HomeMy WebLinkAboutStaff Report 3247
City of Palo Alto (ID # 3247)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 12/18/2012
City of Palo Alto Page 1
Summary Title: Community Engagement on City-wide Electric
Undergrounding
Title: Utilities Advisory Committee Recommendation that the Finance
Committee Recommend that the City Council Appoint an Electric
Undergrounding Advisory Body
From: City Manager
Lead Department: Utilities
RECOMMENDATION
Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee
recommend that the City Council appoint an advisory body to solicit broad community input on
potential changes to the City of Palo Alto Utilities electric overhead to underground conversion
policy.
EXECUTIVE SUMMARY
It is necessary to engage the community on the future direction of electric overhead to
underground conversion policies in Palo Alto. The goal is to initiate a process that results in
recommendations that represent the broadest spectrum of support from the community. Due
to the likelihood that the continuation or acceleration of the program, if desired, will result in
increased funding needs or require a funding source that may necessitate an official vote of the
people, it is necessary to ensure the procedural structure provides recommendations that will
position the effort for success.
BACKGROUND
The idea of electric undergrounding is not new to the City of Palo Alto. The existing
undergrounding program was started in 1965 and approximately 46% of the City has been
undergrounded through overhead to underground conversion, or was originally developed with
City of Palo Alto Page 2
underground utilities.1 The electric utility allocates approximately 2% of annual electric
revenue for funding undergrounding projects. If the City continues on its current pace of
converting overhead to underground, it will take approximately 70 years to complete the
undergrounding of the entire City.
In January 2010, the UAC received a report to provide context and historical background on
undergrounding in Palo Alto. In September 2011, staff provided a report to the UAC on future
options for the program. In November 2011, the Finance Committee was provided an update
on the program and discussed future options as well. During the October 2012 UAC meeting,
Staff presented a proposal to create an advisory body to make future policy direction
recommendations to Council.
1 The majority of undergrounded facilities are in commercial areas. Approximately 15% of residences have
underground facilities.
City of Palo Alto Page 3
DISCUSSION
Electric undergrounding discussions bring up a myriad of issues that are difficult to weave
together to form a policy which will guide the City for decades. There are both pros and cons to
electric undergrounding from an electric utility perspective, though fundamentally a decision to
underground electric facilities throughout the City is primarily based on aesthetic values and is
not a critical component of providing electric service to the residents and businesses in Palo
Alto. As such, the decision to make substantial changes to the existing program to accelerate
undergrounding will be based on individual considerations and value judgments. Due to the
very high cost of the conversions, it is preferable to engage the community early in the
discussions on policy formulation.
Staff recommends the creation of an advisory body with enough expertise and community
representation to produce findings and recommendations that reflect the diverse interests of
the community. The tasks of the advisory body should include the following:
1. Gain subject matter expertise on current and past electric undergrounding efforts in
Palo Alto
2. Evaluate future electric underground program modifications and associated
payment mechanisms
3. Consider equity issues as part of the policy formulation
4. Solicit and receive feedback from the community on the different potential
programs and costs
5. Make program recommendations to UAC and Council for eventual adoption
There are remaining considerations on the appropriate advisory body structure. Actions to
create the advisory body by City Council or the UAC will trigger Brown Act requirements, which
include more formal meeting and reporting requirements and will result in a perhaps slower
but more public process. A decision of this magnitude may benefit from validation by a more
formal process that cannot be obtained by a committee that is, for example, created by the
Utilities Director or the City Manager and may not be subject to the Brown Act.
For discussion purposes, staff has identified two potential structures for the advisory body:
1. A citizen advisory committee appointed by City Council or UAC
2. A citizen advisory committee appointed by the Utilities Director or the City Manager.
City of Palo Alto Page 4
Staff recommends a citizen advisory committee appointed by either City Council or the UAC as
the best structure to thoroughly evaluate the issues and financial implications and make
recommendations to Council for future implementation.
COMMISSION REVIEW AND RECOMMENDATION
The UAC was generally supportive of the staff proposal, but had several follow up questions
regarding the tasks for the workgroup and level of commitment that will be required. Staff
responded that one of the initial tasks for the advisory body will be to establish the tasks and
scope for the advisory body. In terms of time commitment, the advisory body will need to
commit time to familiarize themselves with the issue and the future program policy directions.
Staff initially anticipates the advisory body will meet every other month. After much discussion
on various alternatives on committee structure and member makeup, Commissioner Eglash
moved the staff recommendation, which was seconded by Commissioner Hall. Commissioner
Foster offered an amendment to specify that the City Council appoint the advisory body. With
the amendment accepted, the motion read: “The UAC recommends that the Council appoint an
advisory body to solicit broad community input on potential changes to the City of Palo Alto
Utilities electric overhead to underground conversion policy”. The motion passed 3-0, with
Commissioner Waldfogel abstaining.
