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HomeMy WebLinkAboutStaff Report 2407-3263CITY OF PALO ALTO CITY COUNCIL Regular Meeting Monday, August 19, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Approval of FY 2025 Stormwater Management Oversight Committee and Utilities Advisory Commission Workplans City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 19, 2024 Report #:2407-3263 TITLE Approval of FY 2025 Stormwater Management Oversight Committee and Utilities Advisory Commission Workplans RECOMMENDATION Stormwater Management Oversight Committee and Utilities Advisory Commission recommend Council review and approve of each Commission’s respective Fiscal Year 2025 Workplan. BACKGROUND On November 30, 2020, the City Council adopted the Boards, Commissions and Committees (BCC) Handbook1, which implemented an annual review and approval of BCC workplans. Each BCC is required to prepare an annual workplan for Council’s review and approval. The annual report should include the results of the prior year’s workplan and should consist of up to three priorities. When applicable, the City Council would like to see metrics of community involvement and participation in meetings and activities included in the workplan. Council may refer additional items to the BCC in response to new developments. If the BCC would like to add an issue for review after an annual workplan has been approved the City Council, a prompt request by the BCC Chair to the City Council is required and the item will then be addressed by the City Council as a whole. BCC workplans for FY 2025 will be presented to Council batched by issue area. At this meeting, Council will review workplans for the infrastructure-related BCCs (Stormwater Management Oversight Committee and Utilities Advisory Commission). Council will review the workplans for the Community Services Division-related BCCs (Human Relations Commission, Parks and Recreation Commission, and Public Art Commission) and Planning and Development-related 1 City Boards, Commissions, and Committees Handbook: https://www.cityofpaloalto.org/files/assets/public/v/2/city-clerk/palo-alto-boards-commissions-and-committees- handbook_final_2022.pdf BCCs (Architectural Review Board, Historic Resources Board, and Planning and Transportation Commission) at a subsequent meeting. FISCAL/RESOURCE IMPACT Projects included in commission workplans ultimately require staff time and other City resources to complete. When possible, staff provide input to the commissions during workplan development to ensure the impact on staff time and resources is reasonable given staff workload and other competing priorities. STAKEHOLDER ENGAGEMENT Commission workplans are discussed publicly either in regular commission meetings or commission retreats. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because this is a continuing administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: FY 2025 Stormwater Management Oversight Committee Workplan Attachment B: FY 2025 Utilities Advisory Commission Workplan APPROVED BY: Mahealani Ah Yun, City Clerk 3/14/2024 Prior Year Accomplishments The Stormwater Oversight Committee reviews the budget and status of capital projects and that they are in line with the ballot initiative. Board/Commission Name Staff Liaison: Karin North, Assistant Director Lead Department: Public Works About the Commission The Stormwater Oversight Committee's workplan is included for FY 25; the current Chair is Hal Mickelson and the Vice Chair is Dena Mossar; the committee members include David Bower, Marilyn Keller, Catherine Perman, Ron Owes, and Bob Wenzlau. The terms for David Bower, Marilyn Keller, Catherine Perman and Ron Owes end on May 31, 2024. The Commission was established by Resolution 8573 and amended by Resolution 9677 and is composed of 7 members, who serve terms of 4 years. Each Committee member shall be a resident, employee, or property owner within the City of Palo Alto. For more information about The Stormwater Oversight Committee please visit our webpage, go to https://www.cityofpaloalto.org/City-Hall/Boards-Commissions/Storm-Water-Management-Oversight-Committee. 2025-2026 Workplan Overview Mission Statement The Stormwater Oversight Committee reviews the projects, programs and expenditures that are funded by the Stormater Management Fees including proposed stormwater management capital improvement and confirms their conformity to the 2017 ballot measure. Current Commissioners Please list the names of the members that were appointed at the time this workplan was created:• Hal Mickelson (Chair) • Dena Mossar (Vice Chair)• David Bower (termed out 2024), Marilyn Keller (termed out 2024), Catherine Perman, Ron Owes (term expires 2024), and Bob Wenzlau Date approved by Stormwater Oversight Committee TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Workplan over the next 2 years Need contractor support to install the upgraded pipeline and pump stations Reduction in the amount of ponding and flooding in the future; confirm that expenditures are in conformity provisions of ballot measure. YES COUNCIL-DIRECTEDPOLICY UPDATE Track and monitor 2017 Ballot Measure, which covers 13 Capital Projects. This workplan focuses on 3 projects and 3 completed project (SD 19000, Loma Verde; SD 22000, East Meadow Drive; SD 26000; East Meadow Circle). Staff Liaison: Karin North, Assistant Director Lead Department: Public Works PURPOSE STATEMENT:The Stormwater Oversight Committee reviews the projects, programs and expenditures that are funded by the Stormater Management Fees including proposed stormwater