for adoption in advance of the Council retreat. Guidelines for Selection of Priorities 1. There is a goal of no more than three priorities per year. 2. Priorities generally have a three year time limit. $WWDFKPHQW & City of Palo Alto  City Council Priority Setting Schedule    Last Updated: 8/17/201 $WWDFKPHQW & Attachment D. City Council Recommended 2013 Council Priorities Date Name Priority Area Councilmember Burt 1. Infrastructure Strategy and Funding 2. Technology Innovation 3. The Future of Downtown Councilmember Price 1. Funding and Planning for Infrastructure Improvements (including new facilities)  2. Environmental Sustainability 3. Community Collaboration for Youth Well Being Councilmember Holman 1. Healthy City/Healthy Community 2. Walkable Streets, Livable Neighborhoods 3. Downtown/Commercial Development Cap Councilmember Klein 1. Infrastructure 2. Technology 3. Downtown Councilmember Scharff 1. Build a Parking Garage 2. Increase Resident and Visitor Enjoyment of our Commercial Areas 3. Technology Councilmember Schmid 1. Investigate the Impacts of Rapid Commercial Growth 2. Assure that the Cities Commercial Sites are Vibrant and Attractive 3. Grow HSRAP Funding by 10‐20% Councilmember Shepherd 1. Connecting in Multiple Ways: Transit, Shuttle, Internet, Fiber to the Premises (FTTP) etc.  2. Public‐private Partnerships 3. Infrastructure Strategy and Funding (revenue measure) Councilmember Elect Berman 1. Infrastructure Improvements 2. Land Use and Transportation, with an Emphasis on Parking 3. City Finances Councilmember Elect Kniss 1. Misuse of the PC 2. Traffic and Downtown Parking Issues 3. Quality of Life   City Council Recommended Priorities Page 1 of 1 January 3, 2013   Councilmember Burt    The following recommendations are intended to follow the new Council adopted Priority Setting  Guidelines. I have tried to avoid terms that are subjects, for example   “Infrastructure”. Instead the  Guidelines suggest topics that and will receive “particular, unusual and significant attention” should be  achievable within three years or less, such as “Infrastructure Strategy and Funding”. At the same time,  the Priorities should not be as specific as actions or plans.   In addition, I believe that it remains important for the Council to state our enduring “Core Values” (or  Guiding Principles) as a community. These values have comprised the majority of what the Council has  defined as Priorities in recent years. By establishing our new Guidelines, the Policy and Services  Committee has moved the Council toward more clear and meaningful actual Priorities, but we have not  included discussion of the purpose and importance of defining our core community values. Clearly,  these lasting values are important the past and present Councils and the community. Consequently,  included is a separate set of prospective values. I hope that we will have part of our discussion at the  January retreat on this subject and either act upon the Core Values or agendize the subject for future  consideration.   Recommended Priorities:  1. Infrastructure Strategy and Funding  a. This has been the top Council priority over the past year, even though it was not  officially defined as a Priority. The need to re‐build our aging infrastructure and  adequately invest in its maintenance has been the subject of Council initiatives for over  15 years (and resulted in a $10 Million per year Infrastructure Management Plan).  However, our current goal is the large task of developing a strategy and funding sources  for major remaining infrastructure needs.      2. Technology Innovation  a. Use of technology in city government is not new, nor will it end in three years. However,  including it as a priority is intended to identify it as an area of ‘particular and significant  attention’ over the next three years. Consistent with the vision of the City Council and  City Manager, we have already begun a focused program of transforming our use of  technology to improve efficiency and reduce costs, improve service, and conserve  resources.        3. The Future of Downtown  a. The council and staff have recently discussed a variety of important and converging  downtown issues including; neighborhood parking, parking garages, traffic, the  development cap, downtown TDM programs, the and the 27 University/Intermodal  Center Master Plan. We have already recognized that most of these issues will be  emphasized in the coming 1‐2 years.  Core Values:   1. Sustainable City Finances  2. Emergency Preparedness  3. Environmental Sustainability  4. Youth Well Being  5. Valued Quality of Life    Councilmember Price  While I recognize that all of the priorities we have recently chosen (for 2012) have merit, I believe some  of them will naturally occur as a participant of the work plan for next year.  For example, I do not believe we need a heading Land Use and Transportation since so many of these  issues are constantly brought to us for our review and action. Our current committees support  important project and policy work in land use, transportation, and housing. Many City sponsored  projects are underway and several public private partnership options are being examined.   Also, City Finances is an ongoing and critical part of local government. I do not believe this needs to be  detailed as a separate priority since it is a key participant of supporting and implementing local  government.   City Council Priorities for 2013  Rather than have a very broad framework and many focus areas, I think focusing on three areas makes it  possible to make more progress in each area. More progress and examination would yield better and  more important results for the community.   Within this framework, I propose the following three areas:   1. Funding and Planning for Infrastructure Improvements (including new facilities)   With the results of the Infrastructure Blue Ribbon Commission and several presentations to City Council,  this focus area would continue work that has begun. A critical timetable has also already been  established in preparation for a potential bond measure, including examining of various potential  revenue sources and public private partnerships. The problem statement and needs have been clearly  identified. This broader effort will require concerted effort and work by many departments, the Council,  and the community.   2. Environmental Sustainability  While this concept should be integrated into all that we do, the monitoring of our progress across  departments is still needed. We need to be more explicit about our progress while identifying areas of  further work and promise. Many of the items within this current focus area have been completed but  additional work needs to be identified. The work on additional collaborations with business, technology,  and academic institution still needs refinement, for example.   3. Community Collaboration for Youth Well Being  With the recent hire of a Project Safety Net manager, PSN work continues to be more collaborative and  focused. While significant progress has been made there is much that needs to be expanded and  coordinated to ensure stronger work in education about mental health, suicide prevention, and youth  well being.  Many milestones have been achieved: establishment of MOUs with provider organizations, educational  and community‐based groups, the PSN structure, the PSN Report identifying initiatives and actions that  need to be accomplished and strategic planning work.   The retention of this focus area is important because it notes the significance, concern, and value of this  work in the community. This focus area also supports additional partnerships and collaborations and  options for funding to further the work. It sends a clear message and call to action about the mental  health and well‐being of our youth.       Councilmember Holman    1. Healthy City/Healthy Community   http://www.enotes.com/healthy‐communities‐reference/healthy‐communities    Examples of actions Council might pursue:    a. Adopt a Healthy City/Healthy Community policy  b. Identify and pursue opportunities to expand HSRAP funding  c. Incorporate Compassionate Communities programs    2. Walkable Streets, Livable Neighborhoods    Examples of actions could include:    a. Increase sidewalk widths to meet El Camino Real Design Guidelines and Grand  Boulevard Initiative & Principals  b. Strengthen development standards to deliver buildings that better relate to the street  through frequent building entrances, windows, etc. as described in LEED‐ND and the  Grand Boulevard Initiative  c. Evaluate incorporation of such project components as increased public spaces, canopy,  community gardens, and art    3. Downtown/Commercial Development Cap    Examples of what is known or assumed to be included:    a. Complete the Development Cap Study  b. Incorporate study of Ground Floor Retail protections  c. Incorporate update of parking standards and requirements     Councilmember Klein    1. Infrastructure. By this I mean acting on the IBRC report, readying ourselves for a possible  2014 revenue measure for infrastructure and the various items we refer to as Cubberley.    2. Technology. We talk a lot about using technology to enhance the City’s job performance  and its ability to interact with our citizens but we have yet to develop an overarching  technology plan. Items we could engage under this rubric: Should we have a 311 plan or its  equivalent? Is it time for us to go a Smart Grid System? Should we have an official  Innovation Program in the City Manager’s Office?    3. Downtown. We are going to be studying the parking problem downtown and the square  footage cap and we’re going to consider what’s appropriate at 27 University. This priority  would include those issues but also ask and try to answer broader questions such as: What  do we see as Downtown’s future? What do we want Downtown to look like from a strictly  architectural standpoint? Could we—or should we‐‐ underground the railroad tracks and  thus expand Downtown?      Councilmember Scharff  1. Build a Parking Garage. Address the downtown parking issues by committing to build a  parking garage where it will do the most good.     a. We have an additional 7.6 million going to the infrastructure Reserve Fund.  This  combined with the money in the parking fund allows us to build a parking garage if we  so choose.  b. This garage would not have to be encumbered by Parking Assessment rules and the City  could choose to permit it to draw the maximum number of cars out of the  neighborhoods.  The City would have a free hand to determine how best to do this.  This  would open up a lot of possibilities on how to address the parking issues.    2. Infrastructure.  This has been a defacto priority and should be a formal priority until we  accomplish the goals that we started with the Blue Ribbon Task Force.    3. Increase Resident and Visitor Enjoyment of our Commercial areas. Possible thoughts as to  how to accomplish this:    a. Phase out non‐conforming non‐retail uses  b. Protect existing retail uses  c. Expand Ground Floor retail uses in mixed use areas  d. Build retail linkages and corridors to the SOFA area  e. Extend a Percent for Art Policy to non‐municipal projects  f. Look at sidewalk widths and uses  g. Look at making King Plaza a vibrant area with Food Trucks or outside cafe with tables  and chairs like a European plaza  h. Look at sidewalk widths and uses  i. Encourage public spaces and the use of public spaces, e.g. free wifi hot spots with tables    4. Technology. Identify areas of the City that technology could be used to:    a. Increase productivity  b. Save money or resources (sustainability)  c. Increase transparency  d. Increase residence convenience or quality of life  e. More efficiently use existing resources (i.e. parking)      Councilmember Schmid  1. Investigate the impacts of rapid commercial growth  Potential Actions:  Complete the update of the Development Cap, including the areas directly abutting the  Downtown; take a comprehensive look at the parking issue and the current parking gap;  establish better criteria for measure traffic (e.g. time per segment); understand the link  between Economic Development and City Finances‐‐answer the question of how the city  benefits from expansion of office space and retail.  2. Assure that the cities commercial sites are vibrant and attractive  Potential Actions:  Look at the sidewalk widths and uses; expand ground floor retail in mixed use areas;  encourage public spaces, art and canopy; foster relationship to neighboring buildings  through LEED‐ND.   3. Grow HSRAP funding by 10‐20%  Potential Actions:  Look at the range of city activities that can be helped with a modest expansion of HSRAP  funding: seniors, Downtown Streets Team; counseling at the Opportunity Center; Vehicular  Dwelling program; etc.       Councilmember Shepherd  1. Making the connection in multiple ways: transit, shuttle, Internet, FTTP, etc.  Focus on  getting Palo Alto to move smart, and connect.    2. Public‐private Partnerships.  Help focus our community on how to build capacity for all the  services and opportunities we offer.  I hope to see a full time staff member assigned to  supporting the activities.  I have already reached out to community members for their  thinking and efforts.      3. Infrastructure Strategy and Funding (revenue measure)        Councilmember Elect Berman   1. Infrastructure Improvements    2. Land Use and Transportation, with an emphasis on parking    3. City Finances      Councilmember Elect Kniss  1. Misuse of the PC.  Stated in many ways, but clearly the public feels the developers have  more influence than appropriate.    2. Traffic and downtown parking issues.  Traffic in particular, and its increase, along with  bikes, walkers, etc.     3. Quality of life.  Sense of being “taken over” by wealthy (and therefore privileged) new  homeowners. Losing the “community” feel of Palo Alto.  Overcrowding in the schools, as  well.    