RESOURCE IMPACT
The creation of a citizen advisory committee will not result in additional budget requirements,
but will require active staff participation in the administration of the committee, especially if it
involves Brown Act requirements.
POLICY IMPLICATIONS
The purpose of the advisory body is to develop recommendations on potential future policy
directions for City Council consideration and approval.
ENVIRONMENTAL REVIEW
The creation of an advisory body does not meet the California Environmental Policy Act’s.
definition of a project under Public Resources Code 21065. In addition, conversion of overhead
electric facilities to underground is categorically exempt from CEQA review under Public
Resources Code Section 15302 (d).
Attachments:
Attachment A: Excerpted Final UAC Minutes of September 5, 2012 (PDF)
Attachment B - Map of Underground Conversion Projects (PDF)
EXCERPTED FINAL MINUTES OF THE SEPTEMBER 5, 2012
UTILITIES ADVISORY COMMISSION MEETING
ITEM 1: ACTION: Recommendation on an Advisory Body Structure to Solicit Public Input on the City of
Palo Alto Utilities’ Electric Undergrounding Policy
Senior Resource Planner Nico Procos presented slides on the appointment of an advisory body to evaluate
potential changes to the overhead to underground conversion program. Staff recommended the advisory
body be appointed by the City Council or Utilities Advisory Commission.
Commissioner Eglash stated that he supported the staff recommendation as it needs to have the greatest
possible legitimacy in the community since there will be unpopular outcomes for different groups depending
on the ultimate decision. Therefore, the process to arrive at a recommendation must be supported by the
community. Commissioner Eglash asked about the tasks identified for the advisory body. Procos
responded that part of the first task of the advisory body would be to develop a more thorough task list and
to clarify the scope of work for the advisory body. Fong suggested that the Infrastructure Task Force could
be used as a model for this body.
Commissioner Hall asked how often would the committee meet and how much commitment would be
required to participate in the committee. Procos said that the body would need to commit time to
understand the background of the program and options for funding the work in the future. Fong said that it
will likely be meetings at least every other month. Hall stated that the UAC could perform this task
depending upon the time commitment.
Commissioner Eglash commented that the staff recommendation is responsive to the need to have broader
community support and not a function of whether the UAC has the time to commit to the job.
Commissioner Waldfogel offered another option is for the UAC to appoint an ad hoc subcommittee and to
include members of the planning commission and Architectural Review Board. He stated that it may be
best to have someone other than Utilities lead this process and that it may be better suited for Planning, as
the undergrounding is primarily for aesthetic considerations. The key question is whether to spend the
money for the aesthetic benefit for the community.
Vice Chair Foster said that he would recommend that the Council appoint a committee and include at least
two members of the UAC.
Commissioner Eglash stated that this is really a Utilities issue, but best for a community committee to get
broad input and that the Brown Act requirements are in line with the need for transparency in the process.
ACTION:
Vice Chair Foster made a motion to recommend that the City Council appoint an advisory body to solicit
broad community input on potential changes to the CPAU electric overhead to underground conversion
policy and that the advisory body should include two UAC members, two members of the ARB and two
members of the Planning Commission be appointed to the body.
Commissioner Eglash preferred that UAC members not be on the body itself, but be associated with the
body in an advisory role to provide comments and input.
Vice Chair Foster stated that he didn’t have a strong feeling about the need for UAC members to be on the
body, but recognized that the UAC has worked on this issue and may have some valuable information it
could provide to the body.
The motion died for lack of second.
Commissioner Eglash moved the staff recommendation, Commissioner Hall seconded the motion. Foster
offered an amendment to specify that the Council appoint the advisory body. Since the ultimate path may
require a vote of the people, the advisory body is best to report to the Council. Procos stated that a
possible funding option could be in the form of an electric rate increase which may be brought before the
commissioners. Commissioners Eglash and Hall accepted the amendment so that the motion reads: “The
Utilities Advisory Commission recommends that the Council appoint an advisory body to solicit broad
community input on potential changes to the City of Palo Alto Utilities electric overhead to underground
conversion policy.” The motion passed (3-0) with Commissioner Waldfogel abstaining.
UG DISTRICT #5
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PROPOSED UNDERGROUND DISTRICTS
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UG DISTRICT #14UG DISTRICT #15
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UG DISTRICT #35UG DISTRICT #36
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UG DISTRICT #401979
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2012 - 2013
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UG DISTRICT #46
EXISTING UNDERGROUND DISTRICTS
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UG DISTRICT #44 2004
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ELECTRIC ENGINEERING
UTILITIES DEPARTMENT
CITY OF PALO ALTO
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AUG 2O1O
1982UG DISTRICT #21
UG DISTRICT #41 2008
2013 - 2015UG DISTRICT #43
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2011 - 2013UG DISTRICT #47
UG DISTRICT #45 2010
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