management capital improvement and confirms their conformity to the 2017 ballot measure. The Stormwater Oversight Committee's goals and purposes are to provide fiscal oversight for the projects funded by the 2017 ballot measure. HIGH PRIORITY Reduce ponding and flooding LOWER PRIORITY Stormwater Oversight Committee PROJECT/GOAL 1 : BENEFICIAL IMPACTS 2025-2026 Workplan No TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED 5-year Municipal Regional Stormwater Permit effective July 1, 2022. Utilize staff and consultant support to meet requirements listed in the stormwater permit. City is in compliance with stormwater permit; reduction of trash and an increase of installation of GSI features throughout the City Yes COUNCIL-DIRECTEDPOLICY UPDATE N/A TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED HIGH PRIORITY LOWER PRIORITY Leverage the work to improve water quality entering the Bay. PROJECT/GOAL 3: BENEFICIAL IMPACTS High priority to complete the upgrades listed in the Stormwater Fee which will reduce the amount of flooding and ponding of stormwater; track and monitor contruction progress on corporation way system upgrades and pump station (SD-21000) Regulatory compliance in alignment with the City's policy on sustainablity High priority for the City to stay in compliance with State mandates on stormwater compliance, which benefits the environment. Track and monitor implementation of Green Stormwater Infrastructure (GSI) Plan. BENEFICIAL IMPACTS Environmental protection and sustainability including regulatory and compliance goals. Track and monitor construction progress on W Bayshore Road Pump Station (SD-20000). Track and monitor construction progress on W Bayshore Road Trunk Line Improvements (SD- 23000). PROJECT/GOAL 2: Ongoing Leverage money allocated for GSI through the Stormwater Management Fund Increased acreage of watershed treated through GSI Yes COUNCIL-DIRECTED POLICY UPDATE N/A TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED FY24-FY25 Project lead by Utilities Staff; resources shared throughout the City; the Stormwater Management Fund will contribute resources for this project Receive Updates N/A COUNCIL-DIRECTED POLICY UPDATE Yes BENEFICIAL IMPACTS PROJECT/GOAL 4:Review One Water Plan One water plan will analyze using the right water for the correct purpose and how to leverage existing water supplies HIGH PRIORITY LOWER PRIORITY The City should analyze all water resources within the City.Implementation of the One Water Plan will be the next step in the process. Improved water quality and environmental enhancement HIGH PRIORITY LOWER PRIORITY 1. Finalize and implement GSI Design Guidance and Specifications for City projects.2. Establish new design process and start implementing designs for City projects. 3. Implement EPA-funded GSI project. 4. Finalize the GSI Maintenance and Monitoring Manual Review and identify a tool to measure impervious surface throughout City. Utilities Advisory Commission 2024-2025 Workplan Staff Liaison: Dean Batchelor, Director of Utilities Lead Department: Utilities About the Commission The Utilities Advisory Commission (UAC) is charged with providing advice on long range planning and policy matters, acquisition, development, and financial review of electric, gas and water resources; joint action projects with other public or private entities which involve electric, gas or water resources; environmental implications of proposed electric, gas or water utility projects; and conservation and demand management. Additionally, the UAC is charged with providing advice on the acquisition, development and financial review of the dark fiber network and wastewater collection utilities. As a highly regulated industry, there may be matters not listed below that will be presented to the UAC in accordance with current or future (local, state, or federal) legislative requirements. The Commission is composed of 7 members. Terms are for 3 years and commence on the first meeting in April. See Palo Alto Municipal Code (PAMC) Sections 2.23.010 (Membership), 2.23.030 (Term of Office), 2.23.040 (Officers), 2.23.050 (Purpose and Duties), and 2.23.060 (Meetings). Current Commissioners • Greg Scharff (Chair) • Meagan Mauter (Vice Chair) • Phil Metz • Rachael Croft • Robert Phillips • Vacant • Vacant Mission Statement The purpose of the Utilities Advisory Commission shall be to advise the City Council on present and prospective long-range planning, policy. major program, and project matters relating to the electric, gas, water, wastewater collection, fiber optics utilities, and recycled water matters, excluding daily operations. The Utilities Advisory Commission shall have the following duties: • Advise the City Council on long-range planning and policy matters pertaining to: Joint action projects with other public or private entities which involve, affect or impact the utilities; Environmental aspects and attributes of the utilities; Water and energy conservation, energy efficiency, and demand side management; and Recycled water matters not otherwise addressed in the preceding subparagraphs; • Review and make recommendations to the City Council on the consistency with adopted and approved plans, policies, and programs of any major utilities; • Formulate and review legislative proposals regarding the utilities, to which the city is a party, in which the city has an interest, or by which the city may be affected; • Review the utilities capital improvement programs, operating budgets and related reserves, rates, and the recycled water program, budget, rate, and thereafter forward any