Attachment E. Summary of Community Recommended 2013 Council Priorities and Detailed Correspondence Date Name Priority Area 1 11.28.12 Liz Browne Stagnant water in street gutters ‐ mosquito breeding/exposure to West Nile virus 2 11.28.12 Ken Dinwiddie Stagnant water in street gutters 3 11.18.12 Pat Marriott 1. Recommends distinguishing between mandatory priorities vs. discretionary  priorities; focus on discretionary priorities 2. Infrastructure 4 11.14.12 Sharleen Fiddaman 1. Financial (balanced budget) 2. Traffic 3. Street parking 4. Insufficient parking 5. Drop ABAG 5 11.08.12 Larry and Zongqi Alton 1. Downtown area parking relief 2. Reducing City salaries/benefits in line with industry 3. How to keep zoning regulations from being waived for developers 4. Improve streets, sidewalks, landscaping, buildings in downtown Palo Alto  5. Restrooms in Johnson Park and others 6. Increase support for our senior center 7. Bicycle paths and crossing over 101 on University Ave.  6 11.17.12 Jeff Hoel Fiber to the Premises (FTTP) *Demonstrates how FTTP aligns with current Council Priorities/email provides links to  resources to provide a broader context for FTTP 7 11.23.12 Andy Poggio Fiber to the Premises Community Recommended Priorities Page 1 of 2 December 6, 2012 Attachment C. Summary of Community Recommended 2013 Council Priorities and Detailed Correspondence Date Name Priority Area Community Recommended Priorities 8 11.21.12 Christina Llerena (on  behalf of Project Safety  Net Steering  Committee) Community Collaboration for Youth Bell Being ‐ Project Safety Net 9 11.26.12 Bill Terry Fire safety in Foothills 10 11.28.12 Jo Guttadauro Affordable Housing 11 11.28.12 Robert and Mary  Carlstead  1. Honest and "transparency"  2. Reduce ALL unnecessary spending and have strict audits 3. Reduce the size of number of personnel 4. Repair the infrastructure 5. Stop the incessant utility 'green' harping and deluge of "don't" reminders 6. Rein in the Utility Department and cut back on the amount our utilities pad the  General Fund 7. Concentrate on the wellbeing of those who  live here,not focus on those who want  to and for whom we have no more room *Additional detail on proposed priorities attached. Page 2 of 2 December 6, 2012 ,. , From: Ken Dinwiddie <kend@daise.com> Date: November 28,2012, 1:16:47 PM PST To: <donna.grider@cityofpaloalto.org> Subject: Focus 2013 Priorities Donna, For many years, the gutter in front of our home at 543 Jackson Drive has accumulated water from rain or irrigation runoff. The problem is even more serious further toward Edgewood Drive, with a sizable pond following each rain. Noting that a segment of sidewalk/gutter was recently replaced on Hamilton Avenue at the intersection with Jackson Drive, we are hoping that similar action may transpire soon on Jackson Drive. Ken Dinwiddie 543 Jackson Drive Palo Alto, CA 94303-2832 kend@daise.com 1 From: Pat Marriott [mailto:patmarriott@sbcglobal.net] Sent: Sunday, November 18, 2012 5:17 PM To: Council, City; Liz@knissforcouncil.com; marc@voteberman.com Cc: Grider, Donna Subject: Priorities Council Members, Each year there is considered and considerable debate about the Top 5 Council Priorities. And each year there is debate over the meaning of a priority. The November 13, 2012 document calling for public input for 2013 priorities says, "A Council Priority is defined as a topic that will receive particular, unusual and significant attention during the year./I I'm pleased to see that the city is attempting to define "priority./I However, I think part of the confusion comes from the distinction between what I will call mandatory priorities and discretionary priorities. Mandatory Priorities Discretionary Priorities Legal imperatives Not required by law Drive the budget in funding and staffing Funded if there is money available after the mandatory priorities have been funded Must be city priorities, not just council priorities, Do not necessarily require participation of all i.e., Council, Commissions and Staff must all march branches of the city government to these priorities Cannot change from year-to-year Can change year-to-year if they can be achieved in a year Examples: Finances and core services, e.g., public Examples: Youth well-being safety, roads, infrastructure See Cities must define core services at http://sfgate.com/cgi- bin[article.cgi7f=[c[a[2010[03[08[EDL21CBFUP.DTL In the past, annual discussions and retreats have mixed the two. For example, the 2012 priorities are 1. City Finances (obviously essential for both mandatory and discretionary priorities) 2. Land Use & Transportation Planning (awfully broad and subject to interpretation) 3. Emergency Preparedness (mandatory) 4. Environmental Sustainability (also subject to interpretation) 5. Community Collaboration for Youth Well Being (discretionary and very vague) 1 http://gigao m. com/2012/ 11/09/ gotta-get-a-gig-kc-sta rtu ps-a re-b uyi ng-hom es-to-get-google-fi be r / 3. EMERGENCY PREPAREDNESS. Part of emergency preparedness is having a telecommunications network that is ultra-reliable and has enough capacity. FTIP meets these requirements. http://www.huffingtonpost.com/susan-crawford/hurrican-sandy-infrastructure-recovery_b_2079116.htm I 11-06-12: "The Two Key Investments To Build Back Better Post-Sandy" Susan Crawford. (Fiber is one.) http://isen.com/blog/2012/11/storm-recovery-chattanooga-style-versus-sandy-and-athena/ 11-09-12: "Storm Recovery --Chattanooga Style versus Sandy and Athena" David Isenberg. 4. ENVIRONMENTALSUSTAINABILITY A citywide municipal FTIP network can be used to implement smart grid. Smart grid can schedule the recharging of electric cars so that the electrical grid doesn't have to be beefed up. 5. COMMUNITY COLLABORATION FOR YOUTH WELL BEING A citywide municipal FTIP network can contribute to the well being of the community generally, including our youth. Thanks. Jeff Jeff Hoel 731 Colorado Avenue Palo Alto, CA 94303 PS: Perhaps Council members should take a moment to reflect on the merits of using retreats to pick priorities. As far as I know, the very first Council retreat at which priorities were identified formally occurred on May 15, 2000, at the Foothills Interpretive Center. http://www.cityofpaloalto.org/cityagenda/publish/citycouncil-archive/2000/000515.htm I Frank Benest (in his 36th day as Palo Alto's City Manager) invited Council to playa parlor game: fill flip charts with ideas for priorities, and then vote for them using an allocated number of colored stick-on dots. Council Member Mossar objected in principle, saying that colleagues might propose and vote for their own parochial pet projects, knowing full well that the City would have to do all the really important things anyway, whether or not this parlor game identified them as priorities. "Humor me," said Frank. In 2009, during Jim Keene's first year as City Manager, the process evolved into picking a hierarchy of 3 priorities, 16 strategies for accomplishing the priorities, and 75 actions for accomplishing the strategies. As I remember it, Council picked the priorities during the retreat, and then staff made up the strategies and actions later, more or less based on Council's discussion during the retreat. http://www.cityofpaloalto.org/civicax/filebank/documents/15359 The City invested in some gee-whiz animated "See-It" software for displaying priorities, strategies, and actions on computer screens --including displaying an assessment of how well actions had been accomplished. 2 Leif Erikson, Youth Community Services Roni Gilenson, LMFT, Adolescent Counseling Services. Terry Godfrey, Parent and Partners in Education Shashank Joshi, MD, Lucile Packard Children's Hospital Linda Lenoir, Palo Alto Unified School District Jessica Lewis, City of Palo Alto, Teen Services Christina Llerena, MSW, Project Safety Net Director Pat Markevitch, Parks and Recreation Commissioner Sigrid Pinsky, Council of PTA's Minka van der Zwaag, City of Palo Alto Human Services From: robert/marycarlstead [mailto:rhmlcar7@att.net] Sent: Friday, November 30, 2012 11:16 PM To: Grider, Donna Cc: robert/marycarlstead Subject: Council priorities Sent of November 30th STICK TO THE BASICS. NO PIE-IN-THE SKY ISSUES. 1. Honest and "transparency" !!Restore resident confidence in city management which has been shattered. by the 27 Arrillaga project. 2. Reduce ALL unnecessary spending and have strict audits 3. Reduce the size of number of personnel. 4. Repair the infrastructure - starting with streets in north Palo Alto. 5. Stop the incessant utility 'green' harping and deluge of "don't' reminders. 6. Rein in the Utility Department and cut back on the amount our utilities pad the General Fund. 7.Concentrate on the wellbeing of those who live here,not focus on those who want to and for whom we have no more room. Mary Carlstead 147 Walter Hays Drive Palo Alto,CA 94303     Attachment F. Previous City Council Priorities       2012 Priorities:  1) City Finances; 2) Land Use and Transportation; 3) Emergency  Preparedness; 4) Environmental Sustainability; 5) Community Collaboration for Youth  Well Being    2011 Priorities:  1) City Finances; 2) Land Use and Transportation; 3) Emergency  Preparedness; 4) Environmental Sustainability; 5) Community Collaboration for Youth  Well Being    2010 Priorities:  1) City Finances; 2) Land Use and Transportation; 3) Emergency  Preparedness; 4) Environmental Sustainability; 5) Community Collaboration for Youth  Well Being    2009 Priorities:  1) Civic Engagement for the Common Good; 2) Economic Health; 3)  Environmental Protection    2008 Priorities:  1) Civic Engagement; 2) Climate Protection; 3) Library Plan/Public Safety  Building; 4) Economic Health    2007 Priorities:  1) Emergency Planning; 2) Global Climate Change; 3) Library Plan/Public  Safety Building; 4) Sustainable Budget    2006 Priorities:  1) Emergency and Disaster Preparedness and Response; 2)  Infrastructure; 3) Increase Infrastructure Funding    2005 Priorities:  1) City Finances; 2) Infrastructure; 3) Affordable Housing; 4) Land Use  Planning; 5) Alternative Transportation/Traffic Calming    2004 Priorities:  1) City Finances; 2) Infrastructure; 3) Affordable Housing; 4) Land Use  Planning; 5) Alternative Transportation/Traffic Calming    2003 Priorities:  1) Long Term Finances; 2) Infrastructure; 3) Land Use Planning; 4)  Alternative Transportation/Traffic Calming; 5) Affordable/ Attainable Housing    2002 Priorities:  1) Long Term Finances; 2) Infrastructure; 3) Land Use Planning; 4)  Alternative Transportation/Traffic Calming; 5) Affordable/ Attainable Housing  Attachment G. 2012 Council Priorities Update                                      2012 Strategic Priorities Summary    A. City Finances (CF)   Goals  1. Complete labor negotiations with major bargaining groups    2. Complete refuse fund study and stabilization  3. Complete and implement economic development policy  4. Execute budget/fiscal measures to ensure long‐term financial stability  5. IBRC completes long‐term infrastructure needs report to City Council     B.  Emergency Preparedness (EP)   Goals  1. Conduct community exercise  2. Evaluate a secondary electrical transmission line source   3. Implement recommendations of Foothills Fire Management Plan  4. Implement Office of Emergency Services (OES) restructure  5. Improve emergency operations readiness     C.  Environmental Sustainability (ES)   Goals  1. Evaluate construction of composting digester or alternatives   2. Evaluate and implement plan to introduce electric vehicle (EV) charging stations   3. Establish formal collaboration with Stanford University  4. Explore methods to integrate Palo Alto Green into City Sustainability Programs  5. Prepare Urban Forest Master Plan    D.     Land Use & Transportation Planning (LUTP)   Goals  1. Complete Development Center plans improving customer service/accountability  2. Complete Rail Corridor Study   3. Complete Stanford University Medical Center project  4. Substantially complete Comprehensive Plan update   5. Facilitate efforts to sustain Caltrain   6. Participate in regional SB375 & Housing Needs Allocation (RHNA)  7. Prepare Pedestrian and Bicycle Master Plan update    E.     Youth Well Being (YWB)    Goals  1. Implement Project Safety Net  2. Magical Bridge Playground Project                            Project Tracking Report (April 2012‐December 2012)     Page 2                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t                                     This Page Intentionally Left Blank                            Project Tracking Report (April 2012‐December 2012)     Page 3                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   City Finances (CF)    Executive Summary:    City finance strategies form the foundation for the City Council identified priorities.  A stable  financial picture in the short and long‐term ensures the City’s ability to deliver on all five Council  priorities.  Sound City finances are integral to Palo Alto’s quality of life.      A key principle of the City’s finance objectives is to provide for the City’s finances in the near and  long‐term. For example, the City negotiates labor agreements and the contracts envisioned during  this cycle are ones where the City plans to make meaningful long‐lasting changes to key City legacy  costs (e.g., pension and health care). The City is working toward developing a sustainable business  model for funding ongoing infrastructure needs, while eliminating a major backlog of City projects.   These efforts will take time, yet this investment is well worth the effort.  This work will result in  improving the overall high quality of life that Palo Alto citizens have come to rely and expect from  their City government.  Identified below are goals for Fiscal Year 2011‐2012:    1. Complete labor negotiations with major bargaining groups    2. Complete refuse fund study and stabilization  3. Complete and implement economic development policy  4. Execute budget/fiscal measures to ensure long‐term financial stability  5. IBRC completes long‐term infrastructure needs report to City Council                                                                     Project Tracking Report (April 2012‐December 2012)     Page 4                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   1.    Project: Complete labor negotiations with major bargaining groups          Department: Human Resources Department           Secondary Department: City Attorney          Project start date: May 2010          Target completion date: June 2013    Current status:      During this reporting period, April to December 2012, several new agreements were finalized.  Since  2011, IAFF (Fire fighters), FCA (Fire managers), SEIU, and Management employees (more than 800  employees) have made important concessions, including paying a portion or all of the employee  retirement contributions required by CalPERS, 10% medical premium contributions for actives and  retirees, new pension tiers for new hires, and, in the case of IAFF, providing flexibility to the city to  make staffing changes.    In May 2012, the city reached agreement with the Palo Alto Police Officers’ Association (PAPOA).   The city and PAPOA were able to reach agreement on a package of similar concessions with the  exception of changing the retiree medical benefit.  At this time, there is no agreement for a  contribution toward retiree medical coverage by future retirees as exists with the other bargaining  units.   In July 2012, the city and PAPOA completed a fact finding process regarding this dispute.  This  new fact finding law (AB 646) was made effective January 1, 2012 and requires non‐binding fact  finding, should the union request it, after the parties reach impasse but before the Council can  impose new economic terms.  The timeline for steps involved are established by law.  The city is still  waiting to receive the Fact Finder’s decision on the unresolved PAPOA issue.    After negotiating in good faith for close to two years, the city declared impasse with the Police  Managers’ Association (PMA) in May 2012.  The city was compelled to declare impasse due to the  lengthy negotiations process that had taken place with no indication that agreement would be  reached. Because PMA did not pursue fact finding, a resolution was adopted in July 2012 to  implement changes to the terms and conditions of employment for the employees in this group.      The city has not yet reached agreement with UMPAPA, a newly formed unit of management  employees in the Utilities Department.  This Unit was established in April 2011 as a result of an  arbitration decision.  Twenty‐eight meetings have been held to‐date in this bargaining process.   While UMPAPA employees that were formerly part of the city‐wide unrepresented management  group are paying some medical and retirement contributions, this group has not yet agreed to  similar concessions as other employee units.  The city is expecting to reach resolution in early FY  2013.    Next steps:      In 2013, staff’s goal is to bring negotiations with UMPAPA, SEIU Hourly Unit and PMA to a close in  order to provide the city and employees with resolution, and consistency with employee  contributions toward benefit plans.   