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HomeMy WebLinkAboutStaff Report 2603-61601.Approval of the Minutes of the Utilities Advisory Commission Meeting Held on March 4, 2026 Late Packet Report added Utilities Advisory Commission Staff Report Report Type: APPROVAL OF MINUTES 6:25PM - 6:30PM Lead Department: Utilities Meeting Date: March 31, 2026 Report #:2603-6160 TITLE Approval of the Minutes of the Utilities Advisory Commission Meeting Held on March 4, 2026 This will be a late packet report published on Thursday, March 26, 2026. 9 6 3 9 Utilities Advisory Commission Staff Report From: Alan Kurotori, Director Utilities Lead Department: Utilities Meeting Date: March 31, 2026 Report #:2603-6142 TITLE Approval of the Minutes of the Utilities Advisory Commission Meeting Held on March 4, 2026 RECOMMENDATION Staff recommends that the Utility Advisory Commission review and approve the March 4, 2026 minutes. Commissioner ______ moved to approve the draft minutes of the March 4, 2026 meeting as submitted/amended. Commissioner ____ seconded the motion ATTACHMENTS Attachment A: March 4, 2026 Draft Minutes AUTHOR/TITLE: Alan Kurotori, Director of Utilities Staff: Rachael Romero, Program Assistant I Utilities Advisory Commission Minutes – March 4, 2026 Page 1 of 12 UTILITIES ADVISORY COMMISSION MEETING MINUTES OF MARCH 4, 2026 REGULAR MEETING CALL TO ORDER Chair Scharff called the meeting of the Utilities Advisory Commission (UAC) to order at 6:00 p.m. Present: Chair Scharff, Vice Chair Mauter, Commissioners Croft, Gupta, Metz, Phillips, and Tucher Absent: None AGENDA REVIEW AND REVISIONS None. ORAL COMMUNICATIONS 1. Kanami T. expressed that she was pleased with the work that UAC is doing and expressed excitement for the Induction Water Program and Rebate Program. 2. Sven T. asked the Commission to recommend that the Utility Department focus on the health effects of natural gas stoves. 3. Dave W. suggested that when the UAC selects the new Chair, they ask candidates about their plans to improve the commission’s effectiveness. 4. Prisha agreed with the other public commenters. APPROVAL OF THE MINUTES ITEM 1: ACTION: Re-Approval of the Minutes of the Utilities Advisory Commission Meeting Held on December 3, 2025 ITEM 2: ACTION: Approval of the Minutes of the Utilities Advisory Commission Meeting Held on February 4, 2026 Utilities Advisory Commission Minutes – March 4, 2026 Page 2 of 12 MOTION: Commissioner Croft moved, seconded by Commissioner Phillips, to approve the minutes of the December 3, 2025 meeting and February 4, 2026 meeting. MOTION PASSED: 7-0 UNFINISHED BUSINESS UTILITIES DIRECTOR REPORT Alan Kurotori, Utilities Director, reported City Council approved the Fiscal Year 2026 UAC Work Plan. Council approved contracts for procuring equipment for upgrades of the Maybell electric substation and professional services for a new three-year water leak detection survey in February. City Council approved the Sustainability and Climate Action Work Plan on Monday, heard from Terry Crowley, Chief Operating Officer, on the Reliability and Resiliency Plan, and received feedback from City Council. Director Kurotori acknowledged Councilmember Lauing for suggesting having a UAC commissioner present at the Council meeting and Commissioner Croft for attending the meeting. The City has rolled out a full-service single-family residential home heat pump/water heater program and expansion for a turnkey home electrification program. On February 26, the City began offering a fixed price appliance and expert assistance for electrifying homes including space heating, water heating, cooking, clothes drying, and energy efficiency improvements. Residents will be able to take advantage of existing rebates, technical assistance, and can sign up for the Go Green financing program. There is interest in looking at data centers. Staff will share some of the scenario analysis that was performed by the consultants and bring it back to the full UAC for discussion. The department participated in the city’s Discover Your Career Path fair for youth that was held February 28. NEW BUSINESS ITEM 3: ACTION: The Utilities Advisory Commission Recommend that the City Council Adopt a Resolution Approving the Fiscal Year 2027 Water Utility Financial Forecast and Reserve Transfers, and Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service). CEQA Status: Not a project. Adriana Artola, Senior Resources Planner, provided a slide presentation including water rate projection FY 2027, FY 2027 proposed budget reductions, water bill comparisons, FY 2027 rate increase drivers, water cost and revenue projections, water operations reserve projections, water CIP reserve projections, water reserve projections, cash on hand and credit ratings, water conservation programs and ways to save, communication and outreach, and Staff recommendations. Utilities Advisory Commission Minutes – March 4, 2026 Page 3 of 12 Public Comment 1. Peter D. showed slides depicting the historic and projected wholesale rates, comparison of water demand scenarios, baseline demand projections, residential per capita, and expected population increase. 