comments and recommendations to the finance committee or its successor; • Provide advice upon such other matters as the City Council may from time to time assign. The Utilities Advisory Commission shall not have the power or authority to cause the expenditure of city funds or to bind the city to any written, oral, or implied contract. The Utilities Advisory Commission may, subject to its City Council-approved bylaws and at the discretion of the City Council, foster and facilitate engagement with the general public, not excluding representatives of commerce and industry, in regard to the utility matters referred to in subsections above. Prior Year Accomplishments Heat Pump Water Heater (HPWH) Pilot: -687 customers have been signed up to participate -200 customers have had completed installs Advanced Meter Infrastructure (AMI) -6,946 gas customers have had completed installs -6,138 water customers have had completed installs -5,766 electric customers have had completed installs CA Renewable Energy Credits (REC's) -Approved by Council on 12/12/2022 to continue the program and return to the UAC and Council in 2025 Fiber-to-the-Premises (FTTP) -Began coordinating grid mod project with FTTP -Identified and began addressing key challenges -Pilot to align grid mod project with FTTP -CEQA Initial Study for FTTP Electric Grid Modernization (Grid Mod) An electric engineering study was completed identifying upgrades needed throughout the electric distribution system, this entails upgrading line transformer capacity, feeder capacity, increasing the number of switches and connections on the system between feeders and substations, and upgrading substation equipment. Construction on the first modernization project is starting in Q2 2024 in a 1200-home neighborhood pilot area bounded by Louis, Amarillo, 101, and Embarcadero. The modernization projects will be coordinated with fiber to the premise construction. To capitalize on synergies between GridMod and FTTP, a Pilot area combining both GridMod and FTTP project was identified, and the joint project boundary has been fixed. The GridMod design was contracted with consultant Entrust, and the design and engineering work for Phases 1-7 has been completed. Engineering staff is preparing construction documents which will be released to Operations for construction in the pilot area starting in May 2024. Equipment procurement is currently underway, with poles anticipated to be received by 04/30/2024, aerial secondary wire by 04/30/2024, and transformers expected by 06/30/2024. The target completion date for the Pilot is 12/30/2024. Sewer System Replacement 31 (SSR31) -Conducted successful outreach meeting with Barron Square HOA residents who have been impacted by the activity at the project’s laydown yard. The on-going communication has been effective to keep the Barron Square residents informed. -The portion of the work requiring 2-lane closure on El Camino Real was performed at night. No more nighttime work is anticipated on this project, unless unexpected condition dictates. -Continue with daytime work. The remaining work will be performed on El Camino Real between Fernando and Sheridan and on Page Mill Road between El Camino Real and Ramons Way. -Project is currently on track to be completed in May 2024, before Caltrans and County of Santa Clara’s paving projects start. Water main replacements 9,893 Feet of water main replaced 252 services replaced STANDING TOPIC 1: Annual Budget - Rate changes to Water, Gas, Electric, Wastewater collection, and Fiber services. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The community will have a better understanding of the rates and why they are being charged. Rates are reviewed annually and each rate change is determined by the COSA reports. UAC review is in March, FCM review is in April and CCM approval is in June Staff time, Legal team review time, Consultant time to create the COSA report. Council approval of budget N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Rates are always a high priority. The change has an impact on the community and economy. N/A N/A STANDING TOPIC 2: Water Supply: Consider potential future sources of water supply. This includes recycled water, demand management programs, grey water, treatment efforts, and use of effluent. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The benefit to the community is to have ample water source and supply when needed in the event of a drought or for basic uses This is not a single effort or project; however, a year-round effort Staff time, Legal team review time, Consultant time for development of the One Water Plan which is a holistic 20-year water portfolio Council approval of the One Water Plan which includes adaptable, dynamic, water supply portfolios. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Having knowledge of where the City's water supply is coming from and how we maintain that supply is a maintained priority.. N/A N/A STANDING TOPIC 3: Electric Supply: Consider updates to the electric supply portfolio and issues relating thereto. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Reliability for customers, health benefits, and clean energy responsible for the vast carbon reduction the City has achieved over the past decade This is an ongoing regularly monitored effort and does not have a start or completion time Approved budget, staff time, legal review time, consultants as needed, and technology Release of RFP for more renewable energy supply options in the Integrated Resource Plan (IRP). Have the IRP near completion to present to the UAC for review and approval. Maintaining and expanding the zero emissions portion of the portfolio and carbon neutral plan. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The health and well being of the community is a high priority for Council and Utilities N/A N/A STANDING TOPIC 4: Gas Supply: Consider aspects of the gas supply portfolio and issues relating thereto BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Gas is a type of energy used to provide some residence and businesses in Palo Alto with heat for their facilities and some cooking appliances. This is not a single effort or project; however, a year-round effort Staff time, Legal team review time, Consultant time when necessary Utilities on average are 10% below PG&E's rates year round N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The health and well being of the community is a high priority for Council and Utilities N/A N/A STANDING TOPIC 5: Utilities CIP's: Discuss CIP projects. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED There are multiple CIP's throughout the Utilities, each with their own benefits to the City and the community from rebuilding the water reservoirs, repairing and replacing sewer lines or water mains, maintaining street lights, building out the fiber backbone, upgrading the meter system to upgrading the outage management system Utilities has multiple projects in their Council approved CIP budget. Most of these projects are multi year based. Staff time, Legal review time, Procurement time for setting up contracts, contractors for work completion Utilities CIP success is completion of the project within the timeline and budget that was approved by Council. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Maintaining quality of life for the community creates the priority for Utilities projects N/A N/A STANDING TOPIC 6: Reliability,Resiliency and adaptation: Ongoing discussions regarding the reliability and resiliency of the utilities. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED This matter encompasses a number of situations including but not limited to the S/CAP program. The benefit of any of the reliability or resiliency projects is to support the City and community now and into the future with reliable, safe connections, water, electricity, fiber and natural gas These programs and projects are year round and do not have a beginning or an end. For example the S/CAP is set to accomplish the goal by 2030 Budget approval, staff time, additional staff, and some use of consultants Maintaining a high level of efficient, safe, economic, and reliable services. YES HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The S/CAP is a Council priority and therefore a High priority for the Utilities Advisory Commission to focus on N/A N/A STANDING TOPIC 7: Legislative Initiatives: The Utility tracks many local, state and federal bills that touch on utilities. Should any new laws, regulations, or ordinances pass during the year, the UAC may need to discuss the changes. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Staff tracks the possible changes in laws and regulations and presents the proposed changes to the UAC for review and consideration to the Council. Legislature meets throughout the year and possible changes can occur at any point that effect utilities Staff time, travel, and legal review time This is a non-measurable project State Mandated HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE N/A The level of priority is based on the particular legislation being proposed and how it effects the regulated utilities N/A STANDING TOPIC 8: Council Driven Initiatives: The UAC will address any matter assigned by the City Council. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The UAC is made up of a diverse group with insight of the innerworkings of and vast knowledge in the utilities arena. Timeline will be addressed once assigned UAC, Staff and legal review time Council approval of completed task YES HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Typically when Council requests a review of an item it is considered a priority N/A N/A Standing Topic 9: S/CAP Support: Discuss community engagement, technology (current & emerging), finance, and community scaling of S/CAP plans to meet the City’s goals for sustainability and climate action. This includes electrification efforts, possible code modifications, potential full or partial retirement of the gas distribution system, and electrification of gas appliances. It also includes permitting and inspection processes for customers wishing to upgrade panels, electrify appliances, or install solar PV, energy storage, and/or EV charging systems. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED UAC expertise will help the Council S/CAP Committee make progress on achieving S/CAP goals with benefits to reducing the impacts of climate change. In these areas: Ongoing support to the S/CAP Committee Staff time The development of clear plans for building electrification, including concrete improvements to utility or permitting processes resulting from UAC actions. YES HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Support S/CAP Committee goals to develop plans and improve processes for building electrification Discussions of other forms of emissions reduction besides building electrification YES FY2025 Topic 1: One Water Plan BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Community will have a 20 – year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives that can be used as a water supply plan. For Council approval in Fall 2024 Staff time, budget for consultant time, Legal team review time Council approval of the One Water Plan which includes an adaptable, dynamic water supply portfolio. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The One Water Plan will serve as a long-term guide to prepare the City’s water supply for future uncertainties like multi-year drought, and climate change. N/A N/A FY2025 TOPIC 2: Electric Grid Modernization and Fiber-to-the-Premises pilot project BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Pilot will inform staff how to align the electric grid modernization and fiber-to- the-premises project to help minimize utility engineering pole make-ready work, pole replacements, noise disruption, and construction activity in neighborhoods, Construction is scheduled to begin in April 2024 and expected to be completed by end of 2024 Staff time, contractor time, and budget Completion of construction of electric grid modernization and fiber-to-the-premise including upgrade of 4kV to 12kV distribution system and offering Palo Alto Fiber ISP to residents in the pilot area. On or below budget YES HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Electric grid modernization will enhance reliability, resiliency, and capacity and enable electrification. Fiber-to-the-premises will provide fast, reliable, affordable, and city-owned fiber internet service to residents and businesses. N/A N/A FY2025 Topic 3: Workforce: Discuss ongoing issues with hiring and retaining qualified utility workers. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Having the ability to maintain a workforce gains consistency in Utility maintenance, and completion of Council approved CIP's By the end of 2024 a succession plan will be in place Ongoing HR time, Utility staff time, budget Filling of all open positions with the right people N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE It is a high priority to fill these open positions in order to lower the overall cost of the Utilities. If critical positions are filled, the need for having contract workers lowers the cost to serve the community. N/A N/A FY2025 Topic 4: Tesla Project - $10M Upgrade to Hanover Substation BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Upgraded substation increases capacity to facilitate electrification process. Start October 2023, completion anticipated September 2024 CPAU design review (1 FTE), construction resource manager (FTE), engineering support and inspection (1FTE each) 2 Fully upgraded 50 mva transformers N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Electrification and an increase of load by 30-50 mva. N/A N/A FY2025 Topic 5: Heat Pump Water Heater BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Reduces the use of natural gas, by reducing carbon emissions and improves indoor air quality December 31, 2024 Staff time, budget 1,000 HPWH’s installed by the end of 2024 YES HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE This is the 1st program for the community to start on the achievement to electrification by eliminating most gas appliances in CPA which is needed to reach the 80/30 goals N/A S/CAP policy FY2025 Topic 6: Gas Hedging BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Lowers the risk to the city by decreasing the volatility of extreme high market pricing that would be passed on to the customer UAC approval in May, Finance Committee approval in June, Council approval in August, and Completion by October Staff time, budget Execution of hedges for the appropriate winter months Council approval needed HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Due to the need to have this implemented in order to execute the transactions in October for the winter months N/A N/A FY2025 Topic 7: Gas Rate Design Review BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Gas rates that are cost-based, constitutionally compliant and with an eye toward competitiveness with gas rates in neighboring communities. Council approval in September 2024 Staff time, budget for consultant time, legal review time. Gas rates that are competitive with neighboring communities across customer classes. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Rate impacts on Palo Alto residents and businesses. N/A N/A FY2025 Topic 8: Management of potential future gas commodity price spikes: Recommend revisions to the Gas Utility Long-term Plan (GULP) to include a strategy for mitigating the impact on customers of market price spikes BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Protect customers from short-term bill impacts For Council approval in Summer 2024 Staff time, Legal team review time Council approval of revised GULP. Yes HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The revised GULP objectives and strategies will provide a framework through which short-term, unexpected commodity price spikes can be mitigated N/A N/A FY2025 Topic 9: Electric Portfolio Rebalancing: Decision regarding the City’s large hydroelectric resource, the contract with the Western Area Power Administration (WAPA) BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The WAPA contract accounts for half of the City’s power needs in an average hydro year. The City must take action to renew the contract or reduce the amount of power purchased under the agreement in the future. Regulatory uncertainty and climate change warrant an evaluation of the contract which will be used to make a recommendation to Council. For Council approval in Summer 2024 Staff time, Legal team review time Council approval. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE N/A N/A