Staff will then initiate contract negotiation meetings with the  SEIU Classified Unit in summer 2013, in attempt to reach agreement prior to the expiration of the  current Memorandum of Agreement in December 2013.                           Project Tracking Report (April 2012‐December 2012)     Page 5                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   2.    Project: Complete refuse fund study and fund stabilization  Department: Public Works Department   Secondary Department: Administrative Services Department   Project start date: August 2010  Target completion date: Ongoing    Current status:     Major progress has been made this Fiscal Year in returning the Refuse Fund to financial health and  stability. As a result of closing the Palo Alto Landfill, and other expense reductions and increases in  Refuse Rates in the last several years, the Refuse Fund has been returned to stability, with revenues  balancing expenses. Rates for Refuse Fund services such as street sweeping and household  hazardous waste are now separately broken out on Utility bills, increasing transparency.    Next steps:     Going forward, the challenge will be to maintain this stability and begin to rebuild the financial  reserves in the Refuse Fund. This is a challenge because revenues are currently tied to the amount  of residuals being landfilled, which is decreasing. A new rate structure will be needed in the coming  years which charges for residuals being recycled and composted, activities which also have  substantial costs.                                Project Tracking Report (April 2012‐December 2012)     Page 6                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   3.    Project: Complete and implement Economic Development Policy  Department: City Manager’s Office  Project start date: January 2011  Target completion date: January 2013    Current status:     The Policy for the Office of Economic Development has gone through several iterations, and was  presented to the Policy & Services Committee in November 2012 for final consideration.  The Policy  is nearly developed; staff anticipates returning to the City Council for adoption in January 2013.    Next steps:       The City Council will consider adoption of the final Economic Development Policy in January 2013.                             Project Tracking Report (April 2012‐December 2012)     Page 7                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   4.    Project: Execute budget/fiscal measures to ensure long‐term financial stability  Department: Administrative Services Department   Secondary Department: City Manager’s Office   Project start date: May 2011  Target completion date: Ongoing    Current status:     A balanced General Fund budget was adopted by the City Council for FY2013.  The budget  eliminated a projected $5.8 million gap with a combination of increased revenue and spending  reductions.  In December, staff presented the FY2013‐2023 Long Range Financial Forecast (LRFF) to  the Finance Committee.  For the first time in several years, the LRFF forecasts a surplus in the  General Fund.  This is an indication that the economy is improving and revenues are increase.  Along  with improving revenues, the City’s actions to curb rising employee pension and healthcare cost  contributed to the positive balance in the General Fund.  Staff received feedback from the Finance  Committee and will revise the LRFF to take into account a longer span for establishing revenue  trends.      Next steps:      In January 2013, the Office of Management and Budget will begin the FY2014 budget process.  The  City Manager will present the FY2014 Proposed Budget to the City Council in the May timeframe.   Based on the LRFF, staff expects the FY2014 budget to be balanced with a modest surplus, pending  Council direction on infrastructure funding.                            Project Tracking Report (April 2012‐December 2012)     Page 8                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   5.    Project: IBRC completes long‐term infrastructure needs reports for City Council  Department: Public Work’s Department  Secondary Department: City Manager’s Office, Administrative Services Department   Project start date: November 2010  Target completion date: Completed     Current status:     Beginning in October 2010, the City Council appointed a 17‐member Infrastructure Blue Ribbon  Commission (IBRC) to analyze and make recommendations to the City Council for meeting the  challenges and improving the City’s extensive infrastructure inventory. On December 22, 2011, the  IBRC issued its final report, Palo Alto’s Infrastructure: Catching Up, Keeping Up, and Moving Ahead.  The report identified an infrastructure backlog and on‐going maintenance needs of $95 million, and  an additional $210 million in new projects for a total of $305 million. It was found approximately  $4.2 million would be necessary each year for the next ten years to "catch up" on the infrastructure  backlog that has been historically underfunded totaling approximately $42 million. Once the City’s  infrastructure is brought up to the appropriate level, the Commission estimated $2.2 million a year  for the next 25 years for a total of nearly $54 million to maintain or "keep up" the City’s  infrastructure to avoid another backlog in the future. Separate from this the report identified $95  million in funding needs for large, once‐in‐a‐generation‐type investments. For example, our fire  stations, new public safety building, municipal services center, treatment plant, civic center, and  bike/pedestrian bridges, as identified by the Commission. While the estimated costs of these  projects continue to be refined and may be offset by other revenue sources, these significant  projects were estimated to total over $200 million and excluded some known potential project  areas (like Cubberley Community Center).    Next steps:      The IBRC report was completed an adopted by Council in December 2011.  In 2012, the City Council  held four retreats to focus on the IBRC’s recommendations. On September 18, 2012, the City Council  adopted the plan and high level schedule of the work to be completed over the next two years for a  potential 2014 infrastructure finance measure. In December 2012, the City entered into an  agreement with a polling firm to conduct opinion research beginning in the spring of 2013.  Council  will also consider approval of an agreement with a communications consultant in February 2013.                                 Project Tracking Report (April 2012‐December 2012)     Page 9                                                     Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t    B. Emergency Preparedness (EP)     Executive Summary:     The City, like any community in the Bay Area, is susceptible to a variety of natural hazards including  earthquakes, floods, wild‐land fires, and manmade disasters.  The City is committed to protecting  life, property, and the environment through a number of activities including preplanning, training,  rapid emergency response, and public safety education.  Identified below are goals for Fiscal Year  2011:    1. Conduct community exercise  2. Evaluate a secondary electrical transmission line source   3. Implement recommendations of Foothills Fire Management Plan  4. Implement Office of Emergency Services (OES) restructure  5. Improve emergency operations readiness                                 Project Tracking Report (April 2012‐December 2012)     Page 10                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   1.    Project: Conduct community exercise   Department: Police Department   Secondary Department: Fire Department   Project start date: January 2011  Target completion date:  Ongoing     Current Status:      In September 2012, OES partnered with Emergency Services Volunteer leadership to develop the  3rd Annual Quakeville Community‐Based Disaster Exercise.  This entailed a full activation of a Red  Cross Shelter, supported by City Staff (CSD), Red Cross, and other volunteers, where a few brave  souls, including the Mayor slept overnight, simulating the true conditions of such a shelter.  In  addition, ESVs conducted hands‐on drills in search and rescue, medical triage and treatment, and  radio communications.     Next steps:       Quakeville 2013 planning will commence next quarter.  The exercise may involve an even larger  cross‐section of the community and other City departments.                                Project Tracking Report (April 2012‐December 2012)     Page 11                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   2.    Project: Evaluate a secondary electrical transmission line source   Department: Utilities Department   Project start date: July 2010  Target completion date: December 2013      Current Status:    Staff’s evaluation on the economics and feasibility of the transmission project, to provide a second  electric transmission line source for the City, identified the SLAC project as the preferred option. This  project would connect the City’s Quarry Substation to the SLAC National Accelerator Laboratory  (SLAC’s) 230 kV substation.   This would not only increase reliability by providing a second  connection point, but also provide savings in the Electric Fund by avoiding certain transmission  charges that the utility currently pays because it is connected to Pacific Gas and  Electric Company’s  (PG&E) low voltage transmission system.  Another pending alternative would be a PG&E project to  establish a 115kV line from Ames to Colorado on the existing 60kV lines.  As noted in the last  quarterly update, staff and PG&E agreed that the SLAC project is a viable alternative to the Ames  project.  The initial evaluation of alternatives has been completed and the next phase is for potential  parties to the SLAC project to sign a Letter of Intent to facilitate further discussion and development  of a project agreement.    Since the last quarterly report, staff submitted the SLAC project to the California Independent  System Operator’s (CASIO) 2013 transmission planning process.  This was necessary to keep the  SLAC project as a viable alternative to PG&E’s Ames project, which was also resubmitted by PG&E to  the CAISO for consideration.       Next steps:     Staff will continue to work with all parties of interest as needed including the Department of Energy,  SLAC, the Western Area Power Administration, and Stanford on an updated engineering analysis and  a set of guiding principles for an agreement or letter/memorandum of understanding to move  forward with project development.                            Project Tracking Report (April 2012‐December 2012)     Page 12                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   3.    Project: Implement recommendations of Foothills Fire Management Plan  Department: Fire Department   Secondary Department: Police Department  Project Start Date:  January 2011  Target Completion Date:  Ongoing     Current status:      A City committee consisting of representatives from Fire, OES, Public Works, Purchasing, Police and  Community Services took over responsibility of the Foothills Fire Management Plan. The prescribed  burn planning for two nine acre burns in the Arastradero Preserve had been completed, but  emergency mutual aid requests for crews to respond to out of county wildland fires delayed the  project until spring 2013. Staff continues to work with local and state fire partners in project  planning. Further committee meetings are planned for early 2013 to discuss project burn  preparations and other fuel treatment objectives.    Three community fire safety and awareness meetings have occurred, and further community  meetings will occur once the burns are scheduled in early summer 2013. The community meetings  supported project information updates and wildland fire safety education.    To support brush clearing along Los Trancos Woods Road, the City created a Hold Harmless  agreement for private land owners. Vegetation clearing reduces community risk and supports  emergency egress out of the area.    Next steps:      Purchasing and the City Attorney’s Office are negotiating a contract with the Fire Safe Council (FSC).   The contract is similar to that of Acterra and will be presented to Council for approval in early 2013.   The contract would be for five years and annual work would be determined each year depending on  need.  The FSC applied for a grant to assist in their treatment efforts, but the project was not  selected for funding.  The FSC will continue to apply for future grants.      Cal Fire hand crews were unable to complete the vegetation risk reduction treatment work in the  fall due to ongoing wildland fire emergencies that took crews out of Santa Clara County.  Staff is  rescheduling this work for the spring of 2013, prior to the prescribed burn.  The priority continues to  be vegetation clearance along Los Trancos Woods Road.  With the signed Hold Harmless  agreements, Cal Fire hand crews will be able to clear the entire area within the City of Palo Alto.                              Project Tracking Report (April 2012‐December 2012)     Page 13                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   4.    Project: Implement Office of Emergency Services (OES) restructure  Department: City Manager’s Office/Police Department  Secondary Department: Fire Department, City Manager’s Office   Project start date:  May 2011  Target completion date: Completed  Current status:      In December 2011, staff selected and Council confirmed the appointment of Officer Kenneth Dueker  to serve as the Director of the Office of Emergency Services.      The Office of Emergency Services has commenced an all hazards training plan for staff, stakeholders,  and community members.  Between April and December 2012, OES hosted or supported over 60  trainings, exercises, planning meetings, and special events for ESVs, the general public, and Stanford  University.  With the uptick in residential burglaries, the popularity of the Block Preparedness  Coordinator Program training (which subsumed the old Neighborhood Watch) has increased, and  has been coordinated with the Police Department's "Lock It or Lose It" education campaign.  In  addition, special training was developed for senior citizens, those with functional needs, and those  who live/work in the Wildland Urban Interface (foothills of Palo Alto and Stanford).     Next steps:       OES is working on a training plan for staff, Emergency Services Volunteers, and the general public  that will span multiple years and include all disciplines and community planning elements.     There are numerous public safety scenarios and training requirements to build on known needs.  For  example: OES was invited by the Stanford University Medical Center (SUMC) Office of Emergency  Management to collaborate on the design and execution of a large, multi‐agency, multi‐discipline  Full Scale Exercise with a scenario of a gunman at the Hospital.  This event was held in June 2013.   Responding agencies included PAPD, PAFD, Stanford University Department of Public Safety, Santa  Clara County EMS, Santa Clara County Public Health, and others.  Now, OES is working with  the Stanford University Department of Public Safety on a full scale exercise covering a critical  incident scenario at the Stanford Stadium.     An example of what is on the 2013 ESV Calendar can be found on  http://www.paneighborhoods.org/ep        *This City Council priority has been completed.                                