2. Dave W. discussed advancing Palo Alto's water priorities by playing a leadership role within BAWSCA; supporting Councilmember Stone; exploring alignment between Staff, UAC, and City Council; the importance of having the Urban Water Management Plan project a declining balance; and following up on the questions Councilmember Stone asked of the San Francisco Public Utilities Commission (SFPUC). Commissioner Tucher asked about the 6.9 percent mentioned by Mr. Warner. Senior Resources Planner Artola replied there was a drought the same time rate increases were implemented that affected revenues. The 6.9 percent number is accurate. Commissioner Gupta wanted to vote no or continue the item until May because of the commodity rate trajectory underlying the forecast. The plan does not account for the structural changes happening across the regional water system. Concern was expressed about the SFPUC not answering the questions posed in Councilmember Stone's letter. It was suggested that Council not act on rates until June. A study session should be held in April or May where SFPUC and BAWSCA come before the Committee and give an honest picture of where wholesale rates are heading. Lisa Bilir, Assistant Director, clarified when water rates are presented, the full impact is shown on the customer's bill. It is 10 percent when combining the SFPUC increase with the distribution increase. Council is being asked for a change in the distribution rate because it passes through the SFPUC rate increase to customers. Vice Chair Mauter asked if that is equivalent to the gas commodity charge. Assistant Director Bilir replied it is a different process but it is similar to the gas commodity charge passed through to consumers. Chair Scharff inquired why 15.9 is the rate being moved to but 14 is the reserve amount. Senior Resources Planner Artola stated it is hard to get the reserve amount right at the reserve target while maintaining a smooth rate trajectory. In fiscal year 2028, the reserve balance goes back down. There is a fluctuation in the balance that has to do with smoothing rate increases and changes in spending year to year. Chair Scharff observed 4.2 percent is restoring operating reserves. A lower rate increase could be utilized if there is desire to restore less reserves. Commissioner Phillips asked for clarification about a transfer of 5.5 million from the operating reserves to CIP. Senior Resources Planner Artola responded for fiscal 2027, CIP and operating expenses came down. This allowed an opportunity to add to reserves. Maintaining a 10 percent rate increase for fiscal 2027 allows for a smoother rate trajectory in the future years. If the rate increase is lowered in fiscal 2027, that could require a higher rate increase in later years to Utilities Advisory Commission Minutes – March 4, 2026 Page 4 of 12 recover revenue when spending more on CIP. A rate increase is being deferred and starting off with a lower based period in the following year. The focus is on 2027. The recommendation is to approve the financial plan. Rates are updated yearly. If the water fund outperforms fiscal 27 resulting in higher reserves, the rate trajectory can be adjusted more. Chair Scharff asked what information has been provided on the CIP that shows a need for that. Senior Resources Planner Artola provided a slide detailing projects. Director Kurotori agreed there is some uncertainty but efforts are being put into what the costs would be including capital cost. Commissioner Phillips asked for clarification on the amounts shown on the slide. Senior Resources Planner Artola said the first line is the design cost for the seismic improvements to the reservoirs. Director Kurotori added it is the money intended for the engineering assessment. The water utility's last master plan is more than 20 years old so an evaluation of the system is due in terms of its hydraulic capacity and needs and helps better define some of the capital projects. Chair Scharff inquired what difference it will make if that plan is not done and if it is worth the money. Director Kurotori stated it is also updating the hydraulic model. It is a tool that will ensure development is paying their share for the connection to the system. Chair Scharff queried what is being done at Arastradero Creek. Director Kurotori answered after the floods