HomeMy WebLinkAboutStaff Report 2301-08951
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: April 3, 2023
Staff Report: 2301-0895
TITLE
Approval of the Utilities Department‘s 2023 Legislative Guidelines
RECOMMENDATION
Staff recommends the City Council approve the Utilities Department‘s 2023 Legislative
Guidelines as reviewed and approved by the Utilities Advisory Commission.
EXECUTIVE SUMMARY
On February 1, 20231, the Utilities Advisory Commission (UAC) received a staff presentation
related to 2022 state legislation and potential regulatory, legislative, and state budget issues for
2023. After the verbal presentation, staff recommended the UAC approve a set of legislative
guidelines for 2023, subject to Council approval. After a review of draft guidelines and a
discussion of the staff proposal, the UAC voted to approve the 2022 guidelines for 2023.
BACKGROUND
The Utilities Department is possibly the City’s most regulated department, particularly at the
state level. The scope and breadth of regulatory and legislative action span most utility lines,
especially the water and electric utility. Examples of the issues with recent government action in
just these two utility lines include: water quality testing and reporting, wildfire mitigation action
reporting, carbon emission accounting, electric resource adequacy requirements, water pipe
testing, bond financing, notification procedures prior to fieldwork, and electric resource
planning.
This unique public policy environment - and the related staff effort necessary to respond, educate
policymakers, inform stakeholders, and advocate for departmental priorities - calls for a set of
legislative guidelines specific to the Utilities Department. These guidelines, approved by the UAC
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and Council annually, work in parallel with the City’s own legislative guidelines and the City’s
Advocacy Process Manual, the latter of which specifically notes the distinction of the Utilities
Department.
Per the annual process, on February 1, 20231 the UAC discussed and formally moved that the City
Council approve the 2023 Utilities Legislative Guidelines (Attachment A). At the February 1
meeting, staff suggested changes to the guidelines for 2023. The changes were an attempt to
remove the call to any specific action and clarify values while maintaining the same set of
principles as in prior years. The UAC found the suggested changes to be too vague and
ambiguous, such that they would provide little actual guidance, particularly to any new staff
participating in the Utilities legislative and regulatory affairs program. As such and as the 2022
guidelines served the current staff well, the principles remain the same, and there is no apparent
need to significantly change them for 2023, the UAC voted to approve the 2022 guidelines for
2023.
As an indication of effectiveness, this is the third time the UAC has approved the same guidelines.
When first crafted in 2020, the guidelines were intended to be evergreen in nature, subject to
Council approval and UAC review each year. The attempt to craft ongoing guidelines that allow
for reasonable staff discretion and annual UAC discussion has worked well. Council is now asked
to approve the same guidelines for 2023 that it approved on January 13, 20202, February 8, 20213,
and February 7, 20224. This request corresponds with the November 7, 20225 Council staff report
noting that the UAC “will make their recommendations soon, reflecting recent City Council
actions and bring the proposed 2023 Utilities Legislative Guidelines for City Council adoption on
Consent in early 2023.” Also, of note in the Citywide Legislative Guidelines, the City Council added
a new guideline to ”Strengthen and modernize the State and Local electric grids” as a link to
Utilities Guideline #13 of “Support government action to expand the workforce in trades and
technical disciplines necessary to support building and vehicle electrification and grid
modernization” (based on City Council direction during an SCAP discussion in late 2022).
FISCAL/RESOURCE IMPACT
1 Utilities Advisory Commission Meeting February 1, 2023
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory-
commission/archived-agenda-and-minutes/agendas-and-minutes-2023/02-feb-2023/02-01-2023-id-14676-item-
3.pdf
2 Utilities Advisory Commission Meeting January 13, 2020
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020/id-10772.pdf
3 Utilities Advisory Commission Meeting February 8, 2021
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-11968.pdf
4 City Council Staff Report 13904 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81746
5 City Council Staff Report 14913 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82114
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There is no direct resource impact associated with adopting legislative guidelines for the Utilities
Department. However, actions taken that support the efficient use of the City’s resources will
help control costs, implement the Council’s policies and goals, and protect the interests of our
community.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Attachment A
UTILITIES LEGISLATIVE POLICY GUIDELINES: 2023 UPDATE
City of Palo Alto Utilities Department (CPAU) staff will use the below guidelines as well as
the City’s guidelines to help determine any advocacy position or action on Utilities-related
issues. Formal advocacy, such as submitting written letters or comments and meeting with
policymakers and/or staff, requires the approval of the Utilities Director or his designee.
1. Seek to preserve local government flexibility, discretion, accountability, and oversight of
matters impacting utility programs, services, activities, and rates. Oppose action that could
hamper or minimize this flexibility or discretion.
2. Where possible, seek funding and program incentives.
3. Advocate for reasonable government action with minimal customer impact that allows for
flexibility and implementation feasibility.
4. Advocate for locally-designed conservation or efficiency programs. Support reasonable State
conservation or efficiency requirements that consider local populations, environment, and
resources.
5. Inform state and federal policymakers about CPAU’s current programs, services, goals, and
reporting requirements.
6. Oppose unnecessary, unreasonable, impractical, or costly rates or mandates.
7. Collaborate with and support the efforts of regional agencies and associations whose goals
align with ours.
8. Advocate for fair cost allocation and support the principle of beneficiary pays.
9. Support efforts to maintain or improve the security and reliability of our infrastructure.
10. Support government action that cost effectively reduces greenhouse gas emissions.
11. Promote locally-designed residential and commercial electrification programs.
12. Support government action allowing CPAU to maintain customer confidentiality.
13. Support government action to expand the workforce in trades and te chnical disciplines
necessary to support building and vehicle electrification and grid modernization.
Approved by the Utilities Advisory Commission on February 1, 2023
Approved by City Council on _____________, 2023