Project Tracking Report (April 2012‐December 2012)     Page 14                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   5.   Project: Improve emergency operations readiness   Department: Police Department   Secondary Department: Fire Department   Project start date:  January 2011  Target completion date:  Ongoing    Current status: Emergency operational readiness is now defined by FEMA as a “whole community”  task, meaning that government entities are to collaborate with non‐government organizations  (NGOs), community‐based organizations (CBOs), and the private sector.   Emergency Operations Center (EOC):  The legacy EOC has been substantially updated to  match current best practices and state‐of‐art.  The City’s EOC is now much better suited for  all‐hazards prevention, preparedness, response, and recovery.  The EOC now supports day‐ to‐day monitoring of risks, evolving hazards, and special events, providing situational  awareness to Public Safety, Public Works, Utilities, and other staff.   Mobile Emergency Operations Center (MEOC):  The MEOC continues to serve Palo Alto and  Stanford University communities, with deployments to various events ranging from Stanford  football games to real‐world police operations.  For example, earlier this year the MEOC  served as the field command post for multiple agencies assigned to protect the President of  Israel during his visit to Palo Alto and the Stanford campus.   Emergency Services Volunteers (ESVs): OES restructured disparate volunteer programs,  placing them in a new, unified structure: Block Preparedness Coordinator Community  Emergency Response Team, and ARES/RACES (ham radio) volunteers.   Quakeville Community‐Based Disaster Exercise:  OES partnered with ESV leadership and  the Red Cross to develop the 3rd Annual Quakeville Exercise.  This entailed a full activation of  a Red Cross Shelter (per the City plan, at Cubberley), supported by city staff, Red Cross, and  other volunteers.  In addition, ESVs conducted hands‐on drills in search and rescue, medical  triage and treatment, and radio communications.   Community Emergency Preparedness:  OES continued to work with the Police Department  and Stanford University to provide training and educational sessions for both disaster‐ response entities as well as the general public.  With the uptick in residential burglaries, the  popularity of the Block Preparedness Coordinator Program (which subsumed the old  Neighborhood Watch) has increased and has been coordinated with the Police  Department’s “Lock It or Lose It” education campaign.     Next steps:      The Police Department and OES will continue work in collaboration with the Information Technology  Department (IT) to update plans, staff training, disaster supplies and equipment, and technology  (communications, IT systems) to support extended operations under the all‐hazard planning  environment.                               Project Tracking Report (April 2012‐December 2012)     Page 15                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   C.  Environmental Sustainability (ES)    Executive Summary:     Environmental sustainability is a core value and ongoing priority for the City.  The City has been a  leader in this area in the Bay Area metropolitan region and in North America.  The City is a Certified  Green Business and has adopted a Climate Protection Plan, Sustainability Policy, Palo Alto Green  Program, and continues to make strides in reducing greenhouse gas emissions.  Identified below are  goals for Fiscal Year 2011:    1. Evaluate construction of composting digester or alternatives   2. Evaluate and implement plan to introduce electric vehicle (EV) charging stations   3. Establish formal collaboration with Stanford University  4. Explore methods to integrate Palo Alto Green into City Sustainability Programs  5. Prepare Urban Forest Master Plan                                                                                                    Project Tracking Report (April 2012‐December 2012)     Page 16                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   1.    Project: Evaluate construction of composting digester or alternatives   Department: Public Works Department   Project start date: October 2010  Target completion date: Ongoing    Current status:     In February 2012, Council directed staff to work with Alternative Resources, Inc. (ARI) to develop an  action plan and timeline and to return to Council to present it. The action plan and timeline  describes the necessary steps and schedule to obtain and analyze vendor proposals for an  Energy/Compost Facility through a Request for Proposals process that would allow Council to make  a decision on the Facility in February 2014. It also includes coordination with the Regional Water  Quality Control Plant’s (RWQCP) efforts to retire the existing biosolids incinerators, and  development of an Organics Resource Recovery Strategy. Palo Alto continues to be at the cutting  edge of diverting residuals from landfills, having diverted approximately 80% since the base year and  exceeding State goals. In 2012, the City developed a new pilot program for residential food scraps,  one of few remaining residuals still being landfilled here.  The pilot program will cover one  neighborhood , begin in early 2013, and result in the composting of the residential food scraps from  that area.    Next steps:     Proposals are being evaluated, and a Council decision to 1) move forward with an Energy/Compost  Facility; 2) utilize a vendor‐provided export option 3) continue with current programs for organics  management;  or 4) a combination of two or more strategies will be made. The environmental  review process is being run concurrently with the RFP process. An Environmental Checklist will be  performed for the range of expected options. The bulk of the foundational work for the  environmental review process will be completed before the proposals are received, but to ensure  that all possible environmental impacts (and benefits) are fully evaluated, the environmental  process will be finalized after the proposals are received.     Following Council’s decision in February 2014, the City will implement either an Energy/Compost  Facility option or an export option. Export options may be those provided by vendors through the  RFP process or the current programs that are in place. Biosolids may be managed as part of an  Energy/Compost Facility, through an export option, or through an on‐site management option at the  RWQCP.      Byxbee Park Expansion & Energy/ Compost Facility Consideration: Substation portions of the City's  closed 126 acre landfill will be capped in preparation for further expansion and improvements to  Byxbee Park. Simultaneously, 10 acres of the old landfill will be considered for an Energy/Compost  facility.                                Project Tracking Report (April 2012‐December 2012)     Page 17                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   2.  Project: Evaluate and implement plan to introduce electric vehicle (EV) charging stations     Department: City Manager’s Office  Secondary Department: Planning and Community Environment, Utilities Department   Project start date: 2011  Target completion date: On‐going    Current status:      A multi‐departmental task force developed an EV Infrastructure Policy for Council approval in  December 2011. In 2012, a number of steps were taken to implement Council policy:    1. Residential time‐of‐use (TOU) electric rates were approved by Council for implementation in  January 2013. This retail rate provides incentives for residential customers to charge their  electric vehicles at late night. In addition to customers receiving a lower electric rate, late  night charging also reduces the adverse impact on the electric distribution and transmission  grid. Approximately 150 residential customers are expected to sign‐up for this pilot scale  electric rate.  2. City facilitated a residential customer’s request to install a charging station on city  maintained planting strip in front of his home, utilizing electricity from his home. In return,  the customer was willing to make the charging stations available to other EV owners in the  vicinity. City is now evaluating the merits of such approach and examining the  implementation of a 20 person, 2 year pilot project to accommodate similar requests from  residents.  3. Stanford shopping mall attracted the first ‘high speed publicly available fast charger’ in the  Bay Area. This device has the capability to fully charge a car within 30 minutes for a fee of  $7.   4. The five EV chargers installed at 3 downtown parking garages in the summer of 2011 has  continued to see increased utilization rates. Utilization rates increased 90% between  January and December of 2012, with 650 combined charging sessions at the 3 locations  during the month of December 2012. Staff has received numerous requests to increase the  number of charging stations and spots at these locations and are in the process evaluating  options to meet the increasing demand.   5. Staff has made the permitting process for EV charger installation more streamlined during  the year, with forms and instructions made available on the web. With an appointment and  all appropriate documentation, over the counter permits are being issued.   6. City continues to educate customers on the benefits of EV for customers to make informed  decisions. Staff is collaborating with regional organizations in this regard.   7. Due to reduced level of staffing and competing priorities in 2012, the project to attract  private sector EV charger installer/operator partners through an open solicitation process  (with existing grant funds) was not undertaken.    Next Steps:  Staff expects to continue facilitating EV infrastructure development to meet our community’s needs  and meet City’s community carbon reduction goals.                            Project Tracking Report (April 2012‐December 2012)     Page 18                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   3.    Project: Establish formal collaboration with Stanford University  Department: City Manager’s Office   Project start date: 2011  Target completion date: Complete, but partnership will be ongoing    Current Status:     As reported previously, there are three main connection points which could be explored and  expanded to develop a stronger relationship between Stanford University and the City.  They are  internships or academic exchange, faculty knowledge or City projects, and intra‐departmental  development or utility relationships.     A team at the Regional Water Quality Control Plant (RWQCP) has formed a “Water Team” with  graduate students and faculty at Stanford to review potential projects, including a system of  recycled water usage.  A new pilot project to test technology (reverse osmosis) for removing salts  and toxics was implemented at the RWQCP in 2012. A pilot to concentrate organics as a first step  toward energy recovery was conducted at the RWQCP in early 2012 as part of the collaboration.  Staff is an “industrial partner” in Stanford’s new Engineering Research Center on Reinventing Urban  Water Use and will continue to participate in 2013.    Next Steps:      Staff will be working with the Office of Government and Community Relations to determine an  appropriate way to celebrate the internships discussed above, and further develop the process to  encourage future internships. Staff will continue to collaborate with the many different departments  on issues or programs where the City could add value to the process or the community. Such  programs or events could include the Solar Decathlon which Stanford students are participating in,  Earth Day events, and joint community groups such as the Community Environmental Action  Partnership.                            Project Tracking Report (April 2012‐December 2012)     Page 19                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   4.   Project: Explore methods to integrate PaloAltoGreen into City Sustainability Programs         Department: City Manager’s Office         Secondary Department: Planning and Community Environment, Utilities Department          Project Start Date: 2011          Target Completion Date: PAG redesign by December 2013. On‐going    Current Status:     Staff is implementing a Sustainability Board and a multi‐department Sustainability Team whose goal  is to provide an integrated, seamless approach to promoting sustainable behaviors.  This Team is  directed by the Board lead by the City Manager and the directors from the Utilities, Planning,  Community services and Public Works Departments.  This new team will seek out opportunities to  work across departments.    Next Steps:      As PaloAltoGreen needs to be revised, the Utilities Advisory Commission discussed several options  to migrate the program to different types of programs to promote greenhouse gas reduction in  December 2012.  A City Council study session will be held in February 2013 to provide staff with  further input.  With that input, staff will develop a redesign proposal for PaloAltoGreen that will  continue to provide a venue for customers to voluntarily work to reduce greenhouse gas emissions  and to work within the larger comprehensive multi‐departmental sustainability plan.    Staff is developing a strategy to implement a comprehensive multi‐departmental outreach  education plan for the public, as well as, metrics and a framework for a sustainability strategy.  The  first step in the plan is for a sustainability webpage which has been developed in conjunction with  the City’s website project.                            Project Tracking Report (April 2012‐December 2012)     Page 20                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   5.    Project: Prepare Urban Forest Master Plan  Department: Planning and Community Environment   Secondary Department: Fire Department   Project start date:  December 2010  Target completion date:  Summer 2013    Current status:     Further work on the Urban Master Plan was deferred, pending the hiring of an Urban Forester in the  Public Work’s Department. That position has been filled and the new Urban Forester has reviewed  the Urban Forest Master Plan and developed a working plan.  In December, the Urban Forester  engaged a technical editor to begin finalizing the report.     Next steps:      In early 2013, the City’s technical writer will revise/edit the draft Plan and subsequently staff will  schedule community meetings, workshops and hearings with Boards, Commissions, and the Council.   In summer 2013, the Urban Forest Master Plan is tentatively scheduled to return to the Council for  adoption.                              Project Tracking Report (April 2012‐December 2012)     Page 21                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   D. Land Use & Transportation Planning (LUTP)    Executive Summary:     Land use and transportation are key indicators of quality of life in Palo Alto. The overarching  principle of the City’s land use and transportation objectives is to provide for sustainable  development and services: growth, rehabilitation, and services that are sustainable in economic and  fiscal terms, as well as in environmental respects. The City desires to develop in ways that promote  the efficient delivery of services, assures high‐quality development and design, protects and  broadens the City’s tax and revenue base, preserves and enhances key environmental attributes,  minimizes energy and water use, and promotes transportation alternatives such as walking,  bicycling and transit.  