and storm events in the foothills, some pipelines were undermined. This is the mitigation to do full replacement and restoration. Vice Chair Mauter asked about project 30. Director Kurotori replied those are the watermain replacement programs. Vice Chair Mauter wanted to understand the origins of the variance on slide four. Senior Resources Planner Artola replied it could be related to the age of the system, the infrastructure needs, and what the capital plans look like. Vice Chair Mauter requested a benchmark for the inflation in routine services associated with the water utility to benchmark the efficiency of operations versus the cost of required outside contracted services. Assistant Director Bilir provided slide 26 outlining the consumer price index of urban consumers. Vice Chair Mauter asked if there is a handle on what the nonrevenue water is and the degree to which that is driving costs. Senior Resources Planner Artola provided a slide on real water loss. Real water loss was 1.8 percent for 2024. That was about $500,000 that was not passed through to customers. Vice Chair Mauter stated a cost-of-service study is overdue and encouraged honing in on the cost of service to different pressure zones across the service area. Vice Chair Mauter wanted to make sure Palo Alto is prepared for the set of legal rulings that surround Prop 218's challenge to tiered rates and an analysis of what would happen if tiered rates became illegal. There is a need to be clear about what the operational and capital reserves are intended to do. Commissioner Tucher asked what an operational reserve is and why they should be separate. Utilities Advisory Commission Minutes – March 4, 2026 Page 5 of 12 Commissioner Phillips stated the commissioners are asking for an understanding of the reserve policy across the utilities. Chair Scharff wanted to understand the necessity of the CIP stuff. Director Kurotori mentioned pay-as-you-go has been looked at for capital projects. There was a study about looking at the need for tank replacement. Part of the master plan is looking for total storage. Vice Chair Mauter stated more information would be helpful for these kinds of documents. Director Kurotori mentioned the UAC had a subcommittee look at water and electric rates. The water utility reserve management practices are embedded into the packet and talks about the reserves and the policies associated with that. The City is looking at the reserve policies citywide. That report is coming some time this year. Some of the bonds are finishing up and that is reflected in the rates. It is standard practice to bond on the value and benefits and certainty of the utility receiving the bond. Commissioner Metz wanted discussion about the increase in distribution costs on slide six. Senior Resources Planner Artola replied the distribution rate increases are to fund the City's water utility. The rate increases reflect the rate drivers. The budget includes ways to reduce the operating expenses. It is an ongoing process. Assistant Director Bilir added the distribution rate trajectory on table one pay for all of the CIP. The distribution rate in table one is not separated into capital and operating. The reserve transfer is a one-time event. The Commission can recommend a different or no transfer. The distribution costs will remain the same. The distribution rate pays for distribution operation costs and distribution capital costs. Commissioner Metz wanted to understand the rate increases indicated on table one after 2027. Commissioner Tucher opposed the wholesale rate increase and wanted the Staff's understanding of how SFPUC works. Assistant Director Bilir stated there is a contract with SFPUC that requires them to provide 30 days of notice of their rate increase. The rate increase hearing is typically done in May. In December or January, a courtesy estimated range for the rate increase is provided. This year, the letter indicated the range was between 6 and 9 percent. In February, there is a wholesale customer meeting to provide an updated estimate. BAWSCA does a full audit of the revenue requirement costs every year. The rate increase is driven by the demand regionally. There is a balancing account that tracks any over or under recovery of funds from wholesale customers. That account has been drawn down throughout the drought. Money is owed to that account adding to the rate increase. Commissioner Phillips suggested focusing on the issues about next year and the way the costs are being structured and separate things that can be done to nudge SFPUC in the future. Chair Scharff agreed. The pass-through will have to be done. Commissioner Tucher stated voting yes to the 10 percent sends an advisory message to Council. Voting no sends a different message. Chair Scharff wanted to understand the 10 percent increase. Assistant Director Bilir explained it is on all the services. The distribution rate is a 12 percent increase on all the distribution rates combined with the pass-through change to the commodity rate which is 7.4 percent. The Utilities Advisory Commission Minutes – March 4, 2026 Page 6 of 12 combined impact on a median residential bill is 10 percent. Depending on the amount of water used and different features, it can vary. Commissioner Croft indicated the Finance subcommittee discussed the CIP budget, places the utilities worked to save money on operations, and the surprise in the SFPUC rate. The commissioner had issues with the large distribution cost increase for 2027 but would vote yes. There are issues with SFPUC visibility. Chair Scharff wanted opinions on having Staff come back with a study session about the rate drivers, financial forecast, what the reserves look like, and the CIP. Vice Chair Mauter thought a detailed discussion could be held after the master plan and cost of service study had been finished. Director Kurotori advised the master plans look at the entire system. They provide a CIP recommendation over a 5 to 10-year timeline. There is a plan to look at the age and size of the system and water main replacements that are still needed. Director Kurotori suggested completion of the engineering evaluation and recommendations for the repair, replacement, and seismic retrofit of those two tanks would help inform those discussions. Vice Chair Mauter stated coming back and seeing a finished master plan would be an opportunity to have a cost savings discussion. The vice chair also wanted to see a complementary cost of service study to provide an understanding of how to fairly allocate the costs of providing water to the City's residents. Commissioner Phillips expressed concern about what is driving the reserves. Director Kurotori stated those covenants talk about multiple utilities. Staff is looking at the potential to save money by refinancing those bonds. They might bring something back to see if there can be additional cost savings. Vice Chair Mauter summarized stating a detailed look at operational costs is needed going forward. The Commission and city staff were not prepared to have that conversation due to a lack of information around a master plan. The vice chair wanted to approve this year's cost increases in terms of distribution rates and table the out-year projections for when a legitimate conversation could be held. That should be agendized on the 12-month calendar. Commissioner Croft wanted to assign someone to go to the Finance Committee meeting when these rate proposals will be presented. Commissioner Phillips agreed to go. Vice Chair Mauter stated it is important to make sure the emergency preparedness factor is well addressed when having discussions about reserves and wanted policy around reserves and discussion of the quantity of reserves. MOTION: Chair Scharff moved, seconded by Commissioner Gupta, to recommend that the City Council Utilities Advisory Commission Minutes – March 4, 2026 Page 7 of 12 1. Not Approve the Fiscal Year 2027 Water Utility Five-Year Financial Forecast shown in this staff report and attachments. MOTION PASSED: 7-0 MOTION: Vice Chair Mauter moved, seconded by Commissioner Phillips, to recommend that the City Council 2. Approve a reserve transfer of up to $5,500,000 from the Operations Reserve to the CIP Reserve in FY 2026. MOTION PASSED: 5-2 Tucher, Gupta no MOTION: Commissioner Phillips moved, seconded by Vice Chair Mauter, to recommend that the City Council adopt a resolution to 3. Increase Water Utility Rates for FY 2027 by 8 percent to reflect increases effective July 1, 2026 (FY 2027): by reducing the amount going to the operation reserves by approximately 1.2 million from the proposed amount a. W-1 (General Residential Water service) b. W-2 (Water Service from Fire Hydrants) c. W-3 (Fire Service Connections) d. W-4 (Residential Master-Metered and General Non-Residential Water Service), and e. W-7 (Non-Residential Irrigation Water Service) MOTION PASSED: 5-2 Tucher, Gupta no ITEM 4: ACTION: The Utilities Advisory Commission Recommend that the City Council Adopt a Resolution Approving the Fiscal Year 2027 Wastewater Collection Utility Financial Forecast, and Amending Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal), and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger); CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(5) Eric Wong, Resource Planner, provided a slide presentation including wastewater collection rate projections, FY 2027 proposed budget deductions (wastewater), wastewater bill comparisons, FY 