Identified below are goals for Fiscal Year 2011‐2012.    1. Complete Development Center plans improving customer service/accountability  2. Complete Rail Corridor Study   3. Complete Stanford University Medical Center project  4. Substantially complete Comprehensive Plan update   5. Facilitate efforts to sustain Caltrain   6. Participate in regional SB375 & Housing Needs Allocation (RHNA)  7. Prepare Pedestrian and Bicycle Master Plan update                                                                        Project Tracking Report (April 2012‐December 2012)     Page 22                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   1.    Project: Complete Development Center plans improving customer service/accountability   Department: Development Services Director   Secondary Department: City Manager’s Office  Project start date:  July 2010  Target completion date:  January 2013 (Phase 2)    Current status:     The Development Center (DC) Blueprint Project has entailed a series of efforts by the Steering  Committee (department heads and upper level managers), Staff Action Committee (approximately  20 staff members involved in the DC process from multiple departments), and a Development  Center Advisory Committee (professionals and others with periodic or regular interaction with the  DC). In late 2011, the Council authorized the City Manager to hire staff to implement program  actions, including piloting new project management and point of contact procedures, as well as  maintaining adequate levels of service at the DC counter.  Budget for the additional staff, technology  improvements, and additional office space was subsequently approved by Council on December 6,  2011 and January 9, 2012. The Development Services Director was created in the 2013 budget and  Peter Pirnejad was hired into that position in October 2012. The Development Center Manager  position was filled as well, and other project coordinator positions have been filled and will begin  work in mid‐December. Space on the second floor of the 285 Hamilton building has been leased to  accommodate other support for the Development Center and the floor is now furnished and  occupied. Substantial remodeling of the first floor to a more customer‐service orientation was  completed in fall 2012. Extensive technology enhancements are also underway to facilitate more  online permitting and customer convenience. The DC Advisory Committee meets periodically to  advise staff regarding the process changes.      Next steps:      The Development Services Director has hired an interim Chief Building Official until the first quarter  of 2013 when a more permanent solution will be identified.  The DC continues to use contract plan  check and inspection services to supplement staff as workload dictates. Staff will be developing  performance measurement objectives and procedures for presentation to Council in early 2013, and  will continue to meet with the DC Advisory Group to assure that customer service enhancements  are consistent with their desired outcomes (and those of the public in general).  In early 2013, the  DC Manager recruitment will begin to fill the position that is currently being filled on an interim  basis.  The department’s technology needs continue to be explored and refined in an effort to  provide the best and most efficient solution.  Over the course of the next two years, the department  is exploring ways to be fully cost recoverable through the collection of fees for service.                                Project Tracking Report (April 2012‐December 2012)     Page 23                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   2.    Project: Complete Rail Corridor Study   Department: Planning and Community Environment   Project start date:  November 2010  Target completion date: February 2013    Current status:     The Rail Corridor Task Force met 15 times to discuss a variety of issues, opportunities, and vision  concepts for the Corridor. Study Sessions with the Planning and Transportation Commission and the  Council were conducted on June 8 and June 27, 2011 to summarize activity and progress to date. A  tour of the Rail Corridor Study Area was held on September 10, 2011 and included 28 participants. A  preliminary draft Plan was reviewed at two meetings of the Task Force and a revised draft was  reviewed on January 19, 2012. The Draft was reviewed by the public at a community workshop, and  by the Palo Alto Bicycle Advisory Committee, Citizens Traffic Safety Committee, Planning and  Transportation Commission, and the Council’s Rail Committee. The final draft report was developed  by the Task Force in May and was subsequently recommended for approval by the Planning and  Transportation Commission in June.  The City Council deferred review due to its busy schedule, and  in September referred the report back to the Rail Committee, to assure consistency with evolving  Guiding Principles and positions regarding Caltrain. On December 6, 2012, the Rail Committee  recommended approval with some modifications to the Study.     Next steps:      The Council will review the final report in January 2013. The document will be incorporated by  reference into the Comprehensive Plan.                                   Project Tracking Report (April 2012‐December 2012)     Page 24                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   3.    Project: Complete Stanford University Medical Center Project  Department: Planning and Community Environment  Secondary Department: City Manager’s Office   Project start date: Early 2007  Target completion date: Completed    Current status:     On June 6, 2011 the Council approved all entitlements, the Development Agreement, and certified  the Environmental Impact Report for the Stanford University Medical Center (SUMC) Renewal and  Replacement Project. The second reading of the Development Agreement and zoning ordinances  were approved on August 1, 2011.    Next steps:      SUMC has made Initial payments (approximately 1/3 of total) to the City for community benefits.   Construction of improvements on Welch Road and the upgrade of the Hoover Pavilion have  commenced. In 2012, Stanford hospitals will undergo review by the State (California Office of  Statewide Health Planning and Development) for building permit review and approval. In 2013,  hospital construction will commence.  The completion of the entire project, including hospitals,  clinics, and parking garages is expected in 2025.      *This City Council priority has been completed.                              Project Tracking Report (April 2012‐December 2012)     Page 25                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   4.    Project: Substantially complete Comprehensive Plan Update   Department: Planning and Community Environment   Project start date:  2008  Target completion date:  Early 2014    Current status:      The Comprehensive Plan is expected to be completed, in draft form, by early 2013 and then undergo  environmental review (Environmental Impact Report) prior to adoption. The East Meadow/West  Bayshore Area Concept Plan was tentatively accepted in February 2012, and the California  Avenue/Fry’s Area Concept Plan alternatives were considered at a community meeting in October  2012. A draft Housing Element was considered by the Council in June 2012, and was forwarded to  the State Department of Housing and Community Development (HCD) for review. The Planning and  Transportation Commission has completed its review of the policies and programs contained in the  Housing, Land Use/Community Environment, Community Services, and Transportation chapters.     Next steps:     The Planning and Transportation Commission will finalize its review of policies and programs by  early 2013 for presentation to the Council.  Staff has responded to comments of the State HCD and  has shared its responses with the Council’s Regional Housing Mandate Committee, with the hope of  bringing the Draft Housing Element to the Committee in January and to the PTC and Council for final  adoption and certification in February or March.  In February 2013, the Planning and Transportation  Commission will review the California Avenue/Fry’s Area Concept Plan. Environmental review of the  Comprehensive Plan is anticipated to begin in the spring 2013, and the Plan would be adopted in the  end of 2013 or early 2014.                                  Project Tracking Report (April 2012‐December 2012)     Page 26                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   5.    Project: Facilitate efforts to sustain Caltrain   Department: City Manager’s Office  Secondary Department: Planning and Community Environment   Project start date: March 2011  Target completion date: Ongoing    Current status:     The Peninsula Corridor Joint Powers Board (PCJPB) continues to evaluate long‐term Caltrain  strategies to sustain Caltrain service on the Peninsula.  The City continues to work with other public  agencies, Federal and State legislative advocacy firms, and the Silicon Valley Leadership Group  (SVLG) to consider strategies and plans to address Caltrain’s operating and capital modernization  fiscal issues. The City Council Rail Committee has regularly invited Caltrain technical and policy staff  to present information on Caltrain’s plans to modernize rail lines through electrification, install a  new positive train control system (mandated by the Federal government), and develop a fiscally  sustainable business model with or without high speed rail (HSR) on the Peninsula.  There has been  no definitive progress to date on a long‐term fiscal plan which would include a dedicated funding  stream for Caltrain service (e.g., Peninsula‐wide sales tax). The City Council’s Rail Committee has  taken strong positions opposed to the State’s HSR project, including financing and ridership  projections. The Committee recently commented on a MOU between the Metropolitan  Transportation Commission (MTC), Caltrain and other regional agencies that sets a framework  necessary for obtaining available funding from the California High Speed Rail Authority to help  support the Caltrain electrification effort as part of a Blended System. The Committee has also  commented on the revised Program EIR for the Bay Area to Central Valley segment of the HSR  project.     Next steps:      It is anticipated that discussions will continue during Fiscal Year 2012‐13 between partners including  San Francisco County and City, San Mateo County, Santa Clara County, the MTC, Valley  Transportation Authority (VTA), major private employers, Stanford University, City of Palo Alto, and  other Peninsula cities to come up with a viable funding plan for Caltrain. The Rail Committee will  continue to stay actively involved in both High Speed Rail and Caltrain proposals.                              Project Tracking Report (April 2012‐December 2012)     Page 27                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   6.    Project: Participate in SB375 & Housing Needs Allocation (RHNA)  Department: Planning and Community Environment   Project Start Date:  2009  Target Completion Date: 2013    Current status:     Staff attended many regional and countywide meetings to participate in these regional planning  discussions about the Sustainable Communities Strategy (SCS) required by SB375. Council Member  Scharff and the Planning and Community Environment Director attended monthly meetings of the  Regional Housing Needs Methodology Committee through the spring of 2012.  The regional agencies  released an Initial Vision Scenario of the SCS on March 11, 2011.  Alternative growth scenarios were  released by the Association of Bay Area Governments and Metropolitan Transportation Commission  in July 2011. On July 18, 2011 the Council directed staff to work with its Regional Housing Mandate  Committee to formulate an action plan to focus on coordination with State legislators and other  cities, particularly with respect to demographic and economic assumptions.  The City, upon the  recommendations of the Committee, has commented to the regional agencies regarding the One  Bay Area Grant Program and housing allocations with the sphere‐of‐influence (Stanford).  A Draft  Preferred Scenario was released on March 9, 2012, and resulted in somewhat reduced housing  projections for the region and for Palo Alto. ABAG and MTC are now in the process of preparing  environmental review of the SCS Preferred Scenario, with a target date of providing the final version  in spring 2013. ABAG has released its draft regional housing needs assessment (RHNA) allocations  for the 2015‐2022 planning period, and has assigned Palo Alto a housing objective of 2,179 units to  be planned and zoned for. The Regional Housing Mandate Committee and the Council have  requested revisions by ABAG, which were denied, and are now in the process of appealing the  allocation.     Next steps:    Staff continues to meet with the Council’s Regional Housing Mandate Committee to implement a  Council strategy and to prepare a response to the regional agencies regarding the RHNA allocations.  Staff will present an appeal letter to the Committee in January and to the Council in late January or  February. Staff will continue to monitor the status of the SCS scenario, the latest version of which is  anticipated to be presented in early 2013.                                Project Tracking Report (April 2012‐December 2012)     Page 28                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   7.    Project: Prepare Pedestrian and Bicycle Master Plan update  Department: Planning and Community Environment   Project start date:  September 2012  Target completion date:  Ongoing    Current status:      The Council adopted the City’s updated Bicycle and Pedestrian Transportation Plan in July 2012. The  Plan included approximately $86 million in improvements to be implemented over the next 5‐10  years. The City has taken an initial major step to funding the improvements by obtaining a $5.5  million grant from Santa Clara County to support design and development of a bike/pedestrian  bridge at Adobe Creek over Highway 101 ($4 million) and a trail along Matadero Creek ($1.5 million).   Another $50,000 grant would fund the construction of a gap link in the Bay Trail. Signage and  striping improvements have begun for the Castilleja/Park Boulevard bicycle boulevard. A number of  innovative bicycle treatments are ongoing, including installation of bike corrals downtown and  green‐colored bike lanes on safe routes to school streets.    Next steps:      Staff expects to present to the Council an implementation work program and timeframe in the first  quarter of 2013, including possible use of Stanford University Medical Center community benefit  (“sustainability”) funds. Traffic engineering firms will be retained early in 2013 to accelerate design  of Plan projects. The Adobe Creek/101 bridge plans will be presented to Council early in 2013 to  initiate environmental review and a proposed design competition. Design studies and community  outreach will begin for the Matadero Creek trail. Extensive signage and striping improvements,  particularly related to bike boulevard development, will be ongoing throughout the coming year.  Staff will be proposing approximately $1.2 million per year in the Capital Improvements Program for  the next five years to be devoted to these efforts.                              