2027 rate increase drivers, wastewater cost and revenue projections, wastewater operations reserve projections, wastewater CIP reserve projections, communications and outreach, and Staff recommendations. Utilities Advisory Commission Minutes – March 4, 2026 Page 8 of 12 Commissioner Gupta asked about the independent contributions of each category to the cost projection. Resource Planner Wong presented a slide that explained the drivers contributing to the increase in the forecast. Aaron Gilbert, Palo Alto Regional Water Quality Control Plant Manager, explained that the major drivers are aging infrastructure and construction for nutrient removal that has been mandated by the state. Increasing projects and staff increases also contribute. Commissioner Gupta inquired what percentage included aging infrastructure and construction. Resource Planner Wong will get that information. Commissioner Croft queried about the criticality of capacity fees. Resource Planner Wong replied the budget has an anticipated $9.4 million capacity fee related to new developments, mostly multifamily. Staff is conservatively projecting only 80 percent of that and splitting it over a 5-year period starting in 2028. As those funds come in, revenue adjustments will be done. Commissioner Croft asked what the risk is. Resource Planner Wong stated $1.5 million per year of revenue is projected from capacity fees spread over 5 years due to uncertainty of the timing of the project. Commissioner Croft had questions about the timeline of the projects. Assistant Director Bilir responded that information is included in the quarterly report. Gilbert added they are in the middle of the secondary treatment upgrade. It is a $192 million project that is split between the 6 partner agencies for cost. It should be fully up and running in 2029. A $16 million project called the primary treatment upgrade was completed last year. A $12 million project has just been signed for. The first phase of the 12kV program upgrade was completed last year. The Headworks program is in the design process. A $60 million advanced water purification station is in the beginning stages of construction, mostly paid for by Valley Water and Mountain View. Commissioner Croft asked if they are working on projects they are servicing the debt on. Gilbert replied that some of the smaller projects have been able to utilize minor CIP. There was one loan for the primary sedimentation tank. There was a State Revolving Fund (SRF) loan for the $192 million project for the Secondary Treatment Upgrade (STU). They will not have to start paying that back until the project is completed in 2029. Assistant Director Bilir provided a slide with more details. Commissioner Croft asked if they already have the money they will start paying in 2030. Assistant Director Bilir's understanding was that the loan is at a very good interest rate. When receipts are submitted, the state reimburses the funds. Vice Chair Mauter asked what the rate is on the SRF loans. Gilbert answered the one for the STU is 0.8 percent. Commissioner Phillips observed the rates are charged by connection for residential but volumetric for commercial and restaurant. Resource Planner Wong said the prior year's winter average is used for commercial. Restaurant is monthly based on their volumes. Commissioner Phillips inquired if a cost of services analysis has been done. Assistant Director Bilir responded the latest cost of service study was in 2021. That can be looked at when returning to wastewater for cost of service. Director Kurotori added there is a connection and capacity fee. The residents are not paid a volumetric charge. It will be reassessed in terms of the loadings and estimates of the flows when the cost of service study is done. Commissioner Phillips asked Utilities Advisory Commission Minutes – March 4, 2026 Page 9 of 12 if flows have been increasing or decreasing over time. Gilbert replied it is down compared to 15 years ago. It is up from COVID. Commissioner Phillips asked about the processing charge. Gilbert answered one part is the cost share which is the capital. There is also the flow and loading based. That fluctuates each year. Commissioner Croft wondered if there are reasons to try to manage stormwater better. Gilbert stated flows are normally about 18 million gallons per day and can jump to 40 million gallons per day after a storm. Most cities have influx and infiltration (I&I) that increases the total flow volume over the year. Commissioner Croft wondered if that has ever been a City initiative. Director Kurotori explained the inflow and infiltration during high wet weather goes into the sanitary sewer system. There is a separate storm drain system that collects rainwater that goes into the gutters and goes into the creeks and bay. There could be connections where a resident may have connected into the sewer from the storm. It can come from events where there is flooding. People could be popping manholes to get rid of the flow creating a surge into the sanitary sewer system. It could happen as inflow into the pipeline. Sewer condition assessments are done. The City has switched to high-density polyethylene pipe so there is less I&I. It is still an issue for sewer and storm drain systems in general when there is high groundwater. Nuisance groundwater levels can impact the I&I going into the sewer system. There is value in tightening up the pipes and system. Gilbert added it is not part of their scope to track who has I&I. Director Kurotori said part of the I&I is the nuisance groundwater levels. Some pipes close to the bay can get saltwater intrusion affecting the salinity. Gilbert said there is a significant difference between the wet and dry seasons. Better managing the stormwater would help the Operations and Maintenance (O&M) treatment process during the year and lower the O&M cost. Commissioner Croft asked if the change of material on the pipes will lower this over time. Director Kurotori explained the pipeline rehab could be full replacement with high-density polyethylene pipe or a slip lining in areas with cracks or breaks. That is part of the condition assessment. Commissioner Croft asked about draining swimming pools. Director Kurotori stated swimming pools should be drained into the sanitary sewer. Commissioner Tucher inquired if Palo Alto is the lowest monthly residential wastewater city district as indicated on slide four. Director Kurotori stated compared only to the agencies on that slide. Commissioner Tucher found the analysis of FY25 confusing. Assistant Director Bilir stated there is a misplaced comma and it should not say approximately 1.9 million. It will be reworded. Commissioner Tucher did not see the point in discussing FY25 and urged improving the write-up. The commissioner had questions about the master plan. Gilbert said the treatment plant is currently going through an updated master plan. One was done in 2012 and Headworks is the last project being finished from that. An updated long-range facility plan is currently being done. Director Kurotori stated there was in update to the sewer master plan in November tying into flow metering into the system and updating the sanitary sewer hydraulic model. That information will be integrated into the system. The master plan will have recommendations for CapEx, capital projects, and tie into areas looking at capacity. That has to be prioritized in terms of what areas have capacity limitations, wet weather flows, and pipe condition assessments. Utilities Advisory Commission Minutes – March 4, 2026 Page 10 of 12 Chair Scharff asked what percentage of costs are caused by regulation increases and having to rebuild the water treatment plant. Gilbert will get the information. The secondary treatment project is based because of biological nutrient removal necessities. That process is the reason for the STU upgrade. That project is $192 million divided by the capital capacity for each agency and is driven by the regulations. Assistant Director Bilir presented slide six to break down the rate increase drivers. Gilbert indicated aging infrastructure as one of the biggest drivers. Chair Scharff observed a $30 increase before 2029 with 6 percent. Assistant Director Bilir confirmed that to be right. Chair Scharff asked about the confidence of not going into double digit increase. Assistant Director Bilir stated attempts to identify uncertainties that would go into the forecast are being made. Vice Chair Mauter indicated a need to establish a stronger line of communication between the UAC and Public Works. There could be a committee to focus on what is happening at the wastewater facility and ensuring the impact the operational changes and capital upgrades are going to have on rates are well understood by the Committee. Director Kurotori replied the UAC looks at all the rates for the utilities. The wastewater treatment plant is a component but is not under the scope of the UAC. It is under the purview of the Public Works Department. Gilbert explained there are six partner agencies each with a fixed share capacity. Mountain View and Palo Alto are the two largest. When it was created in 1968, it was decided that Palo Alto would be in charge of the facility. Kiely Nose, Assistant City Manager, explained this falls under the Public Works Department which falls under the city manager's authority. There is no specific commission, committee, or board associated with it. The work associated with it goes