Project Tracking Report (April 2012‐December 2012)     Page 29                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   E. Youth Well Being (YWB)    Executive Summary:     The City plays two important roles with regard to community collaboration for youth well being.  First, the City plays a role of convener and coordinator, bringing the community together in order to  effectively harness the community’s talent, expertise, and goodwill so that the community may have  the greatest impact in fostering youth well being. A meaningful example of the City’s role as  convener and coordinator is seen in the Project Safety Net (PSN) Community Task Force. PSN is  focused on developing and implementing a comprehensive community‐based mental health plan for  overall youth and teen well being. A focus in 2011 is to support PSN as defined in the PSN Plan  (www.PSNPaloAlto.org).      Secondly, the City plays a direct role in providing programs, services, and facilities for youth and  teens. Examples include the variety of afterschool programs at the Palo Alto Teen Center, Children’s  Theatre, Junior Museum and Zoo, Art Center, and Rinconada Pool. The City’s capacity to provide  programs, services, and facilities for youth well being is dependent on community collaboration  through substantial support of Friends Groups and foundations.  An example of community  collaboration can be seen in the vision to build the Magical Bridge Playground in coordination with  the Friends of the Palo Alto Parks. The Magical Bridge Playground is planned for Mitchell Park and  will be Palo Alto’s first playground accessible to people of all abilities and ages.  Identified below are  goals for Fiscal Year 2011:    1. Implement Project Safety Net  2. Magical Bridge Playground Project                                                                        Project Tracking Report (April 2012‐December 2012)     Page 30                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   1.    Project: Implement Project Safety Net (PSN)  Department: Community Services Department   Secondary Department: Police Department   Project start date: September 2009  Target completion date: Ongoing    Current status:   Project Safety Net continues to be very active in working towards suicide prevention and youth well  being. Recent progress made includes the hiring of a Project Safety Net Director hired (March 2012)  who conducted an audit of the effort which resulted in a “41 Days Report” which identified the  following three overarching themes:  1) Re‐engage collaboration with all levels of PSN; 2) Activate  youth voice and participation in collaborative; and 3) Balance and sustain the combined work of  suicide prevention and youth well being.  Findings were shared with PSN community coalition  members at the June 2012 PSN meeting, PSN Steering Committee Meeting, PAUSD School Board,  City Council, Human Relations Commission and the Parks and Recreation Commission.     Other key accomplishments in the area of QPR (suicide prevention training) were the creation of  youth‐based role playing and the scheduling of over 14 QPR  trainings which resulted in the training  of approximately 300 people.  PSN also secured a $30,000 grant from the Palo Alto Weekly Holiday  fund to support the work of the Palo Alto Youth Collaborative CCT, Developmental Assets CCT, and  the creation of a Communications Plan for PSN.  PSN worked with Palo Alto Fire Fighters and  Stanford University to host a Community Pancake Breakfast on October 20, 2012 with large  community collaboration and support. Over 900 community members attended and $4,500 was  earned for PSN.    Next steps:     The following are next steps for PSN:  1)  Develop a Crisis Protocol Plan and Mental Health Tool Kit  that is in keeping with the City of Palo Alto’s Suicide Prevention Policy; 2) Report back to the Finance  Committee on the use of and future plans for the Stanford University Medical Center Development  Agreement funds; 3) Develop a Communications Plan; and 4) Explore the development of a strategic  plan for PSN.                               Project Tracking Report (April 2012‐December 2012)     Page 31                                                   Ci t y  of  Pa l o  Al t o  St r a t e g i c  Pr i o r i t i e s  Qu a r t e r l y  Re p o r t   2.    Project: Magical Bridge Playground Project   Department: Community Services Department   Project start date: July 2011  Target completion date: June 2013    Current status:     After approving the Letter of Intent between the City and the Friends of the Palo Alto Parks (Friends)  on July 18, 2011 staff began working with the Friends to create a Scope of Work for landscape  design services. In January 2012, members of Friends together with staff from Public Works  Engineering and Community Services began working with the selected landscape design firm of  Royston, Hanamoto, Alley and Abey, who was the firm who initially designed Mitchell Park.  Over  the year a number of community meetings have been hosted for comments, suggestions and  concerns from neighbors, park users and parent of special needs children for the design of the new  playground and pathways leading to and through this area of Mitchell Park.  The conceptual designs  have been vetted with the Parks and Recreation Commission at their June 26, 2012, regular meeting  and with the Human Relations Commission at their July 12, 2012, regular meeting. On November 19,  2012, Council approved a fundraising plan and naming designation plan for the playground. To‐date  two of the ten zones of the playground have received pledges from donors.  The Friends of the  Magical Bridge have continued to develop marketing and fundraising materials and outreach  strategies.  The Friends have been successful in partnering with the Sobrato Family Foundation for  an awareness raising campaign through local newspapers.      Next steps:      Staff anticipates that the design for the playground will be finished by February 2013, and will then  be reviewed by the Parks and Recreation Commission, Architectural Review Board, and Council by  April 2013.  The design firm will then be able to finalize their design concepts and prepare final cost  estimates for the project.     Under the terms of the Letter of Intent, the Friends have until June 30, 2013 to raise the funds for  the project and be able to enter into a construction agreement with the City.   City of Palo Alto (ID # 3479) City Council Staff Report Report Type: Informational Report Meeting Date: 1/28/2013 City of Palo Alto Page 1 Summary Title: Investment Activity Report Title: City of Palo Alto Investment Activity Report for the Second Quarter, Fiscal Year 2013 From: City Manager Lead Department: Administrative Services Background The purpose of this report is to inform Council of the City’s investment portfolio status as of the end of the second quarter. The City’s investment policy requires that staff report quarterly to Council on the City’s portfolio composition compared to Council-adopted policy, portfolio performance, and other key investment and cash flow information. Discussion The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type and includes the investment issuer, date of maturity, current market value, the book and face (par) value, and the weighted average maturity of each type of investment and of the entire portfolio. The par value of the City’s portfolio is $441.5 million; in comparison, last quarter it was $417.8 million. The growth in the portfolio of $23.7 million since the last quarter primarily results from $26.1 million in receipts from the Stanford University Medical Center (SUMC) Development Agreement including impact fees related to the project. The portfolio consists of $33.8 million in liquid accounts and $407.7 million in U. S. government treasury investments, agency securities, and certificates of deposit. The $407.7 million includes $106.5 million in investments maturing in less than two years, comprising 26.1 percent of the City’s investment in notes and securities. The investment policy requires that at least $50 million be maintained in securities maturing in less than two years. City of Palo Alto Page 2 The current market value of the portfolio is 103.6 percent of the book value. The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will likely increase; likewise, when interest rates increase, the market value of the securities will likely decrease. Understanding and showing market values is not only a reporting requirement, but essential to knowing the principal risks in actively buying and selling securities. It is important to note, however, that the City’s practice is to buy and hold investments until they mature so changes in market price do not affect the City’s investment principal. The market valuation is provided by Union Bank of California, which is the City’s safekeeping agent. The average life to maturity of the investment portfolio is 3.78 years compared to 3.86 years last quarter. Investments Made During the Second Quarter During the second quarter, $25.4 million of government agency securities with an average yield of 1.9% percent matured. During the same period, government securities totaling $32.0 million with an average yield of 1.9% percent were purchased. Though yields on purchased securities were similar to maturing ones in the second quarter, it’s expected that higher yielding maturing investments will be re-invested at lower interest rates and interest rates will remain at historically low levels in future quarters. As a result, the portfolio’s yield is expected to further decline. The City’s short-term money market and pool account increased by $17.1 million compared to the first quarter. Investment staff continually monitors the City’s short-term cash flow needs and adjusts liquid funds to meet those needs. Availability of Funds for the Next Six Months Normally, the flow of revenues from the City’s utility billings and General Fund sources is sufficient to provide funds for ongoing expenditures in those respective funds. Projections indicate receipts will be $216.1 million and expenditures will be $213.6 million over the next six months, indicating an overall growth in the portfolio of $2.5 million. As of December 31, 2012, the City had $33.8 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition, investments totaling $20.0 million will mature between January 1, 2013 and June 30, 2013. On the basis of the above projections, staff is confident that the City will have more than sufficient funds or liquidity to meet expenditure requirements for the next six months. Compliance with City Investment Policy During the second quarter, staff complied with all aspects of the investment policy. Attachment C lists the major restrictions in the City’s investment policy compared with the portfolio’s actual performance. City of Palo Alto Page 3 Investment Yields Interest income on an accrual basis for the second quarter was $2.7 million. As of December 31, 2012, the yield to maturity of the City’s portfolio was 2.44 percent. This compares to a yield of 2.54 percent in the first quarter. The portfolio yield is expected to further decrease in future quarters as staff continues to re-invest higher-yielding maturing securities at lower interest rates. The City’s portfolio yield of 2.44 percent compares to LAIF’s average yield for the quarter of 0.33 percent and an average yield on the two-year and five-year Treasury bonds during the second quarter of approximately 0.26 percent and 0.69 percent, respectively. Yield Trends During the last 4 ½ years, the Federal Open Market Committee (FOMC) maintained the historically low federal funds and discount rate at 0.25 and 0.75 percent, respectively. FOMC continued outlook is that there will be moderate economic growth and improvements though household spending and the housing sector rate of growth have slowed down. Inflation continues to remain low with key commodities such as gasoline prices declining. The concerns of economic problems in Europe, slowdowns in Asia, and job data in the U.S. continue. The FOMC remains committed to keeping interest rates at exceptionally low levels as long as the unemployment rate remains above 6.5 percent and inflation remain low to stimulate the economy and boost job growth. The FOMC monetary policy will continue to exert considerable downward pressure on the City’s portfolio yield. Funds Held by the City or Managed Under Contract Attachment A is a consolidated report of all City investment funds, including those not held directly in the investment portfolio. These include cash in the City’s regular bank account with Wells Fargo. The bond proceeds, reserves, and debt service payments being held by the City’s fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency securities, and repurchase agreements. The most recent data on funds held by the fiscal agent is as of December 31, 2012. Fiscal Impact This is an information report. City of Palo Alto Page 4 Environmental Review This information report is not a project under the California Environmental Quality Act; therefore, an environmental review is not required. Attachments:  Attachment A: Consolidated Report of Cash Management (PDF)  Attachment B: Investment Portfolio (PDF)  Attachment C: Investment Policy Compliance (PDF) Book Value Market Value City Investment Portfolio (see Attachment B)446,980,947$ 463,214,263$ Other Funds Held by the City Cash with Wells Fargo Bank 1,151,516 1,151,516 (includes general and imprest accounts) Petty/Working Cash 98,653 98,653 Total - Other Funds Held By City 1,250,169 1,250,169 Funds Under Management of Third Party Trustees * US Bank Trust Services ** 2002 Downtown Parking Impvt. (Taxable) Certificates of Participation Reserve Fund 238,367 238,367 2009 Water Revenue Bonds (Build America Bonds) Project, Debt Service, Reserve, Cost of Issuance Funds 17,274,240 17,274,240 2011 Utility Revenue Refunding Bonds Debt Service, Reserve, and Cost of Issuance Funds 1,484,695 1,484,695 2012 University Ave. Parking Refunding Bonds Cost of Issuance Fund 16,624 16,624 California Asset Management Program (CAMP) *** 2010 General Obligation (Library) Bond Project Fund 17,687,216 17,687,216 2012 University Ave. Parking Refunding Bonds Reserve Fund 2,523,712 2,523,712 Total Under Trustee Management 39,224,854 39,224,854 GRAND TOTAL 487,455,970$ 503,689,286$ * These funds are subject to the requirements of the underlying debt indenture. ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. Second Quarter, Fiscal Year 2012-13 (Unaudited) (Debt Service Proceeds) Attachment A Consolidated Report of Cash Management City of Palo Alto Cash and Investments City of Palo Alto City of Palo Alto Administration Svcs. Dept. 250 Hamilton Ave., 4th Floor Palo Alto, CA 94301(650)329-2362 December 31, 2012 Fund ALL - Portfolio Listings Investments by Fund Par Value Days To Maturity Maturity Date Current RateMarket ValueCUSIPInvestment #Issuer PurchaseDate Book Value YTM 360 YTM 365 Managed Pool Accounts Fidelity Investments158 4,057,374.55SYS158 10.01007/01/2011 4,057,374.55 0.009 0.0104,057,374.55 Local Agency Investment Fund159 29,749,742.20SYS159 10.32007/01/2011 29,787,593.09 0.315 0.32029,749,742.20 Subtotal and Average 33,807,116.75 33,807,116.75 33,844,967.64 0.279 0.283 1 Federal Agency Issues - Coupon Federal Agricultural Mortgage1028 3,000,000.0031315PPC7 02/21/2019 2,2421.79002/21/2012 3,064,320.00 1.765 1.7903,000,000.00 Federal Agricultural Mortgage1031 2,000,000.0031315PQC6 09/06/2018 2,0741.55003/06/2012 2,060,220.00 1.528 1.5502,000,000.00 Federal Agricultural Mortgage1052 1,500,000.0031315PTW9 04/10/2019 2,2901.87004/10/2012 1,555,515.00 1.844 1.8701,500,000.00 Federal Agricultural Mortgage1053 Call 2,000,000.0031315PTC3 04/12/2022 3,3882.87504/12/2012 2,010,820.00 2.835 2.8752,000,000.00 Federal Agricultural Mortgage1055 1,500,000.0031315PTQ2 04/10/2017 1,5601.26004/10/2012 1,527,915.00 1.242 1.2601,500,000.00 Federal Agricultural Mortgage1090 2,000,000.0031315PZQ5 06/05/2017 1,6161.11006/05/2012 2,031,940.00 1.094 1.1102,000,000.00 Federal Agricultural Mortgage1096 2,000,000.0031315PZQ5 06/05/2017 1,6161.11006/20/2012 2,031,940.00 0.998 1.0122,008,429.89 Federal Agricultural Mortgage1098 2,000,000.0031315PPK9 07/03/2017 1,6441.02007/03/2012 2,015,800.00 1.006 1.0202,000,000.00 Federal Agricultural Mortgage1109 2,000,000.0031315PSX8 08/23/2017 1,6951.03008/23/2012 2,023,260.00 1.015 1.0302,000,000.00 Federal Agricultural Mortgage1122 Call 1,000,000.0031315PNY1 11/21/2022 3,6112.19011/21/2012 988,630.00 2.163 2.193999,752.78 Federal Agricultural Mortgage1123 Call 1,500,000.0031315PQL6 11/29/2021 3,2542.00011/29/2012 1,484,175.00 1.972 2.0001,500,000.00 Federal Agricultural Mortgage1124 Call 1,750,000.0031315PNY1 11/21/2022 3,6112.19011/21/2012 1,730,102.50 2.166 2.1961,749,134.72 Federal Agricultural Mortgage1130 1,500,000.0031315PPX1 07/05/2022 3,4722.20012/13/2012 1,517,280.00 1.930 1.9571,531,468.07 Federal Agricultural Mortgage1134 750,000.0031315PB32 11/21/2022 3,6112.00012/19/2012 750,142.50 2.081 2.110742,667.22 Federal Agricultural Mortgage1136 1,500,000.0031315PTY5 12/27/2019 2,5511.48012/27/2012 1,500,405.00 1.395 1.4151,506,454.74 Federal Agricultural Mortgage820 2,000,000.0031315PLR8 08/11/2014 5873.25008/11/2009 2,086,300.00 3.205 3.2502,000,000.00 Federal Agricultural Mortgage838 2,000,000.0031315PES4 12/30/2014 7282.82012/30/2009 2,091,580.00 2.781 2.8202,000,000.00 Federal Agricultural Mortgage839 1,500,000.0031315PEY1 12/30/2019 2,5544.50012/30/2009 1,760,895.00 4.438 4.5001,500,000.00 Federal Agricultural Mortgage840 2,000,000.0031315PGE3 01/19/2017 1,4794.12501/19/2010 2,231,060.00 4.068 4.1252,000,000.00 Federal Agricultural Mortgage866 1,000,000.0031315PAT6 05/17/2017 1,5973.75005/17/2010 1,116,970.00 3.698 3.7501,000,000.00 Federal Agricultural Mortgage923 1,500,000.0031315PNM7 12/28/2017 1,8223.15012/28/2010 1,649,040.00 3.106 3.1501,500,000.00 Federal Agricultural Mortgage935 1,500,000.0031315PQN2 02/03/2014 3981.34002/03/2011 1,518,660.00 1.321 1.3401,500,000.00 Federal Agricultural Mortgage936 1,500,000.0031315PRG6 01/31/2016 1,1252.44002/03/2011 1,591,530.00 2.406 2.4401,500,000.00 Federal Agricultural Mortgage942 1,500,000.0031315PTU3 03/09/2021 2,9894.16003/09/2011 1,720,680.00 4.103 4.1601,500,000.00 Federal Agricultural Mortgage951 1,500,000.0031315PUN7 04/29/2016 1,2142.41004/29/2011 1,591,170.00 2.376 2.4101,500,000.00 Federal Agricultural Mortgage975 1,000,000.0031315PA25 07/27/2016 1,3032.00007/27/2011 1,048,080.00 2.063 2.092996,892.17 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 2 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Farm Credit Bank1002 2,000,000.0031331KF96 10/14/2014 6510.70010/14/2011 2,014,980.00 0.690 0.7002,000,000.00 Federal Farm Credit Bank1006 2,000,000.0031331KK90 10/26/2016 1,3941.35010/26/2011 2,058,020.00 1.331 1.3502,000,000.00 Federal Farm Credit Bank1032 950,000.003133EAGE2 03/07/2016 1,1610.75003/07/2012 958,721.00 0.739 0.750950,000.00 Federal Farm Credit Bank1046 1,000,000.003133EAJU3 03/28/2016 1,1821.05003/28/2012 1,019,980.00 1.035 1.0501,000,000.00 Federal Farm Credit Bank1088 2,000,000.003133EASF6 11/20/2014 6880.50005/29/2012 2,007,940.00 0.458 0.4652,001,310.75 Federal Farm Credit Bank1092 1,500,000.003133EAUF3 06/14/2019 2,3551.50006/14/2012 1,515,750.00 1.479 1.5001,500,000.00 Federal Farm Credit Bank653 2,000,000.0031331VY91 08/16/2013 2275.28009/26/2006 2,063,400.00 4.827 4.8942,004,086.89 Federal Farm Credit Bank655 4,000,000.0031331V4E3 09/15/2014 6225.18010/12/2006 4,333,360.00 5.059 5.1304,002,746.16 Federal Farm Credit Bank657 2,039,000.0031331VWS1 04/17/2014 4715.20010/16/2006 2,169,863.02 5.100 5.1712,039,626.18 Federal Farm Credit Bank658 1,500,000.0031331S3H4 02/18/2014 4134.75010/16/2006 1,576,860.00 5.104 5.1751,494,050.91 Federal Farm Credit Bank659 3,000,000.0031331XBS0 11/25/2013 3285.05010/25/2006 3,129,810.00 4.979 5.0483,000,000.00 Federal Farm Credit Bank660 2,000,000.0031331XCY6 05/06/2015 8555.05011/06/2006 2,219,360.00 4.980 5.0502,000,000.00 Federal Farm Credit Bank662 2,000,000.0031331VTY2 03/20/2013 785.20011/16/2006 2,022,000.00 4.877 4.9452,000,945.65 Federal Farm Credit Bank677 2,000,000.0031331XPB2 02/07/2013 375.15002/07/2007 2,009,780.00 5.079 5.1502,000,000.00 Federal Farm Credit Bank690 2,000,000.0031331XSR4 03/14/2014 4374.87503/27/2007 2,111,800.00 4.807 4.8742,000,000.00 Federal Farm Credit Bank702 3,500,000.0031331XB27 08/05/2013 2165.20006/05/2007 3,603,845.00 5.130 5.2013,500,000.00 Federal Farm Credit Bank703 2,000,000.0031331XC26 06/05/2014 5205.25006/05/2007 2,142,460.00 5.178 5.2502,000,000.00 Federal Farm Credit Bank705 2,000,000.0031331XD74 12/18/2013 3515.33006/12/2007 2,098,860.00 5.257 5.3302,000,000.00 Federal Farm Credit Bank707 3,000,000.0031331XC26 06/05/2014 5205.25006/08/2007 3,213,690.00 5.409 5.4842,991,729.44 Federal Farm Credit Bank715 3,000,000.0031331XU75 08/13/2014 5895.30008/20/2007 3,232,080.00 5.128 5.1993,004,015.87 Federal Farm Credit Bank720 1,500,000.0031331X3H3 09/17/2014 6245.00009/17/2007 1,616,775.00 4.931 5.0001,500,000.00 Federal Farm Credit Bank721 1,500,000.0031331X5Y4 10/03/2014 6405.00010/03/2007 1,623,825.00 4.931 5.0001,500,000.00 Federal Farm Credit Bank722 2,000,000.0031331YCJ7 10/30/2017 1,7634.90010/30/2007 2,385,540.00 4.832 4.9002,000,000.00 Federal Farm Credit Bank725 2,000,000.0031331YHQ6 12/15/2017 1,8094.62512/12/2007 2,365,480.00 4.561 4.6242,000,000.00 Federal Farm Credit Bank742 2,000,000.0031331VCQ7 10/19/2015 1,0214.80001/30/2008 2,248,360.00 3.945 4.0002,038,172.70 Federal Farm Credit Bank744 1,000,000.0031331SKH5 01/22/2015 7514.50001/30/2008 1,085,820.00 3.820 3.8731,011,209.39 Federal Farm Credit Bank747 1,500,000.0031331YSV3 02/11/2015 7713.85002/11/2008 1,611,300.00 3.797 3.8501,500,000.00 Federal Farm Credit Bank785 1,500,000.0031331GPN3 03/04/2013 622.60003/04/2009 1,506,405.00 2.564 2.6001,500,000.00 Federal Farm Credit Bank788 1,000,000.0031331GLT4 01/29/2016 1,1233.75003/04/2009 1,100,910.00 3.698 3.7491,000,000.00 Federal Farm Credit Bank823 2,000,000.0031331GL80 09/22/2014 6293.00008/21/2009 2,095,080.00 2.959 3.0002,000,000.00 Federal Farm Credit Bank850 2,000,000.0031331JFZ1 03/08/2017 1,5273.37503/08/2010 2,223,320.00 3.328 3.3752,000,000.00 Federal Farm Credit Bank870 1,000,000.0031331JQB2 06/02/2017 1,6133.00006/02/2010 1,096,620.00 2.958 3.0001,000,000.00 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 3 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Farm Credit Bank872 2,000,000.0031331YEL0 11/15/2016 1,4145.00006/04/2010 2,317,560.00 3.027 3.0702,134,651.31 Federal Farm Credit Bank903 1,000,000.0031331JN90 09/29/2020 2,8282.87509/29/2010 1,091,010.00 2.835 2.8751,000,000.00 Federal Farm Credit Bank910 2,000,000.0031331JX32 10/28/2016 1,3961.70010/28/2010 2,084,440.00 1.676 1.7002,000,000.00 Federal Farm Credit Bank918 2,000,000.0031331J5F6 12/16/2020 2,9063.62512/16/2010 2,312,160.00 3.575 3.6252,000,000.00 Federal Farm Credit Bank925 1,500,000.0031331JX32 10/28/2016 1,3961.70001/04/2011 1,563,330.00 2.576 2.6111,451,737.31 Federal Farm Credit Bank932 3,000,000.0031331J2M4 11/22/2016 1,4211.87501/14/2011 3,147,210.00 2.483 2.5182,930,574.73 Federal Farm Credit Bank937 2,000,000.0031331KBX7 02/10/2017 1,5012.87502/10/2011 2,171,760.00 2.835 2.8752,000,000.00 Federal Farm Credit Bank959 1,500,000.0031331KQD5 06/27/2017 1,6382.30006/27/2011 1,590,300.00 2.268 2.3001,500,000.00 Federal Farm Credit Bank .1100 Call 1,500,000.003133EAZN1 07/24/2020 2,7611.84007/24/2012 1,500,195.00 1.814 1.8401,500,000.00 Federal Farm Credit Bank .1117 Call 1,500,000.003133EA3N6 07/09/2020 2,7461.72010/09/2012 1,497,285.00 1.696 1.7201,500,000.00 Federal Home Loan Bank1012 2,000,000.00313376BR5 12/14/2018 2,1731.75012/16/2011 2,072,660.00 1.725 1.7492,000,000.00 Federal Home Loan Bank1017 2,000,000.00313376V36 01/25/2017 1,4851.00001/25/2012 2,035,180.00 0.986 1.0002,000,000.00 Federal Home Loan Bank1021 2,000,000.00313376VN2 12/22/2016 1,4511.10001/30/2012 2,034,980.00 1.084 1.1002,000,000.00 Federal Home Loan Bank1027 2,000,000.003133787M7 02/27/2017 1,5181.05002/21/2012 2,029,660.00 1.035 1.0492,000,000.00 Federal Home Loan Bank1038 1,500,000.003133782N0 03/10/2017 1,5290.87503/08/2012 1,511,310.00 0.999 1.0131,491,546.42 Federal Home Loan Bank1039 1,500,000.003133782M2 03/08/2019 2,2571.50003/08/2012 1,531,815.00 1.574 1.5961,491,582.47 Federal Home Loan Bank1041 1,500,000.00313378LA7 02/25/2022 3,3422.33003/20/2012 1,563,720.00 2.298 2.3301,500,000.00 Federal Home Loan Bank1042 2,000,000.00313378LY5 07/30/2015 9400.60003/20/2012 2,011,920.00 0.591 0.6002,000,000.00 Federal Home Loan Bank1045 2,000,000.00313378QP9 03/28/2017 1,5471.26003/28/2012 2,046,640.00 1.242 1.2602,000,000.00 Federal Home Loan Bank1049 1,500,000.00313378VG3 05/22/2019 2,3321.85004/09/2012 1,560,450.00 1.824 1.8501,500,000.00 Federal Home Loan Bank1057 1,500,000.00313378ZW4 04/17/2017 1,5671.05004/17/2012 1,521,525.00 1.035 1.0501,500,000.00 Federal Home Loan Bank1058 1,500,000.003133792L2 10/20/2017 1,7531.23004/20/2012 1,523,460.00 1.213 1.2301,500,000.00 Federal Home Loan Bank1065 Call 1,500,000.003133796H7 01/26/2022 3,3122.50004/26/2012 1,508,415.00 2.465 2.5001,500,000.00 Federal Home Loan Bank1068 1,500,000.00313379BL2 12/29/2017 1,8231.25004/30/2012 1,530,825.00 1.232 1.2501,500,000.00 Federal Home Loan Bank1070 1,500,000.00313379BG3 04/27/2017 1,5771.07004/27/2012 1,516,230.00 1.055 1.0701,500,000.00 Federal Home Loan Bank1073 2,000,000.00313379EC9 11/18/2020 2,8782.00005/18/2012 2,055,020.00 1.972 2.0002,000,000.00 Federal Home Loan Bank1078 Call 2,000,000.00313379E96 05/23/2022 3,4292.60005/23/2012 2,011,020.00 2.564 2.6002,000,000.00 Federal Home Loan Bank1087 Call 2,000,000.00313379LL1 05/25/2017 1,6051.75005/25/2012 2,013,220.00 1.399 1.4192,028,019.20 Federal Home Loan Bank1089 2,000,000.00313379PD5 09/20/2017 1,7231.09006/07/2012 2,028,420.00 1.075 1.0902,000,000.00 Federal Home Loan Bank1101 Call 1,500,000.003133805L7 08/08/2022 3,5062.25008/08/2012 1,500,240.00 2.219 2.2501,500,000.00 Federal Home Loan Bank1102 Call 1,500,000.003133802M8 07/30/2018 2,0361.37507/30/2012 1,500,120.00 1.356 1.3751,500,000.00 Federal Home Loan Bank1104 Call 1,500,000.003133807E1 08/15/2022 3,5132.29008/15/2012 1,500,255.00 2.258 2.2901,500,000.00 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 4 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank1105 Call 1,500,000.00313380E86 11/30/2018 2,1591.33008/30/2012 1,500,135.00 1.311 1.3301,500,000.00 Federal Home Loan Bank1112 Call 333,333.34313380JH1 08/23/2022 3,5212.48008/23/2012 333,393.34 2.446 2.480333,333.34 Federal Home Loan Bank1116 Call 1,500,000.00313380WT0 10/11/2022 3,5702.25010/11/2012 1,498,350.00 2.227 2.2581,498,900.00 Federal Home Loan Bank1121 Call 2,000,000.00313381AY1 11/21/2022 3,6112.25011/21/2012 1,997,920.00 2.224 2.2551,999,011.11 Federal Home Loan Bank1125 1,500,000.00313381C94 12/13/2019 2,5371.25011/30/2012 1,489,320.00 1.196 1.2121,503,709.00 Federal Home Loan Bank1126 Call 1,500,000.00313381DA0 12/05/2022 3,6252.19012/05/2012 1,497,450.00 2.165 2.1951,499,255.42 Federal Home Loan Bank1127 1,500,000.00313381GB5 11/30/2018 2,1591.00011/30/2012 1,493,430.00 0.986 1.0001,500,000.00 Federal Home Loan Bank1128 Call 2,000,000.00313381HW8 12/19/2022 3,6392.19012/19/2012 1,988,040.00 2.168 2.1981,998,505.00 Federal Home Loan Bank1129 Call 1,500,000.00313381HW8 12/19/2022 3,6392.19012/19/2012 1,491,030.00 2.176 2.2061,497,757.50 Federal Home Loan Bank1131 1,500,000.00313381C94 12/13/2019 2,5371.25012/13/2012 1,489,320.00 1.232 1.2491,500,000.00 Federal Home Loan Bank1135 1,500,000.00313376BR5 12/14/2018 2,1731.75012/19/2012 1,554,495.00 1.075 1.0901,556,898.89 Federal Home Loan Bank652 2,000,000.0031339Y7K2 07/16/2013 1965.00009/26/2006 2,051,080.00 4.850 4.9182,000,735.78 Federal Home Loan Bank654 2,000,000.003133XHBL5 06/13/2014 5284.87510/12/2006 2,133,760.00 5.020 5.0891,994,817.81 Federal Home Loan Bank663 2,000,000.003133XHXW7 11/27/2013 3304.87511/27/2006 2,084,840.00 4.808 4.8752,000,000.00 Federal Home Loan Bank667 2,000,000.003133XHW57 12/13/2013 3464.87512/14/2006 2,088,820.00 4.806 4.8732,000,000.00 Federal Home Loan Bank699 2,000,000.003133XGJ96 09/13/2013 2555.25005/16/2007 2,070,180.00 4.943 5.0112,002,811.07 Federal Home Loan Bank706 1,000,000.003133XGJ96 09/13/2013 2555.25006/08/2007 1,035,090.00 5.369 5.444998,852.31 Federal Home Loan Bank710 2,500,000.003133XLDG5 06/13/2014 5285.37506/28/2007 2,684,475.00 5.300 5.3742,500,000.00 Federal Home Loan Bank713 3,000,000.003133XLDG5 06/13/2014 5285.37508/20/2007 3,221,370.00 5.099 5.1703,007,379.93 Federal Home Loan Bank730 2,000,000.003133XPBA1 03/13/2015 8013.50001/25/2008 2,138,700.00 3.451 3.4992,000,000.00 Federal Home Loan Bank741 3,000,000.003133XPBA1 03/13/2015 8013.50001/30/2008 3,208,050.00 3.869 3.9232,975,785.75 Federal Home Loan Bank777 3,000,000.003133XSP93 12/13/2013 3463.12501/16/2009 3,083,580.00 2.794 2.8333,015,028.44 Federal Home Loan Bank789 2,000,000.003133XTCS3 03/13/2014 4363.00003/16/2009 2,066,740.00 2.958 2.9992,000,000.00 Federal Home Loan Bank793 3,000,000.003133XTFQ4 04/01/2014 4552.90004/01/2009 3,100,290.00 2.860 2.9003,000,000.00 Federal Home Loan Bank818 2,000,000.003133XTYD2 06/16/2015 8964.00006/16/2009 2,178,040.00 3.945 4.0002,000,000.00 Federal Home Loan Bank822 3,000,000.003133XUMS9 09/13/2019 2,4464.50008/12/2009 3,616,380.00 4.437 4.4993,000,000.00 Federal Home Loan Bank827 1,000,000.003133XUMR1 09/12/2014 6193.25010/21/2009 1,050,280.00 2.594 2.6311,009,781.78 Federal Home Loan Bank830 3,000,000.003133XDTL5 12/21/2015 1,0845.00010/21/2009 3,406,290.00 3.101 3.1453,149,229.66 Federal Home Loan Bank832 3,000,000.003133XVRJ2 12/09/2016 1,4383.50011/19/2009 3,323,940.00 3.325 3.3723,013,313.40 Federal Home Loan Bank833 1,200,000.003133MJQF0 08/15/2016 1,3225.50011/19/2009 1,412,376.00 3.304 3.3501,283,000.19 Federal Home Loan Bank847 2,000,000.003133XWX95 03/13/2015 8012.75002/19/2010 2,105,880.00 2.711 2.7492,000,000.00 Federal Home Loan Bank859 1,500,000.003133XEUG2 03/11/2016 1,1654.87504/26/2010 1,709,970.00 3.227 3.2721,569,334.40 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 5 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank860 1,500,000.003133XHVS8 12/09/2016 1,4385.00004/26/2010 1,751,685.00 3.430 3.4781,579,671.01 Federal Home Loan Bank878 3,000,000.003133XVNU1 12/12/2014 7102.75006/23/2010 3,143,970.00 2.052 2.0813,037,129.02 Federal Home Loan Bank879 1,500,000.003133XUMR1 09/12/2014 6193.25006/23/2010 1,575,420.00 1.975 2.0031,530,282.51 Federal Home Loan Bank883 1,500,000.003133XWNB1 06/12/2015 8922.87506/29/2010 1,591,935.00 2.099 2.1281,525,859.30 Federal Home Loan Bank885 2,000,000.003133XBDM4 02/13/2015 7734.75006/29/2010 2,186,420.00 2.022 2.0512,108,456.78 Federal Home Loan Bank887 1,500,000.003133705T1 04/08/2013 971.08007/08/2010 1,503,840.00 1.065 1.0801,500,000.00 Federal Home Loan Bank900 2,000,000.00313370TB4 07/29/2013 2090.85008/30/2010 2,007,740.00 0.838 0.8502,000,000.00 Federal Home Loan Bank901 1,000,000.003133717D2 02/27/2014 4221.00009/27/2010 1,009,180.00 0.986 1.0001,000,000.00 Federal Home Loan Bank907 2,000,000.00313371FB7 08/28/2015 9691.35010/22/2010 2,051,480.00 1.331 1.3502,000,000.00 Federal Home Loan Bank911 1,500,000.00313371PV2 12/09/2016 1,4381.62511/09/2010 1,561,320.00 1.602 1.6241,500,000.00 Federal Home