through the appropriate Council committee, whether it be Policy and Services or Finance Committee, and then to the full Council. There is a non-governance structure that happens before those two which is coordinating with all the partners. They have partner meetings on a routinized basis. Vice Chair Mauter asked about efficiency for electrical usage and storage. Gilbert stated work is being done on an energy evaluation at the plant. Vice Chair Mauter asked for clarification that the current upgrades will fully cover the 2035 and going forward regulations. Gilbert confirmed they will and there will be the capacity to intensify the process if necessary. Vice Chair Mauter wanted to know if there are discussions about Palo Alto participating in nutrient markets or engaging in bilateral trade agreements with other cities to help offset the capital costs. Gilbert answered there are not active talks but people are starting to talk. MOTION: Vice Chair Mauter moved, seconded by Commissioner Croft, to recommend that the City Council adopt a resolution (Attachment A): Utilities Advisory Commission Minutes – March 4, 2026 Page 11 of 12 1. Approving the Fiscal Year 2027 Wastewater Collection Utility Financial Forecast shown in this staff report and attachments; and 2. Amending Rate Schedules (Attachment A, Exhibit 1) effective July 1, 2026 (FY 2027): a. S-1 (Residential Wastewater Collection and Disposal) b. S-2 (Commercial Wastewater Collection and Disposal) c. S-6 (Restaurant Wastewater Collection and Disposal); and d. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) MOTION PASSED: 6-1 Gupta no FUTURE TOPICS FOR UPCOMING MEETINGS Director Kurotori pointed out adjustments to the 12-month rolling calendar. The election of UAC chair and vice chair will be pushed to May. The Urban Water Management Plan will be discussed in May with the intent to bring to full Council in June. Commissioner Gupta asked if there is an option to push the UAC work plan back to let the current work plan work itself out. Director Kurotori stated it will be the new process for the annual work plan. The earliest time frame is the month after the chair is seated. It is possible to push it further out if the Commission wants to. Commissioner Tucher asked for comments on how the Council discussion went on the work plan. Director Kurotori said there were three work plans from Community Development with lengthy discussions. Director Kurotori indicated Councilmember Burt had comments on the Reliability and Resiliency Plan that went to Council on Monday. Commissioner Metz thought it would be important to address data centers as part of the grid mod project updates scheduled for July. Director Kurotori said that would be brought back to the Affordability subcommittee to look at electric rates and that will be reported out at the next meeting. Commissioner Metz talked about the importance of having a strategic discussion of the gas transition study. Director Kurotori indicated that may be something to put into the work plan. The Sustainability and Climate Action Committee is also looking at the gas utility in terms of potential carbon tax. Part of the gas transition plan is updating the modeling associated with that and is a work in progress. Commissioner Phillips wanted a report on the FTTP pilot report. Director Kurotori would reframe it as information on the costs and a pickup of customers. A more definitive plan will be brought back. Commissioner Tucher stated it would be good to hit the high points about what was about wastewater when the plan is finished in the Director's Report. Director Kurotori agreed. Utilities Advisory Commission Minutes – March 4, 2026 Page 12 of 12 Commissioner Croft wanted a time of use update in the Director's Report and asked if the discussion of long-term electricity outage plan would be brought back. Director Kurotori indicated a time of use report will be brought back as an action item. Commissioner Gupta observed it will be helpful to have a discussion on what is advertised in the bill inserts and gas safety pamphlet in terms of stovetops when gas is discussed again. Director Kurotori said Council took an action in terms of the Climate Action Plan and would like to include some of that information. COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS Commissioner Metz appreciated the informational report on residential electric and water customer satisfaction surveys. The commissioner observed there has been no action since 2018 regarding the informational report on sampling of water microplastics and asked if something should be done about that. Director Kurotori will provide that as an update to the work plan. ADJOURNMENT Adjournment: The meeting was adjourned at 10:05 p.m.