Loan Bank912 1,500,000.00313371PU4 12/13/2013 3460.50011/09/2010 1,503,120.00 0.589 0.5971,500,000.00 Federal Home Loan Bank913 2,000,000.00313371VF0 12/11/2015 1,0741.62511/19/2010 2,068,940.00 1.602 1.6242,000,000.00 Federal Home Loan Bank914 2,000,000.00313371WB8 07/24/2014 5691.15011/24/2010 2,027,800.00 1.134 1.1502,000,000.00 Federal Home Loan Bank920 1,500,000.00313371PV2 12/09/2016 1,4381.62512/15/2010 1,561,320.00 2.550 2.5851,447,693.97 Federal Home Loan Bank921 1,500,000.00313371NW2 12/11/2015 1,0741.37512/15/2010 1,543,875.00 2.191 2.2211,464,765.03 Federal Home Loan Bank924 1,500,000.003133MJQF0 08/15/2016 1,3225.50001/04/2011 1,765,470.00 2.516 2.5501,648,379.20 Federal Home Loan Bank926 1,500,000.00313371PV2 12/09/2016 1,4381.62501/04/2011 1,561,320.00 2.592 2.6291,445,382.63 Federal Home Loan Bank931 3,000,000.003133XFPR1 06/10/2016 1,2565.37501/14/2011 3,507,300.00 2.363 2.3963,286,835.50 Federal Home Loan Bank938 1,500,000.00313372Q56 02/26/2016 1,1512.65002/18/2011 1,603,395.00 2.613 2.6491,500,000.00 Federal Home Loan Bank940 2,000,000.003133X0PF0 08/15/2018 2,0525.37502/17/2011 2,467,400.00 3.423 3.4702,187,096.22 Federal Home Loan Bank947 1,500,000.00313373GQ9 10/29/2014 6661.75004/29/2011 1,539,855.00 1.726 1.7501,500,000.00 Federal Home Loan Bank982 2,000,000.00313375KP1 03/15/2017 1,5341.50009/15/2011 2,066,620.00 1.479 1.5002,000,000.00 Federal Home Loan Bank985 2,000,000.00313375M87 10/14/2016 1,3821.27009/14/2011 2,050,040.00 1.252 1.2702,000,000.00 Federal Home Loan Bank990 2,000,000.00313370TW8 09/09/2016 1,3472.00009/13/2011 2,112,940.00 1.163 1.1802,058,576.93 Federal Home Loan Bank992 2,000,000.00313371ZX7 12/08/2017 1,8022.62509/13/2011 2,174,260.00 1.526 1.5472,100,968.43 Federal Home Loan Bank - S & P792 2,000,000.003133XTFD3 03/27/2014 4502.85003/27/2009 2,065,080.00 2.810 2.8502,000,000.00 Fed. Home Loan Mortgage Corp.1007 Call 2,000,000.003134G23Y6 11/15/2016 1,4141.57011/15/2011 2,021,440.00 1.548 1.5702,000,000.00 Fed. Home Loan Mortgage Corp.1024 Call 2,000,000.003134G3MD9 11/14/2017 1,7781.50002/14/2012 2,026,440.00 1.479 1.5002,000,000.00 Fed. Home Loan Mortgage Corp.1025 Call 2,000,000.003134G3MF4 02/07/2019 2,2282.00002/07/2012 2,029,120.00 1.972 2.0002,000,000.00 Fed. Home Loan Mortgage Corp.1036 1,500,000.003137EABA6 11/17/2017 1,7815.12503/01/2012 1,807,695.00 1.227 1.2441,773,187.82 Fed. Home Loan Mortgage Corp.1074 Call 2,000,000.003134G3VH0 05/24/2017 1,6041.20005/24/2012 2,005,880.00 1.183 1.2002,000,000.00 Fed. Home Loan Mortgage Corp.1081 Call 2,000,000.003134G3VS6 05/30/2017 1,6101.25005/30/2012 2,005,980.00 1.232 1.2502,000,000.00 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 6 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Fed. Home Loan Mortgage Corp.1085 Call 2,000,000.003134G3VW7 06/14/2017 1,6251.25006/14/2012 2,008,160.00 1.232 1.2502,000,000.00 Fed. Home Loan Mortgage Corp.1086 Call 2,000,000.003134G3WB2 06/07/2017 1,6181.30006/07/2012 2,008,220.00 1.282 1.3002,000,000.00 Fed. Home Loan Mortgage Corp.1097 Call 1,500,000.003134G3XT2 07/17/2017 1,6581.05007/17/2012 1,511,730.00 1.035 1.0501,500,000.00 Fed. Home Loan Mortgage Corp.1103 Call 3,000,000.003134G3A26 08/06/2020 2,7743.00008/06/2012 3,047,820.00 2.602 2.6383,073,845.00 Fed. Home Loan Mortgage Corp.1106 Call 1,500,000.003134G3A91 08/22/2019 2,4241.40008/22/2012 1,498,575.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.1113 Call 1,500,000.003134G3L73 12/26/2019 2,5501.50009/26/2012 1,511,520.00 1.479 1.5001,500,000.00 Fed. Home Loan Mortgage Corp.679 1,500,000.003128X1KG1 06/12/2013 1624.00002/07/2007 1,525,785.00 5.010 5.0801,493,866.85 Fed. Home Loan Mortgage Corp.682 2,000,000.003128X1KG1 06/12/2013 1624.00002/15/2007 2,034,380.00 4.970 5.0401,992,110.51 Fed. Home Loan Mortgage Corp.714 2,000,000.003134A4UM4 01/15/2014 3794.50008/20/2007 2,088,840.00 5.033 5.1031,989,411.18 Fed. Home Loan Mortgage Corp.734 Callable 1,500,000.003128X6N85 01/31/2015 7604.30001/31/2008 1,623,810.00 4.241 4.3001,500,000.00 Fed. Home Loan Mortgage Corp.828 2,000,000.003128X33E1 01/26/2015 7555.05010/21/2009 2,195,140.00 2.713 2.7512,087,989.25 Fed. Home Loan Mortgage Corp.884 4,000,000.003128X2RA5 12/01/2015 1,0645.30006/29/2010 4,550,760.00 2.327 2.3604,320,149.73 Fed. Home Loan Mortgage Corp.890 4,000,000.003134A4VG6 11/17/2015 1,0504.75007/07/2010 4,497,160.00 2.135 2.1654,279,451.61 Fed. Home Loan Mortgage Corp.927 1,500,000.003134A4ZT4 01/19/2016 1,1134.75001/04/2011 1,697,475.00 2.215 2.2451,607,731.04 Fed. Home Loan Mortgage Corp.970 Callable 1,500,000.003134G2TE2 07/28/2017 1,6692.35007/28/2011 1,502,250.00 2.317 2.3501,500,000.00 Fed. Home Loan Mortgage Corp.993 2,000,000.003137EAAY5 08/23/2017 1,6955.50009/13/2011 2,432,400.00 1.415 1.4352,360,683.21 Federal National Mortgage Asso1016 Call 1,500,000.003136FTZY8 02/08/2017 1,4991.25002/08/2012 1,501,770.00 1.232 1.2501,500,000.00 Federal National Mortgage Asso1019 Call 1,500,000.003136FTD55 08/01/2017 1,6731.40002/01/2012 1,501,605.00 1.380 1.4001,500,000.00 Federal National Mortgage Asso1022 2,000,000.0031398ADM1 06/12/2017 1,6235.37501/25/2012 2,404,960.00 1.317 1.3362,345,492.00 Federal National Mortgage Asso1023 2,590,000.003136FPXN2 11/24/2017 1,7882.30001/25/2012 2,774,459.80 1.406 1.4262,695,985.61 Federal National Mortgage Asso1026 Call 1,500,000.003133EABR8 02/01/2019 2,2222.00002/01/2012 1,502,085.00 1.972 2.0001,500,000.00 Federal National Mortgage Asso1033 3,000,000.003135G0JA2 04/27/2017 1,5771.12503/01/2012 3,054,870.00 1.134 1.1502,996,856.14 Federal National Mortgage Asso1034 1,500,000.003135G0AL7 03/15/2016 1,1692.25003/01/2012 1,584,540.00 0.856 0.8681,565,156.55 Federal National Mortgage Asso1035 2,000,000.0031398ALG5 01/23/2018 1,8484.37703/01/2012 2,348,860.00 1.388 1.4082,287,381.43 Federal National Mortgage Asso1047 Call 3,000,000.003136G0AX9 04/17/2019 2,2972.00004/17/2012 3,046,260.00 1.972 2.0003,000,000.00 Federal National Mortgage Asso1048 Call 2,000,000.003136G0AW1 10/16/2020 2,8452.35004/16/2012 2,044,780.00 2.317 2.3502,000,000.00 Federal National Mortgage Asso1050 Call 1,500,000.003136FT7B9 03/28/2022 3,3732.12503/29/2012 1,506,480.00 2.880 2.9201,500,000.00 Federal National Mortgage Asso1051 Call 2,000,000.003136G0CG4 04/26/2017 1,5761.40004/26/2012 2,008,660.00 1.380 1.4002,000,000.00 Federal National Mortgage Asso1054 Call 2,000,000.003136G0CY5 04/30/2019 2,3102.05004/30/2012 2,035,680.00 2.021 2.0502,000,000.00 Federal National Mortgage Asso1056 Call 1,500,000.003136G0CL3 07/26/2017 1,6671.50004/26/2012 1,505,835.00 1.479 1.5001,500,000.00 Federal National Mortgage Asso1059 Call 2,000,000.003136G0DU2 04/30/2020 2,6762.00004/30/2012 2,028,440.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1061 Call 1,500,000.003136G0EC1 04/30/2020 2,6762.05004/30/2012 1,521,000.00 2.021 2.0501,500,000.00 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 7 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal National Mortgage Asso1062 Call 2,000,000.003136G0DL2 10/30/2019 2,4932.00004/30/2012 2,009,780.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1063 Call 1,500,000.003136G0DQ1 07/26/2016 1,3021.00004/26/2012 1,503,645.00 0.986 1.0001,500,000.00 Federal National Mortgage Asso1064 Call 1,500,000.003136G0GA3 05/16/2017 1,5961.20005/16/2012 1,517,280.00 1.183 1.2001,500,000.00 Federal National Mortgage Asso1066 Call 2,000,000.003136G0FJ5 10/30/2020 2,8592.00004/30/2012 2,018,660.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1071 Call 2,000,000.003136G0DL2 10/30/2019 2,4932.00004/30/2012 2,009,780.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1072 Call 1,180,000.003136G0FG1 11/14/2016 1,4131.12505/14/2012 1,183,752.40 1.109 1.1251,180,000.00 Federal National Mortgage Asso1077 Call 1,000,000.003136G0FV8 11/15/2019 2,5092.00005/15/2012 1,003,540.00 1.972 2.0001,000,000.00 Federal National Mortgage Asso1080 Call 2,000,000.003136G0JB8 05/30/2017 1,6101.20005/30/2012 2,006,720.00 1.183 1.2002,000,000.00 Federal National Mortgage Asso1082 450,000.003136FPYB7 05/23/2017 1,6032.05005/11/2012 475,695.00 1.070 1.085468,520.40 Federal National Mortgage Asso1094 Call 2,000,000.003136G0PB1 06/28/2017 1,6391.16006/28/2012 2,008,640.00 1.144 1.1602,000,000.00 Federal National Mortgage Asso1099 Call 1,500,000.003136G0UB5 02/15/2018 1,8711.15008/15/2012 1,504,125.00 1.134 1.1501,500,000.00 Federal National Mortgage Asso1110 Call 475,000.003136G0YX3 09/13/2022 3,5422.50009/13/2012 476,159.00 2.465 2.500475,000.00 Federal National Mortgage Asso1111 Call 2,000,000.003136G0YT2 09/06/2022 3,5352.35009/06/2012 2,011,680.00 2.317 2.3502,000,000.00 Federal National Mortgage Asso1114 Call 2,000,000.003136G0J36 10/11/2022 3,5702.50010/11/2012 2,008,680.00 2.465 2.5002,000,000.00 Federal National Mortgage Asso1115 Call 1,500,000.003136G0J36 10/11/2022 3,5702.50010/11/2012 1,506,510.00 2.465 2.5001,500,000.00 Federal National Mortgage Asso1118 500,000.003136FPXN2 11/24/2017 1,7882.30010/18/2012 535,610.00 0.927 0.940532,439.05 Federal National Mortgage Asso1119 Call 1,500,000.003136G02Z3 11/15/2022 3,6052.25011/15/2012 1,500,960.00 2.235 2.2661,497,778.75 Federal National Mortgage Asso1120 Call 1,000,000.003135G0RC9 10/25/2022 3,5842.20010/25/2012 991,860.00 2.196 2.226997,644.00 Federal National Mortgage Asso743 3,000,000.00313586UB3 12/10/2015 1,07310.35001/30/2008 3,870,810.00 3.987 4.0433,472,620.85 Federal National Mortgage Asso761 Callable 1,000,000.0031398APN6 04/08/2013 974.00004/08/2008 1,010,340.00 3.945 4.0001,000,000.00 Federal National Mortgage Asso763 Callable 1,000,000.003136F9ES8 04/02/2013 914.00004/02/2008 1,009,690.00 3.945 4.0001,000,000.00 Federal National Mortgage Asso776 3,000,000.0031398ANT5 02/25/2013 554.25001/16/2009 3,018,240.00 2.298 2.3303,008,191.67 Federal National Mortgage Asso829 2,000,000.0031359MXX6 03/02/2015 7905.00010/21/2009 2,201,940.00 2.736 2.7742,089,141.58 Federal National Mortgage Asso891 2,000,000.0031359MZC0 10/15/2015 1,0174.37507/07/2010 2,220,700.00 2.100 2.1292,117,824.53 Federal National Mortgage Asso928 1,500,000.0031359MS61 07/15/2016 1,2915.37501/04/2011 1,754,235.00 2.422 2.4551,644,059.26 Federal National Mortgage Asso988 2,000,000.003135G0AL7 03/15/2016 1,1692.25009/13/2011 2,112,720.00 1.029 1.0442,075,330.16 Federal National Mortgage Asso991 2,000,000.0031359M4D2 02/13/2017 1,5045.00009/13/2011 2,353,440.00 1.272 1.2902,294,089.60 Federal National Mortgage Asso995 Callable 2,000,000.003136FR4R1 03/21/2019 2,2702.00009/21/2011 2,007,080.00 1.972 2.0002,000,000.00 Tennessee Valley Authority1132 500,000.00880591EL2 02/15/2021 2,9673.87512/14/2012 580,225.00 1.596 1.618585,512.83 Tennessee Valley Authority1133 1,010,000.00880591EN8 08/15/2022 3,5131.87512/14/2012 1,001,970.50 1.893 1.9201,006,014.89 Tennessee Valley Authority656 1,500,000.00880591CW0 03/15/2013 736.00010/16/2006 1,517,535.00 5.054 5.1251,502,272.21 Tennessee Valley Authority661 3,000,000.00880591CW0 03/15/2013 736.00011/16/2006 3,035,070.00 4.825 4.8923,005,804.86 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a December 31, 2012 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 8 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Tennessee Valley Authority716 3,000,000.00880591DY5 06/15/2015 8954.37508/20/2007 3,287,280.00 5.163 5.2352,948,486.20 Tennessee Valley Authority861 2,000,000.00880591EA6 07/18/2017 1,6595.50004/26/2010 2,418,820.00 3.602 3.6522,146,386.30 Tennessee Valley Authority954 2,000,000.00880591CU4 12/15/2017 1,8096.25005/23/2011 2,521,740.00 2.624 2.6612,324,382.86 Subtotal and Average 411,170,140.21 405,727,333.34 427,343,275.06 2.586 2.622 1,498 Treasury Securities - Coupon U.S. Treasury939 2,000,000.00912828JW1 12/31/2013 3641.50002/17/2011 2,026,020.00 1.292 1.3102,003,690.36 Subtotal and Average 2,003,690.36 2,000,000.00 2,026,020.00 1.292 1.310 364 Total Investments and Average 446,980,947.32 441,534,450.09 463,214,262.70 2.406 2.439 1,380 Portfolio CPA AP Run Date: 01/23/2013 - 12:06 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a 1 General Investment Guidelines: a) The max. stated final maturity of individual securities in the portfolio should be 10 years.Full Compliance b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond 5 years.26.3% c) The City shall maintain a minimum of one month's cash needs in short term investments.Full Compliance d) At least $50 million shall be maintained in securities maturing in less than 2 years. Plus two managed pool accounts which provide instant liquidity: - Local Agency Investment Fund (LAIF) - maximum investment limit is$50 million - Fidelity Investments e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.103.6% d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing.Full Compliance f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market accounts, and mutual funds).Full Compliance 2 U.S. Government Securities:Full Compliance a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. 3 U.S. Government Agency Securities:Full Compliance a) There is no limit on purchase of these securities except for: Callable and Multi-step-up securities provided that: - The potential call dates are known at the time of purchase;Full Compliance - the interest rates at which they "step-up" are known at the time of purchase; and Full Compliance - the entire face value of the security is redeemed at the call date.Full Compliance - No more than 25 percent of the par value of portfolio.23.4% b) Securities will not exceed 10 years maturity. 4 Bonds of the State of California Municipal Agencies None Held a)Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally recognized rating service (e.g., Moody’s and/or Standard and Poor’s). b)May not exceed 10 percent of the par value of the portfolio. 5 Certificates of Deposit:Full Compliance a) May not exceed 20 percent of the par value of the portfolio;None Held b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating agency (e.g. Moody's, Standard & Poor's, etc.). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. 6 Banker's Acceptance Notes:None Held a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with any one institution. 7 Commercial Paper:None Held a) No more than 15 percent of the par value of the portfolio. Attachment C Investment Policy Compliance As of December 31, 2012 Investment Policy Requirements Compliance Check $106.5 million $29.7 million $4.1 million Attachment C Investment Policy Compliance As of December 31, 2012 Investment Policy Requirements Compliance Check b) Having highest letter or numerical rating from a nationally recognized rating service. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser. 8 Short-Term Repurchase Agreement (REPO):None Held a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. 9 Money Market Deposit Accounts Full Compliance a) Liquid bank accounts which seek to maintain a net asset value of $1.00. 10 Mutual Funds:None Held a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. 11 Negotiable Certificates of Deposit (NCD):None Held a) No more than 10 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12 Medium-Term Corporate Notes:None Held a) No more than 10 percent of the par value of the portfolio. b) Not to exceed 5 years maturity. c) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service. d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either rating agencies to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities. 13 Prohibited Investments: a) Reverse Repurchase Agreements b) Derivatives as defined in Appendix B of the Investment Policy 14 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the City, with the exception of : - Certificates of Deposit, Mutual Funds, and LAIF Full Compliance None Held Full Compliance